As the world slowly transitions into the Fourth Industrial Revolution (4IR), Malaysia is on the verge of a different era that will completely change the country’s economic landscape. The characteristics of the 4IR are a mix of physical, digital, and biological areas, which will be both great opportunities and challenges for Malaysia.
Embracing Change in the Workforce
One of the significant challenges Malaysia will face during the Fourth Industrial Revolution (4IR) is training the workforce to be more dependent on technology and align with the world economy. Talentcorp says only 28% of the Malaysian workforce is highly skilled. This contrasts with the National 4IR policy, which stated that the country needed high income with a knowledge-based economy. The government must acknowledge the difference so that skill improvement of the current workforce can be planned and arranged accordingly, especially in high-tech areas such as big data and artificial intelligence (AI). Malaysia can potentially unlock USD113.4 billion through AI.
Malaysians are used to working in the traditional industry where the skills are centered around conventional manufacturing and essential services. But the 4IR calls for a shift towards more advanced skills. Digital knowledge, tech skills, and the ability to work with complicated systems quickly become necessary.
Addressing the Skills Gap
To prepare for a future dominated by AI, robots, and digital technology, skills that are compatible with these technologies are in demand, and it is crucial to address these gaps immediately to maximize the benefit of 4IR.
Identifying the Skills Gap
The known skills gap among the Malaysian workforce is digital literacy, advanced technical know-how, critical thinking, and problem-solving. Reports from the International Labour Organization and McKinsey Global Institution support these gaps. These reports stress the importance of dynamic skill sets such as data analytics, machine learning, and AI proficiency apart from the traditional learning that Malaysians are used to. Soft skills equally essential to prepare for 4IR include adaptability, communication, and teamwork.
Initiatives to Bridge the Gap
The Nurturing EXpert Talent (NEXT) is one of the initiatives by the Malaysian government to tackle the gaps. NEXT was designed to further understand the quality and capabilities of the Malaysian workforce by developing comprehensive talent analytical data. This data’s results will guide Malaysia’s workforce toward the necessary skill sets before embracing 4IR. The information from NEXT is also vital to designing education and training programs to meet the industry demand.
The 4IR requires the industry and academia to work hand in hand to ensure that future job requirements align with what is being taught in the education institutions, as suggested by The British Council’s “Framework of Action.” Bridging these two will be beneficial, especially to the young graduates, and ensure a smooth transition into the workforce and, most importantly, being a relevant workforce that the industry needs.
National Fourth Industrial Revolution (4IR) Policy
Malaysia’s National 4IR Policy simplifies digital infrastructure development through smart investments, says Datuk Seri Mustapa Mohamed. It emphasizes the government’s facilitation role and expects large private sector contributions to 4IR technology’s hard and soft infrastructure. To expand the infrastructure and internet availability across Malaysia, the National Fibersation and Connectivity Plan (NFCP) and Jalinan Digital Negara (Jendela) will work hand in hand to ensure this expansion is achieved with a lower broaband expenses. The government would spend RM15 billion over ten years on 5G infrastructure.
Support for Micro, Small, and Medium Enterprises (MSMEs)
MSMEs struggle to adapt to new technology; thus, the policy provides a thorough approach. It offers financial, business, and informational support. The government would spend RM19.29 billion on stimulus packages to digitalize 800,000 MSMEs by 2025. MyAssist MSME and Pusat Internet Komuniti (PIK) are key to this effort.
Upskilling and Reskilling Programs
The best way for Malaysians who are already in the workforce is to continue learning. The National4IR policy suggested that Malaysia should focus on programs to upgrade skills and improve the current ones. These upskilling and reskilling programs are essential, especially to the existing workforce, as they need to adapt to new technologies and changes. The agenda should focus on digital literacy programs, coding workshops, and AI training.
As part of the Malaysia Digital Economy Blueprint and National 4IR policy, companies are encouraged to invest in employee training, technology-focused education programs, and collaborations between public and private sectors.
Cultivating a Culture of Innovation
The culture of innovation is vital for Malaysia to grasp the potential of 4IR technologies fully. In order to realize this, an environment that supports experimentation encourages risk-taking, and supports creativity is needed at every level in the organization.
Malaysia can also start an innovation culture can be started as early as childhood. Education is crucial and needs to change starting today as they will introduce young minds to the principle of innovations and technology from the early stage.
By making innovation a part of Malaysia’s culture, the government is seen to be serious in preparing for the 4IR by making sure the benefits of technology are shared widely across the economy and society.
Roadmap and Timelines
Conclusion
As Malaysia embraces the coming of the 4IR, a comprehensive strategy must still be prioritized and implemented. This includes upskilling and reskilling the workforce, government-industry-academia collaboration, and embedding the mindset of innovation into all citizens regardless of age. By addressing these, Malaysia is prepared for any 4IR challenges and takes advantage of what it offers.
