KUALA LUMPUR (Oct 21): The rise of automation and artificial intelligence (AI) has led to job loss for 293,639 workers in Malaysia since 2020, data from the Ministry of Human Resources (Kesuma) showed.

The manufacturing sector has been the hardest hit, accounting for 75,615 lay-offs up until September 2024, Deputy Minister Datuk Seri Abdul Rahman Mohamad said in a ministerial question time in the Dewan Rakyat on Monday.

Other affected sectors include the wholesale and retail trade with 43,614 job losses, professional and scientific services with 23,907 jobs lost, as well as information and communication technology with 19,931 jobs lost.   

The government has rolled out skills development programmes aimed at improving employability in technology-driven sectors, Abdul Rahman said. That includes the Employment Insurance System, the Future Workforce Training scheme, and courses focused on Industry 4.0, he noted.

Abdul Rahman was responding to a query from Datuk Seri Amirudin Shari (PH–Gombak), who had asked about the ministry’s plans to address the impact of automation and AI on job displacement and which industries are most affected.

"Kesuma is committed to ensuring that graduates and local workers are equipped to face future economic challenges with the necessary skills, particularly in the technology and Industry 4.0 sectors, including the rapidly growing fields of automation and artificial intelligence," he said.

On the upcoming revision of the minimum wage from RM1,500 to RM1,700 per month, Abdul Rahman said the ministry is still in the process of drafting the details and will release further information soon without providing a specific timeline.

Nevertheless, the revised policy will not affect skilled and semi-skilled workers, Abdul Rahman stressed. “The increase will primarily impact lower-level workers, such as labourers, who will be subject to the new minimum wage of RM1,700,” he noted.

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