The Malaysian workforce is at a turning point. A recent study conducted by Talent Corporation Malaysia Bhd (TalentCorp) revealed that 620,000 jobs across 10 key sectors are at risk of being displaced or converged unless workers upskill or transition into adjacent roles.
With artificial intelligence (AI), digitalisation, and the green economy rapidly transforming industries, the message is clear: adapt or risk falling behind.
Here’s what this means for Malaysia’s workforce and what can be done to prepare for the future.
Which sectors are at risk?
TalentCorp’s study, conducted from April to September 2024, focused on 10 critical sectors in phase 1 that collectively contributed 60% of Malaysia’s GDP in 2023, or a whopping RM933 billion, it said in a press release.
These sectors include:
- ICT
- Global business services
- Pharmaceutical manufacturing
- Food manufacturing and services
- Electrics and electronics
- Aerospace
- Wholesale and retail trade
- Medical devices
- Chemicals
- Energy and power
Among the 3.5 million employees working in these sectors, 18% (620,000 jobs) are deemed highly impacted, while 53% (1.8 million jobs) are medium-impacted and 28% (980,000 jobs) are low-impacted.
Highly impacted means these roles are at risk of convergence or displacement, while medium impacted means the roles are still relevant, but such employees need to upskill or deliver beyond what would be traditionally expected. Low-impacted roles are those that require mostly ongoing self-improvement to stay relevant, according to the report on the study’s findings.
TalentCorp isn’t stopping here. In 2025, phase 2 of the study will expand to 12 additional sectors, including:
- Tourism
- Healthcare
- Agriculture
- Construction
- Oil & Gas
- Public Sector
The future is green and digital
The study also identified 60 emerging job roles that will gain prominence in the coming years:
- 70% in AI and digital technology
- 20% in the green economy
- 10% in other new technologies
Jobs related to AI, automation, renewable energy, and sustainability will dominate the employment landscape. For instance:
- Manufacturing may automate manual tasks.
- Finance roles could see a shift with digitalisation redefining processes.
- The green economy will revolutionise industries like energy, construction, and transportation.
The upskilling solution
Recognising these challenges, the government is stepping up to support workforce transformation. Human Resources Minister Steven Sim Chee Keong announced several initiatives, including:
1. The Ministry of Human Resources (KESUMA)’s RM3 Billion Fund
- Incentives such as levies, credits, and scholarships for critical skills.
- Matching grants for companies investing in workforce upskilling.
2. MyMAHIR platform & Akademi KESUMA
- A one-stop platform launching next year for skill development and career growth.
What should businesses do?
Businesses cannot afford to stand still in the face of rapid technological and environmental changes. TalentCorp’s study highlights the critical need for employers to take proactive measures to ensure their workforce remains competitive.
One key step is investing in skills development, particularly in high-demand areas such as AI, digital tools, and green technologies. This not only equips employees to handle emerging challenges but also positions companies as leaders in innovation.
Adopting sustainability practices is another essential strategy. As global markets increasingly prioritise environmentally friendly operations, businesses must align their practices with these evolving standards.
This could mean integrating renewable energy solutions, reducing carbon footprints, or embracing sustainable supply chain practices to maintain a competitive edge.
Additionally, companies must integrate new technologies like AI and automation into their operations. While these technologies can boost productivity and streamline processes, they also require a workforce that is adequately prepared to work alongside them.
Employers should focus on upskilling employees to manage and optimise these advanced systems, ensuring a smooth transition to a tech-driven environment.
By prioritising these steps, businesses can future-proof their operations, adapt to industry shifts, and stay ahead in a fast-changing economy.
Why does this matter?
According to TalentCorp, AI and digitalisation are projected to create 97 million jobs globally by 2025, and Malaysia must position itself to seize these opportunities.
The findings from this study underscore the importance of adaptability and innovation in ensuring Malaysia’s workforce remains competitive.
As TalentCorp Group CEO Thomas Mathew puts it, “We must ensure that our workforce isn’t just keeping up with global trends but is actively leading in digital and green transformation.”
The stakes are high, but so are the opportunities. While some roles may become obsolete, countless new opportunities await those ready to adapt.
By leveraging insights from this study, Malaysia can empower its workforce to thrive in an AI-driven, sustainable future.
- Learn more about TalentCorp’s impact study and findings from the 10 sectors here.
- Read other job-related articles we’ve written here.
Featured Image Credit: TalentCorp