Malaysia faces manpower shortage for digital transformation, say experts


Experts say Malaysia is facing a shortage of workers with sufficient digital skills and must train more if the economy is to recover from Covid-19's impact quickly. – The Malaysian Insight pic by Seth Akmal, May 21, 2020.

MALAYSIA needs to produce 3.2 million workers with intermediate computer skills in the next five years if it wants to transform digitally and thrive in a post-Covid 19 world, said experts.

How fast the government, businesses and Malaysians use data to transform services, operations and work-flow will also determine how fast the economy will recover from the damage wrought by the pandemic, they said in a webinar.

There must also be an equal emphasis on “digital inclusion” to ensure that everyone regardless of class and region, has access to dependable, high-speed broadband and the means to connect to the internet so that no one is left behind.

By 2025, it is estimated that Malaysia will need 36%, or 6.1 million, of its workforce to possess intermediate digital skills, said John Low, a co-managing partner of Southeast Asia for consulting firm Roland Berger.

These “level two” skills include the ability to use digital tools to analyse data or design graphics, Low told a webinar titled, “Rebuilding the Economy with Enabling Policies”.

However, as of 2019, only 18% of the workforce, or 2.9 million workers, have those skills, Low said.

“The workforce needs to be equipped with more advanced digital skills. Awareness and basic skills are no longer sufficient,” Low said.

“Going forward, we need more workers with level two and level three skills,” said Low.

The webinar was jointly organised by Microsoft, the economic planning unit (EPU) of the Prime Minister’s Department and Roland Berger.

Also on the webinar panel were minister Mustapa Mohamed, who heads the EPU and Sunny Park, an assistant general-counsel of Microsoft Asean.

Low added that 46% of Malaysian workers, or 7.3 million, mostly low and semi-skilled workers such as clerks and service staff, will be highly impacted by digitisation.

He said in order to address these labour challenges, there must be more investment by the public and private sectors, more digital adoption by SMEs and more collaboration between industry and educational institutions to reduce skill mismatches.

Park of Microsoft Asean said there is no turning back to a pre-covid-19 era and Malaysia must transform digitally to survive the world ahead.

She outlined three thrusts that Malaysian government and society must do to achieve this: changing its culture towards digitisation; helping small and medium enterprises digitise; and ensuring that no part of society is left behind in the process.

“There must be a cultural transformation that runs parallel to digital transformation,” said Park, who is also APAC regional director of corporate, external and legal affairs.

“It is not enough to make content that was once only available in print online, there must be a change in business mindset.”

In order for governments to truly deliver services online efficiently, civil servants must also undergo a change in mindset and up-skilled, Park said.

“Lastly we need to ensure that there is digital inclusiveness so that people are not left behind in their access to education, healthcare and financial services.” – May 21, 2020.


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