What is the timeframe for potential job displacement due to AI in Malaysia?

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Potential Job Displacement Timeline in Malaysia

Up to 697,000 jobs in Malaysia face significant impact from artificial intelligence, digitalisation, and the green economy within the next three to five years if workers do not upgrade their skills. This projection highlights a critical window for workforce adaptation to emerging technological and economic shifts.
Job Impact Projection

A study conducted by Talent Corporation Malaysia Berhad (TalentCorp) indicates that a substantial number of jobs, estimated at 697,000, are highly susceptible to disruption. This potential displacement is contingent upon the workforce's ability to acquire new competencies in areas driven by AI, digitalisation, and the green economy. The timeframe for this significant impact is identified as the next three to five years.
Identification of New Roles

Alongside the potential for job displacement, the study also identified 120 new roles that are becoming increasingly important in the evolving labour market. This suggests a concurrent transformation where emerging technologies not only threaten existing positions but also create demand for new skill sets and specialisations.
Government Reskilling and Upskilling Initiatives

In response to these projections, the Malaysian government is prioritising reskilling and upskilling programmes. These initiatives are specifically aimed at workers who are at risk of displacement due to technological advancements. The focus is on strengthening the labour market by identifying critical skills and emerging roles to ensure that Malaysian workers remain competitive in a rapidly changing global economic landscape.
Workforce Transition Measures

To support this necessary transition, several initiatives are underway. These include accredited training systems and industry-led academies. Between January and May 2026, over 26,500 individuals received certification through the Accredited Programme Training System, and an additional 2,506 individuals were certified via industry-led training programmes during the same period. The MyMahir platform further aids this by providing labour market intelligence on job roles, necessary skills, and training pathways aligned with future demands, including AI modules within its SkillsLab programme.

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What is the timeframe for potential job displacement due to AI in Malaysia?

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