Malaysia ranked 32nd globally in the first edition of the QS World Future Skills Index, showing strong readiness to equip its workforce with the skills needed for future industries. However, the index also pointed out a significant gap: the country is producing talent at a pace that outstrips the creation of suitable jobs and industries for them.
The QS World Future Skills Index, which was published on January 16, 2025, measures 132 countries' readiness in responding to changing global workforce requirements, particularly the digital transformation and AI, but also sustainability, and more far-reaching economic transitions. Malaysia scored an overall 69.8, indicating it's ready but indicating a need for strategic economic and industrial adjustments toward bridging gaps between talent supply and job opportunity.
"This skills gap in transformation indicates an unused reserve of talent since there is either no available appropriate job or there is a stagnant industry", the QS statement added. It advised targeted economic policies, research investments, and more robust partnerships between industries to improve the number of opportunities available.
In the Asian context, Malaysia ranked seventh, which showed its strong positioning to face future workforce demands. The country is remarkable for academic readiness, ranking fourth in Asia, which means a solid foundation in offering quality education and skills development relevant to future industries.
The 'Future of Work' indicator saw Malaysia perform remarkably well, coming in fourth in Asia. It is a performance that reflects an advancing job market, especially with AI, digital, and green industries, promising ample career opportunities.
In sectors such as AI, green technology, and digital industries, the country of Malaysia is taking very rapid steps toward becoming the most significant hub globally for energy and semiconductor manufacturing, according to Vice President QS Strategy and Analytics, Matteo Quacquarelli. This recent effort is built into a broader, more current renovation of higher education in Malaysia intended to foster talent, innovation, and research commercialization.
However, challenges remain. A 2024 study revealed that 81% of Malaysian employers are still struggling to hire AI talent, despite 90% of them prioritizing AI skills. Moreover, around 620,000 jobs across 10 key sectors are at risk due to AI, digitalization, and the green economy shift. This underscores the urgent need for upskilling and reskilling initiatives.
To address these challenges, Malaysia is rolling out initiatives like the AI Talent Roadmap 2024-2030, which aims to build a workforce capable of meeting the demands of emerging industries. The country is also strengthening partnerships with global tech leaders to bridge the AI skills gap, offering targeted training for educators and students.
Singapore is leading the Asian rankings with a score of 88.1 followed by South Korea at 87.3 and China at 87.2. The US leads the global index with an overall score of 97.6.
The QS World Future Skills Index provides valuable insights into the readiness of nations to equip their workforces to face the emerging challenges and opportunities in the increasingly dynamic domains of AI, digital technology, and sustainability
