TESDEC starts in 1989 as On-the-Job Training Scheme (SLSB) under the State of Terengganu Economic Planning Unit (UPENT). Under this scheme, youths are sent to selected companies on attachment to undergo on-the-job training (OJT) in various skills.

The resounding success of SLSB sees the formal establishment in September 1996 of the Terengganu Skills Development Centre (TESDEC), as a company registered under the Companies Act, 1965. The companies offers formal training programmes to the target groups in the State at its various training centre or at partner training providers sites.