Kuala Lumpur: Malaysia’s transition to a digital economy is placing increasing pressure on domestic businesses, especially small and medium enterprises, to keep up with technological advances.
The shift to automation, artificial intelligence and digitalization is transforming industries such as technology, healthcare and manufacturing, increasing the demand for a more skilled workforce.
However, a significant skills gap remains a major obstacle.
According to TalentCorp, 60% of Malaysian companies face difficulties recruiting for key roles in the information technology, healthcare and tech sectors.
Deficiencies in both technical expertise and soft skills, such as communication and critical thinking, hinder workforce preparation.
Malaysia HR Forum CEO Arulkumar Singaravelu stressed the need for businesses to prioritize upskilling and reskilling.
“Technical knowledge alone is no longer enough. Adaptability, problem-solving and digital literacy are now essential for workers to succeed in a rapidly evolving environment,” he explained. Sunbiz,
He said government initiatives such as the Penjana HRDF Reskilling and Upskilling Programme, Malaysia Tech Talent Development Program and Industry4WD provide valuable support.
However, businesses must lead efforts to tailor these initiatives to industry-specific needs.
Arulkumar also highlighted the gap between education and workforce demands.
“Malaysia’s education system often lacks the practical and technical focus required for immediate employability. Strengthening technical and vocational education and training and integrating internships into the curriculum can help bridge this gap,” he said.
Partnership between manpower companies, private sector organizations and educational institutions is important. Structured apprenticeships and on-the-job training can equip graduates with practical experience and address existing skills shortages.
Arulkumar said that preparing the workforce of the future requires a multi-stakeholder approach. Employees must learn lifelong to remain competitive and public-private partnerships and talent development incentives are critical for sustainable growth.
Studies show that companies that prioritize digitalization and automation can increase productivity by 30%.
Arulkumar said sectors like renewable energy, e-commerce and cyber security offer significant growth potential.
He said businesses that invest in workforce development will be better positioned to fill emerging roles and remain globally competitive. “Malaysia stands at a crossroads. Prioritizing upskilling today will unlock the potential of the workforce, spur innovation and secure a prosperous digital future. The time to act is now.”
Melissa Norman, Founder and Managing Director of Aisling Group, said that human resources (HR) departments must engage in constant dialogue with government bodies, industry leaders and educational institutions to ensure that the skills being developed are relevant to the current industry trends. and are relevant to future needs.
“HR professionals must stay abreast of policy changes and industry trends to effectively anticipate and respond to changes in the labor market,” he said.
In dealing with technological advancements, it is imperative for HR professionals and businesses to prioritize upskilling and reskilling initiatives for older employees, Melissa said.
“Employers should be open to adopting a flexible and inclusive approach that meets the diverse needs of their employees. An important initial measure is to conduct regular skills assessments to identify areas where older employees could benefit from upskilling opportunities.
“By understanding their strengths and areas for improvement, businesses can tailor upskilling programs to meet the specific needs of older workers, enabling them to grow in their roles and contribute to the organization,” he said.
Melissa stressed that in the modern workplace, due to changing workforce demographics and the rising retirement age, upskilling initiatives for older workers are paramount.
Businesses should prioritize measures such as skills assessment, personal development planning, technology training while promoting a culture of continuous learning to ensure the professional growth and development of older workers. “By investing in the skills and capabilities of their aging workforce, businesses can unlock their full potential and drive sustainable growth and innovation in the years to come,” he said.
