Malaysia’s Ministry of Human Resources has sounded the alarm over the rapid rise of automation and artificial intelligence (AI), revealing that more than half a million jobs could be displaced in the coming years.
In a written reply to Parliament, Human Resources Minister Tze Cheng Sim said that 620,000 jobs may be impacted within the next three to five years as companies embrace digital transformation and automation. This figure represents nearly 18% of the 3.5 million workers employed in the ten industries analysed under a national labour market study.
The minister stressed that while automation will streamline efficiency, the disruption could be severe if workers are not reskilled quickly enough to meet the changing demands of the economy.
Sectors Most at Risk from Automation
According to the ministry, the five industries facing the greatest threat from AI and robotics are:
- Wholesale and retail trade – 245,000 jobs
- Food manufacturing and services – 203,000 jobs
- Global business services (GBS) – 89,000 jobs
- Electronics and electrical appliances – 37,000 jobs
- Information and communications technology (ICT) – 30,000 jobs
Together, these sectors account for the bulk of potential job losses, particularly in roles involving repetitive tasks that can be easily automated.
The government emphasised that the transition is not just a technological challenge but also a social and economic concern, requiring policies to protect vulnerable workers while encouraging industries to embrace innovation.
New Opportunities in AI and Green Economy
Despite the risks, the report also highlighted significant opportunities. The Malaysian Talent Corporation study identified 60 emerging job roles that will become critical in the digital era.
Out of these, 43 positions (72%) are linked to AI and digital fields, including artificial intelligence engineers, data scientists, cybersecurity analysts, and automation technicians. Another 11 roles (18%) fall under the green economy, such as renewable energy engineers, sustainable development specialists, and energy economists. The remaining six positions are related to advanced technologies, including remote operators, autonomous system technicians, and robot operators.
These roles are expected to be in high demand across ten industries, from aerospace and pharmaceuticals to ICT and food manufacturing, signalling a major shift in the future of work.
Preparing Malaysia’s Workforce for the Future
Minister Tze Cheng Sim underlined the need for urgent reskilling initiatives to prepare workers for this transition. Without proactive measures, Malaysia could face a widening skills gap that hampers its competitiveness in the global digital economy.
“The challenge is twofold,” he said. “We must ensure our workforce is not left behind while at the same time embracing the opportunities that AI, automation and the green economy present.”
For jobseekers and professionals, this means investing in lifelong learning, digital literacy, and sustainability knowledge to stay relevant in an evolving job market.