Transformation – Focused Learning in Malaysia

Malaysia’s workforce and industries are at a critical inflection point, driven by rapid technological change, evolving skill demands, and sustainability pressures. This report analyzes three core learning areas – AI & Automation, ESG Integration and Reskilling & Upskilling – which are reshaping the Malaysian market for transformation focused learning services. Aligned with the World Economic Forum’s Future of Jobs insights and local data, we identify key trends, pain points, and high-impact opportunities through 2030.

The acceleration of AI and automation in the workplace is both augmenting roles and rendering others obsolete. Globally, employers expect most emerging technologies to have a net positive impact on job creation– for instance, roles in big data, AI, and information security are forecast to grow ~30% by 2027.

Risk of Displacement and Job Loss

In Malaysia, the risk of displacement is particularly significant for workers performing routine tasks. McKinsey estimates that about half of the work hours in Malaysia involve highly automatable activities (e.g. predictable physical work in manufacturing or data processing). Under a midpoint automation-adoption scenario, this could equate to 25% of total work hours – roughly 4.5 million workers – being displaced by 2030 if workers are not upskilled or redeployed.

Consistent with this, Malaysia’s Human Resources Ministry warned that 4.5 million Malaysians risk losing jobs by 2030 due to AI advances, underscoring that “50% of workers will need retraining in the next few years just to remain employed”.

Rapid Changes in Industries Embracing AI

Such disruption will be widespread and anticipated, however there are certain industries more exposed to AI and automation. For example:

• Manufacturing has long seen job losses to robotics; a trend ongoing since the early 2000s
• Automation is now extending into sectors like logistics (drones, autonomous vehicles for delivery)
• Services (chatbots in customer service, algorithmic processes in finance)
• Even in traditionally less tech-centered fields like hospitality, legal, and transportation, roughly one-third of employers have begun adopting AI in some form.

Meanwhile, entirely new categories of work are emerging. The World Economic Forum identifies “AI and machine learning specialists” as the top fastest-growing job role worldwide.

TalentCorp’s study on the “Impact of AI, Digital and the Green Economy on the Malaysian Workforce” also identifies 60 emerging roles, such as AI engineers, sustainability specialists, and bio-process engineers.

Despite growing awareness, there are notable gaps in AI readiness among Malaysian organizations and workers:

AI Literacy Gap

Employer expectations are rising: over 70% of employers now prioritize candidates with AI proficiency in hiring. This point of disconnect shows a critical need for fundamental AI education across job functions.

Young professionals are also aware of the change: 75% of workers expect AI to alter their job roles.

Closing the literacy gap is vital so employees can collaborate with AI rather than be replaced by it. Notably, 42% of companies globally plan to train staff in AI and big data by 2027 – a trend likely mirrored in Malaysia as firms strategize for an AI-enabled future.

Workforce Anxiety and Readiness

Fears of job loss are prevalent. Surveys show 73% of Malaysians believe AI will lead to significant job losses, a higher share than the global average.

While only a small fraction fear immediate displacement by tools like generative AI, over 50% of workers believe continuous upskilling is key to staying relevant in their careers. This indicates a mindset shift: employees are willing to learn, but need guidance and structured opportunities to gain new skills. Companies that fail to proactively support their staff’s transition (through retraining or role evolution) risk low morale and talent attrition, on top of technological disruption.

Integration Challenges

While 86% of Malaysian business leaders are confident in using AI agents to expand workforce capacity, 83% of the workforce reports lacking sufficient time or energy for their work, highlighting the urgent need for AI solutions. Moreover, only 14% of Malaysian companies are AI-ready, suggesting that despite leadership confidence, actual implementation lags.

Enabling Malaysia’s AI-Ready Workforce

Malaysia’s workforce demonstrates above-global-average optimism about AI’s potential, with 65% believing AI will create new jobs, and 81% expecting 2025 to be a better year (Ipsos, 2025). However, optimism must translate into structured readiness. As per Microsoft’s “Journey to the Frontier Firm,” organizations evolve through three phases of AI integration:

Phase 1 – Human with Assistant: Employees use AI to boost productivity.

Phase 2 – Human-Agent Teams: AI becomes a digital colleague, executing tasks under human guidance.

Phase 3 – Human-led, Agent-Operated: AI autonomously runs processes, with human oversight.

Currently, most Malaysian companies remain in early phases, hindered by AI literacy gaps, workforce anxiety, and implementation barriers. To transition successfully toward agentoperated ecosystems, businesses must invest in workforce transformation—training employees not only to use AI tools, but to lead and collaborate with them strategically.

By embedding AI upskilling into national and organizational agendas, Malaysia can unlock productivity, resilience, and innovation, setting a course to become a frontier economy in the AI era.

– World Economic Forum: Future of Jobs Report 2023
https://www.weforum.org/press/2023/04/future-of-jobs-report-2023-up-to-a-quarter-ofjobs-expected-to-change-in-next-five-years/

– The Star, 26 June 2023, Over Four M Malaysians Likely to Lose Jobs by 2030 If They Lack Skills
https://www.thestar.com.my/news/nation/2023/06/26/over-four-million-msians-likely-tolose-jobs-by-2030-if-they-lack-skills

– The Edge Malaysia, My Say: 2023, The Year of Skills with ChatGPT
https://theedgemalaysia.com/node/665964

– The Star, 21 Nov 2024, Over 75% of Firms Look for AI Literacy in Prospective Employees
https://www.thestar.com.my/news/nation/2024/11/21/over-75-of-firms-look-for-ailiteracy-in-prospective-employees

– Moomoo Technologies Inc, 19 Nov 2024, TalentCorp’s Impact Study Identifies Critical Skill Sets in AI, Digitalisation and Green Economy
https://www.moomoo.com/hans/news/post/46028528/talentcorp-s-impact-studyidentifies-critical-skill-sets-in-ai

– TalentCorp Launces Landmark Study on Workforce Impact of AI, Digitalisation, and Green Economy
https://www.talentcorp.com.my/resources/press-releases/talentcorp-launcheslandmark-study-on-workforce-impact-of-ai-digitalisation-and-green-economy/

– MyMahir Publications, Impact Study of AI, Digital, and Green Economy on the Malaysian Workforce series
https://www.mymahir.my/publication

– 60+ Stats on AI Replacing Jobs (2025)
https://explodingtopics.com/blog/ai-replacing-jobs

– Tech for Good Institute, Malaysia’s Journey Towards AI Literacy
https://techforgoodinstitute.org/blog/articles/malaysias-journey-towards-ai-literacy/

– AI Literacy: A Must-Have Skill for Malaysia’s Workforce
https://amazingworkplaces.co/indias-clean-energy-ambitions-threatened-by-severeskills-shortage-2/

– Malaysia SME, Optimism Returns to Malaysia’s Job Market
https://www.malaysiasme.com.my/optimism-returns-to-malaysias-job-market-driven-byfocus-on-compensation-flexibility-and-ai-integration/

– Decoding Global Talent 2024 Gen AI Edition: Shifting Work Preferences in the Age of GenAI
https://my.employer.seek.com/market-insights/decoding-global-talent-ai-2024

– Hiring, Compensation & Benefits Report 2025
https://my.employer.seek.com/page/hiring-compensation-benefits-report-2025#ReportForm

– National AI Oqice
https://ai.gov.my

– 73% of Malaysian respondents
https://hrsea.economictimes.indiatimes.com/news/industry/73-of-malaysianrespondents-fear-ai-will-lead-to-job-losses-report/117688419

– IPSOS Press Release, Predictions for 2025
https://www.ipsos.com/sites/default/files/ct/news/documents/2025-01/Ipsos_Press%20Release_Predictions%202025_130125.pdf

– IPSOS Press Release, Artificial Intelligence (AI) Monitor
https://www.ipsos.com/en-my/press-release-artificial-intelligence-ai-monitor

– Microsoft’s 2025 Work Trend Index
https://news.microsoft.com/en-my/2025/05/08/microsofts-2025-work-trend-indexmalaysian-workforce-and-leadership-align-on-intelligent-agent-integration/

– MOSTI, Malaysian Artificial Intelligence Roadmap 2021-2025
https://mastic.mosti.gov.my/publication/artificial-intelligence-roadmap-2021-2025/

– MIDA, Malaysia’s AI Preparedness Level Only at 13%
https://www.mida.gov.my/mida-news/malaysias-ai-preparedness-level-only-at-13-cisco/#:~:text=Only%2013%25%20of%20organisations%20in,Readiness%20Index%20released%20on%20Thursday

– Cisco 2024 AI Readiness Index
https://www.cisco.com/c/m/en_us/solutions/ai/readiness-index.html