ABOUT 10% of existing jobs in Malaysia face the risk of automation or a restructuring of job functions due to artificial intelligence (AI), digitalisation and the green economy, according to the Economy Ministry.
Economy Minister Akmal Nasrullah Mohd Nasir cited a November 2024 study by Talent Corporation Malaysia, saying the remaining 90% of jobs could stay relevant through skills adaptation, highlighting the need to strengthen reskilling and upskilling programmes as technology reshapes the labour market.
In a written reply to Jimmy Puah Wee Tse (PH-Tebrau) in the Dewan Rakyat today, Akmal said AI, digitalisation and automation were shifting demand away from physical and manual work towards analytical, cognitive and digital skills.
The government views the technological shift as an opportunity to restructure the economy around higher-value industries and create more skilled employment, rather than solely as a threat to existing jobs.
Under the 13th Malaysia Plan (RMK13), Malaysia aims to raise the proportion of skilled jobs to 35% of the workforce by 2030. Skilled jobs accounted for 30.1% of employment in 2025, while semi-skilled jobs made up 57% and low-skilled jobs 12.9%.
Akmal said medium- and long-term policies had incorporated workforce requirements arising from technological change, including RMK13, the New Industrial Master Plan 2030, the National Energy Transition Roadmap, the National Semiconductor Strategy and the Malaysia Digital Action Plan 2030.
The Malaysia Digital Action Plan 2030, launched by Prime Minister Datuk Seri Anwar Ibrahim on June 29, sets out a national framework to keep the workforce adaptable, inclusive and competitive as the country pursues its ambition of becoming an AI nation by 2030.
Akmal also cited a Stanford University study published in September 2026, titled *How Does AI Change Labor Demand? Evidence from 41 Countries*, which found that generative AI was reshaping labour demand in ways that favoured experienced workers over those entering the workforce.
It said automating basic tasks could threaten entry-level opportunities and disrupt the development of future talent if the trend was not addressed.
To reduce the risk of large-scale job losses, the government will continue strengthening professional certification, upskilling and reskilling programmes, while expanding collaboration between the public sector, industry and academia.
The ministry said 17 MyMahir Future Skills Talent Councils (MyMahir FSTC), each chaired by an industry player, had been established to support these efforts.
Anti-Rent-Seeking Legislation To Be Tabled In Parliament Next Year
Separately, in the Dewan Rakyat today, Akmal said the government is reviewing existing laws and regulatory gaps to strengthen enforcement against rent-seeking, including the practice of “Ali Baba” licence arrangements.
He said existing local authority by-laws included restrictions on licence transfers, but the current legal framework was insufficient to curb the practice effectively.
“A study is underway to develop a regulatory framework and legislative proposals to combat rent-seeking. The study also considers the views of industry players, enforcement agencies, relevant ministries, state governments and other stakeholders to ensure the proposed approach is comprehensive and suited to current needs,” he said.
Akmal was answering a question from Syahredzan Johan (PH-Bangi) during the Dewan Rakyat’s oral question-and-answer session today on the status of an anti-rent-seeking Bill, whether through new legislation or amendments to existing laws, and its proposed timeline for tabling in Parliament.
He said the study had found that rent-seeking could undermine the country’s socio-economic efficiency through leakages in the allocation of licences, contracts and facilities.
However, he said, legislative drafting required careful scrutiny to ensure the proposed measures were practical, effective and enforceable.
“As rent-seeking cuts across the jurisdictions of several ministries and agencies, coordination and mutual agreement are also needed before an approach can be finalised.
“The proposals must then undergo several stages of consideration and approval, including by the National Planning and Development Committee (JPPN) and the Cabinet, before being tabled in Parliament,” he said. - October 14, 2026
