Importance of skills to continue growing


Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

KUALA LUMPUR: As artificial intelligence (AI) and technology transform industries, experts agree that the future of work must remain human-centred – and that skills, not machines, will determine who thrives in the new economy.

Speaking at the Global Skills Forum 2025 here yesterday, they warned that without investments in workforce development, the global skills gap – already costing economies trillions in lost productivity – could widen inequalities and slow growth.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who chairs Malaysia’s National Technical and Vocational Education and Training (TVET) Council, said “skills are now the true currency of the future, and knowledge is the key that unlocks the door to shared prosperity.”

He reaffirmed Malaysia’s commitment to making workforce development a central theme under its Asean chairmanship this year, noting that with nearly 50 countries gathered at the Global Skills Forum 2025 yesterday, it sends a clear message – that skills development is not an isolated agenda, but a shared global responsibility.

“The next great divide will not be between rich and poor nations, but between skilled and unskilled societies,” he said.

“In this global race for relevance, those who invest in practical, adaptable, and future-ready talent will not just survive – they will lead.”

He said Malaysia’s approach under the Malaysia Madani framework focuses on aligning education with industry, integrating TVET with technology and embedding values-based learning into national development.

“Governments may chart the direction, but it is the people and partnerships that give momentum to change,” Ahmad Zahid said, adding that the private sector must act as a co-creator of talent and a partner in nation-building.

He noted that while AI can enhance productivity and efficiency, it “can never replace human judgment, compassion, or conscience”.

To ensure inclusive progress, he said every digital and industrial transformation must remain human-centred.

“We cannot build smart cities without wise citizens, nor can we pursue innovation without inclusion.”

Meanwhile, Human Resources Minister Steven Sim Chee Keong said workers are “creators of value in our economy”, stressing that their rights and progress must be protected as the world undergoes new trade alignments and technological change.

“As the world discusses the future of work, we also have to work towards the future. The dignity of the worker comes not only from protection but also from competence and opportunity. This is where skills, education are important.”

Sim noted three components of an effective education programme – learning on the job, learning by practise, and learning continuously.

He said the Human Resources Ministry (Kesuma) is developing a new training platform that curates the best skills courses from both local and global providers, approved by industry experts and accessible to all segments of society.

On this front, Sim noted that Malaysia’s upskilling ecosystem already rests on a strong base through the Human Resource Development Corp (HRD Corp), an agency under Kesuma, to which employers contribute a 1% payroll levy that funds worker training.

He pointed out that for the last three years, from 2023 until August this year, RM6.17bil in levies had been collected, of which almost 94% or RM5.77bil was spent on training about four million workers.

“Continuous and lifelong learning must become part of our national culture,” he said.

Sim said, since 2023, Malaysia has organised the National Training Week, which has grown from 130,000 participants in its first year to nearly four million this year, offering Malaysians one week of free access to over 73,000 courses.

“This is not just about training, it is about building a culture of learning that keeps pace with change and ensures no Malaysian is left behind in the future of work.”

He added that other Asean countries – including Indonesia, Myanmar and Timor Leste – are adopting the National Training Week concept, while Cambodia is set to replicate Malaysia’s HRD Corp model.

“These developments reflect the growing regional interest in best practices for human capital development,” he said, adding that Malaysia aspires for Asean to be one of the most skilled regions in the world.

International Labour Organisation (ILO) director-general Gilbert F Houngbo said Malaysia’s leadership in championing the Asean Year of Skills 2025 “truly reflects its commitment to empowering the region’s workforce for the future”.

He said while technological innovation, AI and the green and digital transitions bring opportunities for growth and productivity, it also risks widening inequalities if workers and enterprises are left without the skills to adapt.

“For the ILO, skills development and lifelong learning are central to a human-centred future of work,” Houngbo said, adding that skills are the best investments any society can make.

He called for stronger partnerships among governments, employers and workers to ensure innovation remains people-centred, inclusive and adequately funded.

“Governments provide policies, investments and incentives. Workers’ organisations have to ensure that training opportunities are fair, are accessible and right-based, while employers link learning to economic gain. No skills development strategy can succeed without engagement.”

Similarly, International Organisation of Employers vice-president Matthias Thorns said the world is at a critical moment as AI, emerging technologies and demographic shifts reshape industries and redefine the skills needed for the future.

“Employers are finding it far harder to find the right skills for their jobs,” he said, noting that a global study found 75% of organisations struggle to fill roles with the right talent. Skills are the key factor for economic growth, poverty eradication and national development.”

Citing World Bank data, he said closing the global skills gap could boost the world economy by up to US$6.5 trillion, or about 5% to 6% of global gross domestic product.

“The key question then is not how to preserve old models, but how to build learning ecosystems that stay relevant and future-focused in a world where the only constant is change,” Thorns said.

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