Malaysia's job market braces for AI-driven transformation by 2028

Around 697,000 workers in Malaysia could face significant changes in their jobs over the next three to five years. The shift comes as AI, digitalisation, and the green economy reshape 22 key sectors. Experts now say staying relevant depends less on qualifications and more on adapting skills for higher-value roles. AI is set to transform jobs at the task level, with many roles evolving into 'AI-augmented' positions. Workers will increasingly collaborate with technology to improve productivity rather than being replaced outright. The change will create roughly 120 new job roles, with 73% focused on critical areas like AI Architects and Data Scientists.

The impact will be strongest in service sectors such as hospitality, tourism, and retail, as well as public and air transportation. Manufacturing industries, including oil and gas, are also transitioning to smart production through robotics and Industry 4.0. Meanwhile, healthcare is adopting digital health tools and AI-driven diagnostics, altering traditional roles. To prepare for these shifts, Malaysia’s Technical and Vocational Education and Training (TVET) system must update its curricula more frequently. Programmes need to incorporate higher-value skills like problem-solving, AI integration, and decision support. Workforce development institutions will play a key role by offering upskilling, reskilling, and better talent matching to meet industry demands. The labour market itself must move away from a qualification-based approach to a skills-based one. This change would help workers secure roles that match their actual abilities rather than just their formal credentials.

The coming years will see AI and automation reshape jobs across multiple industries in Malaysia. Workers will need to adapt by upgrading their skills to fit new, technology-driven roles. Without proactive upskilling and flexible training systems, many could struggle to remain competitive in the evolving job market.