Minister M Kulasegaran said a decision on whether to continue with the fund or otherwise would be made based on the findings of the committee.
“As far as I am concerned, HRDF has worked reasonably well but there is still room for improvement.
“For me, retraining and upskilling is an agenda of any developing country,” he said at the HRDF office at Bukit Damansara here today.
The five-member oversight committee is headed by former international trade and industry ministry secretary-general Rebecca Fatimah Sta Maria.
The other members are debt recovery expert Fiona Soh, civil and human rights lawyer Fahri Azzat, chartered accountant S Dhamodaran and veteran journalist R Nadeswaran.
The Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan recently called for the fund to be abolished.
Shamsuddin said companies preferred to manage staff training themselves instead of making contributions to HRDF.
Some training providers also filed a report with the Malaysian Anti-Corruption Commission alleging that RM300 million had been misappropriated from the fund.
The controversy deepened after HRDF CEO C M Vignaesvaran and three board members quit last week.