Using HRD Corp Funds to Buy Computers: What Malaysian Employers Need to Know

01Overview

If your HRD Corp levy balance keeps growing, you can put part of it into computers and training infrastructure, not just courses. Two schemes under the HRD Corp Allowable Cost Matrix (ACM) make this possible: the Training Facilities and Renovation Scheme (ALAT) and the Information Technology and Computer-Aided Training Scheme (IT Scheme).

Many employers we speak with see the levy in one narrow way. Send staff to a course, submit a claim, get reimbursed. When staff turnover is high, that model feels like paying to train someone else's workforce, so the levy sits idle.

Infrastructure changes the equation. A training room or a computer lab stays with your company regardless of who joins or leaves. In this article, we set out what each scheme funds, the conditions HRD Corp applies, how to apply, and the accounting and tax points you should plan for before you buy.

02Two schemes, two purposes

ALAT funds the training room. The IT Scheme funds the computers inside it. Here is how the key terms compare under the ACM Guidebook (November 2025 edition).

ALAT: the training room. ALAT helps you set up, renovate or enhance a training room for in-house training. It funds training equipment used solely for training, plus a defined list of room works: overhead projector wiring, wall painting, air conditioner setup, carpet, blinds and glass walls, ceiling renovation, electrical outlet wiring, and network and internet installation.

Funding is capped at 50% of your levy balance as of 1 January of the application year. Equipment must sit in the declared training venue. ALAT does not fund building construction, training centres, room rental, software, signage or cabinets, nor standalone labour, installation, delivery or cleaning charges.

IT Scheme: the computers. The IT Scheme helps you retrain employees in information technology by funding desktop computers or laptops for training. A webcam and the first year of internet subscription come as part of the equipment to support online learning.

Funding is capped at RM25,000 per application. Your headquarters and each branch may apply once every three years from the first or previous application, even if the full RM25,000 was not used, and a branch does not need to wait for the headquarters application. The number of units follows a ratio of one desktop or laptop for every five employees. You need a fixed computer training room, although SMEs may qualify without a proper computer lab. Application software for daily operations is outside scope.

One practical point: laptops can come through either route. The IT Scheme is the direct path for a computer lab. ALAT covers laptops or tablets for an internal trainer who develops training modules.

03Conditions that decide approval

The rule that catches most employers is timing. You must obtain grant approval before you buy anything. Purchases made before approval are not claimable under either scheme.

The other conditions you should check before applying:

• Registered and active. You must be an HRD Corp registered employer, active, with no legal issues with HRD Corp.
• Six-month window. Once approved, you must complete the purchase within 6 months of the approval date, then submit your claim.
• Quotation versus receipt. Approval is based on the quotation. Reimbursement follows the actual cost on the receipt, so a cheaper final invoice means a smaller reimbursement.
• Training use only. Equipment must be used solely for training and be relevant to your nature of business.
• Location is tracked. You must declare where the equipment sits. Any relocation, disposal or loss must be disclosed to and approved by HRD Corp beforehand.
• Company size matters for the IT Scheme. HRD Corp states that SMEs may buy computers without a proper lab, while larger companies must have a training lab room.

04How to apply

For the IT Scheme, the process runs in six steps, with the application made through e-TRiS. ALAT follows the same sequence, with a room layout plan and supplier or contractor quotations in place of the computer training lists.

1. Confirm eligibility. Check your levy balance as of 1 January, your registration status, and when your headquarters or branch last applied under the IT Scheme. Size the number of units against the ratio of one computer for every five employees.
2. Prepare the documents. You will need one quotation from one vendor, with full computer specifications or brochures (processor, RAM, storage, monitor, input devices). Add a list of computer training programmes conducted last year, with hours and trainee numbers, a list of proposed computer training programmes for the next year, and a sketch of the classroom size including the layout plan of the computers. If you ran no computer training last year, you may submit a justification instead.
3. Submit through e-TRiS. Log in to your employer e-TRiS account, go to Applications, then Grant, then Apply Grant, and select IT from the Scheme Code menu. Complete the Employer's Profile, Programmes Conducted in the Past 1 Year, Programmes to be Conducted, Estimated Cost for IT (model and price) and Vendor Details sections. Attach your supporting documents, click Save, then Submit Application.
4. Wait for approval. HRD Corp states that a Grants Officer reviews submitted applications within two working days and may ask for further information. The status appears on your e-TRiS Dashboard and Inbox, and you are notified by email. Do not place the order until the grant is approved.
5. Buy within 6 months. Purchase the approved items within 6 months of the approval date.
6. Submit the claim. Upload official receipts and invoices with a detailed breakdown, plus any further documents HRD Corp requests.

05Accounting, tax and audit considerations

A funded computer is still your asset, and it carries reporting consequences beyond the HRD Corp claim.

Accounting. The reimbursement relates to a capital purchase. You will need a policy for presenting it, either as a reduction in the asset's cost or as deferred income released over the asset's useful life. MFRS 120 Accounting for Government Grants and Disclosure of Government Assistance, or Section 24 Government Grants for entities on MPERS, is the starting point. Whether an HRD Corp reimbursement funded from your own levy falls within these standards is a matter of judgement, so agree the treatment with your auditor early.

Tax. For capital allowance purposes, we would generally expect qualifying expenditure to reflect only the cost your company actually bears, net of the reimbursement. Check the position against the Income Tax Act 1967 and current LHDN guidance before you file, particularly if you also plan to claim any accelerated capital allowance on ICT equipment.

Audit and asset control. HRD Corp requires approval before any relocation or disposal and requires damage to be reported. Tag funded assets in your fixed asset register, record their training location, and keep the grant approval, receipts and training records together. These records support both an HRD Corp review and your statutory audit.

06Disclaimer

This article is general information based on the HRD Corp Allowable Cost Matrix Guidebook (November 2025 edition) and is not advice on your specific circumstances. Terms, conditions and eligibility are subject to HRD Corp's approval and may be revised at its discretion. Verify the latest guidelines at hrdcorp.gov.my before submitting any grant application, and consult a qualified adviser on the accounting and tax treatment.

07Sources

• HRD Corp Allowable Cost Matrix Guidebook, November 2025 edition
• HRD Corp, Information Technology (IT) scheme page
• HRD Corp Support Centre, Information Technology Scheme (IT) application guide