KUALA LUMPUR, May 1 — As artificial intelligence (AI) and automation accelerate, they are reshaping how we work while putting Malaysia’s workforce to the test, requiring greater resilience and adaptability to remain relevant in an increasingly complex and uncertain job landscape.
The group chief executive officer of Talent Corporation Malaysia Berhad, Biruntha Mooruthi, said that approximately 697,000 workers in Malaysia are expected to be significantly affected by AI, digitalisation, and the green economy across 22 sectors within the next three to five years.
In this context, the ability to stay relevant no longer depends solely on qualifications but rather on the capacity to adapt, upgrade skills, and transition into higher-value roles.
Accordingly, the role of workforce development institutions, particularly agencies under the Ministry of Human Resources, becomes critical in strengthening the national talent ecosystem through upskilling programs, reskilling initiatives, and talent matching aligned with industry needs.
According to Biruntha, service sectors such as hospitality, tourism, and retail, as well as public and air transportation sectors driven by intelligent operating systems, are among the most critical in the short to medium term.
Also affected are manufacturing sectors such as oil and gas, which are moving toward smart production through robotics and Industry 4.0 technologies, as well as the healthcare sector, which is increasingly reliant on digital health, AI-driven diagnostics, and patient data management.
“However, these impacts are not evenly distributed. They are more concentrated in sectors that rely heavily on routine, data-intensive tasks and are rapidly moving toward automation,” Biruntha told Bernama.
She added that TalentCorp’s focus is not only on identifying affected sectors, but also on ensuring that talent development interventions are tailored according to sector, job role, and risk level.
She explained that AI should not be viewed as a threat to jobs, but rather as a ‘job transformer’- reshaping the career landscape and serving as a catalyst for a more productive and competitive economy.
This aligns with findings from TalentCorp’s impact study, which identified around 120 new job roles expected to emerge in the near future.
Of this total, 73 per cent is concentrated in critical roles such as AI Architects and Data Scientists, followed by 18 per cent in the green economy — such as Environmental, Social and Governance (ESG) Officers and EV Battery Managers — while the remaining nine per cent involves emerging technologies such as Autonomous Vehicle Technicians.
“Accordingly, TalentCorp’s focus is to ensure that Malaysia’s workforce is prepared to fill these new roles with the relevant skills and the ability to adapt to technology-driven jobs,” she said.
Among the key challenges is the mismatch between workforce skills and rapidly evolving industry needs.
“AI is accelerating changes in job scopes, while levels of digital literacy, data skills, and AI understanding among workers still need to be strengthened. At the same time, there is a significant gap in technology adoption rates between large companies and small and medium enterprises (SMEs),” she said.
She added that the labour market must shift from a qualification-based approach to a skills-based approach to ensure that mid-career workers, fresh graduates, and high-risk groups can be matched with opportunities based on their actual capabilities.
Meanwhile, Institute for Data Innovation and Artificial Intelligence (IDEA-AI) chief executive officer and director Prof Dr Mohd Saberi Mohamad said AI disruption will occur mainly at the task level, with most jobs evolving into ‘AI-augmented’ roles where workers collaborate with technology to boost productivity rather than being replaced.
While the shift towards an AI-integrated economy is accelerating, he observed that Malaysia’s workforce shows a moderate but uneven level of readiness across sectors.
Although awareness of AI is increasing, driven by national initiatives and media exposure, a gap remains in practical, hands-on capabilities in real-world business settings, he said.
“To remain competitive, the system must evolve by integrating AI, data, automation and broader digital competencies across all programmes,” he said.
He added that Malaysia’s ability to benefit from AI-driven job creation will depend on the effectiveness of reskilling and upskilling efforts, particularly those focused on human-centric skills such as critical thinking, creativity and leadership.
He also highlighted that Malaysia’s Technical and Vocational Education and Training (TVET) system remains a key pathway for developing a job-ready workforce, given its strong emphasis on practical training.
However, he noted that TVET curricula must be more agile and frequently updated to keep pace with rapid technological change, while instructors require continuous upskilling in AI knowledge and tools.
“Beyond technical training, there is an increasing need to incorporate higher-value skills such as problem-solving, AI integration and decision support to better prepare graduates for evolving job roles,” he said.
He emphasised that TVET does not require a complete overhaul, but rather targeted reforms, including stronger industry collaboration and faster curriculum updates.
Mohd Saberi also highlighted a gap in the national skills ecosystem, noting the absence of a dedicated AI framework, including a standalone AI National Occupational Skills Standard (NOSS) under the Department of Skills Development (JPK).
In addition, he said there is no standalone AI body of knowledge under the Malaysia Board of Technologists (MBOT), although one has been developed by the Malaysian Qualification Agency (MQA). — Bernama
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