Artificial intelligence at work: a Malaysian perspective

Ashreyna Kaur Bhatia
Skrine, Kuala Lumpur
ashreyna.k@skrine.com

Selvamalar Alagaratnam
Skrine, Kuala Lumpur
sa@skrine.com

Artificial intelligence (AI) is actively transforming work in Malaysia, reshaping job roles, productivity expectations and the skills needed for employees to thrive. From automating routine tasks to informing strategic decision-making, AI offers substantial potential to enhance efficiency and economic competitiveness. However, these benefits are accompanied by distinct challenges, particularly regarding workforce readiness and the risk of job displacement. Recognising these challenges, initiatives have been introduced by the Malaysian government to equip employees with AI skills and ensure that automation reinvents – rather than replaces – human input.

Law and policy: an overview

There is currently no specific legislation in Malaysia regulating the use of AI at work. Notwithstanding this, AI adoption is accelerating domestically, with one study showing that in 2025, 33 per cent of respondents stated they are now using AI at work, an increase of a third from the previous year.^[1] The proportion of employees who have never used AI in their roles has dropped by 13 per cent year-on-year.^[2] Research indicates, however, that only 12 per cent of Malaysian employees receive sufficient AI training to benefit fully from the existing technology’s capabilities.^[3]

One of the Malaysian government’s flagship initiatives is the AI at Work 2.0 programme, a collaboration between the Ministry of Digital, the National Artificial Intelligence Office (NAIO) and Google Cloud. The initiative aims to train approximately 445,000 civil servants in generative AI tools, productivity applications, and workflow automation using Google Workspace and the Gemini suite. The programme focuses on practical applications, enabling public officers to automate routine administrative tasks, draft documents efficiently, summarise large datasets and analyse information for decision-making purposes. Early pilots of the programme reported average weekly time savings of more than three hours per civil servant, demonstrating how AI can improve productivity while freeing employees to focus on higher-value work requiring human judgement, reasoning, creativity and critical thinking.^[4]

Malaysia is intensifying efforts to prepare its private sector workforce for an AI-driven economy through the nationwide expansion of the Jelajah AI MyMahir initiative.^[5] Launched on 17 January 2026 by the Minister of Human Resources, the programme is led by TalentCorp in partnership with EY (Ernst & Young) Malaysia and focuses on practical, hands-on AI skills that can be applied in work, business and daily productivity. The initiative aims to ensure that Malaysians remain employable and competitive as AI continues to reshape roles across multiple sectors.

Under the nationwide rollout, Jelajah AI MyMahir will reach 60 constituencies, targeting students, workers, women, entrepreneurs and small business owners. The programme prioritises immediately usable AI applications that support productivity, income generation and employability. The initiative is expected to benefit around 22,000 Malaysians, including 12,000 participants directly through Jelajah AI MyMahir and an additional 10,000 through TalentCorp initiatives for school and university students, women and military veterans.

The programme comes at a critical juncture as the potential impact of AI on Malaysia’s workforce becomes increasingly evident. Without accelerated retraining, an estimated 685,000 workers could be significantly affected over the next three to five years.^[6] Research by Institute of Strategic & International Studies (ISIS) Malaysia also suggests that 45 per cent of the workforce (approximately 6.7 million workers) have at least 40 per cent of their job tasks potentially substitutable by existing generative AI technologies.^[7]

Malaysia’s digital education transformation also extends to Technical and Vocational Education and Training (TVET) institutions, which are integrating AI and other emerging technologies into training modules. Students are earning micro-credentials in high-demand fields such as automation, robotics, data analytics and industrial systems-skills essential for Industry 4.0. This approach keeps academic and vocational systems agile and responsive to the changing needs of the Malaysian economy. More than 1,100 TVET educators and 5,600 students have been upskilled through the nation’s first large-scale AI and cybersecurity training initiative, the Rakyat Digital – Digital Vocational Education and Training (DVET).^[8]

AI at work: practical considerations

Performance management

Practical applications of AI in Malaysian workplaces are expanding rapidly, particularly in performance management, decision-making and human resources processes. AI-powered systems are gradually being used to assess employee productivity, identify skill gaps and provide data-driven recommendations for appraisals, career development and training. When implemented thoughtfully, these systems can enhance objectivity, tailor learning paths and support informed decision-making.

However, there are inherent risks. Automated evaluation algorithms may fail to account for qualitative contributions, such as teamwork, innovation and interpersonal skills, that inherently require human input. It is therefore arguable that there is a need for some degree of high-level human oversight in the interest of having accurate performance assessments on record, as well as ensuring transparency and ethical governance of AI applications.

Work-life balance

The influence of AI on work extends beyond skill development and productivity gains. One notable implication is the impact of AI use on work-life balance. By automating repetitive or administrative tasks, AI can reduce the time employees spend on routine work, potentially freeing them to engage in strategic, creative or personally fulfilling activities. The EY 2025 Work Reimagined Survey finds that 93 per cent of Malaysian employees use generative AI (GenAI) at work, with 81 per cent reporting significant time savings and 76 per cent noting improved productivity.^[9]

Automation and redundancy

A more immediate concern, however, is the risk of redundancy due to automation. Certain roles, particularly those heavily reliant on repetitive tasks or basic administrative functions, are more susceptible to displacement. Studies suggest that AI, digitalisation and green technology initiatives could affect over 620,000 jobs in Malaysia within the next few years, spanning sectors including manufacturing, retail, global business services and information and communications technology.^[10] Companies such as HP Inc., Microsoft and IBM have announced significant workforce reductions as part of broader restructuring efforts linked to AI adoption, underlining a shift in how corporations are recalibrating manpower needs in pursuit of productivity gains.^[11]

Such research emphasises the urgency of preparing the workforce to adapt to AI-enhanced roles and to ensure that automation complements rather than replaces human labour. Additionally, the question of data security (governed by the Personal Data Protection Act 2010) and potential leakage is also one that many companies in Malaysia are contending with as they navigate this new technological landscape.

Thinking ahead

To address these challenges, coordinated action among the government, employers and educational institutions is essential. Public sector initiatives such as AI at Work 2.0 provide a scalable model for large-scale AI training, demonstrating the value of structured, government-led reskilling programmes. In the private sector, companies must similarly invest in continuous learning programmes, redesign roles to integrate human strengths with AI capabilities and establish supportive policies which balance productivity gains with employee wellbeing.

For employees, embracing lifelong learning and adaptability is critical. Competencies such as AI literacy, digital fluency and human-centric skills will become increasingly central to employability in an AI-driven economy. Workers who proactively develop these skills are more likely to thrive in roles affected by AI, positioning themselves to leverage automation for enhanced productivity and career advancement rather than being vulnerable to displacement.

Conclusion

AI presents both unprecedented opportunities and significant challenges for Malaysia’s workforce. Government-led initiatives have demonstrated the potential to reskill large sections of the workforce and to improve productivity and work-life balance when implemented thoughtfully. At the same time, risks such as job redundancy, performance monitoring pressures and skills gaps must be managed carefully.

Malaysia’s future workforce success will hinge not on the presence of AI tools alone but on how effectively individuals, organisations and institutions prepare, adapt and collaborate. By prioritising human capital alongside technological adoption, Malaysia can ensure that AI works in tandem with human capability to foster sustainable employment, wellbeing and economic resilience.