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HRDC / Funding Guide

HRD Corp Allowable Cost Matrix (ACM): what you can claim, and the rates

The Allowable Cost Matrix is HRD Corp’s rulebook for how much of each training cost you can claim. Get to know it and you stop leaving money on the table — and stop getting claims trimmed. Here are the categories, indicative 2026 rates and a worked example.

By AITraining2U Editorial Team 2026-07-13 9 min read
Training session with the HRD Corp Allowable Cost Matrix rates overlaid
This guide is general information for Malaysian employers, not official HRD Corp advice or legal advice. Processes, rates and forms are set by HRD Corp and can change — always verify against the official links at the end before you act.

Every HRD Corp claim is measured against one document: the Allowable Cost Matrix (ACM). It is the guide HRD Corp uses to decide, line by line, what is claimable, the maximum you can claim, and the eligibility for each training type. If a cost sits within the matrix it flows through; anything above the ceiling is disallowed as excess. Understanding it is how you size a quote correctly and avoid a trimmed claim — it plugs directly into the overall claim process.

What the ACM is — and why it was overhauled

HRD Corp introduced the ACM as a shared reference for employers and training providers. It was substantially enhanced under Employer’s Circular No. 3/2024, which moved claims toward an hourly-based model and lifted several ceilings — industry bodies broadly welcomed the added flexibility. The current reference is the January 2026 ACM guidebook (linked at the end).

The two matrix categories

The ACM separates claimable expenditure into two streams:

  • HRD Corp Focus Area — courses aligned to national priority areas, which can attract more favourable treatment.
  • Employer-Specific Courses — training tailored to an individual employer’s needs.

The matrix also spans multiple training modes — physical/in-house, remote online training, and e-learning — with the applicable cost lines differing by mode (an e-learning claim, for instance, will not carry a physical venue cost).

HRD Corp Focus Area Courses — the nine national priority areas

This category deserves more attention than it usually gets, because it is where a great deal of AI, digital and technology training actually sits — and because it carries an extra process step that catches employers out.

HRD Corp defines Focus Area Courses as training that directly supports Government initiatives towards nation-building, and that is considered critical for equipping the workforce with the skills required for current and future job requirements. In other words: not just useful training, but training aligned to where the country is trying to go.

There are nine designated Focus Areas:

The nine HRD Corp Focus Areas

1. Industry 4.0Automation, IoT, data-drivenmanufacturing — and AI at work2. Future TechnologyEmerging tech capability — wheremost applied-AI training sits3. FinTechFinancial technology, digitalfinance and automation4. Green Tech / Renewable EnergySustainability and energy transition5. BlockchainDistributed ledger applications6. Micro-CredentialStackable, modular certification7. Smart ConstructionDigitalised building and BIM8. Smart FarmingAgritech and precision agriculture9. Aerospace IndustryAviation and aerospace skillsHighlighted: the three areas most AI, data and automation training maps to.
Focus Areas as published by HRD Corp. Verify the current list against HRD Corp’s Course Verification Guidelines before registering a programme.

Where AI and digital training sits. Most applied-AI, automation and data programmes map to Industry 4.0 or Future Technology, and finance-specific AI work often maps to FinTech. That is why the majority of AI courses run in Malaysia — including AITraining2U’s programmes — are Focus Area rather than general courses.

The extra step: course verification

This is the practical point that most ACM summaries omit, and the one worth planning around.

Course verification applies only to Focus Area and Industry Specific Courses. A general employer-specific course does not go through it; a Focus Area course does. HRD Corp publishes dedicated Course Verification Guidelines (currently version 3, November 2025) together with a verification template that the training provider completes when registering the programme.

Two consequences for employers:

  • Lead time. Verification is an additional stage before the course is registered and claimable. Build it into your planning rather than discovering it a fortnight before the training date.
  • It is the provider’s job, not yours. A registered provider handles verification as part of programme registration. If a provider cannot tell you which Focus Area their course is verified under, treat that as a warning sign.

Does Focus Area actually change the rates?

Worth being straight about the limits of what is publicly documented. HRD Corp describes Focus Area courses as attracting more favourable treatment, and the ACM guidebook sets out ceilings by category, scheme and mode. However, the specific rate differentials between Focus Area and general courses are not clearly published in the public summaries — they sit inside the ACM guidebook and can vary by scheme and training mode.

So the honest position: confirm the applicable ceiling for your category and mode against the current ACM guidebook or directly with HRD Corp before you size a quote. Anyone quoting you a precise Focus Area premium without pointing at the guidebook is guessing.

Indicative claimable rates (2026)

The table below summarises commonly-referenced ceilings from the 2026 ACM. Treat these as a planning guide, not gospel — the official guidebook is authoritative and varies by scheme, mode and category:

Indicative claimable rates — ACM 2026

Cost itemIndicative ceilingNotes
Course feeRM1,500 / hour or RM10,500 / dayHourly-based; raised ~50% from the old RM6,000/day cap
External trainer feeUp to RM200 / hourTTT-certified ~RM100–150/hr; senior trainers up to RM200/hr
Internal trainer allowanceRM50 / trainee / hourFor in-house trainers delivering internal training
Meals & refreshmentsRM15–RM25 / paxPer training day, physical sessions
Training venueUp to RM6,000 / dayExternal venue hire
Daily allowance (<100km)Up to RM250 / day / paxCovers meals & incidentals for travel under 100km
Consumable materialsActual, allowableMaterials genuinely consumed during training
Indicative figures drawn from the January 2026 ACM and public summaries — not an official rate card. Always verify against HRD Corp’s current Allowable Cost Matrix guidebook (linked below); rates and categories change.

How hourly-based claims work

The 2024 enhancement shifted the course-fee logic from a flat daily cap to an hourly ceiling of RM1,500/hour, capped at RM10,500/day. In practice you multiply the eligible training hours by the hourly rate, subject to the daily ceiling — which rewards well-structured, content-dense programmes and gives shorter high-value courses more room than the old flat cap did.

A worked example

Take a 2-day, 14-hour AI automation course quoted at RM12,000 for the group:

  • Course-fee ceiling check: 14 hours × RM1,500 = RM21,000, and 2 days × RM10,500 = RM21,000 — so the RM12,000 fee sits comfortably within the ACM ceiling and is claimable in full.
  • Add allowable extras if applicable and within their own caps — e.g. meals at up to RM25/pax/day, venue up to RM6,000/day.
  • Everything is drawn from your accumulated levy pool, so a compliant quote can be effectively fully funded.

Had the same course been quoted at, say, RM25,000, the amount above the RM21,000 ceiling would be disallowed — you would either absorb it or renegotiate. That is exactly why sizing the quote against the ACM before the grant application matters.

Common ACM watch-outs

  • Fees above the ceiling — the excess is simply not paid; keep quotes within the matrix.
  • Wrong mode assumptions — claiming physical-only costs (venue, meals) on an e-learning or remote course.
  • Non-consumable ‘materials’ — equipment you keep is generally not a consumable training cost.
  • Stale rates — the ACM is revised periodically; always price against the current guidebook.

How to stay within the ACM

Ask your provider to structure the quote against the current ACM up front, itemise hours clearly, and separate allowable extras from the course fee. A registered provider does this by default — every AITraining2U course is scoped to be claimable under SBL-KHAS, so the quote you receive already fits the matrix. New to all this? Start with the full claim guide.

Official HRD Corp resources

This guide summarises official material for convenience. Always confirm the current rules on HRD Corp’s own channels — they are the authority and details change:

Frequently Asked Questions

The Allowable Cost Matrix (ACM) is HRD Corp's official guide to what training costs are claimable, the maximum claimable for each item, and the eligibility by training type. Every claim is assessed against it — costs within the matrix are paid, and any amount above the ceiling is disallowed as excess.

Indicative 2026 ceilings include a course fee of RM1,500/hour or RM10,500/day, external trainer fees up to RM200/hour, internal trainer allowance of RM50/trainee/hour, meals of RM15–RM25/pax, venue up to RM6,000/day, and daily allowance up to RM250/day for travel under 100km. Always confirm against HRD Corp's current ACM guidebook, as rates change.

Under the hourly-based model introduced via Employer's Circular No. 3/2024, the course-fee ceiling is RM1,500 per hour, capped at RM10,500 per day — roughly a 50% increase over the previous RM6,000 daily limit. The fee is checked against eligible training hours.

Yes. The ACM covers multiple training modes — physical/in-house, remote online training, and e-learning — but the applicable cost lines differ by mode. For example, an e-learning claim would not include a physical venue or meal cost.

The portion above the ceiling is disallowed — HRD Corp will not fund the excess, so you would absorb it or renegotiate the quote. That is why you should size the course fee against the current ACM before submitting the grant application.

Focus Area Courses are training programmes that directly support Government initiatives towards nation-building and are considered critical for equipping the workforce with skills needed for current and future job requirements. There are nine designated Focus Areas: Industry 4.0, Future Technology, FinTech, Green Technology/Renewable Energy, Blockchain, Micro-Credential, Smart Construction, Smart Farming, and the Aerospace Industry. They form one of the two ACM categories, alongside Employer-Specific Courses.

Most applied-AI, automation and data programmes map to Industry 4.0 or Future Technology, while finance-specific AI training often maps to FinTech. This is why the majority of AI courses delivered in Malaysia are registered as Focus Area courses rather than general employer-specific ones. Your provider should be able to tell you which Focus Area a given programme is verified under.

Yes. Course verification applies only to Focus Area and Industry Specific Courses — general employer-specific courses do not go through it. HRD Corp publishes dedicated Course Verification Guidelines (currently version 3, November 2025) plus a verification template that the training provider completes at programme registration. It is the provider's responsibility, but it adds a stage before the course is claimable, so factor the lead time into your planning.

HRD Corp describes Focus Area courses as attracting more favourable treatment, and the ACM sets ceilings by category, scheme and training mode. However, the precise rate differentials between Focus Area and general courses are not clearly set out in public summaries — they sit inside the ACM guidebook and vary by scheme and mode. Confirm the applicable ceiling for your specific category and mode against the current ACM guidebook or directly with HRD Corp before sizing a quote.

Train your team on us — 100% HRDC claimable

Every AITraining2U course is registered under HRD Corp Claimable Courses (SBL-KHAS), so approved employers can fund AI training from their levy. We help you with the grant paperwork end to end.