FMM president Soh Thian Lai said firm and swift action needs to be taken to improve the management of HRD Corp, “the sole custodian of the human resource development fund”.

He said this includes structural changes to improve transparency and efficiency within the organisation, as well as tackling weaknesses in governance.

“At the same time, it is critical for audit and compliance mechanisms to be further strengthened to ensure financial integrity and the proper use of (HRD Corp’s) funds.

“It is also proposed that a thorough review of the Human Resources Development Act 2001 be commissioned, including possibly removing the investment portfolio and giving the board of directors a say on the appointment of the organisation’s chief executive,” he said in a statement.

The CEO of HRD Corp is typically appointed by the government of the day, or the human resources minister.

The 2024 auditor-general’s (A-G) report, released yesterday, recommended that the human resources ministry refer HRD Corp’s management to the enforcement agencies after the company failed its audit.

It said the actions and decisions of its management did not comply with procedures and failed to protect the interests necessary for achieving HRD Corp’s objectives.

The Public Accounts Committee also revealed that the company’s investment panel had not reported its investment activities appropriately to its board of directors, with levies collected “aggressively” used for high-risk investments.

In response to the reports, HRD Corp said it has undergone substantial reforms this year, guided by the human resources ministry, to enhance corporate governance.

Soh also commended human resources minister Steven Sim for swiftly ordering that a report be filed with the Malaysian Anti-Corruption Commission regarding the A-G’s report and PAC’s findings.

He also acknowledged that Sim has taken steps to overhaul the management by HRD Corp of its finances since becoming minister in December last year.