KUALA LUMPUR: Talent Corporation Malaysia Bhd (TalentCorp) has set aside RM30 million for the Industry Training Matching Grant Initiative for Small and Medium Enterprises (LiKES).
The aim is to facilitate organised and long-lasting industrial training placements within small and medium-sized enterprises (SMEs) and recently founded Malaysian firms.
Steven Sim Chee Keong, the Minister of Human Resources, said the government is committed to helping startups and SMEs by providing matching subsidies for industrial training.
The purpose of this programme, according to him, is to increase employer involvement in developing the country's youthful talent pool.
Sim underlined that by offering allowances during the training term, LiKES, in conjunction with current TalentCorp programs like the National Structured Industry Training Program (MySIP), will enhance job preparedness and welfare.
He said it will also help enhance industrial training for SMEs, which make up 97 per cent of businesses in Malaysia, and contribute 48.2 per cent to the country's employment in 2022.
Sim also revealed improvements to the Industrial Training Scheme (ITS) administered by the Human Resources Development Corporation (HRD Corp) as a component of the comprehensive KESUMA industrial training programme tailored for employers.
"Effective immediately, employers can use up to 50 per cent of their levy balance from January 2024 for the interpretation year of the ITS. The monthly training allowance ceiling that can be claimed for each trainee under the ITS scheme has been removed," he added.
Sim noted that discussions with stakeholders are ongoing to formulate the National Industrial Training Policy, which will serve as a framework for employers hiring trainees.
The policy is anticipated to be unveiled in May 2024.
TalentCorp group chief executive officer Thomas Mathew emphasised that implementing organised industrial training is crucial for enhancing the balance between workforce supply and demand.
"Structured industrial training plays a crucial role as one of the key strategies to develop quality talent, reduce youth unemployment, address skills mismatches and underemployment, and enhance talent skills to meet current and future industry needs," he said.
The LiKES grant supports training lasting up to six months and is available to SMEs and startups registered with the Companies Commission of Malaysia (SSM).