WORKERS LOAN
Under the 10th Malaysian Plan, the Skills Development Fund Corporation(PTPK) has been given the responsibility to manage the loan funds for upgrading the skills of the workers. Reason for the funding is to improve the qualifications of workers either:

• Retrain (Reskiling);
• Train new skills to support existing skills (Multiskiling);
• Training to improve existing skills (Upskiling);
• Undergo skills training to obtain certification of knowledge and work experience

Funded Skill Programs :
Skills courses offered under the program are recognized by the certification bodies as follows:

• Malaysian Skills Certification namely Malaysian Skills Certificate (SKM), Malaysian Skills Advanced Diploma (DLKM); or
• Certification of institutions recognized by the Malaysian Qualifications Agency (MQA); or
• Certification from an accredited institution by the Public Service Department (JPA); or
• Professional certification recognized internationally; or
• Certification in addition to items (i) to (iii) above that is approved by the Economic Planning Unit (UPE), Prime Minister Department.

Lending Rate
The lending rate is dependent on the skills and level of training with a minimum of RM 750.00 to RM 24,000 which includes:

• Tuition Fees
• Insurance Premium Payments

Administration fee of 1% per annum charged on a reducing balance.

Borrowing Terms
Borrowers who are eligible to apply must meet the following conditions: -

• A Malaysian citizen;
• 18 to 45 years old on the date of commencement of training;
• Terms of income is exempted;
• Need a guarantor;
• Must consist of one of the following categories of workers;
• Workers who are under employment;
• Retrenced workers (retrenched) or those under Voluntary Separation Scheme (VSS); or
• Self employed workers
• Has been working for at least six (6) months in the present job or before
• Preference is given to applicants who are not from the management and professional
• Has not obtained any sponsorship / loan from government agencies or other financial institutions
• Applicants must fully repay any outstanding loan payments for skills training and previous penalty (if any).

Terms of Guarantor

• Need a guarantor who meets the following conditions:
• Monthly income of not less than RM700.00;
• Age between 21 to 50 years old;
• Cannot be a guarantor for more than two (2) trainees unless it is their mother / father; and
• Not declared a bankruptcy.

Skills Training Loan Payment Method

• Borrowers are encouraged to open an account with RHB Bank; and
• Payment of training fees will be paid to the borrower's account and transferred directly to the account Training Provider. Insurance premium will be paid directly to the insurance company.

Application Documents / Guarantor Required Application

• One (1) copy of Identity Card of the certified trainers.
• Letter of Offer for training from PL to the trainers along with the training fee structure in accordance with the level of training that has been signed by the trainer.
• One (1) copy of the Candidate Registration SKM / DKM / DLKM (JPK/T/1002) and Official Receipt of registration fee paid for the Malaysian Skills Certification program (PKM).

Agreement

• One (1) copy of the identity card of the Guarantor that has been certified.
  
• Form Agreement to contribute to Insurance Takaful Ikhlas Sdn. Bhd.

The following additional documents are required for the following categories of applicants:

Employed Workers

• A letter from the employer confirming that the trainee is working with employer now.
• Latest copy of salary slip and EPF statement / SOCSO contribution statement to prove having worked / a working experience of more than six (6) months.

Retrenched Workers

• A copy of Work Retrenchment Letter from the previous employer.
• One (1) copy of the sworn statement of income using Form Statutory Declarations Act 1960 (revised 1996), which was approved (if monthly income).

Self Employed Workers

• One (1) copy of the Statement of Income (IRB) / Form Statutory Declarations Act 1960 (Revised 1969), which was approved / One (1) copy of the Registration of Business Company with the Companies Commission of Malaysia (SSM) (if applicable)
• One (1) copy of Utility Bill (Bill Water / Electric) for confirmation of the last permanent address and Guarantor.
• One (1) copy of the latest wage / affidavit of income using Form Statutory Declarations Act 1960 (Revised - 1969) Guarantor (if no paycheck) and Financial Position Guarantor Declaration Form.

Payment Instruction

• one (1) copy of the Statement of RHB Account from new trainee / active containing informations such as name, identity card number and bank account number of trainee.

All loan applications must be submitted through registered Public & Private Training Providers with PTPK

INTRODUCTION
Skills Development Fund Corporation (PTPK) is a statutory body under the Ministry of Human Resources whose primary function is to provide skills training loans to individuals who undergo training in Training Providers Public (PLA) and Private (PLS), which was commissioned by the Department of Skills Development and registered with PTPK.
This training is open to trainee who attended the training programs from Malaysian Skills Certificate (SKM), the Malaysian Skills Diploma (DKM) and the Malaysian Skills Advanced Diploma (DLKM).

LOAN TERMS & CONDITIONS

• A Malaysian Citizen.
• Attended SKM training program for Levels 1 to 3, DKM for Level 4 and DLKM for Level 5 and other programs approved by PTPK.
• The applicant must be between 15 to 45 years.
• Have not receive financial assistance from other agencies.
• Studying full-time in accordance with the prescribed period.
• Family income not exceeding RM 5,000.00 per month.
• Need a quarantor.

LENDING RATE

The lending rate between RM 2,500 to RM 24,000 depends on the program and the level of training that includes: -

• Tuition Fees.
• Subsistence allowance of RM 400 a month during the training period.
• Premium paid for insurance coverage.
• Administration fee of 3% per annum charged on a reducing balance.

Quarantor Terms & Conditions

• A Malaysian Citizen.
• A guarantor monthly income of not less than RM700 a month, at least 21 years of age and not more than 50 years of age when the trainee started training.
• If the guarantor is a mother / father / guardian / the age requirement and income is exempted.
• A guarantor can not guarantee more than two (2) trainees unless it is the mother / father / legal guardian.
• Not declared a bankrupcy.

Skills Training Loan Payment Procedure

• Borrowers need to open an account with CIMB Bank Berhad (conventional account).
• The loan will be disbursed directly to the borrower's account for auto pay and payment of tuition fees will be direct debit made to Training Providers Account.

Loan Repayment

• Repayment begins six (6) months after graduation.
• The repayment period is between one (1) to ten (10) years.
• Monthly installments are between RM84.69 to RM 193.12 subjected to the approval of the loan amount.

JPK is the government agency responsible for promoting and coordinating the strategy and skills training programs in line with efforts to strengthen skills. Through Skills Malaysia agenda announced under the Economic Transformation Programme (ETP) by the Prime Minister on 11th January 2011, the Government intends to achieve a 50 per cent highly skilled workforce by 2020. To spur this effort, the Government has recognized the Malaysian Skills Certificate (SKM) for the purpose of entry into the 13 public service schemes.

In an effort to mainstream skills training in Malaysia, carnival and skills competitions were organized to promote areas of new and existing skills; attracting school leavers to change the negative perception of skills training. Thus, it is expected that people are now more confident in choosing skills training as a career option and thus contribute to the effort to generate high-income economy.

JPK plays the role of evaluating training needs with: -

• Implement national training certification program
• Promoting Skills Training System
• Assist and enhance individual skills
• Guide learning / research skills training
• Develop, approve and review the National Skills Standards
• Coordinate and control the implementation of skills training in order to produce K-workers for employment and recognition at national and International level.
• Research and develope work standard of competence and expertise to improve the quality of skilled human resources to contribute towards the continued economic growth of the country.
• Producing K-workers for employment and recognition at national and international levels.

NOSS

NOSS is a document that outlines the skills required by skilled workers working in Malaysia for a field and level of employment and the path to achieve these skills. Each accredited center should develop appropriate training curriculum and meet industry requirements. Therefore, the development of training curriculum should be NOSS based.
NOSS stands for the National Occupational Skills Standard or National Occupational Skills Standards. 

STRUCTURE OF MALAYSIAN SKILLS CERTIFICATION

BENEFIT
Skills Certification is recognized by the industry in Malaysia. Malaysian Skills Certification provides an attractive career path and personal development which is on par with career based on academic qualifications. Its able to produce skilled workers who are trained and qualified to enhance the competitiveness of local industries in the world market.