KUALA LUMPUR: Domestic businesses, particularly small and medium enterprises, are under increasing pressure to keep up with technological advancements as Malaysia transitions to a digital economy.
The shift to automation, artificial intelligence and digitalisation is transforming industries like technology, healthcare, and manufacturing, driving 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 critical roles in information technology, healthcare and technical fields.
Deficiencies in both technical expertise and soft skills, such as communication and critical thinking, hinder workforce readiness.
Malaysia HR Forum CEO Arulkumar Singaraveloo emphasised the need for businesses to prioritise 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 told SunBiz.
He noted that government initiatives such as Penjana HRDF’s Reskilling and Upskilling Programme, the Malaysia Tech Talent Development Programme and Industry4WRD offer valuable support.
However, businesses must lead efforts to tailor these initiatives to industry-specific needs.
Arulkumar also highlighted a disconnect between education and workforce demands.
“Malaysia’s education system often lacks the practical and technical focus needed for immediate employability. Strengthening technical and vocational education and training and integrating internships into curricula can help bridge this gap,” he said.
Partnerships between manpower companies, private-sector organisations, and educational institutions are crucial. Structured apprenticeships and on-the-job training can equip graduates with hands-on experience and address current skill shortages.
Arulkumar said preparing the future workforce requires a multi-stakeholder approach. Employees must embrace lifelong learning to remain competitive, and public-private partnerships and talent development incentives are vital for sustainable growth.
Studies show that companies prioritising digitalisation and automation can boost productivity by up to 30%.
Arulkumar said sectors such as renewable energy, e-commerce and cybersecurity offer significant growth potential.
Businesses investing in workforce development will be better positioned to fill emerging roles and remain globally competitive, he said. “Malaysia stands at a crossroads. Prioritising upskilling today will unlock workforce potential, drive innovation, and secure a prosperous digital future. The time to act is now.”
Aisling Group founder and managing director Melissa Norman said human resource (HR) departments should engage in continuous dialogue with government bodies, industry leaders, and educational institutions to ensure that the skills being developed are relevant to the current and future needs of the industry.
“HR practitioners should also stay abreast of policy changes and industry trends to anticipate and respond to shifts in the labour market effectively,” she said.
In tackling technological advancements, Melissa said, it is imperative for HR practitioners and businesses to prioritise upskilling and reskilling initiatives for older employees.
“Employers should remain open to adopting a flexible and inclusive approach that caters to the diverse needs of their employees. One crucial initial measure is to conduct regular skills assessments to identify areas where older employees may benefit from upskilling opportunities.
“By understanding their strengths and areas for improvement, businesses can tailor upskilling programmes to meet the specific needs of older workers, enabling them to thrive in their roles and further contribute to the organisation,” she said.
Upskilling initiatives for older employees are paramount in the modern workplace as workforce demographics shift and retirement ages rise, Melissa stressed.
Businesses must prioritise measures such as skills assessments, personalised development plans, technology training while fostering a culture of continuous learning to ensure the professional growth and development of older workers. “By investing in the skills and capabilities of their ageing workforce, businesses can unlock their full potential and drive sustainable growth and innovation in the years to come,” she said.
