KUALA LUMPUR: The Human Resource Development Corporation (HRD Corp) can invest funds from a levy collected from Malaysian employers to help finance its operations.
"Under Section 27 of the PSMB Act 2001, the investment panel of HRD Corp can invest funds to earn a return to finance the organisation's operations," according to a financial expert familiar with HRD Corp.
Investments made by HRD Corp have come under scrutiny after the Public Accounts Committee said a sum of RM3.77 billion collected from the levy was used for the purpose.
Some news reports also highlighted that the investments were "risky".
Following the reports, the financial expert told Business Times that the corporation is allowed to make investments and that it is "conventional" in its investment activities as 40 per cent of it are placed in fixed deposits.
HRD Corp, however, is allowed to invest only in the country, the expert added.
HRD Corp is responsible for administering the human resources development fund and collecting a levy for promoting training and development of employees, apprentices and trainees.