This article first appeared in The Edge Malaysia Weekly on March 31, 2025 - April 6, 2025

HUMAN Resources Development Corp’s (HRD Corp) chief executive Datuk Shahul Hameed Dawood is understood to be leaving the government-led employee training facilitator after five years at its helm.

At press time, details — including his contract tenure — are scarce. It is not clear whether Shahul is leaving because his contract is expiring or if it is a premature exit. He was appointed to the top job at HRD Corp in April 2020.

Three separate sources whom The Edge spoke to say they had heard of news of his leaving.

“It will happen soon,” says one of the sources with information of his impending departure. Another adds that a replacement for Shahul has already been identified, but has yet to be revealed.

Phone calls to Shahul were not answered and HRD Corp did not respond to emailed questions from The Edge. Minister of Human Resources Steven Sim Chee Keong could not immediately be reached for comment.

HRD Corp, which comes under the purview of the Ministry of Human Resources, is responsible for collecting levies from 800,000 employers for staff training and upskilling purposes. The employers basically choose from HRD Corp’s list of approved training programmes. The amount of funds it handles is not small, running into billions of ringgit.

For context, Shahul and HRD Corp were thrust into the spotlight in July last year, following findings from the Public Accounts Committee (PAC) and the Auditor-General’s (AG) Report 2024 that exposed alleged irregularities that happened before 2022, at the agency. Current Human Resources Minister Sim, who was appointed in Dec 2023, also ordered a report to be lodged with the MACC immediately after the allegations surfaced.

The AG report highlighted questionable disbursements of training grants totalling RM51.69 million to 3,726 individuals, who were purportedly registered for multiple training sessions under the Gerak Insan Gemilang initiative, which involved reskilling and upskilling to improve the employability of the unemployed in the wake of the Covid-19 pandemic. According to the report, 234 participants in the scheme were flagged as questionable, as they had identical names and identification card numbers.

In addition, concerns were raised regarding the payment of upfront deposits for the purchase of a property, Menara Ikhlas, which totalled RM120 million for an acquisition price of RM202.5 million. The huge deposit — close to 60% of the acquisition price — for the since-aborted deal did not comply with agreement clauses, and raised eyebrows even though the deposit was returned.

Other issues raised included HRD Corp’s outstanding levies amounting to RM205.42 million, with 62 levy applications being approved after the training date. The report also highlighted that RM4.81 million of the 2020 government grant remained unused and unreturned. It also noted 29 investment transactions with unrealised losses totalling RM49.38 million.

Meanwhile, PAC questioned HRD Corp’s use of RM3.77 billion for some baffling investing activities.

Among HRD Corp’s largest investments in public-listed companies by value at that time were RM99.99 million in property developer Chin Hin Group Bhd (KL:CHINHIN), RM65.05 million in convenience store operator 7-Eleven Malaysia Holdings Bhd (KL:SEM), RM59.99 million in construction and facilities management company Widad Group Bhd (KL:WIDAD), RM59.38 million in restaurant operator Berjaya Food Bhd (KL:BJFOOD), RM53.82 million in diversified Berjaya Corp Bhd (KL:BJCORP) and RM39.99 million in agrochemical distributor Hextar Global Bhd (KL:HEXTAR).

With the exception of 7-Eleven, the stocks had underperformed, with the share prices largely declining since HRD Corp’s acquisition.

Questions were also raised because three companies — 7-Eleven, Berjaya Food and Berjaya Corp — are controlled by businessman Tan Sri Vincent Tan Chee Yioun, while Hextar Global and Chin Hin are linked to corporate player Datuk Eddie Ong Choo Meng. Would a more diversified portfolio have been better and why, in the first place, was there an interest in the ventures of these two businessmen?

HRD Corp had also invested RM170 million in redeemable cumulative convertible preference shares of Berjaya Capital Bhd and Singer (M) Sdn Bhd, both of which are private companies and controlled by Tan as well.

In its defence against all allegations, HRD Corp had said that it operated within the ambit of the Pembangunan Sumber Manusia Bhd Act 2001, and there are put and call options in place, which make the investments “safe”.

It is also noteworthy that Malaysian Anti-Corruption Commission (MACC) had investigated HRD Corp, and Shahul had gone on administrative leave in mid-July last year, shortly after the issues were highlighted. In November, however, after much speculation, Human Resources Minister Sim confirmed that Shahul had indeed returned to work, which would indicate that he had been cleared of any wrongdoing.

Sim had said, “Everyone is assumed innocent until proven guilty and, in this case, no HRD Corp personnel has been charged in court.” 

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.