As the Fourth Industrial Revolution advances with unprecedented speed, nations across the globe are grappling with how to prepare their people for an increasingly digital and automated economy. In Malaysia, this preparation is taking a deliberate, evidence-based and human-centred approach—one that prioritises resilience, dignity and inclusion in the face of evolving technologies such as artificial intelligence (AI).
When Rudyard Kipling penned The Secret of the Machines over a century ago, he captured the awe and trepidation that society felt during the second industrial revolution. Today, similar sentiments are being echoed as AI rapidly reshapes the contours of work. With it comes both the promise of augmented productivity and the existential worry of displacement. In Malaysia, these anxieties are being met with action.
Upon assuming the role of Minister of Human Resources 17 months ago, Steven Sim was struck not by abstract theories but by real conversations with Malaysians—corporate leaders, employees, gig workers and entrepreneurs—all uncertain about their place in a changing economy. The questions were simple yet profound: Will I still have a meaningful job? Can I earn a dignified living? Will my skills remain relevant?
In response, the Ministry of Human Resources, through its agency TalentCorp, initiated a nationwide study to examine the implications of AI, digitalisation and the green economy on the labour market. The results were sobering: approximately 620,000 jobs are at high risk of becoming obsolete due to automation. This necessitates large-scale cross-skilling, upskilling and reskilling to future-proof the workforce.
However, the findings also revealed significant opportunities. The study identified 60 emerging job roles, with 70% rooted in AI and digital technologies. These roles are not hypothetical—they are already being advertised in job listings, and several countries are outpacing Malaysia in preparing their talent pipelines to fill them.
Malaysia’s strategic response is both broad-based and data-driven. The country currently invests RM10 billion (£1.65 billion) annually in skills-related education and training, with roughly 30% of that funding sourced from a statutory levy imposed on private sector employers. To ensure this investment leads to meaningful outcomes, the government launched MyMahir—a national digital platform providing real-time insights into job trends, required competencies and available training. This tool is designed to empower individuals, companies and policymakers alike in making informed decisions about skills development.
To align training more closely with industry needs, the Ministry established the Future Skills Talent Council, comprising sector-based, industry-led groups. These councils bridge the gap between policy and practical workforce requirements, ensuring that training programmes reflect the realities of the workplace. Early results are promising: workers trained under these schemes have earned a 12% higher average wage than the national norm in the programme’s first year.
Looking ahead, the government plans to establish “skill universities”—accessible, industry-aligned institutions that offer credentials equivalent in value to traditional degrees. These will serve as a new model for post-secondary education in a skills-driven economy.
The country’s workforce strategy is not limited to domestic ambitions. Recognising the interconnectedness of the ASEAN region, Malaysia will spearhead the ASEAN Year of Skills 2025 during its chairmanship, with support from the International Labour Organization. This initiative aims to catalyse deeper regional cooperation on human capital development.
One of its flagship efforts will be to open Malaysia’s National Training Week in June 2025 to all ASEAN citizens. The programme will offer access to 65,000 high-quality training courses delivered by both local and international providers, positioning ASEAN as a globally competitive and highly skilled region.
Gender inclusion is also a core component of Malaysia’s workforce agenda. In partnership with the World Economic Forum, Malaysia is co-chairing the Gender Parity in the Future of Work Accelerator. This programme will formulate data-driven policy recommendations to enhance women’s participation in the labour market, aligning with Malaysia’s broader Madani Economic Framework, which seeks to boost female labour force participation.
As technology continues to redefine economies and societies, Malaysia remains committed to ensuring that human dignity is not an afterthought but the cornerstone of its future-of-work policies. Echoing Kipling’s reassurance that technology remains a tool—powerful yet ultimately subordinate to human intent—the government’s strategy is clear: people must write the manual for technology, not the other way around.
Reflecting on his tenure, Minister Sim acknowledged that the greatest concerns were never just about employment statistics or wage growth. They were about ensuring that in the pursuit of innovation, no one is left behind.
-World Economic Forum
