KUALA LUMPUR: The government is adopting a holistic approach to prepare Malaysia’s workforce for the challenges posed by automation and artificial intelligence (AI), including the risk of job displacement, says Human Resources Minister Steven Sim.
He said the ministry is currently undertaking a comprehensive review through the National Labour and Human Resources Policy Study, which includes aspects of reskilling and upskilling. The study is expected to be completed in 2026.
“To minimise the negative impact and maximise the positive potential of technological advancement, we are implementing several major initiatives focusing on human capital development through reskilling and upskilling, strategic industry-academia partnerships, and strengthened social protection programmes,” Sim said in a parliamentary written reply on Monday (July 28).
He was responding to a question from Datuk Awang Hashim (PN-Pendang), who had asked whether the government intends to introduce a large-scale policy for reskilling and upskilling workers at risk of losing their jobs due to advancements in AI, along with the implementation and funding details of such efforts.
Sim said that as a first step, TalentCorp has conducted a study on the impact of AI, digitalisation, and the green economy on Malaysia’s workforce.
Based on the findings, he said the ministry has developed the MyMAHIR.my digital portal as a one-stop reference centre for future job roles, required skills and training programmes aligned with current labour market needs.
To ensure skills development meets industry demands, he said the MyMAHIR Future Skills Talent Council (FSTC) has also been established, led by key industry players.
“This council is responsible for identifying training requirements and selecting suitable training centres,” he said.
Sim added that the Department of Skills Development (JPK) has taken proactive steps to address the challenges of automation by developing new National Occupational Skills Standards (NOSS) geared towards future job demands.
“So far, more than 120 NOSS related to the Fourth Industrial Revolution (IR4.0) have been introduced.
“These standards cover fields such as industrial automation, robotics, AI, cyber-physical systems and data analytics, and are implemented in over 3,600 accredited centres using modular approaches to accelerate workforce reskilling and upskilling,” he said.
According to him, government is also expanding the Industry-Based Academy (ADI) programme, which allows existing employees to undergo training at their workplace without having to leave their jobs.
He said this approach is supported by flexible certification pathways, such as Recognition of Prior Achievement (PPT) and micro-credentials, as well as strategic industry collaboration to involve employers directly.
“These efforts aim to produce a resilient workforce capable of transitioning from high-risk jobs to emerging growth sectors like smart logistics, renewable energy, agricultural automation and cybersecurity.”
At the same time, he said the Human Resource Development Corporation (HRD Corp) continues to provide upskilling and reskilling programmes through levy contributions from eligible employers.
“As of June 2025, 101,506 employers and 4.84 million workers have registered with HRD Corp, with 24.75 million training placements approved in the same period.”
Meanwhile, he said the Social Security Organisation (Perkeso) has also been actively offering reskilling and upskilling initiatives to insured individuals who have lost their jobs and require new skills to remain employable.
“Between Jan 1 and July 4, 2025, a total of 5,403 individuals participated in these programmes.”
To support access to training, Sim said the Skills Development Fund Corporation (PTPK) has allocated RM100 million in training grants under the 2025 High-Impact Technical and Vocational Education and Training (TVET) Financing Scheme.
“This funding will benefit 4,167 trainees across seven key high-growth, high-value sectors, including artificial intelligence,” he said.
Yunus, A., Tan, T., & Gimino, G. (2025, July 29). Govt taking holistic approach to prepare workforce for AI disruptions, HR Minister tells Parliament. The Star. Retrieved August 19, 2025, from https://www.thestar.com.my/news/2025/07/29/govt-taking-holistic-approach-to-prepare-workforce-for-ai-disruptions-hr-minister-tells-parliament
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