AI is key in increasing productivity, says PM


KUALA LUMPUR: Mastering artificial intelligence (AI) will be a key factor in increasing the productivity of the local labour force, which is a prerequisite to raising local wages, says Prime Minister Datuk Seri Anwar Ibrahim.

Anwar said productivity of the labour force could be enhanced by upskilling programmes, the introduction of new subjects such as AI, new technology and among others.

“Ai is a challenging approach and even though we have a clear policy, its mastery is limited.

“So, instructions have been given to all research centres, including schools and universities, to give emphasis (on AI).

“I am of the opinion that the mastery of AI will determine whether or not Malaysia has the ability to raise its productivity,” said Anwar during Prime Minister’s Question Time in Parliament on Tuesday (March 4).

According to Anwar, that is why it is compulsory for some new foreign companies to set up centers of excellence in Malaysia as a condition to operate in the country.

“This is a condition for Nvidia, Microsoft, Google and Infineon,” added Anwar.

Anwar was responding to a supplementary question raised by Syed Saddiq Syed Abdul Rahman (Muda-Muar), who asked if there were plans by the government to raise wages and productivity of the labour force.

According to Syed Saddiq, Malaysia allocated about 0.8% of its GDP to research and development (R&D), which is lagging behind Singapore (2.2%).

Earlier, Anwar said that companies which made significant profits should ensure that their workers are paid fairly.

“Don’t record huge profits but pay your workers inadequately. There is a gap where productivity increases are not matched with wage increases, and inflation will affect them.

“We are taking steps (to address this),” said Anwar.

Meanwhile, Anwar also said the Malaysian economy had recorded growth of 5.1% last year, which is considered as among the highest in the region.

“Do these positive figures benefit the people? The answer is yes.

“It created 120,000 new jobs and the unemployment rate was at 3.1% as of Dec last year,” said Anwar.

The Bank Negara Malaysia (BNM) had said last year that Malaysia’s economy growth in the fourth quarter of 2024 was mainly driven by continued expansion in the services, manufacturing and construction sectors.

 

 

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