Skill Development Fund Corporation (SDF) is a Federal Statutory Body under the Ministry of Human Resources which is responsible for managing continuous skills training loan funds for trainees undergoing skills training. The main function of SDF is to plan and manage skills training loan funding in accordance to powers provided under the skills Development Fund Act 2004.
Since its incorporation on 1 June 2006, the focus of skills training loan funding has been on Sijil Pelajaran Malaysia (SPM) leavers and also students who drop out after Penilaian Menengah Rendah (PMR) The total amount of loan funded for each person is between RM 8,600 to RM 24,000, depending on the programmes followed. This total oan amount includes training fee payment and also Living allowance (RM 300 Per Month).
Under the Tenth Malaysia Plan (10th MP), SDF has been gives the responsibility to manage the skills enhancement loan funds for employees.
The aim of loan funding is to enhance the employees qualifications either by undergoing retaining (Reskilling); undergoing new skills training to support existing skills (Multiskilling); undergoing skills training for improvement o standards (Upskilling); or undergoing skills training to obtain certification based on knowledgecom and work experience.
Loan rate, depending on the programme and level of training, ranges between a minimum of RM 1,000 to RM 24,000 which covers tuition fees and premium payments for loan protection insurance.
The implemention of 10th MP since 2011 has expanded the funding coverage to cover SDF. Besides managing funds for employees Skills Enhancement Loan, SDF also has been given the responsibility to manage the industrial Enhancement Loan, SDF also has been given the responsibility to manage the industrial Enhancement Programme (INSEP) and also Workforce Technical Transformation Programme (WTTP).
Both programmes are performed by the State Skills Development Centre with the coorperation of employers. The INSEP Programme is a training programme to increase the marketability of graudates in majors such as engineering. ICT and management, while the WTTP Programme is to provide school leavers with skills that fulfil the industry`s demand especially those from poor families.