KUALA LUMPUR (Feb 21): Human Resource Development Corporation (HRD Corp) has suspended three more members of its management team in a move aimed at strengthening governance and regaining industry confidence.
It had, two weeks earlier, announced the suspension of “three members of top management” for an internal investigation. These developments come shortly after Datuk Mohamed Shamir Abdul Aziz was appointed as HRD Corp’s new chief executive on Jan 23.
It has not named any of the suspended officials.
Shamir, in a press statement on Saturday, said the latest suspensions highlight the organisation’s commitment to raising governance standards and ensuring that national workforce development resources are administered "with transparency, efficiency and accountability".
“Strong governance is fundamental to business confidence. Employers expect clarity, predictability and disciplined stewardship. We are strengthening our systems to ensure that HRD Corp consistently delivers on that expectation,” he said.
HRD Corp, which falls under the Ministry of Human Resources, drives talent development by collecting levies from employers to fund training and development programmes for the Malaysian workforce.
According to Shamir, the suspensions are procedural measures taken to preserve the independence of an ongoing internal review and do not represent a conclusion of wrongdoing.
He said the review has identified areas requiring tighter internal controls, clearer reporting structures and enhanced compliance oversight. Corrective enhancements are being implemented to modernise governance frameworks, reinforce accountability mechanisms and streamline administrative processes to better serve employers and training providers.
“This reset is about ensuring systems work effectively and responsibly,” Shamir said.
The suspension of the three senior executives earlier this month follows findings and recommendations in reports by the Public Accounts Committee, the Auditor General and the Malaysian Anti-Corruption Commission over the management of unutilised levy, the acquisition of Menara Ikhlas and HRD Corp’s equity investment management, as well as a recent discovery relating to the New Core System (NCS).
The findings relating to the NCS, in particular, involved a procurement amounting to RM14 million and a delay of more than four years following three unsuccessful user acceptance tests.
Shamir’s appointment at HRD Corp came barely six months after it named former banker Syed Alwi Mohamed Sultan as chief executive in July 2025, with no official statement from the agency on whether he had resigned or been removed.
Prior to Syed Alwi's tenure, Datuk Shahul Hameed Dawood was HRD Corp’s chief executive. He stepped down in April 2025 after five years at the helm.
Shamir previously served as managing director of national microfinance institution Amanah Ikhtiar Malaysia.
Within the first week of Shamir's appointment, HRD Corp has managed to secure about 18% settlement of its outstanding structured investment portfolio, together with the corresponding return amounting to RM151.8 million. This reflects accelerated recovery efforts as HRD Corp transitions towards a more capital-protective investment approach, the agency said earlier this month.