Malaysian higher education ranks 32nd in QS World Future Skills Index


PETALING JAYA: Malaysian higher education is well prepared to deliver the skills necessary for future industries.

However, there is a lack of suitable jobs or industries for the talents produced, according to the QS World Future Skills Index.

The first edition of the index found that Malaysia appears to be providing skills at a rate that potentially outstrips the pace of economic and industrial innovation, sitting at 32nd globally with an overall score of 69.8.

"This transformation gap reflects a significant reserve of untapped talent due to a lack of suitable jobs or growing industries.

"Bridging this gap requires targeted economic policies, increased research investment, and strong industry partnerships to create opportunities and effectively utilise this potential, driving innovation and sustainable growth," said QS in a statement on Thursday (Jan 16).

Malaysia currently sits seventh in Asia for its readiness to address the shifting demands of the global workforce, particularly in the context of digital transformation, artificial intelligence (AI), sustainability and the broader economic changes impacting jobs.

Out of 81 Asian countries featured, Malaysia's top performance is in Academic Readiness, in which it is fourth in Asia, suggesting that its higher education system is adept at supporting high-quality learning and skill development in fields that are most relevant to the future workforce.

Malaysia also performs excellently in the Future of Work indicator, also placing fourth in Asia. This reflects the country's advanced job market, ripe with innovation across AI, Digital and Green industries with abundant career opportunities in these spaces.

QS Strategy and Analytics vice-president Matteo Quacquarelli said Malaysia is rapidly advancing its AI, green, and digital industries, with ambitious plans to become a global hub for energy and semiconductor manufacturing, supported by a major recent overhaul of the higher education system to foster AI innovation, nurture talent and commercialise research.

"Partnerships with global tech leaders are helping bridge the AI skills gap through targeted training for educators and students," he said.

However, he added that a 2024 study revealed that 81% of Malaysian employers still struggle to hire AI talent, despite 90% prioritising these skills.

"Meanwhile, around 620,000 jobs across 10 key sectors are potentially at risk from AI, digitalisation, and green economy shifts, highlighting the urgent need for upskilling," he said, adding that initiatives like the AI Talent Roadmap 2024-2030 aim to build a future-ready workforce equipped for Malaysia's evolving industries.

Singapore is currently the highest scoring country in Asia with a score of 88.1.

It is followed by South Korea (87.3) and China (87.2).

Topping the index is the United States of America with an overall score of 97.6.

The QS World Future Skills Index is designed to assess how prepared countries are to tackle the shifting demands of the global workforce, particularly in the context of digital transformation, AI, sustainability, and the broader economic changes impacting jobs.

The full index can be accessed at: www.qs.com/reports-whitepapers/world-future-skills-index

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