Preparing Malaysia workforce for an AI-driven 2025
08 Jan 2025
79% of Malaysian professionals anticipate role changes due to AI
Malaysia is set to experience robust economic growth in 2025, driven by advancements in its digital economy, manufacturing and construction sectors.
According to Randstad Malaysia’s 2025 Job Market Outlook, 59% of employers plan to expand their teams while 41% expect the most hiring activity in technology-related roles.
The rapidly advancing technologies of automation and artificial intelligence (AI) are transforming economies and job markets globally, with Malaysia being no exception.
Randstad Malaysia country director Fahad Naeem noted that as Malaysia’s businesses continue to grow, the demand for talent with specialised skills is on the rise.
“We are seeing a significant need for skilled professionals proficient in technologies such as AI, data analytics, and digital infrastructure.”
He added that digital integration is occurring across corporate sectors, including legal, human resources, shared services, marketing and accounting.
This creates opportunities but also raises hiring expectations, particularly in digital literacy and commercial acumen.
With opportunities and challenges ahead, the country has been proactive in developing policies, fostering collaborations and initiating programmes to ensure its workforce remains competitive in an AI-driven future.
Navigating Workforce Transformation, Policy Development
Malaysia’s workforce is adapting to the growing impact of automation and AI, albeit gradually.
JobStreet by Seek Malaysia acting MD Nicholas Lam shared that Malaysia’s workforce is progressively embracing automation and AI, with significant progress observed in tech-savvy industries.
“The Decoding Global Talent Report 2024 reveals that 79% of Malaysian professionals anticipate role changes due to AI, highlighting their openness to embracing technological advancements,” he said.
To navigate these transformations, the Malaysian Employers Federation (MEF) has been hard at work helping employers.
Its president Datuk Dr Syed Hussain Syed Husman said MEF connects employers and policy-makers, ensuring the regulatory environment supports innovation and protects employers’ interests.
MEF also advocates for policies that facilitate the adoption of automation and AI and enable employers to leverage government incentives for new technology adoption.
These efforts, according to Syed Hussain, are essential in helping businesses remain competitive while aligning with global advancements in technology.
The federal government has implemented several initiatives aimed at upskilling and reskilling the workforce.
Programmes such as the Malaysia Digital Economy Blueprint, MyDigital and the National AI Roadmap 2021-2025 reflect its commitment to preparing the workforce for a digital economy.
WORQ CEO Stephanie Ping mentioned that programmes like the Employment Insurance System and Future Workforce Training Scheme have been introduced to address the challenges posed by automation and AI.
Despite these efforts, there is room for improvement. Lam said policies may be enhanced by offering tax incentives for companies investing in AI training and development, subsidising reskilling programmes for mid-career workers and ensuring equitable access to digital infrastructure in under-served regions.
Subsidising reskilling programs for mid-career workers and ensuring equitable access to digital infrastructure are additional measures that could strengthen the workforce’s readiness.
Such enhancements would not only foster technological adoption but also create a level playing field for businesses of all sizes, enabling smaller companies to access resources necessary for growth.
Challenges, Collaboration Across Sectors
Implementing lifelong learning and training initiatives poses several challenges.
Employers face high financial commitments, tight schedules and employee resistance to upskilling programmes.
Syed Hussain described that micro, small and medium enterprises may lack resources, both financial and human, to develop and implement training programmes.
“Implementing lifelong learning and training initiatives for employees requires high financial commitments and can be a major constraint.
“Employers must balance these costs with other business priorities,” he said.
The government and private sector must work collaboratively to address these barriers and provide flexible learning opportunities.
Ping noted that nearly 300,000 workers have been displaced since 2020 due to automation.
She explained that as of September 2024, the hardest-hit sectors included manufacturing, with 75,615 layoffs, followed by wholesale and retail trade (43,614), professional and scientific services (23,907), as well as information and communication technology (19,931).
Specialised retraining programmes tailored to industry needs could help workers transition seamlessly into emerging roles.
For instance, reskilling workers in manufacturing to operate automated systems can bridge the gap between job displacement and new opportunities.
Collaboration between public and private sectors is essential for workforce transformation.
“These collaborations bridge gaps between talent supply and demand, ensuring workers are equipped with skills that match evolving job market requirements,” said Ping.
Moreover, such partnerships ensure that skills development initiatives are industry-relevant and address real-time workforce needs.
WORQ itself plays an active role in fostering these partnerships. Ping said WORQ’s vibrant community facilitates networking and partnership opportunities.
By connecting government agencies, educational institutions and private sector players, coworking spaces like WORQ allow cohesive and practical workforce development efforts.
These spaces also provide a unique platform for businesses and policymakers to align their goals and co-create strategies supporting workforce readiness for future challenges.
According to Lam, programmes like Microsoft’s AIForMYFuture, which aims to equip 800,000 Malaysians with AI skills by 2025, show the potential of such partnerships.
He said to enhance these collaborations, focus should be placed on scalability to include underserved communities, customisation for industry-specific needs and sustainability through continuous education frameworks.
“Such partnerships can foster local innovation, create jobs, and support Malaysia’s economic growth.”
Education, Lifelong Learning, Industry Alignment
Aligning education systems with the demands of automation and AI is a national priority.
MEF has lauded the establishment of AI faculties in public universities.
Syed Hussain said establishing AI faculties in universities aligns academic offerings with the evolving demands of modern workplaces, particularly in sectors increasingly reliant on AI technologies.
He added that by integrating AI-focused education that emphasises theoretical and practical applications, graduates can enter the workforce with a robust set of skills tailored to contribute effectively to fields like machine learning, data analysis and automation processes.
He said this not only enhances employability but also drives innovation and competitiveness within industries seeking to leverage AI technologies.
Platforms like JobStreet’s Career Hub have also been instrumental in issuing over 3,300 certifications and logging 145,000 minutes of consumed learning content.
These tools provide accessible opportunities for workers to remain competitive.
Additionally, industry-driven training initiatives, such as targeted workshops on data analytics or cybersecurity, can complement formal education and address specific skill gaps.
The impact of automation varies across industries, and in manufacturing, it streamlines processes such as assembly, quality control and inventory management.
“Industries are investing in advanced robotics and predictive maintenance technologies, ensuring their workforce remains competitive,” shared Syed Hussain.
Similarly, retail trade has been transformed through stock management and self-checkout systems.
The healthcare sector has seen advancements in diagnostics and surgeries, while financial services rely heavily on data analysis and fraud detection.
Plantation and agriculture industries benefit from technologies like drones, while hospitality focuses on personalised guest engagement.
By adapting to these changes, businesses are not only improving productivity but also ensuring that workers remain integral to operations despite technological advancements.
Empowering SMEs, Balancing Progress
Small and medium-sized enterprises (SMEs) require targeted support to adopt AI and automation.
Syed Hussain recommended that governments provide grants and subsidies to SMEs for AI adoption and worker training.
He said public-private partnerships and reskilling programmes can further enhance their capabilities.
By combining the above, SMEs will be in a better position to embrace AI and automation while at the same time transforming employees to be more resilient and skilled.
Providing access to affordable digital tools and creating knowledge-sharing platforms can further support SMEs in this transition.
To address fears of job displacement, employers must adopt proactive strategies.
“Employers should communicate their automation plans, reiterating how new technologies may complement human roles rather than displacing them,” Syed Hussain added.
Workforce transformation requires reskilling, job redesign and clear career pathways, while employee engagement builds trust in technology.
Meanwhile, success could be measured through metrics like unemployment rates, retention and career progression.
By integrating advanced technologies with human-centric design, Malaysia can drive economic growth and create better jobs, ensuring automation complements the workforce.
Lam said in the next five to 10 years, critical skills in demand may include data analytics, machine learning, cyber security and AI.
“Beyond technical expertise, human-centric skills like creative problem-solving, leadership and emotional intelligence may also gain prominence as they complement technological advancements.”
To embrace this transition, individuals should proactively pursue learning opportunities through online courses and certifications.
Employers, in turn, can foster a culture of continuous education and innovation, empowering their workforce to thrive in the evolving landscape.
Source: The Malaysian Reserve
