Malaysia

Malaysia faces AI labour shake-up, but early reskilling efforts provide cushion

As artificial intelligence continues to transform global labour markets, Malaysia’s job market is beginning to feel the effects

Updated 1 year ago · Published on 15 Sep 2025 9:05AM

Malaysia faces AI labour shake-up, but early reskilling efforts provide cushion
Experts say task-based roles are most at risk, though early reskilling and training programmes have helped blunt the impact - September 15, 2025

THE global tremors of artificial intelligence (AI) are beginning to reshape the Malaysian labour market, with repetitive and task-oriented roles most vulnerable to automation. However, early government-led initiatives in reskilling and workforce development have helped cushion the impact, experts say.

“AI has been here in Malaysia for some time and its impact on the labour market is intensifying. Roles that are task-dependent or repetitive are most at risk of being automated,” said Anthony Raja Devadoss, country managing director at Korn Ferry Malaysia, in an interview with Business Times.

Citing a TalentCorp study, he noted that 10 sectors in Malaysia are at high risk of displacement over the next three to five years, with up to 70 per cent of roles in certain industries potentially affected.

Nevertheless, Malaysia’s workforce has benefitted from structured reskilling programmes and financial support through agencies such as the Human Resource Development Corporation (HRD Corp).

“What is needed now is a stronger learning culture. Workers must move quickly to build new skills in line with emerging technologies,” said Devadoss.

“If you are in finance, you need to add the technology piece and pivot to fintech. The same goes for agriculture with agritech, or healthcare with healthtech.”

He identified cybersecurity, AI-related services and digital content creation as areas where demand is already outpacing supply. These fields, he noted, offer opportunities for those without traditional academic degrees, as industry-recognised certifications can provide quicker entry points.

“These are fast-growing fields where Malaysians can build careers even without a traditional degree, as professional certifications can often get them started much faster.”

For employers, he urged a shift in mindset towards continuous learning and in-house training rather than worrying about talent attrition.

“Don’t be afraid that if you train them, they may leave. When you train them, they can contribute better and help the organisation grow. If the employer survives, the employee survives.”

Looking ahead, Devadoss said digital literacy and fluency will be key in navigating the AI-driven economy.

“We are already cashless and mobile-driven. The future of work will be about applying knowledge in new ways, making data-driven decisions and leveraging AI as a partner, not a replacement.”

At the same time, he cautioned that technological advancement must not come at the expense of humanity.

“As we become more AI-driven, we risk becoming less human. Beyond technical skills, workers should build communication skills, leadership and networks. Technology should empower us, not diminish our humanity,” he said. - September 15, 2025

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