Human Resources Minister Datuk Seri R. Ramanan put two numbers side by side in Parliament. So far this year, 42,807 people have lost their jobs. And “up to 697,000 jobs could be at risk if they do not re-skill in the coming years.”
He was answering Datuk Azman Nasrudin of Perikatan, who wanted to know what was behind business closures and downsizing in the Klang Valley, and how far automation and AI were driving the retrenchments.
Where the layoffs are
The 42,807 figure covers January to June 12. Ramanan, citing Social Security Organisation data, said closures and downsizing caused most of them: 17,485 cases, or 40.85%. By location, Kuala Lumpur recorded 12,844 job losses (30%), Selangor 12,360 and Johor 3,468 (8.1%).
He did not blame AI for those cuts. The government sees it as an opportunity, he said, and is working toward what it calls a “just transition” for workers.
The TalentCorp study
The 697,000 figure comes from a study by Talent Corporation Malaysia, or TalentCorp. It found that this many jobs are expected to be heavily affected by AI, digitalisation and the green economy over the next three to five years if workers do not reskill. The study also identified 120 new roles that are growing in importance.
“The government is confident that AI is a catalyst for improving the quality of existing jobs and creating new high-skilled jobs,” Ramanan said. He added that the ministry is “placing emphasis on reskilling and upskilling, including for workers at risk of losing their jobs.”
The problem, as he framed it, is not a shortage of work. MYFutureJobs recorded 605,168 vacancies in the same period, against only 188,062 registered job seekers. The gap is in skills.
Training numbers
The ministry runs training through the Skills Development Department and the Manpower Department. Between January and the end of May, 26,529 people were certified under the accredited training programme system, which spans 1,661 centres. Another 2,506 earned certification through the Academy in Industry programme, which now covers microelectronics and mechatronics at three advanced technology campuses.
A national labour-market platform, MyMahir, maps roles, the skills they need and training routes. Its SkillsLab program includes AI modules, and graduates start on salaries 5-15% above the national entry-level average. Separately, PTPK’s TVET financing sets aside RM100 million for high-growth sectors including AI. It is expected to reach 4,167 trainees, 70 of whom are already approved for AI-specific training.
Sources
- Ramanan: Nearly 700,000 jobs under AI threat
- Malaysia Warns 697,000 Jobs Could Be Impacted by AI Without Upskilling
