Malaysia Charts a Transformative Future with TalentCorp’s Impact Study on AI, Digitalisation, and the Green Economy

KUALA LUMPUR : Talent Corporation Malaysia Berhad (TalentCorp), the strategic think tank for the Ministry of Human Resources (KESUMA), has unveiled a pivotal study exploring the profound effects of Artificial Intelligence (AI), digitalisation, and the green economy on Malaysia’s workforce. This initiative aligns with Prime Minister Datuk Seri Anwar Ibrahim’s vision of establishing Malaysia among the top 20 nations in AI technology.

The study, which targets ten key sectors contributing a combined RM933 billion to Malaysia’s GDP in 2023, examines how transformative technologies and sustainable practices are reshaping industries. It also highlights critical emerging job roles and skills necessary for Malaysia’s competitive future.
The launch event was graced by prominent leaders, including YB Gobind Singh Deo, Minister of Digital; YB Datuk Ts. Mustapha Sakmud, Deputy Minister of Higher Education; Datuk Azman Bin Mohd Yusof, Secretary General of KESUMA; Mr. Fabian Bigar, Secretary General of the Ministry of Digital; and TalentCorp Chairperson YB Wong Shu Qi.

Speaking at the launch, YB Steven Sim Chee Keong, Minister of KESUMA, hailed the study as a blueprint for Malaysia’s future-ready workforce.

“The study by TalentCorp highlights immense opportunities for Malaysian workers as AI, digitalisation, and the green economy transform industries. By identifying critical skills and emerging roles, we empower Malaysians to adapt and lead globally, driving sustainable growth and resilience in our workforce,” he said.

MyMAHIR: Empowering Malaysians for the Future

Central to these transformative efforts is MyMAHIR, a cutting-edge digital platform designed to provide Malaysians with insights into industry trends, skills requirements, and career opportunities. Leveraging findings from TalentCorp’s Impact Study, the platform offers an integrated skills taxonomy and access to training programmes across sectors.

Thomas Mathew, Group CEO of TalentCorp, emphasised the agency’s forward-looking approach.

“TalentCorp is working closely with industry stakeholders to ensure the Malaysian workforce remains adaptable. Through MyMAHIR and our initiatives, including the Critical Occupations List and MyNext, we are addressing immediate and long-term needs, equipping Malaysians with skills critical to our economic and global competitiveness,” he stated.

Focus on Emerging Roles and Green Economy

The study identifies 60 emerging roles critical to Malaysia’s transition to a green and digital economy. These include AI engineers, sustainability specialists, and bio-process engineers. To facilitate workforce upskilling, KESUMA is dedicating RM3 billion towards levies, credits, scholarships, and matching grants. The forthcoming Akademi KESUMA, set to launch next year, will further support these initiatives.

Overview of the TalentCorp Impact Study
TalentCorp’s Impact Study of Artificial Intelligence, Digital, and Green Economy on the Malaysian Workforce is a landmark initiative to explore how global technological and environmental trends are transforming Malaysia’s workforce. Conducted under the Ministry of Human Resources (KESUMA), the study examines the evolving demands of industries in response to rapid economic shifts. It aims to provide actionable insights and strategies to future-proof Malaysia’s workforce, ensuring it remains resilient, adaptable, and competitive in an increasingly interconnected and tech-driven world.

Key Focus Areas of the Study

The study focuses on the convergence of three critical trends reshaping industries worldwide:

*Artificial Intelligence (AI): With its unparalleled ability to automate tasks and enable data-driven decision-making, AI has become a key driver of transformation across industries. From streamlining operations to creating advanced products, its integration is redefining job roles and workplace dynamics.

*Digital Economy: The proliferation of digital platforms, tools, and services is changing how businesses operate and interact with consumers. This trend emphasizes the need for a digitally literate workforce to navigate evolving business models and leverage opportunities for growth.

*Green Economy: Sustainability has become an essential component of economic planning. By adopting practices aligned with environmental goals, industries can achieve greater efficiency, meet global ESG (Environmental, Social, and Governance) standards, and contribute to long-term economic sustainability.

Study Scope

Sectors Analyzed
The study examines 10 key sectors chosen for their economic significance and employment impact:

*Aerospace: A high-tech sector leveraging AI and green practices for advanced manufacturing.

*ICT (Information and Communications Technology): The backbone of Malaysia’s digital economy, driving innovation and cybersecurity.

*Chemicals: Pioneering sustainable practices like waste recycling and green manufacturing.

*Electrical and Electronics: Advancing automation and digital integration in production.

*Energy and Power: Leading Malaysia’s renewable energy initiatives, such as solar and mini-hydro projects.

*Food Manufacturing and Services: Adopting automation for supply chain optimization and sustainable sourcing.

*Global Business Services (GBS): Transitioning traditional roles into digital-first operations.

*Medical Devices: Utilizing digital therapeutics and manufacturing innovations.

*Pharmaceutical Manufacturing: Advancing drug discovery through AI-driven analytics.

*Wholesale and Retail Trade: Combining digital commerce with sustainability efforts.

These sectors collectively contribute 60% of Malaysia’s GDP (approximately RM933 billion) and employ over 3.5 million skilled and semi-skilled workers, making them central to Malaysia’s economic future.

Stakeholders Engaged

The study drew on insights from over 300 stakeholders, including government agencies, multinational corporations, local businesses, and training providers. This collaborative approach ensured the findings were both comprehensive and actionable, reflecting real-world industry needs and challenges.

Objectives

Understand Workforce Impact
The study assesses how AI, digitalisation, and green practices are transforming job roles, altering skills demands, and influencing employment trends across key sectors.

Identify Emerging Roles
It highlights 60 emerging roles, such as AI engineers and sustainability specialists, which are vital for Malaysia’s workforce to stay competitive. These roles exemplify the growing demand for expertise in technology and sustainability.

Define Skills Gaps
The study pinpoints critical skills gaps, emphasizing the importance of data analytics, sustainability awareness, and digital fluency for future job markets.

Provide Actionable Recommendations
Tailored strategies are proposed to enable government bodies, industries, and academic institutions to adapt to the rapidly changing workforce landscape.

Methodology

The study employed a structured, six-pronged approach to derive its findings:

Sectoral Analysis: examined growth priorities and technology adoption in each industry.
Role and Skills Registry: Catalogued both existing and emerging roles across sectors.
Impact Assessment: Analyzed how AI, digitalisation, and green practices affect job roles.
Career Pathway Mapping: Charted transition strategies from high-risk roles to emerging opportunities.
Demand Forecasting: Predicted the future demand for key roles over the next three to five years.
Recommendations: Outlined actionable steps to upskill workers and meet future demands effectively.

Findings

Job Roles at Risk
The study reveals that approximately 620,000 jobs, accounting for 18% of the workforce in the studied sectors, are at significant risk of disruption due to automation and digitalisation. These roles will require urgent reskilling to remain relevant.

Emerging Jobs
Sixty emerging roles have been identified, with 43 related to AI and digitalisation, 11 focused on sustainability, and six linked to new technologies like autonomous systems. These roles underscore the need for adaptability and innovation in workforce planning.

Skills in Demand
The study highlights the increasing importance of core skills such as AI fluency, data management, and sustainability awareness. These competencies are critical for success in the evolving job market.

Adoption Rates
Leading sectors such as Aerospace, ICT, and Global Business Services are at the forefront of AI and digital adoption. Simultaneously, sectors like Energy and Chemicals are pioneering green practices, setting benchmarks for sustainable development.

Proposed Solutions

Government Initiatives
The study recommends incentivizing research and development (R&D) and upskilling programmes. It also advocates for financial support mechanisms tailored to small and medium enterprises (SMEs) to enable their participation in technological and green transformations.

Industry Collaboration
Encouraging in-house training and strengthening partnerships between industries and academia are essential for addressing skills gaps and fostering innovation.

Educational Reforms
The integration of AI, digital, and sustainability topics into academic curricula is crucial. Additionally, offering micro-credentials and lifelong learning pathways can equip workers with the skills they need to adapt to evolving demands.

Phase 2 and Beyond
Phase 2 of the study, scheduled for 2025, will expand the analysis to cover 12 additional sectors. This next phase aims to reinforce TalentCorp’s role in shaping Malaysia’s workforce strategy and building a sustainable, competitive economy. Findings from Phase 1 serve as a foundation for developing comprehensive policies and programmes that address future workforce challenges.

Impact on Malaysia’s Workforce Strategy
The insights from this study directly inform TalentCorp’s MyMAHIR platform, a digital tool designed to guide Malaysians through industry trends, career pathways, and training opportunities. These findings also support Malaysia’s broader goals outlined in the MADANI vision, the Twelfth Malaysia Plan, and the National Energy Transition Roadmap.

By aligning the workforce with global trends in technology and sustainability, the initiative ensures that Malaysia remains at the forefront of economic innovation. Through collaboration and targeted action, Malaysia’s workforce will not only adapt to future challenges but thrive as a global leader in the digital and green economies.

Expanding Horizons: Phase 2 of the Study

Phase 2 of the Impact Study, planned for 2025, will expand its scope to cover 12 additional sectors, reinforcing TalentCorp’s commitment to equipping Malaysians for the future.

Driving Malaysia Towards Global Leadership

As Malaysia embarks on its journey towards becoming a leader in green and digital technologies, TalentCorp’s initiatives ensure the workforce is not only employable but also poised to drive innovation and sustainability.

For detailed findings from TalentCorp’s Impact Study and more information on the MyMAHIR platform, visit www.mymahir.my.

-Mahadi Mahbol
–asianewstoday.com