WILLIAM Blake, in the poem “London”, lamented that in every face he met in the city he saw “weakness” and “marks of woe.” Blake penned these thoughts at a time England was beginning its transition to the industrial revolution. While the industrial revolution paved the way for modernisation which led to the country’s economic advances and lifted many out of poverty through the creation of new jobs, it simultaneously left many out of work. The mechanisation of labour and the rise of the machine would prove to be a challenging time for the country as it rendered many worker skills obsolete, leaving them susceptible to industrial substitution, resulting in unemployment. 

As Malaysia edges closer toward the revolutionary age of digitalisation and automation, it is incumbent on the government to study the future difficulties that may be incurred for labourers and professionals to preserve their welfare interests and to avoid mass levels of unemployment. Recently, Bill Gates, noting the rise of artificial intelligence in services across the globe, remarked that the “age of AI has begun.” This comes at a time the growing influence of AI technology is sparking a modern existential crisis in the international community as speculation rises over the potential of AI to displace many in the workforce.

Like the industrial revolution, AI’s disruptive nature is set to challenge the relationship dynamic between human labourers and the economy bringing about feelings of woe in the workforce. The increased efficiencies and effectiveness of artificial intelligence and digital automation are favoured by employers as they are significantly more cost-effective. A report by McKinsey Malaysia reinforces this, stating that “50% of work time in Malaysia is spent on repetitive activities that are highly automatable”. 

In Malaysia, a study conducted by Universiti Malaya’s economics and administration faculty found that “40.1% of Malaysian jobs are at high risk of being automated with approximately 57% of all jobs being affected by automation in the next two decades”. While it is important for Malaysia, as a developing economy, to incorporate emerging technologies, the country’s leadership must also be cognisant of the implications of doing so.  According to the Malaysian Investment Development Authority, “the country aspires to be digitally driven, high income nation and a regional leader in the digital economy.” What must be studied by the Malaysian government are the country’s contingency plans to holistically and proactively implement measures that can facilitate these digital aspirations while protecting its workforce from the encroachments of technological innovation and job displacement – a win-win solution.

The workforce, particularly low-skilled, poor workers who will suffer the implications of future job displacement, is already experiencing a cost-of-living crisis. One measure the government could provide to support them is what economists call a “universal basic income” as a form of labour protection. The idea is that those eligible for it would receive a guaranteed monthly cash transfer to meet minimum living costs. Geoffrey Williams, an economics professor at the Malaysia University of Science and Technology, states that such a measure will be instrumental in making the “cost of living more affordable” and that it is “financially viable”. Crucially, this policy would offset the most severe consequences of job displacement. A significant portion of workforce falling into poverty due to automation would only exacerbate wealth inequality and cause stagnation in the government’s effort in economically empower Malaysians. A sustainable vision for universal basic income policies in the future would ensure that the workforce is sufficiently financially supported so that it is be able to develop relevant skills in the meantime for the purpose of employment; it is a means to an end. 

However, Economy Minister Rafizi Ramli regards such a policy as being difficult to realise given the financial state of the country. But the government could envision the right financial plans and institutions to be deployed at critical levels of job displacements. Malaysia must dedicate itself toward the preservation of its workforce given the ethical quandaries that surround around rapid development through AI automation and transformation. 

There sits also a worrying philosophical dilemma at the heart of the future of AI automation, in a world where the need for human skills is rendered obsolete. There must be a discussion on the trajectory of civilisation. What sort of a world should we aim to build if human capital is no longer the instrument of development? How should we best address the redesignation of the function and capacities of human capital? What should the ideal relationship between humans and artificial intelligence look like?  These existential questions point to the fact that there might be a world in which civilisation is no longer predicated upon the contributions of man but machine. If this is in fact the case, we must develop a comprehensive plan to ensure a place in this new world for mankind. – April 2, 2024.

* Pravin Periasamy reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.