This article first appeared in The Edge Malaysia Weekly on November 2, 2026 - November 8, 2026

The good news for the cash-rich Human Resource Development Corporation (HRD Corp) is that measures the agency has implemented to improve its governance have been given the thumbs-up by the Malaysian Anti-Corruption Commission (MACC).

It is an affirmation that the governance measures established by the new management of the country’s human resource development agency meet the standards to minimise any possible mismanagement of funds.

However, a nagging question is whether HRD Corp has managed to unwind some of its investments that are seen as risky. These investments, comprising quoted shares and redeemable convertible cumulative preference shares (RCCPS), were inherited by the new management appointed to the agency in January this year.

Apart from the quoted shares and RCCPS, the agency had invested in bonds amounting to RM458.3 million. However, there is little information about the quality of the bonds.

The biggest item among HRD Corp’s investments of RM1.9 billion comprises quoted securities amounting to RM757.4 million. Of this amount, some RM593.2 million is tied to put and call options with a return of between 8% and 8.5% per annum.

The put and call options and the RCCPS are seen as a form of “lending”.

This is because under the terms of the put and call options, HRD Corp cannot sell the quoted shares until the agreement expires. If the price of the shares collapse — as HRD Corp had experienced before — the manpower training agency would be left in the lurch again.

As for the RCCPS, this investment is only good if the underlying asset covering the instrument is viable and has some tangible value. Otherwise, the agency will be left holding shares that may be worthless.

HRD Corp, which held cash and bank balances of RM2.4 billion as at the end of 2025, should disclose more information about the state of its investments, other than the progress of instilling governance in its management.

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