SKILLS DEVELOPMENT FUND ACT 2004

Skills Development Fund LAWS OF MALAYSIA REPRINT Act 640 SKILLS DEVELOPMENT FUND ACT 2004 Incorporating all amendments up to 1 June 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH PERCETAKAN NASIONAL MALAYSIA BHD 2006 1 2 SKILLS DEVELOPMENT FUND ACT 2004 Date of Royal Assent ... ... ... ... … 28 December 2004 Date of publication in the Gazette … … 31 December 2004 3 LAWS OF MALAYSIA Act 640 SKILLS DEVELOPMENT FUND ACT 2004 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 2. Interpretation PART II THE FUND 3. Establishment of the Fund 4. Expenditure to be charged on the Fund 5. Reserve Fund PART III THE CORPORATION 6. Establishment of the Corporation 7. Common seal of the Corporation 8. Functions of the Corporation 9. Powers of the Corporation 10. Power to invest 11. Additional powers of the Corporation 12. Guarantee and indemnity 13. Expenditure and preparation of estimates 14. Provision of skills training loans in annual estimates 15. Accounts and reports Laws of Malaysia 4 ACT 640 P ART IV THE BOARD Section 16. The Board of Directors 17. Representative of successor or renamed organization 18. Deputy Chairman and Secretary 19. Alternate member 20. Allowances or reimbursements 21. Committees 22. Delegation of functions 23. Power of Minister to give directions 24. Disclosure of interest P ART V OFFICERS AND SERVANTS 25. Chief Executive 26. Appointment of Deputy Chief Executive 27. Appointment of officers and servants of the Corporation 28. Regulations with respect to conditions of service 29. Payment of retirement benefits, gratuities and other allowances 30. Prior approval of the Treasury, the Public Services Department, etc. to be obtained 31. Appointment of agents, consultants, etc. 32. Corporation may adopt regulations, etc. P ART VI REGISTRATION OF SKILLS TRAINING PROVIDERS 33. Registration of skills training provider 34. Power to approve or refuse application for registration 35. Refusal of application for registration 36. Certificate of registration 37. Power to suspend or revoke registration of skills training provider Skills Development Fund 5 Section 38. Public to be informed of the revocation of the registration of skills training provider 39. Powers to impose conditions 40. Register 41. Appeal 42. Power of Minister on appeals 43. Decision of Minister on appeals P ART VII APPROVED TRAINING PROGRAMME 44. Approved training programmes 45. Application for approval of training programmes 46. Power to suspend or revoke approved training programmes P ART VIII APPLICATION FOR SKILLS TRAINING LOAN 47. Registration of skills training loan application 48. Power to grant or refuse application of skills training loan 49. Refusal of application of skills training loan 50. Change of training provider or programme 51. Disbursement of skills training loan 52. Skills training loan agreement 53. Revocation of approved skills training loan 54. Duty to maintain record of skills training loan P ART IX REPAYMENT OF SKILLS TRAINING LOAN 55. Corporation to be responsible for the recovery and collection of repayments of skills training loan 56. Return of amount of skills training loan 57. Responsibility of loan recipient 58. Collection agents Laws of Malaysia 6 ACT 640 Section 59. Commencement of repayment of skills training loan 60. Notice of loan repayment 61. Recovery and collection of repayments of skills training loan 62. Lawful methods for collection of repayments of skills training loan 63. Employer and self-employed person shall assist the Inland Revenue Board 64. Notice of Corporation to be conclusive 65. Payment of commission to collection agents P ART X VERIFICATION AND INSPECTION OF SKILLS TRAINING PROVIDER 66. Inspector 67. Inspection to be made from time to time 68. Power to inspect skills training provider 69. Seizure of documents, etc. 70. Authority card 71. No entitlement as to costs on proceedings, damages or other relief, etc. P ART XI OFFENCES AND PENALTIES 72. Prohibition on advertisement, etc. 73. Penalty for contravening conditions 74. Offences and penalties relating to applications made under the Act 75. Offences and penalties relating to certificate of registration of skills training provider 76. Penalty relating to inspection, enforcement and investigation 77. Offences relating to repayment by employer and self-employed person 78. General penalty 79. Penalty in the case of a continuing offence 80. Offences by bodies Corporate, etc. 81. Responsibility of skills training provider for offences committed by members of the board of directors, officers, employees or agents Skills Development Fund 7 Section 82. Compounding of offences 83. Institution of prosecution 84. Presumption P ART XII MISCELLANEOUS 85. Power of Minister to exempt 86. Protection from personal liability 87. Public Authorities Protection Act 1948 88. Protection against suit and legal proceedings 89. Public servants 90. Statutory Bodies (Accounts and Annual Reports) Act 1980 91. Obligation of secrecy 92. Power to make regulations 93. Amendment of Schedule 94. Things done in anticipation of the enactment of the Act 95. Disposal of documents after more than three years P ART XIII TRANSITIONAL AND SAVING PROVISIONS 96. Registration of skills training provider after the commencement of this Act 97. Vesting provisions 98. Employment of Government employees SCHEDULE 8 Laws of Malaysia ACT 640 Skills Development Fund 9 LAWS OF MALAYSIA Act 640 SKILLS DEVELOPMENT FUND ACT 2004 An Act to establish the Skills Development Fund, to incorporate the Perbadanan Tabung Pembangunan Kemahiran and to provide for related matters. [1 June 2006, P.U. (B) 151/2006] ENACTED by the Parliament of Malaysia as follows: PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Skills Development Fund Act 2004. (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette. Interpretation 2. In this Act, unless the context otherwise requires— “inspector” means any public officer or officer of the Corporation appointed as Inspector under section 66; “committee” means a committee established under section 21; “skill” means an acquired and practised ability to competently carry out a task or job; “Chief Executive” means the principal executive officer of the Corporation appointed under section 25; 10 Laws of Malaysia ACT 640 “Fund” means the Skills Development Fund established under section 3; “Board” means the Board of Directors established under section 16; “Inland Revenue Board” means the Inland Revenue Board of Malaysia established under section 3 of the Inland Revenue Board of Malaysia Act 1995 [Act 533]; “National Vocational Training Council” means the body by that name established by the Government for the purpose of formulating, promoting and co-ordinating vocational and industrial training strategies and programmes in keeping with the country’s technological and economic developmental needs, or any other body which succeeds that Council; “Minister” means the Minister charged with the responsibility for human resources; “trainee” means a person receiving skills training by a skills training provider; “loan recipient” means a trainee to whom has been approved, and who is in receipt of, a skills training loan under this Act; “Chairman” means the Chairman of the Board appointed under paragraph 16(2)(a); “skills training provider” means an establishment or organization which provides skills training either privately or through government funding; “Corporation” means the Perbadanan Tabung Pembangunan Kemahiran established under section 6; “skills training loan” means a loan approved and paid out by the Corporation to a trainee under this Act, inclusive of any tuition fees, cost of living expenses, financial assistance for educational equipment and aids, insurance and any administrative fees or other charges imposed by the Corporation; “approved training programme” means a skills training programme conducted in Malaysia which is accredited by the National Vocational Training Council and which is approved by the Corporation under section 44. Skills Development Fund 11 PART II THE FUND Establishment of the Fund 3. (1) For the purposes of this Act a fund called the Skills Development Fund which shall be administered and controlled by the Corporation is established. (2) The Fund shall consist of— (a) such moneys as may be allocated by the Government from time to time for the purposes of this Act; (b) all grants, donations, gifts, contributions and bequests made to or in favour of the Corporation; (c) moneys earned by the operation of any project, agency, scheme or enterprise financed from the Fund; (d) tuition fees, insurance claims and administrative fees and other charges imposed by the Corporation under this Act; (e) such moneys as may be paid from time to time to the Corporation and all moneys from time to time falling due to the Corporation in respect of the repayment of any financing or financial assistance, including skills training loans, given out of the Fund; (f) moneys borrowed by the Corporation; (g) any property, investment, mortgage, lease, tenancy, charge or debenture acquired by or vested in the Corporation; (h) all other moneys or property which may in any manner become payable to or vested in the Corporation in respect of any matter incidental to its functions, powers or duties; (i) moneys earned or arising from any property, investment, mortgage, lease, tenancy, charge or debenture acquired by or vested in the Corporation; and (j) all other moneys lawfully received by the Corporation. Laws of Malaysia 12 ACT 640 Expenditure to be charged on the Fund 4. The Fund may be expended for the purpose of— (a) the granting of skills training loans to trainees for the payment of fees, educational equipment and aids, and cost of living expenses during the trainees' period of training in an approved skills training programme; (b) the financing of, or the granting of financial assistance to, trainees in an approved skills training programme other than by way of skills training loan; (c) exercising the Corporation's additional powers under and in accordance with section 11; (d) repayments on borrowings and such other outgoings and expenditure as may be permitted by this Act or any regulations made under this Act; (e) administrative expenses, including the remuneration, retirement benefits, gratuities and other allowances of the officers and servants of the Corporation; and (f) other expenses incidental to the management of the Fund and the functions of the Corporation including any moneys required to satisfy any judgment, decision, or award by any court or tribunal against the Corporation, or any member of the Board or any committee, or any officer, servant or agent of the Corporation in respect of any act, neglect or default done or committed by him in carrying out the functions of the Corporation. Reserve Fund 5. (1) The Corporation may establish and manage a Reserve Fund within the Fund. (2) The Corporation may, from time to time, transfer assets into or from the Reserve Fund. (3) Notwithstanding subsection (2), the transfer of funds into and out of the Reserve Fund shall be as determined by the Minister. (4) The Reserve Fund shall only be used for the purpose of advancing skills training loans and for investment in government bonds and securities. Skills Development Fund 13 PART III THE CORPORATION Establishment of the Corporation 6. (1) A body corporate by the name of Perbadanan Tabung Pembangunan Kemahiran which shall be responsible for the management of the Fund is establishe