Malaysia is bracing for significant labour market disruption as artificial intelligence and automation are expected to affect nearly 700,000 workers across key sectors such as manufacturing, tourism, healthcare, and transport in the coming years. According to Talent Corporation Malaysia, the impact will be uneven, hitting routine and data-heavy roles hardest while also creating around 120 new job categories, including AI architects, data scientists, and green economy specialists. Officials stress that AI should be viewed less as a job eliminator and more as a “job transformer,” but warn that the country’s ability to adapt depends heavily on closing the widening skills gap, improving digital literacy, and shifting toward a skills-based hiring model. As Malaysia accelerates its push toward a digital and AI-driven economy, the focus is increasingly turning to large-scale reskilling, curriculum reform, and stronger industry collaboration to ensure workers remain competitive in an evolving job landscape.
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