As Malaysia strives to achieve high-income status by 2028, significant efforts are underway to prepare the workforce for the challenges posed by advancing technology and shifting economic demands. Currently, the nation's Gross National Income (GNI) stands at US$11,997, which is below the World Bank's threshold of US$14,005 for high-income classification. This gap highlights the urgency for strategic workforce development initiatives aimed at enhancing skills and employability in the face of rapid technological change.
A recent report indicates that approximately 620,000 jobs across ten sectors are at risk due to the impact of artificial intelligence (AI) and digital technologies within the next three to five years. In response, the Malaysian government has allocated RM7.5 billion for Technical and Vocational Education and Training (TVET) in the 2025 Budget, emphasizing the importance of equipping the workforce with relevant skills to thrive in a digital economy. The initiatives will focus on AI education, startup development, and attracting foreign investment to stimulate job creation and economic growth.
Economy Minister Rafizi Ramli has highlighted that while Malaysia is nearing high-income nation status, significant disparities exist within the country. The SG4 states (Perlis, Kedah, Kelantan, and Terengganu) contribute only 7.3% of the GDP despite housing 17.3% of the population, while Selangor and the Federal Territories contribute over 40% of the GDP. This disparity creates a divide that could lead to two nations within Malaysia, emphasizing the need for inclusive growth to ensure that all regions benefit from economic advancements. The five regions of Kuala Lumpur, Selangor, Penang, Johor, and Melaka contribute 62% of the GDP, further illustrating the uneven development across the country [a66e6a78].
Dr. Mohd Amirul Rafiq Abu Rahim has stressed the need to target urban poor and rural communities, ensuring that the benefits of workforce development reach underserved populations. Doris Liew has also pointed out the challenges faced by low-skilled workers, advocating for tailored training programs that meet their specific needs. Furthermore, the private sector is being urged to collaborate with TVET institutions to enhance training programs and align them with industry requirements.
In addition to these efforts, Tan Sri Soh Thian Lai has discussed the importance of partnerships for semiconductor training, recognizing the growing demand for skilled professionals in this critical sector. These collaborative initiatives aim to create a more resilient workforce capable of adapting to the evolving job landscape.
As Malaysia prepares to chair ASEAN in 2025, the integration of these workforce development strategies with broader national goals, including advancements in AI and technology, positions the country for a more competitive future in the global economy. However, the economic future of Malaysia relies not only on achieving high-income status but also on innovation and addressing regional disparities to ensure that the benefits of growth are felt by all Malaysians. This comprehensive approach reflects a commitment to building a sustainable and adaptable workforce ready to meet the challenges of the future.