KUALA LUMPUR : Malaysia’s ability to nurture Science, Technology, Engineering, and Mathematics (STEM) talent is crucial in adapting to the rapid advancements in artificial intelligence (AI).

Malaysian Industry-Government Group for High Technology (MIGHT) President and CEO, Rushdi Abdul Rahim, highlighted that Malaysia demonstrates strong academic readiness but lagging in economic transformation.

"Malaysia ranked 33rd out of 83 countries in the QS World Future Skills Index 2025. While we performed well in academic readiness, scoring 91.2 out of 100, our economic transformation score was significantly lower at 35.4.

"This reflects a lack of readiness to leverage the next wave of skills-led industrial growth," said Rushdi.

He emphasised that AI, digital, and green skills are becoming increasingly critical, with the World Economic Forum predicting a 60 percent growth in AI skills demand by 2030, alongside 24 million new green jobs globally.

Evolving Industry Expectations

Meanwhile, Director of Transformation, Universiti Teknologi Petronas (UTP), Mohamed Firouz Asnan, noted a shift in industry expectations for STEM graduates, requiring them to be agile and multidisciplinary.

"Today’s engineers must navigate an increasingly complex and digitized landscape.

"Problem-based learning, ethical considerations, and interdisciplinary approaches are vital in equipping students with analytical and innovative thinking skills," he said.

Firouz also pointed out that AI adoption is accelerating globally, with Malaysia needing to bolster its AI readiness.

"The Oxford Insights Government AI Readiness Index 2024 ranks the United States, Singapore, and South Korea among the top nations.

"Malaysia must adopt a comprehensive approach encompassing governance, infrastructure, and human capital to remain competitive," he added.

Bridging the STEM Education Gaps

Rushdi stressed that Malaysia's STEM talent pipeline faces several challenges, including student dropout rates, digital divides, and the migration of skilled workers.

"The latest Programme for International Student Assessment (PISA) results show Malaysia ranked 51st out of 81 countries, with a drop in science, mathematics, and English scores.

"Additionally, over 8,000 Sijil Pelajaran Malaysia (SPM) candidates did not sit for any exams in 2024, and the growing gig economy is diverting talent away from high-value STEM careers," he explained.

Firouz underscored the importance of lifelong learning and micro-credentials to ensure STEM professionals remain relevant in an AI-driven future.

"By 2025, half of all employees will need reskilling due to technological advancements. The integration of AI in education and industry must be accelerated to prepare the workforce for this shift," he said.

As Malaysia navigates the Fourth Industrial Revolution, experts agree that concerted efforts are needed across education, policy, and industry to strengthen the nation’s STEM talent and secure its position in the global AI economy.