Digital economy and automation to impact Malaysian labour market
By Sharmila Ganapathy March 19, 2018
- Individuals at all levels will need to actively develop their skills and stay relevant
- Many sectors being reshaped by technology, creating new roles and different demands
AMBANK Research believes that upward pressure on the labour market in Malaysia could be brought about by the growing digital economy, while automation could contribute to unemployment.
In a recent economics report, the research house opined: “With the economy poised to grow at a 5.5% in 2018 from 5.9% in 2017, we should see the labour market remaining firm with the unemployment rate hovering around 3.2% – 3.3%.”
AmBank Research also expects some stickiness in the labour market, due to the growing digital economy, which is expected to contribute about 20% to the nation’s gross domestic product by 2020.
Commenting on the upwards pressure on the labour market, the research house said this can happen when individuals at all levels fail to actively develop their skills and stay relevant, and instead challenge the current changing trends in their respective sectors.
“Individuals at all levels will need to actively develop their skills, stay relevant and not challenge the current changing trends in their respective sectors. The reason being, many sectors are being reshaped by technology, creating new roles and also different demands for those in existing jobs.
“Besides, automation is also impacting the labour market. Failing to do so will potentially affect the labour market data with the unemployment rate expected to inch up to around 3.4% – 3.6%,” the research house concluded.