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 the Prime Minister.

Datuk Seri Anwar Ibrahim said productivity of the labour force could be enhanced by upskilling programmes and introducing new frontiers such as AI.

“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,” Anwar said during Prime Minister’s Question Time in Parliament yesterday. 

He said this was one reason why some new foreign companies had to set up centres of excellence in Malaysia as a condition to operate in the country. 

“This is a condition for Nvidia, Microsoft, Google and Infineon,” he said in response to 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 was 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. 

Anwar also said the national economy recorded a growth of 5.1% last year, which was considered as among the highest in the region. 

“Does 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.”

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