Malaysia reskills workforce for the digital economy

[MALAYSIA] As Malaysia's job market evolves amidst technological advancements, reskilling and upskilling have become imperative for workers aiming to remain competitive. Government initiatives and industry collaborations are paving the way for accessible educational pathways.

The Need for Reskilling: Adapting to a Changing Job Landscape

In 2025, Malaysia faces a critical need to equip its workforce with skills that align with the demands of the digital economy. A report by the Human Resources Ministry indicates that approximately 600,000 workers will require training within the next three to five years to transition into new economy roles, particularly in sectors like wholesale and retail trade, food manufacturing, and services . This shift is driven by the rapid integration of artificial intelligence (AI), automation, and digital technologies across industries.

Economy Minister Mohd Rafizi Ramli emphasized the urgency of addressing the growing skills gap, stating that retraining and workforce development must be scaled to unprecedented levels to meet industry needs.

Government-Led Initiatives: Empowering Workers Through Education

The Malaysian government has launched several programs to facilitate reskilling and upskilling efforts:

Program Latihan Madani (PLM): This initiative aims to empower underserved communities, including senior citizens, retirees, persons with disabilities, and formerly incarcerated individuals, by providing access to training and development opportunities. PLM offers both face-to-face and remote online training options, with durations ranging from three days to three months.

Digital Up Reskilling and Upskilling Incentive: Administered by the Malaysia Digital Economy Corporation (MDEC), this program offers training incentives of up to RM1,000 for eligible Malaysians aged 24-50, including gig workers with valid SOCSO accounts. The initiative focuses on digital technology-related courses to enhance the workforce's digital competencies.

Industry-Driven Talent Acceleration Programme (ID-TAP): A collaboration between TalentCorp and the Skills Development Fund Corporation (PTPK), ID-TAP aims to upskill and reskill over 900 workers based on industry needs in sectors such as mechatronics, electrical and electronic engineering, big data analytics, and IT.

Industry Collaboration: Bridging the Skills Gap

Private sector involvement is crucial in aligning educational outcomes with industry requirements. The establishment of sector-based MyMAHIR Future Skills Talent Councils (FSTCs) facilitates collaboration between industries and educational institutions to identify in-demand job skills and develop training programs accordingly. For instance, the first FSTC for the electrical and electronics (E&E) sector has successfully trained 500 workers, resulting in salary increases of 5% to 15%.

Experts advocate for a multi-stakeholder approach, emphasizing the need for businesses to prioritize upskilling and reskilling initiatives tailored to industry-specific needs. This includes integrating technical and vocational education and training (TVET) with internships and on-the-job training to enhance employability.

Challenges and Opportunities Ahead

Despite the availability of various programs, challenges persist in ensuring equitable access to reskilling opportunities. A survey by Randstad Malaysia reveals that while 81% of employees consider professional development important, only 61% have access to opportunities such as career promotions, mentorship, or networking events.

To address these disparities, experts suggest that both employers and employees embrace a culture of continuous learning. Employers should invest in training programs and create pathways for career advancement, while employees are encouraged to take proactive steps in acquiring new skills and certifications to remain competitive in the evolving job market.

As Malaysia navigates the complexities of a rapidly changing job market, reskilling and upskilling emerge as vital strategies for workforce sustainability. Through collaborative efforts between the government, industries, and educational institutions, accessible educational pathways are being established to empower workers to adapt and thrive in the digital economy. The commitment to continuous learning and development will be instrumental in shaping a future-ready workforce capable of meeting the challenges and opportunities of the 21st century.