Malaysia records 42,807 job losses as 697,000 roles at risk from AI without urgent upskilling, says HR minister
KUALA LUMPUR, June 24 — Human Resources Minister Datuk Seri R. Ramanan has warned that up to 697,000 jobs in Malaysia could be significantly affected by artificial intelligence (AI), digitalisation and the green economy within the next three to five years if workers fail to upgrade their skills.
He said Talent Corporation Malaysia Berhad (TalentCorp) conducted a study on the impact of emerging technologies on the country’s workforce, focusing on how transformative forces are reshaping industries.
“The findings show that 697,000 jobs are expected to be highly affected by AI, digitalisation and the green economy if workers do not upskill within the next three to five years.
“At the same time, 120 new roles have been identified as increasingly important,” he told Dewan Rakyat today.
He was responding to Padang Serai MP Datuk Azman Nasrudin who asked about the rise in job losses linked to business closures and downsizing, particularly in the Klang Valley, and to clarify whether automation and AI are driving the current wave of retrenchments.
He added that Malaysia’s labour market must be strengthened by identifying critical skills and emerging roles to ensure workers remain competitive in a rapidly evolving global economy.
Ramanan then said the government was prioritising reskilling and upskilling programmes, particularly for workers at risk of displacement due to technological change.
Citing the data from Socso, He said the warning comes as Malaysia continues to record significant job losses, with 42,807 individuals losing their jobs between January and June 12, 2026.
Of these, he said 40.85 per cent were due to business closures and companies downsizing.
He also said Kuala Lumpur recorded the highest number of job losses at 12,844, followed by Selangor with 12,360 and Johor with 3,468.
Despite the increase in retrenchments, Ramanan explained that the MYFutureJobs portal recorded 605,168 job vacancies over the same period, while the total number of jobseekers stood at 188,062.
He said AI should be seen as a driver of new opportunities rather than purely job displacement, stressing the importance of structured workforce transition.
“We believe AI is a catalyst for improving job quality and creating new high-skilled employment opportunities.
“We have taken a proactive and comprehensive approach to ensure a just transition for workers,” he added.
To support this transition, he highlighted several initiatives under the Department of Skills Development and the Department of Manpower, including accredited training systems and industry-led academies.
Ramanan said more than 26,500 individuals were certified under the Accredited Programme Training System between January and May 2026, while 2,506 individuals were certified through industry-led training programmes during the same period.
He also highlighted the MyMahir platform, which provides labour market intelligence on job roles, required skills and training pathways aligned with future demand.
“The MyMahir SkillsLab programme also includes AI modules to ensure participants are equipped with future ready skills.
“Graduates of the SkillsLab programme are expected to secure employment with starting salaries between 5 to 15 per cent higher than the average entry level wage,” he added.
He then said that the SkillsLab programme, which includes AI training modules, has helped improve employability and resulted in participants securing higher starting salaries.
Ramanan also said the Skills Development Fund Corporation (PTPK) has allocated RM100 million under a high-impact TVET financing scheme covering seven high-growth, high-value sectors, including AI.
He said the programme is expected to benefit 4,167 trainees, with 70 already approved for AI-related training.
He said these measures are intended to ensure Malaysia’s workforce remains resilient amid rapid technological change and does not lose out in the shift towards a digital economy.
