Amendment of the First Schedule of PSMB Act

The First Schedule of PSMB Act 2001, has been amended on 7 March 2017 and duly gazetted. The Order came into effect on 1 April 2017.

The amendment will affect all sectors within the Manufacturing Industry, Mining and Quarry Industry and Services Industry.

The rationale behind the amendment of the Order is to achieve the target of a 35% skilled Malaysian workforce by 2020 as underlined in the Eleventh Malaysia Plan. Besides, it anticipate to raise the SMEsí contribution to the nationís Gross Domestic Product (GDP) to 41% and increase the share of the countryís exports from SME to 23% by 2020.

All liable employers are advised to register with PSMB.

The summary of the amendment of the First Schedule is as follows :


Rate of HRD Levy

To standardise the minimum number of local employees to register with PSMB to ten (10) for all employers under the existing coverage (63 sub-sectors).

1 per cent of the month wages of each of their Malaysian employees


To delete the requirement for paid up capital for the Manufacturing, Mining and Quarrying sectors

To allow for voluntary registration to all employers under the existing 63 subsectors that employ five (5) to nine (9) local employees

0.5 per cent of the monthly wages of each of their Malaysian employees

 For further information, please visit PSMB official website or contact toll free line at 1-800-88-4800.

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