Skills upgrades necessary to keep employees in Malaysia relevant

Millions of Malaysians risk losing their job by 2030 if they do not improve their skills to meet industry needs, says HR Minister V Sivakumar.
By: | June 30, 2023
Topics: Digital Transformation | Learning and Development | Malaysia | News | Professional Development

Malaysia is facing a potential job crisis, with as many as 4.5 million Malaysians at risk of losing their jobs by 2030 if they fail to upgrade their skills or participate in reskilling and upskilling programmes.

This was highlighted by V Sivakumar, Malaysia’s Minister of Human Resources, who emphasised the need for individuals to adapt to the rise of AI. He cited a 2020 report by the World Economic Forum, which warned that the increasing utilisation of AI in industries such as manufacturing, healthcare, and customer service could lead to a recession in the job market.

He said, “In the report, it was stated that to remain employed in the next two years, 50% of employees will need to be retrained. With the advent of Industrial Revolution 4.0, there is an urgent need for us to transform the national workforce into a skilled workforce to remain relevant.”

“However, we are fortunate because the newly emerging jobs are work that can be combined with technology, and the need to improve skills is not only for career development or change but to stay in the job.”

To address this issue, the Ministry of Human Resources, in collaboration with Talent Corporation Malaysia, a national agency that drives Malaysia’s talent strategy, has launched the Industrial Digital Transformation Acceleration Programme (ID-TAP). With a budget of RM7.2 million (US$1.54 million), the initiative aims to improve the skills and retrain 900 employees in the country based on industry needs, allowing them to acquire knowledge and skills in fields such as mechatronics, electrical and electronic engineering, data analysis, and IT.

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“Among the talent groups that are targeted are employees with work experience of five years or less,” he said, adding that of the 900 employees to be selected, approval had been given to 627 participants with the highest numbers from Kedah (177), Selangor (88), and Negeri Sembilan (75), reported Malaysia Now.