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As AI reshapes the global workforce, Malaysia is taking a data-driven and human-centered approach to skills development, from national reskilling efforts to leading regional collaboration across ASEAN.
In a piece published on the World Economic Forum (WEF)'s website, Steven Sim, Minister of Human Resources, Malaysia reflected on his early days in office and the concerns raised by workers across various sectors from corporate professionals to gig workers about their future in an economy increasingly influenced by AI.
As the minister shared, these conversations centered on three critical questions: the availability of meaningful employment, the ability to earn a dignified living, and whether workers’ roles would remain relevant in an AI-driven world.
Data-driven planning for an AI-ready workforce
As AI and automation continue to reshape economies, Malaysia has taken a data-first approach to understanding the shifting employment landscape.
According to Minister Sim, a national study led by TalentCorp assessed the impact of AI, digitalisation, and the green economy on Malaysia’s workforce.
The study identified approximately 620,000 jobs as being at high risk of replacement or obsolescence due to automation. Many of these roles will require some form of cross-skilling, upskilling, or reskilling to remain relevant.
However, the minister added, the outlook is not entirely bleak. The same study highlighted 60 emerging job roles, with 70% of these linked to AI and digital technologies. These roles, he pointed out, are already appearing in job listings and reflect the kind of talent demand that is taking shape globally.
From concern to strategy: Investing in skills
To prepare Malaysians for these shifts, the government has committed RM10bn annually to skills-related education and training. Of this, around 30% is funded by a statutory levy collected from private corporations to train their workers.
Several initiatives have been rolled out to support this transformation. Among them is MyMahir, a national digital platform designed to offer real-time insights into job market trends, in-demand skills, and training opportunities.
In tandem, the Future Skills Talent Council was formed to drive deeper collaboration between government and industry. Led by industry representatives, the council ensures that skills training remains aligned with evolving business needs. In its first year, workers trained through its programmes earned a 12% higher average wage compared to the national average, Sim shared.
Longer-term, the Ministry also plans to establish “skill universities”. These institutions are accessible, industry-aligned, and offer qualifications comparable to traditional academic degrees.
Driving regional efforts through ASEAN
Beyond Malaysia’s borders, Minister Sim highlighted that countries across ASEAN face similar workforce challenges.
The International Labour Organization (ILO) estimates that with the right reforms, ASEAN could generate up to 30mn green jobs by 2030. However, this transformation cannot be achieved by any one country on its own.
As part of its upcoming chairmanship of ASEAN, Malaysia will lead the ASEAN Year of Skills 2025, an initiative supported by the ILO to encourage regional collaboration on human capital development.
A key event will be the National Training Week in June 2025, which Malaysia plans to open to all ASEAN citizens, offering 65,000 high-quality skills training courses delivered by both local and international brands.
The country is also partnering with the WEF to co-chair the Gender Parity in the Future of Work Accelerator. The initiative is designed to empower female talent in the age of AI and aligns closely with Malaysia’s MADANI Economic Framework, which includes targeted policies to raise female labour force participation.
Through these efforts, Malaysia aims not only to future-proof its own workforce, but to contribute towards building a more skilled, inclusive, and resilient ASEAN region.
Technology with a human touch
While acknowledging the disruptions AI brings, Minister Sim emphasised that technology must remain rooted in human values.
"Humans write the manual for technology," he said, quoting Rudyard Kipling’s The Secret of the Machines, a poem that reminds readers we are in control of technology and not the opposite.
At the heart of Malaysia’s approach, Minister Sim reflected: "I realised that the questions that kept me up at night were never just about jobs or wages. They were about dignity and ensuring that no one was left behind."
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