(TAX UPDATE) Use HRDF to Buy Computer and Notebook

"My HRDF Levy Is Just Sitting There" A Story Many Employers Know Too Well

Introduction

It was a regular Tuesday afternoon when my phone rang.

"Teck Peng, I have a problem," said Ah Seng, the HR manager of a mid-sized manufacturing company in Johor Bahru. I had known him for years … sharp, practical, always on top of his numbers.

"My HRDF levy balance keeps growing. We're not spending it fast enough. And honestly, every time we send staff for training, half of them leave within six months. I feel like I'm paying for someone else's workforce."

I hear this more often than you might think.

High staff turnover makes employers reluctant to spend on training. Low training spend means the levy accumulates. And when the next audit cycle comes around, the under-utilisation shows up like an embarrassing footnote.

It's a cycle that quietly frustrates a lot of employers but few know there's a smarter way out.

The Root Problem: Training Is Not Just About Courses

Most employers think of HRDF (now HRD Corp) levy in one narrow way … send staff to a course, submit a claim, get reimbursed. When turnover is high, that model feels like throwing money into a revolving door.

What many don't realise is that HRD Corp offers schemes that invest in your infrastructure … not just your people. Two in particular are worth knowing about.

Scheme 1: ALAT — Build Your Training Room, HRD Corp Helps Pay

The Training Facilities and Renovation Scheme (ALAT) is designed to help employers set up, renovate or enhance a dedicated training room within their premises.

Think of it this way : instead of sending your staff out for training (and watching them walk out the door six months later), you bring training in-house.

You create an environment where upskilling is part of your daily culture — not a once-a-year event.

What can ALAT fund?

Under this scheme, your company can apply for financial assistance to purchase training equipment and renovate your training room. The list includes:

Overhead projector and wiring setup
Air conditioner installation
Wall painting, carpet, blinds and glass wall installation
Ceiling renovation and electrical outlet wiring
Network and internet connection installations
Training equipment used solely for training purposes

The funding ceiling? Up to 50% of your levy balance as of 1 January of the application year.

One important rule : You must get grant approval before making any purchases. Purchases made before approval are not claimable. Once approved, you have 6 months to complete the purchases and submit your claim.

I told Ah Seng that he has a training room sitting empty in your factory. Let's put it to work. Invest that levy into the room itself. When staff come and go, the room stays.

Scheme 2: IT Scheme : Computers for Training, Funded Up to RM25,000

The Information Technology and Computer-Aided Training Scheme (IT Scheme) helps employers purchase desktop computers or laptops specifically for training purposes.

This is particularly useful if:

Your work involves computer-based processes or systems
You want to run in-house digital or technical training
You want to build a small computer lab without bearing the full cost

Key details to know:

Financial assistance of up to RM25,000 for computer purchases
Applications can be made once every three years
You must have a fixed computer training room (SMEs without a full lab may still qualify)
Webcam and first-year internet subscription are included as claimable items (to support online learning)
As with ALAT, purchases must only be made after grant approval

For Ah Seng's company, this opened a new door. With a proper computer lab, they could run internal product training, software orientation for new hires, and compliance modules. All in-house, all documented, all claimable under HRD Corp.

The Shift in Thinking

After our conversation, Ah Seng went quiet for a moment.

"So instead of hoping my staff stays long enough to justify the training cost," he said slowly, "I invest in something that stays in my company regardless of who walks in or out."

Your training room doesn't resign.

Your computer lab doesn't leave for a competitor.

The infrastructure you build with HRDF levy creates lasting value — and it changes how new hires experience their first weeks on the job.

That's how you turn a passive levy balance into an active asset.

What KTP Can Help You With

At KTP, we work with employers across Johor Bahru and beyond to help them plan their HRD Corp levy utilisation, not just at the end of the year when the balance looks awkward, but as part of their ongoing HR and compliance strategy.

If your levy is sitting idle, or if you're unsure which schemes apply to your situation, let's have a conversation. Sometimes a 30-minute call changes the way you see things.

PS : This article is based on the HRD Corp Allowable Cost Matrix (ACM) Guidebook published September 2025. Terms, conditions and eligibility are subject to HRD Corp's approval and may be revised. Always verify the latest guidelines at hrdcorp.gov.my before submitting any grant application.

PS : Authored by Mr Koh Teck Peng, the group principal, in his personal LinkedIn post.

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