AI to reshape Malaysia’s economic landscape: expert

Artificial intelligence (AI) is set to significantly reshape Malaysia’s economic landscape, presenting not only challenges but also groundbreaking opportunities for growth, job creation, and innovation, according to an expert.

Georg Chmiel, co-founder and chair of Juwai-IQI, executive chairman of Chmiel Global Advisory, and board member of World Digital Chamber, cited recent studies as saying that 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.

Globally, 85 million jobs are likely to be lost while 97 million new ones are to be created, demonstrating 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, Georg Chmiel said.

He added that by prioritizing AI literacy and comprehensive reskilling initiatives, Malaysia can transform potential disruptions into significant opportunities, ensuring its workforce thrives in the dynamic digital economy.

Chmiel further shared that the next five years are absolutely critical to position Malaysia as a leader in the AI revolution.

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.

Minister of Communications and Digital Gobind Singh Deo has declared it a cornerstone of the nation’s economic growth strategy.