The short answer
Team building is HRD Corp claimable when it is structured training: a programme registered with HRD Corp by a registered training provider, at least 4 hours long, led by an HRD Corp accredited trainer, with a grant approved at least 14 days before it starts. Only the training is claimed. Annual dinners, trips, entertainment, prizes and gifts are not.
HRD Corp itself uses team building as an example. The FAQ to its Employer's Circular 3/2024 works through a three day in-house team building programme for 20 trainees, with 18 claimable hours and a course fee of RM 26,250 (RM 10,500 a day for two and a half days).
The money comes from your company's own levy, so the training is funded, not free, and every claim is subject to HRD Corp's approval.
What makes a team building programme claimable
- A registered provider and a registered course. The programme must be offered by an HRD Corp registered training provider and registered under HRD Corp Claimable Courses, shown in eTRiS as SBL-Khas. A registered course runs for at least 4 hours.
- An accredited trainer for each group. Since 1 January 2025 trainers under HRD Corp schemes must be HRD Corp accredited, with a few listed exceptions, and every trainer must be named in the course registration.
- Real training content. Learning outcomes, modules and a timed itinerary for the whole programme. HRD Corp compares what is delivered on the day with what it approved.
- Up to 50 people per group. For soft skills training such as team building, a group can have up to 50 trainees with one trainer, and at least 2. Below 5 people the course fee is reduced pro rata.
- At most 7 training hours a day. A full day is 7 training hours and a half day is 4. Meals, free time and the evening programme are not training hours.
- Approval before you start. The grant must be approved at least 14 days before an in-house programme starts.
- Attendance. Each trainee must attend at least 75% of the training hours and sign the attendance form every day.
- Eligible trainees. Your company must have no levy arrears. HRD Corp can reduce or refuse the claim for trainees who are not Malaysian citizens.
Sources: HRD Corp Claimable Courses, Employer's Circular 3/2024 FAQ, Allowable Cost Matrix.
What you can claim, with the limits
In-house training at a hotel, resort or outside venue, from HRD Corp's Allowable Cost Matrix (version August 2025).
| Cost | Claimable, and HRD Corp's limit |
|---|---|
| Training programme (course fee) | Yes Up to RM 10,500 per group for a 7 hour day, or RM 6,000 for a 4 hour half day. HRD Corp allows up to 50 people per soft skills group; we run groups of up to 25. |
| Trainee allowance | Yes RM 250 per person per training day, or RM 500 when the venue is 100 km or more from the workplace. A flat amount paid to your company, with no receipts needed. |
| Trainer allowance | Yes The same daily rate for one external trainer per group. |
| Chartered bus | Yes As quoted, when training is at a hotel or outside venue, with the transport receipt. |
| Flights | Yes The actual fare, with the e-ticket and invoice. |
| Training materials | Yes RM 100 per group without a quotation, itemised above that. |
| Hotel rooms, hotel meals, venue hire | No Not separate claim items. |
| Annual dinner, entertainment, prizes, door gifts, T-shirts | No Not training, so never claimable. |
The meal allowance of RM 100 per person per day applies only to training at your own premises, not at a hotel. A company gets either the meal allowance or the trainee allowance for each trainee, never both.
Source: HRD Corp Allowable Cost Matrix.
What you cannot claim
- The annual dinner and gala night. Including the stage, sound, emcee, entertainment and decoration.
- Family days, trips and outings. An outing with no training content is not a course, however it is described.
- Prizes, door gifts, T-shirts and alcohol. None of these is a cost item in the Allowable Cost Matrix.
- Hotel rooms, hotel meals and venue hire. They are not separate claim items. The flat trainee allowance is the only money HRD Corp pays towards a residential programme.
- A short motivational talk. A talk of an hour or two is below the 4 hour minimum. A workshop of 4 hours or more, registered as a course, is claimable in the normal way.
- A retreat overseas. Overseas training falls under a different scheme, SBL, at a 50% rate, and only when it is genuine training.
HRD Corp does not publish a list of banned items. It publishes a closed list of what it pays for, and anything outside that list is not claimable. Approval of every grant and claim is at HRD Corp's sole discretion.
A worked example
100 staff on a 2 days 1 night retreat at a resort 120 km from the office, run as four training groups of 25 with 7 training hours on each day.
| Item | How it is worked out | HRD Corp maximum |
|---|---|---|
| Course fee, day 1 | 4 groups x RM 10,500 for a 7 hour day | RM 42,000 |
| Course fee, day 2 | 4 groups x RM 10,500 for a 7 hour day | RM 42,000 |
| Trainee allowance | 100 people x RM 500 x 2 training days (venue 100 km or more away) | RM 100,000 |
| Trainer allowance | 4 trainers x RM 500 x 2 days, one per group | RM 4,000 |
| Training materials | 4 groups x RM 100, without a quotation | RM 400 |
| Chartered buses | As quoted, with the receipt | As quoted |
| Total, before buses | RM 188,400 | |
| Rooms, meals, venue, dinner, prizes | Not claim items | RM 0 |
These are HRD Corp's upper limits, not our prices. The real claim follows your quotation, attendance (at least 75% of the hours) and HRD Corp's approval, and it is paid from your own levy balance.
Timing: the 14 day rule
Since 15 June 2026 (Employer's Circular 2/2026), the grant must be approved, not just submitted, before the deadline.
- 8 to 12 weeks before. Choose your training provider, venue and dates. Retreats with rooms need the longest lead time.
- 4 to 6 weeks before. Apply in eTRiS with fixed dates, using the registered course title and the provider's documents.
- Within 5 days of any query. Answer it. A query left unanswered for 5 days expires and the application is rejected.
- At least 14 days before an in-house start. The grant must be approved. For public courses the rule is currently 3 days.
- On the day. Trainees sign the attendance form every day. HRD Corp officers may visit without notice to check the trainer, the group size, the venue and the content.
- Within 6 months after. The provider claims the course fee first, then your company claims the allowances, buses and materials.
Sources: grant approval timing, verification visits.
Documents and checks
- For the grant application. Course content and a timed itinerary for the whole programme, a quotation with a fee breakdown, dates and training hours, the course title exactly as registered, and trainer profiles.
- For the claim. The JD/14 form signed by your company, the T3 attendance form signed by trainees every day, and the provider's invoice to HRD Corp.
- During the programme. Officers can arrive without an appointment, photograph the session and the attendance list, and check everything against the approved grant. Problems can put the grant on hold.
- Declarations matter. A false declaration on the JD/14 form can be prosecuted under the PSMB Act 2001, with a fine of up to RM 20,000, up to 2 years in jail, or both, and HRD Corp can recover the grant.
Common reasons team building claims fail
- The grant was approved less than 14 days before the start, or the query was not answered within 5 days.
- A trainer was not HRD Corp accredited, or was not named in the course registration.
- A group had more than 50 people, or one trainer ran two groups.
- A 5 or 6 hour day was claimed as a full day. HRD Corp counts a full day as 7 training hours.
- Trainees attended less than 75% of the training hours, or did not sign the attendance form every day.
- Dinner, gifts or T-shirts were folded into the course fee.
- The claim was filed more than 6 months after the training.
Seven myths about HRD Corp and team building
Claims we have seen on other websites, and what HRD Corp's own documents say.
| What you may read elsewhere | What HRD Corp's rules say |
|---|---|
| You can apply up to 30 days after the training. | The grant must be approved at least 14 days before an in-house programme starts. |
| The course fee limit is RM 10,500 per programme. | It is RM 10,500 per group for each 7 hour training day, so a longer programme can claim more days. |
| A 3 hour workshop before the dinner is claimable. | A programme must run for at least 4 hours. A half day is 4 training hours. |
| You can claim hotel meals and the trainee allowance. | Each trainee gets one or the other, and the meal allowance applies only at your own premises. |
| The trainee allowance is RM 150. | It is RM 250 per person per training day, or RM 500 when the venue is 100 km or more away. |
| Groups are limited to 40 people. | Since November 2024, a soft skills group can have up to 50 people with one trainer. |
| Team building is 100% claimable, at zero cost. | Claims come from your own levy, within the cost limits and at HRD Corp's discretion. Dinners and gifts are never covered. |
Sources: Allowable Cost Matrix, Employer's Circular 3/2024 FAQ, grant approval timing.
Questions about HRD Corp and team building
Is team building HRDF claimable?
HRDF is the old name of HRD Corp. Team building is HRD Corp claimable when it is registered training led by an HRD Corp accredited trainer, with a grant approved at least 14 days before it starts.
Which HRD Corp scheme covers team building?
HRD Corp Claimable Courses, which eTRiS still shows as Skim Bantuan Latihan Khas (SBL-Khas). The SBL scheme is for exceptions such as internal trainers and overseas training.
How many people can be in one team building group?
Up to 50 trainees per group with one trainer, for soft skills training. Larger companies run several groups, each with its own accredited trainer.
Is accommodation claimable for a team building retreat?
Not as a separate item. At a hotel or resort your company can claim a flat trainee allowance of RM 250 per person per training day, or RM 500 when the venue is 100 km or more away. Rooms, hotel meals and venue hire are not claim items.
Can we claim a team building programme held overseas?
Only under the SBL scheme at a 50% rate, and only when it is genuine training. A company trip abroad is not claimable.
Who submits the HRD Corp grant application?
The employer, in eTRiS. The training provider prepares the documents the application needs.
When does the training provider get paid?
After the programme. The provider claims the course fee from HRD Corp out of your levy, and may ask for up to 30% upfront with your consent.
Is a 2 day 1 night team building claimable for both days?
Yes, if both days carry real training that matches the registered course. Each training day of at least 4 hours also earns the trainee allowance.
Can we claim a 3 hour team building session?
No. A programme must run for at least 4 hours, and HRD Corp counts a half day as 4 training hours.
Can we claim hotel meals as well as the trainee allowance?
No. Each trainee gets either the meal allowance, which applies only at your own premises, or the trainee allowance. At a hotel or resort it is the trainee allowance.
Team building in Malaysia · Annual dinner and team building · How HRD Corp funding works · HRD Corp claim steps
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