In other words, the levy is not - and has never been - intended as a wage subsidy. First, it sets a dangerous precedent: once the training levy is converted into a wage-subsidy mechanism, reversing the policy becomes politically difficult. The HRDCorp was established specifically to safeguard against this scenario by ring-fencing training funds. It cannot be solved sustainably by permitting companies to use training funds to pay salaries. In a nutshell, Sim’s proposal contradicts not only the letter but also the spirit of the PSMB Act.