AI Revolution: Will Malaysia’s workforce sink or swim?

According to Helen Selvanathan, Exco of WomeninTech Malaysia, AI is not merely a threat to jobs, it presents a tremendous opportunity to enhance workforce efficiency and create new, high-growth sectors.

Here are six critical insights into how AI is shaping Malaysia’s workforce and the steps needed to strengthen the country’s competitiveness:

Malaysia has long emphasized upskilling and reskilling, but cross-skilling is now essential to remain competitive in the AI-driven economy.

As AI becomes deeply embedded in various industries, workers must broaden their skill sets beyond their core expertise.

Helen emphasized that cross-skilling is now a priority, as AI integration is reshaping job functions across sectors. Enhancing workforce capabilities will be key to strengthening Malaysia’s digital economy.

“Basic digital literacy is no longer enough. Advanced skills in AI, machine learning, cloud computing, and cybersecurity must be prioritized to ensure the workforce remains competitive”, she added.

Despite government and industry efforts, Malaysia is still facing a severe shortage of advanced digital skills. The demand for data analysts, AI specialists, and cybersecurity professionals continues to outstrip supply, forcing companies to rely on foreign talent.

Helen noted that Malaysia still depends on skilled professionals from neighbouring and advanced countries to fill this gap.

Without an adequate talent pipeline, Malaysia risks falling behind in global AI development.

The effectiveness of training programs depends on alignment with industry needs.

Government initiatives such as Skills Malaysia 2.0 aim to reduce the skills gap, but stronger collaboration between stakeholders is required.

"We need to align training and certification programs with industry needs and global standards to ensure workforce adaptability,"

“Without proper accreditation and industry partnerships, training programs risk becoming outdated and ineffective”, she said.

One of the biggest fears about AI is job displacement.

While automation will replace some roles, new opportunities will emerge for those who adapt.

The government has recognized the urgency of workforce transformation, with plans to train over 600,000 workers within the next three to five years to ensure Malaysia remains competitive.

However, workers themselves must take proactive steps by adopting lifelong learning and acquiring future-proof skills.

Beyond training, policy support is crucial in Malaysia’s transition to an AI-powered economy.

Progressive policies ranging from fair taxation to social safety nets can promote inclusive growth and prevent workforce polarization.

"When job transitions or unemployment occur, support systems must be in place to cushion the impact on affected individuals," Helen added.

Without well-structured policies, AI advancements could widen income disparities, benefiting only highly skilled workers while leaving others behind.

For Malaysia to thrive in the AI revolution, collaboration between the government, private sector, and academia is essential.

Tech investments, such as Google’s $2 billion (RM9.4 billion) data center initiative in Malaysia, highlight the importance of attracting global technology giants to develop AI infrastructure and create high-value jobs.

Helen pointed out that these investments will not only strengthen Malaysia’s digital ecosystem but also provide AI literacy programs for students and educators, ensuring future generations are equipped with the necessary skills to thrive in an AI-driven world.