AI-ready workforce crucial for Malaysia’s economic future, says Tengku Zafrul

AI-ready workforce crucial for Malaysia’s economic future, says Tengku Zafrul

27 Aug 2024

Artificial intelligence-ready talent is crucial for industries and Malaysia’s economic future, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz

He said the ministry (Miti) has already discussed this issue with the Ministry of Higher Education.

“We are collaborating to ensure that the talent pipeline, starting from universities, is well-trained in AI. This will ensure that as industries adopt AI, they will have skilled professionals ready to join their companies,” he told reporters at the AI Conference 2024 today.

Tengku Zafrul said Miti is actively working on this initiative and plans to present its ideas to the finance minister, particularly for the upcoming budget, to support AI development and adoption in the country.

“The AI incentives mentioned are crucial for fostering talent. Under the National Industrial Master Plan (NIMP 2030), there are initiatives aimed at enhancing tech adoption, with a target of reaching 3,000 companies.

“These companies need to be AI-ready, and support is essential, especially for local small and medium enterprises, to adopt the latest technologies, including AI. This forms part of the broader plan.”

Separately, Tengku Zafrul highlighted the pivotal role of semiconductors in supporting Malaysia’s reindustrialisation under NIMP 2030 and the digital economy.

He noted that, as of July 2024, almost 40% of Malaysia’s exports, amounting to RM51.78 billion, were from the electrical and electronics (E&E) sector, largely due to semiconductors.

“Malaysia’s E&E industry produces 13% of the world’s back-end semiconductors, driving 40% of the country’s export output and contributing approximately 5.8% to the GDP in 2023,” he said in his speech.

AI Conference 2024, themed ‘AI Driving the National Economy: Opportunities & Challenges’, was held at Brickfields Asia College. The event brought together industry leaders, government officials and AI experts to discuss the transformative impact of artificial intelligence on Malaysia’s economy and productivity.

Malaysia Productivity Corporation director-general Zahid Ismail highlighted the significant productivity gains driven by AI, noting a 2.05% year-on-year increase in productivity as of March.

“Sectors more exposed to AI are experiencing nearly five times greater labour productivity growth. Despite Malaysia slipping in the World Competitiveness Ranking to 34th place, recent improvements in trade, with a 10% increase as of May 2024, demonstrate the country’s resilience and potential for recovery,” he said.

Zahid stressed that AI-driven growth is key to enhancing national productivity and economic strength.

Source: The Sun