FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
1. EXECUTIVE COMMITTEE
The Executive Committee (EXCO) comprises three
Independent Non-Executive Directors who have been
constituted by HRDF’s Board with the delegated authority
to act on its behalf to ensure that the decision of the
Board, strategic matters, business plans, budgets, and
daily business and operational issues are carried out,
implemented and/or monitored by the Fund’s Management,
and that the requirements of good corporate governance
practices are being observed by the Management and
employees of the Fund.
The primary role of the EXCO is to oversee the
implementation and monitoring of the Fund’s Board
decisions; to make decisions in carrying out its roles; and
to provide strategic guidance for HRDF as delegated by the
Fund’s Board in the EXCO’s terms of reference.
2. INVESTMENT PANEL
The Investment Panel (IP) comprises six members
who include Independent Non-Executive Directors,
representative of the Ministry of Finance and two
Independent Members with business and nancial
experience appointed by the Minister of Human Resources
for a period of two years. The Chairman of the Board will
be the Chairman of IP as prescribed in the Pembangunan
Sumber Manusia Berhad Act 2001.
The primary responsibilities of the IP are to review HRDF
Investment Guidelines, ensure that the Fund effectively
and efciently generate maximum returns from its
investments and evaluate the performance of the Fund’s
The IP shall report to HRDF’s Board on the status of the
Fund’s investments upon request.
5. BOARD INFORMATION TECHNOLOGY
The Board Information Technology
Steering Committee (BITSC) comprises
four Independent Non-Executive Directors
who are responsible to review and endorse
HRDF’s IT policies; and accountable for
strategic IT decision making and control
– across aspects of implementation,
operation and maintenance.
The BITSC also ensures adequate
controls, risk mitigations and monitors
the progress of the Fund’s IT projects
to warrant that they are implemented
successfully and timely to meet the Fund’s
The BITSC is expected to meet six (6)
times a year or more to help steer the
Fund’s IT initiatives.
6. BOARD NOMINATION AND
The Board Nomination and Remuneration
Committee (BNRC) comprises three
members of the Board, with one of them
being the Chairman.
The BNRC is empowered to decide on all
personnel remuneration policies of HRDF.
These include providing an independent
and unbiased review, assessment, and
determination of HRDF’s remuneration
structure and policy; reviewing the Fund’s
Scheme of Salary (as and when required) and
make recommendation on the revisions to
the Scheme of Salary to HRDF’s Board. BNRC
also evaluates and makes recommendations
to the Board on the Fund’s annual salary
increments, bonus payments and reviews
the appointments, conrmations and
promotions of the Fund’s employees.
The BNRC will meet as and when required.
7. FINANCE STEERING
The Finance Steering
This committee oversees
the preparation of
HRDF’s annual budget
and the performance
of the Fund towards
achieving its accounted
revenues, expenses and
other nancial matters.
HRDF BOARD COMMITTEES
Each Committee has a set of clearly dened terms of reference. Responsibility for the implementation of HRDF’s
strategies and day-to-day businesses are delegated to the Fund’s Chief Executive and Senior Leadership Team.
3. BOARD AUDIT & RISK MANAGEMENT COMMITTEE
The Board Audit & Risk Management Committee (BARMC) comprises
four Independent Non-Executive Directors with a collective wealth of
knowledge, expertise and experience from different industries and
The BARMC evaluates the adequacy and effectiveness of HRDF’s
internal control systems and deliberates on issues identied by
HRDF’s internal and external auditors, and Management.
Throughout the year, the BARMC is briefed on the Fund’s corporate
governance practices, updates of the Malaysian Financial Reporting
Standards, as well as legal and regulatory requirements in addition to
key matters affecting the nances of HRDF.
The BARMC also reviews and reports to HRDF’s Board on the
engagement and independence of the Fund’s external auditors and
their audit plan which includes the nature, approach, scope, and
other examinations of external audit. BARMC also assesses the
effectiveness of the Fund’s internal audit function which is further
described in the section on Internal Audit.
The BARMC will meet regularly with full and unimpeded access to the
Fund’s Internal and External Auditors and employees.
4. BOARD PROGRAMME COMMITTEE
The Board Programme Committee (BPC)
comprises ve Independent Non-Executive
The roles and responsibilities of the BPC are to
set the policy direction of schemes/programmes/
courses (herein referred to as “initiative”) under
HRDF such as type of initiatives, implementation
methods and budget allocation.
Additionally, the BPC reviews and approves
proposed guidelines/terms of reference of these
initiatives that include parameters of evaluation,
maximum course fee(s) and others. Additionally,
the BPC evaluates the effectiveness of initiatives
that have been conducted for either continuation
BPC meetings are expected to be held a minimum
of four times per year with additional meetings
conducted as and when required.
The Tender Committee comprises
three Independent Non-Executive
Directors and is segregated into
two - Tender Board ‘A’ and Tender
The Tender Board ‘A’ is empowered
to decide on tenders more than
RM20 million while Tender Board
‘B’ is authorised to decide on all
tenders below RM20 million and
on signicant matters related
to the procurement of supplies
and services above the value of
Additionally, there are sanctions in
line with HRDF’s prevailing Interim
Authority Limit and Procurement
Procedure which apply to the Fund’s
The Disciplinary Committee (DC)
comprises three members with one of
them being appointed as Chairman.
Each DC members is charged with the
responsibility to manage and overlook
the disciplinary matters of persons
with varying degree of positions
The primary function of the DC is
to review the disciplinary report
submitted by the Domestic Inquiry
committee, and to mete out the
appropriate penalty on any of the
Fund’s employee who had been found
guilty on the charge(s) levelled against
him/her based on HRDF’s Terms and
Conditions, Section 9.9(j).
The DC will meet as and when
10. DISCIPLINARY APPEAL
The Disciplinary Appeal Committee
(DAC) consists three members with
one of them being appointed as
The role of the DAC is to review and
decide appeals from decisions of the
Discipline Committee and to hear
and decide appeals with respect to
disciplinary action taken by authorised
persons, in accordance with the terms
of reference and any other rules,
regulations and procedures of HRDF.
The DAC will meet as and when