KUALA LUMPUR: While upskilling the workforce is essential in a digital era, it is equally important to ensure enough quality jobs are available, says Khazanah Research head Nick Khaw.
Khaw said Asean countries managed to grow their GDP per capita and their banks performed well due to healthy debt consumption backed by strong middle-class jobs.
"If you upskill, but don’t create jobs accordingly, workers will go elsewhere. We must think beyond just upskilling.
"If we fail to create quality jobs, upskilling is meaningless," said Khaw during a panel discussion on "Asean as a Middle-Class Society: Building a Sustainable Asean."
Khaw was speaking at the Asean Economic Opinion Leaders Conference: Outlook for 2025.
KRA Group Director of Strategy Amir Fareed, who was moderating, asked Khaw about the role of digitalisation in sustaining middle-class society.
In response, Khaw said digitalisation is a "tool" but not a "magic bullet" to solve problems.
Boston Consulting Group Managing Director and Partner Nurlin Salleh said continuous upskilling is crucial to keep up with the pace of global change.
"Otherwise, there will be many challenges," said Nurlin.
Nurlin also said digitalisation efforts among Asean nations will enable greater changes in the region.
"Don't digitalise just for the sake of it. It must have clear economic benefits," added Nurlin.
Investment, Trade and Industry Ministry’s Asean Economic Integration Division senior director Dr Sugumari S Shanmugam said it is crucial for Asean countries to understand the importance of digitalisation.
"But I think we are getting there and hopefully, under Malaysian leadership this year, we can push for the digital framework," said Sugumari.
Bank Negara’s assistant governor Fraziali Ismail, in his closing remarks, said that despite Asean being poised to be the fourth-largest economy in the world by 2030, the region should not rest on its laurels.
"There are many challenges we face in a multipolar world and increasing tensions between the US and China.
"Gone are the days when you could totally rely on foreign powers to invest," said Fraziali.
Fraziali said it is important to make quality jobs the main focus of policy, rather than GDP.
"When you hear mega projects announced, the question is not about GDP, but how many quality jobs are created and what they pay," he asked.
"That is a more important question," added Fraziali.
