How prepared are we for an AI-first future?
Technological revolution, enabled by AI has the potential to reshape the labour market, shape the nature of work, job roles, the skills required to thrive, the available opportunities and employment dynamics across various industries.
With AI advancing at a rapid pace, the labour market and workforce will undergo significant transformation unlike any before.
The impact of AI on the labour market is multifaceted and complex; while it enhances productivity and increases process efficiency as well as creates opportunities, it comes with threats and challenges.
AI has the potential to automate tasks, enhance the decision-making process, and create new job opportunities in fields such as data analytics, machine learning and AI development.
Nevertheless, it raises concerns about jobs displacement, particularly in industries that rely heavily on routine and repetitive tasks; skill polarisation; and ethics.
Many established organisations and institutions have predicted the likelihood that jobs will be replaced by AI.
The findings and survey are striking: The United Nations Trade and Development estimated that up to 40% of all jobs could be affected by AI.
The International Monetary Fund analysis showed that almost 40% of global employment is exposed to AI, with about 60% of jobs may be impacted in advanced economies, and in emerging markets and low-income countries, by contrast, AI exposure is expected to be at 40% and 26%, respectively.
According to a report by the World Economic Forum, by 2025, AI will have displaced 75 million jobs globally, but will have created 133 million new jobs.
This means that there will be a net gain of 58 million jobs globally.
A report by McKinsey & Co says that AI is expected to create 20 million to 50 million new jobs globally by 2030.
These new jobs will be in a range of industries, including healthcare, manufacturing and finance.
AI is already spreading through the Malaysian economy.
The scale of its impacts is potentially significant. The uptake of AI technologies could occur in waves and at different phases of the AI development.
While a different forms of AI-powered tools and applications could be deployed across different occupations and sectors, there could be push-back by those whose businesses or employment are disrupted by the AI-based innovations.
Malaysia TalentCorp's impact study indicated that approximately 1.8 million Malaysian employees are expected to be affected by the transition to AI, digitalisation and green economy, with varying levels of exposure.
Of this, around 620,000 workers (18%) are projected to be highly impacted within the next three to five years, while another 1.2 million (35%) are expected to face moderate impact.
Together, these groups account for roughly 53% of the 3.5 million skilled and semi-skilled employees who are directly engaged in the core operations across key sectors.
The study focusses on 10 key sectors chosen for their significant contributions to Malaysia's gross development product, and they were aerospace, Chemicals, electrical and electronics, energy and power, food manufacturing and cService, global business services, ICT, medical devices, pharmaceutical manufacturing and wholesale and retail trade.
The Ipsos AI Monitor 2025 revealed that 62% of adults in Malaysia in 2024 think that AI will replace their current job in the next five years.
According to the Human Resources Ministry response in Parliament, between 2020 and September 2024, a total of 293,639 workers in Malaysia have already lost their jobs due to automation and AI.
The impact of AI on the workforce will vary by industry and state.
The transition to AI's transformative force in the labour market isn't seamless. Policymakers, society, businesses, employers, and employees must adapt to the changes and disruptions AI generates, ensuring its challenges are responsibly addressed.
Policymakers should proactively prepare their workforce and labour markets so that they are equipped to ride on the AI's disruption through education, training and skills development and adaptable labour market policies.
So, what roles should the Malaysian government play at this stage of AI uptake and development?
The government must act now and prepare our workforce for a more radical future. We should outline the following action plans to prepare our students, graduates and youth as well as workforce for adapting to the AI era.
> It begins with the integration of AI in our education system to future-proof Malaysia's next generation of workforce.
Schools curriculum must focus on AI-complementary skills, adapting to the changing landscape of AI, incorporating AI literacy, digital skills and critical thinking skills into the education system.
The application of AI-powered tools is being used for adaptive learning platforms, automate elements of lesson learning and grading, and intelligent tutoring systems as well as personalise the learning experience.
China will integrate AI applications into teaching efforts, textbooks and the school curriculum as it moves to overhaul education.
Integrating AI into Technical and Vocational Education and Training and apprenticeship programmes offer a powerful way to enhance learning, improve employability, and prepare students for the reality of the modern workplace.
> The most essential five skills that Malaysians must be equipped to survive and thrive in this dynamic, technology-infused work landscape are analytical skills, functional and job-specific skills, project management skills, creativity and innovation skills, and advanced digital skills.
> Combining research and development tax credits, research and development grants and a free, open-source products can support small and medium enterprises (SMEs) to adopt AI in their business operation, including incentivise a broader uptake of AI training assistants to help increase process efficiency.
AI assistants can significantly boost the productivity and performance of lower-performing workers by automating repetitive tasks, providing data-driven insights, and offering personalised learning opportunities
Dedicated public institutions can significantly facilitate the adoption and spread of AI within firms.
Firms have cited uncertainty over the return on AI investment as a critical obstacle for considering adopting AI.
These institutions can help SMEs find the information and give advice and guidance for the adoption of AI, for instance, provide guidelines or a framework to help SMEs navigate the vendor selection process, as well as create networking and collaborative platforms between public and private sectors to help businesses build AI capabilities.
> Encourage the broad adoption of AI across all firms, regardless of size through the development of a new AI-pathfinder or AI Accelerator programme – a structured initiative designed to support and accelerate the growth of startups and businesses focused on AI technologies.
These programmes typically offer mentorship, technical support, access to resources, and networking opportunities to help participants develop and scale their AI-driven products and services.
We can draw on the successful schemes in Singapore and Germany supporting business transformation through a new AI-powered personalised service.
For example, the Monetary Authority of Singapore (MAS) Pathfinder Programme for financial sector AI adoption, is a collaborative initiative between MAS and the financial industry that fosters knowledge exchange in AI implementations.
Participating financial institutions share their experience implementing AI solutions while also gaining insights from the collective experiences of their peers.
> An interactive labour market system to create early awareness and opportunity that helps our workforce to reskilling and upskilling equipped with required new skillset to better handle AI-driven task and take up new job opportunities created by AI.
This system provides real-time analysis of demand and supply of AI jobs, including the job roles that will be displaced by AI, the industries that will create new source of employment, what skills that will be in demand, and also which training courses that are suitable.
> Upskilling and reskilling programmes critical for facilitating workers transition to new employment opportunities, and equip individuals with the necessary skills to thrive in an AI-enhanced economy.
What is important is that the workers receive the right training and skills for transformation development.
The government and the private sector can collaborate to identify emerging skills gaps and develop targeted training programmes.
Lee Heng Guie is executive director of the Socio-Economic Research Centre. The views expressed here are the writer's own.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysiakini
a few seconds ago
- Malaysiakini
Report: Tariff talks progressing, M'sia reluctant on some areas
Despite ongoing negotiations to reduce tariff pressures from the US, Putrajaya is reluctant to meet certain demands made by Washington. According to a Bloomberg report today, the Malaysian government is hesitant to meet the US government's demand for an extension of tax breaks on American electric vehicles (EV), a reduction of foreign shareholding limits in the power and financial sectors, and a cut in subsidies for local fisherfolk, who are a major vote bank as they are predominantly Malays.
The Star
30 minutes ago
- The Star
Capital Markets Malaysia launches emissions calculator for SMEs
Securities Commission Malaysia building at Kuala Lumpur KUALA LUMPUR: Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia (SC), today launched the SEDG Greenhouse Gas (GHG) emissions calculator to help small and medium enterprises (SMEs) measure and report their emissions. CMM said in a statement that the tool is designed to help Malaysian companies measure and report their scope 1 and scope 2 emissions based on the globally recognised GHG protocol. SC executive chairman Datuk Mohammad Faiz Azmi said accurate emissions measurement was increasingly critical for Malaysian SMEs, particularly those operating in global supply chains, as customers demand greater disclosure. "The SEDG GHG emissions calculator simplifies a complex process, making emissions reporting accessible even to first-time users. "Beyond reporting, it also enables companies to pinpoint key emission sources across operations, allowing them to make informed decisions and move towards meaningful climate action,' he said. He added that the calculator complements the SC's efforts to promote consistent and credible sustainability disclosures and supports the adoption of the National Sustainability Reporting Framework. Meanwhile, CMM general manager Navina Balasingam said the agency conducted a series of user acceptance tests across various supply chain sectors to ensure the tool met SMEs' needs and expectations. She said the calculator is available free of charge in three languages - English, Bahasa Melayu and Simplified Mandarin - to ensure broad accessibility. - Bernama
The Star
30 minutes ago
- The Star
Keningau vocational student among finalists for global award
Sabah, Keningau, Keningau Vocational College, Student, Siti Nur Hanisah Omar Hashim, Finalist, Global Student Prize, Finalist, Social Enterprise, Mearpet, Upcycling, Puppets, Storytelling, Sustainability, Inclusive Education Siti Nur Hanisah Omar Hashim is the only Malaysian running for the Global Student Prize 2025 title. KOTA KINABALU: A young woman from Keningau has been named one of the 50 finalists for the prestigious Global Student Prize 2025, the only Malaysian selected from over 11,000 nominations worldwide. Siti Nur Hanisah Omar Hashim, 20, a final-year Early Childhood Education student at Keningau Vocational College (KVC), is reputed to be a trailblazer in vocational education, sustainability and inclusive learning. Among her initiatives is social enterprise Mearpet, which transforms used clothes and stuffed toys into puppets for early childhood storytelling. The project promotes sustainability while preserving local culture through performances of Sabah's indigenous folk tales. It also engages students with disabilities, providing inclusive opportunities in design and performance. 'I have always been passionate about upcycling since my lower secondary years. Living near Kota Kinabalu, I often saw plastic waste polluting the waterways. That inspired me to act,' she said when met recently. Upon joining KVC, she launched Mearpet, which quickly gained traction. The college became a collection hub for pre-loved clothing and toys, with some donations arriving from as far as Peninsular Malaysia, receiving over 200 tonnes of materials. With her peers, Siti Nur Hanisah transformed Mearpet into a thriving enterprise that creates educational tools and novelty items from recycled materials. She also founded The Path Forward, a programme offering free Malaysian University English Test (MUET) preparation classes to vocational students, a group often excluded from this academic requirement for higher education. The programme has now become a permanent part of the college's offerings. Beyond the classroom, Siti Nur Hanisah leads Virtual, Remote, Live (VRL), a digital learning platform that has connected over 2,500 Malaysian students and teachers with international educators through online masterclasses and exchange sessions. KVC director Lumang Lang said Siti Nur Hanisah's success highlights the calibre of students that vocational institutions can produce. 'Hanisah is living proof that vocational colleges under the Education Ministry can produce ambitious, capable and socially driven individuals who make a genuine difference,' he said. Siti Nur Hanisah hopes to win the prize and launch a state-wide social entrepreneurship competition for Sabahan youth, expanding Mearpet by developing commercial puppet kits and locally inspired educational materials. Sponsored by the UK-based Varkey Foundation and the Global Student Prize recognises outstanding students who are making a significant impact in their communities. The winner will receive US$100,000 (about RM420,000), and the finalists were announced on Thursday (July 17). The top 10 finalists are expected to be announced next month, and the champion will be known by September.
