Amendment Act · As enacted
Skills Development Fund (Amendment) Act 2026
Amends the Skills Development Fund Act 2004Official textFrom Laws of Malaysia Online, unchanged
This Act may be cited as the Skills Development Fund
(Amendment) Act 2026.
This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act.
s 2Amendment of section 2
The Skills Development Fund Act 2004 [Act 640], which is referred to as the “principal Act” in this Act, is amended in section 2—
by deleting the definition of “inspector”;
SKILLS DEVELOPMENT FUND (AMENDMENT)
ACT 2026
by inserting before the definition of “committee” the following definition:
‘ “skills training financial assistance” means any moneys or grants or any other forms of financial assistance approved and paid out by the Corporation to a trainee under this Act for the purpose of skills training or other training other than skills training loan;’;
by inserting after the definition of “Chief Executive”
the following definition:
‘ “Director General of Skills Development” means the Director General of Skills Development appointed under the National Skills Development Act 2006
[Act 652];’;
by deleting the definition of “National Vocational Training
Council”;
by inserting after the definition of “Minister” the following definition:
‘ “authorized officer” means any public officer or officer of the Corporation authorized under section 71b;’;
in the definition of “trainee”, by inserting after the words
“skills training” the words “or other training”;
by inserting after the definition of “trainee” the following definition:
‘ “financial assistance recipient” means a trainee to whom has been approved, and who is in receipt of, a skills training financial assistance under this Act;’;
Skills Development Fund (Amendment)
by substituting for the definition of “skills training provider” the following definition:
‘ “skills training provider” means an establishment, body or organization, whether established within or outside Malaysia, which provides skills training or other training either privately or through Government funding;’;
in the definition of “skills training loan”, by inserting after the words “a loan” the words “, in whatever form or by whatever name called,”; and
by substituting for the definition of “approved training programme” the following definition:
‘ “approved skills training programme” means a skills training programme or other training programme which is conducted in Malaysia and approved by the
Corporation under section 44;’.
s 3Amendment of section 3
Subsection 3(2) of the principal Act is amended—
in paragraph (e), by inserting after the word “repayment”
the words “or return”; and
by inserting after paragraph (e) the following paragraph:
“(ea) such moneys as may be paid to the Corporation in respect of the return of any skills training financial assistance, given out of the Fund;”.
s 4Amendment of section 4
Paragraph 4(b) of the principal Act is amended—
by substituting for the words “financial assistance” the words
“skills training financial assistance”; and
by deleting the words “other than by way of skills training loan”.
s 5Amendment of section 5
Subsection 5(4) of the principal Act is amended—
by inserting after the words “skills training loans” the words
“and skills training financial assistance,”; and
by substituting for the words “government bonds and securities” the words “bonds and securities of the
Government”.
s 6Amendment of section 8
Section 8 of the principal Act is amended—
by substituting for paragraph (a) the following paragraph:
“(a) to identify and approve skills training programmes or other training programmes eligible for skills training loan or skills training financial assistance;”; and
by substituting for paragraph (b) the following paragraph:
“(b) to provide and grant skills training loans and skills training financial assistance to trainees, and to provide services in administering, monitoring and collecting repayments and returns of the skills training loans and skills training financial assistance;”.
s 7Amendment of section 9
Paragraph 9(2)(c) of the principal Act is amended—
by inserting after the words “skills training loans” the words
“and skills training financial assistance”; and
by substituting for the words “approved training programme”
the words “approved skills training programme”.
Skills Development Fund (Amendment)
s 8Amendment of section 10
Paragraph 10(2)(a) of the principal Act is amended—
by substituting for subparagraph (ii) the following subparagraph:
“(ii) any licensed bank or licensed investment bank under the Financial Services Act 2013 [Act 758];”;
by deleting the word “or” at the end of subparagraph (ii);
and
by inserting after subparagraph (ii) the following subparagraphs:
“(iia) any licensed Islamic bank under the Islamic
Financial Services Act 2013 [Act 759];
(iib) any prescribed institution under the Development
Financial Institutions Act 2002 [Act 618]; or”.
s 9Amendment of section 11
Paragraph 11(b) of the principal Act is amended by substituting for the words “Companies Act 1965 [Act 125]” the words
“Companies Act 2016 [Act 777]”.
s 10Amendment of section 14
Section 14 of the principal Act is amended—
in the shoulder note, by inserting after the words “Provision of skills training loans” the words “and skills training financial assistance”; and
in subsection (1), by inserting after the words “for the purposes of skills training loans” the words “and skills training financial assistance”.
s 11Amendment of section 16
Section 16 of the principal Act is amended—
in subsection (1), by substituting for the words “The Board of the Corporation” the words “The Board of Directors”; and
in subsection (2)—
in paragraph (c), by substituting for the words
“Director General of the National Vocational
Training Council” the words “Director General of Skills Development”; and
by inserting after paragraph (e) the following paragraphs:
“(ea) a representative from the Ministry of
Human Resources;
a representative from the Ministry of
Economy;”.
s 12Amendment of section 24
Paragraph 24(4)(b) of the principal Act is amended by deleting the words “of the Corporation”.
s 13New section 25a
The principal Act is amended by inserting after section 25
the following section:
“Delegation of power and duties of Chief Executive 25a. (1) The Chief Executive may delegate in writing any of his powers or duties under this Act, except the power of delegation, subject to such conditions, limitations or restrictions as he thinks fit, to any officer of the Corporation.
Any powers or duties delegated under this section shall be performed or exercised by the officer of the Corporation in the name and on behalf of the Chief Executive.
Skills Development Fund (Amendment)
A delegation made under this section shall not preclude the Chief Executive himself from performing or exercising any of the powers or duties so delegated.”.
s 14Amendment of section 33
Section 33 of the principal Act is amended—
by substituting for subsection (1) the following subsection:
“(1) No skills training provider may apply for a skills training loan or skills training financial assistance facility unless—
it is registered under this Part; and
it conducts an approved skills training programme.”; and
by substituting for subsection (2) the following subsection:
“(2) A skills training provider shall not be registered under this Part unless the skills training provider conducts an approved skills training programme.”.
s 15Amendment of section 35
Paragraph 35(a) of the principal Act is amended by substituting for the words “training programme” the words “skills training programme or other training programme”.
s 16Amendment of section 36
Section 36 of the principal Act is amended—
by substituting for subsection (2) the following subsection:
“(2) The certificate of registration shall specify the principal premises where the skills training or other training provided by the skills training provider is being carried on.”; and
in subsection (5), by substituting for the words
“provide skills training” the words “provide skills training or other training”.
s 17Amendment of section 37
Subsection 37(1) of the principal Act is amended—
by deleting paragraph (a);
by substituting for paragraph (b) the following paragraph:
“(b) the skills training provider no longer conducts any approved skills training programme;”; and
in paragraph (c), by substituting for the words
“section 34” the words “section 39”.
s 18Amendment of section 38
Section 38 of the principal Act is amended—
in the shoulder note, by inserting after the words “informed of the” the words “suspension or”; and
by substituting for the words “the fact of the revocation”
the words “the fact of the suspension or revocation”.
s 19Amendment of Part VII
The principal Act is amended by substituting for the heading of Part VII the following heading:
“APPROVED SKILLS TRAINING PROGRAMME”.
s 20Substitution of section 44
The principal Act is amended by substituting for section 44
the following section:
s 44“Approved skills training programme
The Corporation may identify and approve any skills training programme or other training programme accredited or recognized under the National Skills Development Act 2006
as an approved skills training programme for the purposes of a skills training loan or skills training financial assistance facility under this Act.”
Skills Development Fund (Amendment)
s 21Amendment of section 45
Section 45 of the principal Act is amended—
in the shoulder note, by substituting for the words
“for approval of training programmes” the words
“in relation to approved skills training programmes”;
and
in subsection (1), by substituting for the words “its training programmes” the words “its skills training programmes or other training programmes”.
s 22Amendment of section 46
Section 46 of the principal Act is amended—
in the shoulder note, by substituting for the words
“approved training programmes” the words
“approved skills training programmes”;
by substituting subsection (1) the following subsection:
“(1) The Corporation may, at any time, revoke the approval of a skills training programme or other training programme under section 44 if the Corporation determines that the skills training programme or other training programme is no longer an appropriate programme for the purposes of a skills training loan or skills training financial assistance facility.”;
in subsection (2)—
by inserting after the words “skills training programme” the words “or other training programme”; and
by substituting for the words “conducting the training programme” the words “conducting the skills training programme or other training programme”;
in subsection (3), by inserting after the words “skills training programme” the words “or other training programme”;
and
in subsection (5), by inserting after the words “skills training programme” the words “or other training programme, as the case may be,”.
s 23Amendment of Part VIII
The principal Act is amended in the heading of Part VIII by inserting after the words “SKILLS TRAINING LOAN” the words “AND SKILLS TRAINING FINANCIAL ASSISTANCE”.
s 24Amendment of section 47
Section 47 of the principal Act is amended—
by substituting for the shoulder note the following shoulder note:
“Application for skills training loan or skills training financial assistance”;
by substituting for subsection (1) the following subsection:
“(1) A skills training provider registered under section 34 may submit applications for skills training loans or skills training financial assistance facilities to the Corporation for trainees undergoing skills training or other training conducted by the skills training provider in an approved skills training programme.”;
in subsection (2), by inserting after the words “skills training loan” the words “or skills training financial assistance”;
Skills Development Fund (Amendment)
in subsection (5), by substituting for the words
“application for a skills training loan” the words
“application for a skills training loan or skills training financial assistance”; and
in subsection (8), by inserting after the words “skills training loan” the words “or skills training financial assistance”.
s 25Amendment of section 48
Section 48 of the principal Act is amended—
in the shoulder note, by inserting after the words
“skills training loan” the words “or skills training financial assistance”; and
by substituting for paragraph (a) the following paragraph:
“(a) approve the application for skills training loan or skills training financial assistance made under section 47;”.
s 26Amendment of section 49
Section 49 of the principal Act is amended—
in the shoulder note, by inserting after the words
“skills training loan” the words “or skills training financial assistance”;
by inserting after the words “skills training loan” the words
“or skills training financial assistance”;
in paragraph (a), by inserting after the words “skills training loans” the words “or skills training financial assistance”;
in paragraph (b)—
by substituting for the words “training programme”
the words “skills training programme or other training programme”; and
by substituting for the words “approved training programme” the words “approved skills training programme”;
by substituting for paragraph (e) the following paragraph:
“(e) that the approval of a skills training loan or skills training financial assistance in respect of the skills training programme or other training programme has been revoked under section 53;”;
and
in paragraph (f), by substituting for the words “training programme” the words “skills training programme or other training programme”.
s 27Amendment of section 50
Section 50 of the principal Act is amended—
by substituting for the shoulder note the following shoulder note:
“Change of skills training provider or approved skills training programme”;
by substituting for subsection (1) the following subsection:
“(1) The Chief Executive may approve any application for change of skills training provider or approved skills training programme to another skills training provider registered under section 34 or approved skills training programme by a trainee.”; and
in subsection (2), by substituting for the words “training provider or training programme” the words “skills training provider or approved skills training programme under subsection (1)”.
Skills Development Fund (Amendment)
s 28Amendment of section 51
Section 51 of the principal Act is amended—
in the shoulder note, by inserting after the words
“skills training loan” the words “or skills training financial assistance”;
in subsection (1)—
by inserting after the words “The skills training loan” the words “or skills training financial assistance”; and
by substituting for the words “approved training programmes” the words “approved skills training programmes”; and
prescribe such means test as the Corporation deems necessary and expedient in order to determine and select trainees who are eligible for the skills training loan or skills training financial assistance; and
require by written notice, the trainees or skills training provider, as the case may be, to provide additional documents and information within the period specified in such notice at any time after the application for skills training loan or skills training financial assistance has been approved but before the skills training loan or skills training financial assistance is disbursed.”.
by substituting for subsection (2) the following subsection:
“(2) For the purposes of subsection (1), the
Corporation may—
s 29Amendment of section 52
Section 52 of the principal Act is amended—
in the shoulder note, by inserting after the words
“Skills training loan” the words “and skills training financial assistance”;
in subsection (1), by inserting after the words “skills training loan” the words “or skills training financial assistance”; and
in subsection (2), by substituting for the words “loan agreement” the words “skills training loan and skills training financial assistance agreement”.
s 30Amendment of section 53
Section 53 of the principal Act is amended—
in the shoulder note, by inserting after the words
“skills training loan” the words “or skills training financial assistance”;
in subsection (1)—
by substituting for the words “Any loan” the words
“Any skills training loan or skills training financial assistance”;
in paragraph (a), by inserting after the words
“skills training loan” the words “or skills training financial assistance”; and
by substituting for paragraph (e) the following paragraph:
“(e) the loan recipient or financial assistance recipient refuses or fails to follow the skills training programme or other training programme; or”;
in subsection (2), by substituting for the words “a loan”
the words “a skills training loan or skills training financial assistance”; and
Skills Development Fund (Amendment)
in subsection (3)—
by substituting for the words “revocation of a loan” the words “revocation of a skills training loan or skills training financial assistance”; and
by substituting for the words “terms of the loan”
the words “terms of the skills training loan or skills training financial assistance”.
s 31Amendment of section 54
Section 54 of the principal Act is amended—
in the shoulder note, by inserting after the words
“skills training loan” the words “and skills training financial assistance”;
by substituting for subsection (1) the following subsection:
“(1) The Corporation shall cause to be maintained a record of all skills training loans and skills training financial assistance paid out of the Fund, and their repayments and returns.”; and
in subsection (2)—
in paragraph (a), by inserting after the words “loan recipient” the words “and financial assistance recipient”;
by inserting after paragraph (b) the following paragraph:
“(ba) the amount of the skills training loan and skills training financial assistance which need to be returned and the records of the returns;”; and
by substituting for paragraph (c) the following paragraph:
“(c) the name of the skills training provider where the loan recipient or financial assistance recipient is receiving his skills training or other training, the approved skills training programme under which the loan recipient or financial assistance recipient is receiving his skills training or other training, the duration of such skills training or other training, and the tentative date of completion of such skills training or other training; and”.
s 32Amendment of section 56
Section 56 of the principal Act is amended—
in the shoulder note, by inserting after the words
“skills training loan” the words “or skills training financial assistance”;
by inserting after the words “Any loan recipient” the words
“or financial assistance recipient”;
by inserting after the words “skills training loan” the words
“or skills training financial assistance”;
by substituting for paragraph (d) the following paragraph:
“(d) if skills training or other training was not completed by the loan recipient or financial assistance recipient in accordance with the approved skills training programme; or”; and
by substituting for paragraph (e) the following paragraph:
“(e) if skills training or other training was not attended by the loan recipient or financial assistance recipient.”.
Skills Development Fund (Amendment)
s 33New sections 65a and 65b
The principal Act is amended by inserting after section 65
the following sections:
“Limitation for action in respect of skills training loan or skills training financial assistance agreement 65a. Notwithstanding the provisions of any other written law, any action in respect of a skills training loan or skills training financial assistance agreement shall not be brought after the expiration of twelve years from the date on which the cause of action accrued.
Power of Chief Executive to issue certificate to the Director
General of Immigration 65b. (1) The Chief Executive may, where he is of the opinion that any loan recipient or financial assistance recipient is about or likely to leave Malaysia without paying any moneys due to the Corporation, whether in the form of repayment or return or otherwise, issue to the Director General of Immigration a certificate containing the amount payable to the Corporation with a request for that loan recipient or financial assistance recipient to be prevented from leaving Malaysia unless and until he pays all the amounts payable to the Corporation or furnishes security to the satisfaction of the Chief Executive for his payment.
Subject to any order issued or made under any written law relating to immigration, the Director General of
Immigration upon receiving a request under subsection (1) in respect of any loan recipient or financial assistance recipient shall take or cause to be taken all such measures as may be necessary to give effect to it and which measures may include the use of reasonable force and the seizure, removal or retention of any certificate of identity and any passport, or other travel document relating to that loan recipient or financial assistance recipient.
Where a loan recipient or financial assistance recipient in respect of whom a certificate has been issued under subsection (1) produces a written statement signed on or after the date of the issuance of the certificate by the Chief
Executive to the effect that moneys due to the Corporation specified in the certificate have been paid or that security has been furnished for their payment, the statement or the payment, as the case may be, shall be sufficient authority for allowing that loan recipient or financial assistance recipient to leave Malaysia.”.
s 34Deletion of Part X
The principal Act is amended by deleting Part X.
s 35New Parts Xa and Xb
The principal Act is amended by inserting after section 71
as deleted the following parts:
“Part Xa
INSPECTION OF SKILLS TRAINING PROVIDER
Power to inspect skills training provider 71a. (1) An authorized officer may, from time to time, inspect any skills training provider registered under this Act for the purpose of determining that this Act and the regulations made under this Act have been and are being complied with.
For the purposes of inspection under this Part, an authorized officer may—
enter, at any time, any premises or any part of the premises which belongs to or are being used, whether permanently or otherwise, by a skills training provider for the purpose of providing skills training or other training;
examine such book, minute book, register, document, financial statement, computerized data, material or other article as he may consider necessary;
Skills Development Fund (Amendment)
require any person, who is a member of the board of directors, an employee, or a trainee of such skills training provider, to produce for his inspection any book, minute book, register, document, financial statement, computerized data, material or other article which is in that person’s possession or custody or under his control or within his power to furnish—
relating to the management of the skills training provider; or
relating to the skills training programme or other training programme carried on by the skills training provider; and
to make copies or take extracts from any book, minute book, register, document, financial statement, computerized data, material or other article inspected under paragraph (c).
Part Xb
ENFORCEMENT AND INVESTIGATION
Authorized officer 71b. For the purposes of this Act, the Corporation may, in writing, authorize any public officer or officer of the
Corporation to exercise the powers of inspection and the powers of enforcement and investigation under this Act.
Powers of authorized officer 71c. An authorized officer shall have all the powers necessary to carry out inspection under Part Xa and conduct investigation into any offence under this Act.
Powers of examination 71d. (1) An authorized officer may, by notice in writing, require any person acquainted with the facts and circumstance of a case to appear before him and to be examined orally and shall reduce into writing any statement made by the person so examined.
Any statement made by any person under this section shall be admissible as evidence in any proceedings in court under this Act against the person or against any other person.
s 71eProduction of documents, etc.
In the course of an investigation or examination under this Part, the authorized officer may—
require any such person to produce to him such book, minute book, register, document, financial statement, computerized data, material or other article; and
inspect, make copies of, take extracts from, remove and detain any book, minute book, register, document, financial statement, computerized data, material or other article.
s 71fSeizure of documents, etc.
Where an authorized officer carrying out an inspection or investigation under this Act has reason to believe that an offence has been committed against this Act, he may seize any book, minute book, register, document, financial statement, computerized data, material or other article produced under section 71e and such book, minute book, register, document, financial statement, computerized data, material or other article seized, shall be admissible in evidence in any proceedings in court under this Act against the person or against any other person.
Application for search warrant 71g. If an authorized officer has reasonable cause to believe that any premises have been used, is used or are about to be used for, or there is in any premises, evidence necessary to establish the commission of an offence under this Act, he may apply to a Magistrate by way of written information on oath for a search warrant.
Skills Development Fund (Amendment)
23
Power of Magistrate to issue search warrant 71h. If the Magistrate is satisfied that there is a commission of an offence under any provision of this Act, he may issue a search warrant authorizing the authorized officer, at any reasonable time by day or by night and with or without assistance—
to enter the premises, if need be by force;
to search for and seize, and to remove any book, minute book, register, document, financial statement, computerized data, material or other article—
in respect of which an offence has been committed;
in respect of which an offence is suspected to have been committed; or
that is reasonably believed to furnish evidence of the commission of the offence;
break open any outer or inner door of the premises or any fence, enclosure, gate or other obstruction to the premises, in order to effect entry thereinto;
remove by force any obstruction to the entry, search, seizure or removal as he is empowered to effect;
or
detain every person found in the premises until it has been searched.
Production of authority card 71i. (1) An authorized officer when exercising any powers under this Act shall declare his office and produce to the person against whom he is acting or from whom he seeks any information, such authority card as the Corporation may direct to be carried by such officer.
The authority card specified in subsection (1) shall be issued by the Chief Executive.
s 71jNo entitlement as to costs on proceedings, damages or other relief, etc.
No person shall, in any proceedings before any court in respect of the seizure of anything seized or detained in the exercise or the purported exercise of any power conferred under this Act, be entitled to the costs of such proceedings or any damages or other relief, other than the order for the return of such things seized or detained, or the payment of its value unless such seizure or detention was made without reasonable or probable cause.”.
s 36Amendment of section 72
Subsection 72(1) of the principal Act is amended by substituting for the words “loan facilities” the words “skills training loan or skills training financial assistance facilities”.