KUALA LUMPUR: The government expects its push into artificial intelligence (AI) to create 300,000 to 500,000 new jobs, underscoring the need to translate rising investments in digital infrastructure into broader economic gains.
“Our progress should not be measured simply by computing capacity but by the economic value and opportunities that we create from it,” Communications Minister Datuk Seri Fahmi Fadzil said.
He highlighted growing concerns among university students over AI’s impact on jobs. This included those studying fields ranging from law to electrical engineering questioning whether their careers would remain relevant as the technology advances, according to him.
The concerns come as AI reshapes the job market, with young jobseekers facing tougher competition for entry-level roles as demand for some positions declines.
Back in June 2026, Human Resources Minister Datuk Seri R Ramanan cited a Talent Corp Malaysia study that found 697,000 jobs were expected to be heavily affected by AI, digitalisation and the green economy over the next three to five years if workers do not reskill.
Fahmi stressed that the push to build Malaysia’s digital future must go hand in hand with addressing concerns over AI’s impact on jobs, particularly among the youth.
“This is a real fear because we cannot have a situation where we experience so much growth and progress, but the youth find that AI has replaced their jobs,” he said at the World Artificial Intelligence Conference Connect Malaysia 2026 yesterday.
The event is an international extension of China’s flagship AI industry event.
Fahmi said these initiatives could shed light on where the economy needs to pay closer attention, particularly in terms of job growth and the youth.
He added that it connects China’s AI expertise with Malaysian and Asean industry needs, fostering practical partnerships and applications that turn AI capability into real economic value.
Fahmi also applauded Huawei’s plan to support 30,000 Malaysian AI talents and develop 200 local AI partners over the next three years through knowledge transfer and cloud and AI collaborations.
According to him, Malaysia is targeting an additional 0.8 to 1.2 percentage points in annual gross development product (GDP) growth, equivalent to about RM13bil to RM20bil a year, from AI by 2030.
He said the target reflects Malaysia’s ambition to move beyond building digital infrastructure to developing, deploying and applying AI across the economy.
Fahmi said the aim was to enable more Malaysian businesses to participate in AI, expand local participation in the AI economy and retain more AI-generated value within the domestic economy.
Fahmi noted the digital economy already contributes 25.5% of Malaysia’s GDP and is on track to reach 30% by 2030.
“Our data centre (DC) capacity is also expanding rapidly, with national capacity expected to double to 2,055 megawatts by the end of this year,” he said.
Meanwhile, the Malaysian Investment Development Authority has approved RM144.4bil in investments in DCs and cloud computing.
