By Georg Chmiel
As artificial intelligence (AI) continues to advance, it is set to significantly reshape Malaysia’s economic landscape, presenting not only challenges but also groundbreaking opportunities for growth, job creation, and innovation.
AI: A Trillion-Dollar Catalyst for Southeast Asia’s Economy
According to recent studies, artificial intelligence (AI) has the potential to boost Southeast Asia’s GDP by $1 trillion, with Malaysia leading the way in this transformation. A 2024 report from the Department of Statistics Malaysia (DOSM) estimates that 600,000 workers may lose their old jobs over the course of the next three to five years as AI replaces clerical, administrative, and some manufacturing jobs.
However, even though these numbers may seem bleak it is predicted that by 2025, the transition to AI technologies will result in more jobs after all. Globally, 85 million jobs are likely to be lost while 97 million new ones are to be created. This suggests that strategic workforce management and proactive protective reskilling plans are necessary.
“In the case of Malaysia, applying AI does not stop at giving advanced machines to do the work but to improve the people that work, in order to create more high-value jobs,” said Georg Chmiel, Executive Chairman of Chmiel Global Advisory and board member of World Digital Chamber.
He added, “By prioritising AI literacy and comprehensive reskilling initiatives, Malaysia can transform potential disruptions into significant opportunities, ensuring our workforce thrives in the dynamic digital economy.”
Cultivating a Resilient, Future-Ready Workforce
Acknowledging the profound impact of AI, the Malaysian government is taking decisive steps to leverage its transformative potential while proactively addressing the challenges posed by job transitions. Malaysia’s Minister of Communications and Digital, Gobind Singh Deo, has declared AI a cornerstone of the nation’s economic growth strategy, with key initiatives including:
- Revolutionising Education – Overhauling educational curricula to embed digital literacy at all levels, equipping students with the essential skills for tomorrow’s job market.
- Turbocharging AI Adoption – Accelerating the integration of AI technologies across critical sectors—including healthcare, finance, and manufacturing—to enhance competitiveness and drive innovation.
- Reskilling Initiatives – Establishing collaborative programs that empower workers with the skills needed for AI-driven industries, positioning them for success in an evolving economic landscape.
Chmiel explained that together, these initiatives lay the groundwork for a future-ready workforce, ensuring that Malaysia not only adapts to the changing tides of the job market but leads the charge in the digital transformation era.
Reskilling for an AI-Powered Future: Taking Action Now
With projections indicating that 40% of jobs will require AI-related skills by 2030, reskilling the workforce is crucial. Workers in routine-based roles are at the highest risk of disruption, necessitating a paradigm shift towards skills in data science, cybersecurity, and AI ethics.
“An adaptable workforce is fundamental for navigating the evolving job market,” emphasises Chmiel. “Collaboration among government, educational institutions, and industries is essential to cultivate a synergistic environment that fosters growth.”
Malaysia’s Moment: Seizing the AI Advantage
Chmiel further shared that the next five years are absolutely critical to position Malaysia as a leader in the AI revolution.
He said, “If we lead, we secure our place as Southeast Asia’s digital powerhouse—attracting global investment, creating future-proof jobs, and driving sustainable growth. However, lagging would mean risking economic stagnation, widening skills gaps, and losing a generation of workers to technological disruption.”
He concluded saying that the blueprint for success is clear: aggressive reskilling, education reform, and industry-wide AI adoption. Now is the time for bold action—from policymakers, businesses, and workers alike.
The author is a Director, Investor, Advisor, the Co-Founder & Chair of Juwai-IQI & chmiel.global
