October 14, 2026

New Malaysia Times

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Government Targets Creation Of 500,000 AI-Driven Jobs To Upskill Malaysian Workforce

Government targets 500000 jobs AI initiatives Malaysia

KUALA LUMPUR, Oct 14 – The Malaysian government aims to create 500,000 job opportunities through artificial intelligence (AI) initiatives, integrating workforce upskilling measures to navigate structural shifts in the national labor market.

Economy Minister Akmal Nasrullah Mohd Nasir informed the Dewan Rakyat on Wednesday, October 14, 2026, that rapid developments in AI, digitalization, and industrial automation should be harnessed to restructure the economy toward high-growth, high-value (HGHV) sectors.

Responding to a supplementary question from Datuk Awang Hashim (PN-Pendang) regarding AI disruption risks, Akmal Nasrullah emphasized that the primary challenge lies in accelerating technology adoption to boost productivity and worker efficiency across key industries.

The minister pointed out that in 2025, semi-skilled workers comprised 57 per cent of the workforce while low-skilled roles accounted for 12.9 per cent. Citing a recent Stanford University study, he warned that generative AI disproportionately advantages highly skilled talent while creating friction for lower-skilled job functions.

Skilled Labor Targets, Strategic Frameworks, and Talent Development Council

Akmal Nasrullah outlined key labor targets, national policy integration, and talent upskilling frameworks:

  • 13MP Skilled Workforce Benchmark: Under the 13th Malaysia Plan (13MP), the government targets increasing the proportion of skilled workers in the national labor force to 35 per cent by 2030, rising from 30.1 per cent in 2025.
  • Policy Alignment Framework: Replying to an initial question by Jimmy Puah Wee Tse (PH-Tebrau) on workforce transition roadmaps, the minister stated that AI talent requirements are embedded across the 13MP, New Industrial Master Plan 2030 (NIMP 2030), National Energy Transition Roadmap (NETR), National Semiconductor Strategy, and Malaysia Digital Action Plan 2030.
  • Job Relevancy & Disruption Data: Citing a study by Talent Corporation Malaysia Berhad (TalentCorp), Akmal Nasrullah highlighted that 90 per cent of existing job roles will remain relevant through skill adaptation, while 10 per cent face significant automation or structural functional changes driven by AI and green economic transitions.
  • MyMahir Future Skills Talent Council (MyMahir FSTC): To mitigate large-scale job displacement, public-private-academic collaboration is being expanded through 17 established MyMahir FSTCs, each chaired by prominent industry leaders to drive targeted certification, reskilling, and upskilling programs.

The Ministry of Economy and human resource agencies will continue refining skill-mapping frameworks to match emerging high-tech industry demands.

–NMT