PETALING JAYA: Human Resources Minister Steven Sim Chee Keong has unveiled a RM2 billion allocation from the human resources development (HRD) levy fund to support graduate hiring.
The initiative, described as a Merdeka gift, will allow employers to use levy funds for salaries of university and TVET graduates starting 1 September 2025.
Sim made the announcement during his speech at the Federation of Malaysian Manufacturers (FMM) Annual Dinner 2025.
He emphasised that the move aims to improve employer cashflow while prioritising human capital development.
The minister noted that the policy will create higher-paying jobs and enhance on-the-job training opportunities for graduates.
Sim urged industries to balance technological advancements with human capital investment amid rising AI adoption.
He warned that AI could diminish the value of traditional academic degrees in the job market.
Malaysia has invested RM77.2 billion in digitalisation efforts as of last year, according to the minister.
Global tech giants like Google, Microsoft, Bytedance, and Amazon have pledged over RM60 billion in Malaysian investments.
The National Semiconductor Strategy has attracted RM46.5 billion in high-tech sector investments, including wafer fabrication and AI chip production.
The FMM event also celebrated the organisation’s 57th anniversary.
Digital Minister Gobind Singh Deo and FMM leaders Tan Sri Soh Thian Lai and Lee Chor Kok attended the dinner.
The HRD levy fund initiative aligns with Malaysia’s push for skilled workforce development in high-growth industries.
Sim’s announcement reflects the government’s focus on bridging the gap between education and employment.
The policy is expected to benefit both employers and fresh graduates entering the competitive job market. – Bernama