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GenAI Report Launch

GenAI Report Launch

GENERATIVE AI HAS THE POTENTIAL TO UNLOCK USD113.4 BILLION IN PRODUCTIVE CAPACITY IN THE MALAYSIAN ECONOMY

Malaysia Centre for Fourth Industrial Revolution launches its first report, The Economic Impact of Generative AI: The Future of Work in Malaysia
PUTRAJAYA, 15 SEPTEMBER 2023 – The Malaysia Centre for Fourth Industrial Revolution (Malaysia Centre4IR) launched its first report since its inception in May 2023, on the impact of generative AI to the Malaysian economy, in collaboration with Access Partnership and Microsoft in Malaysia. The study seeks to provide early insights and raise awareness of the economic opportunities that generative AI can create, and what it means for local industries and workforce readiness.
The report titled “The Economic Impact of Generative AI: The Future of Work in Malaysia”, was officially launched by Yang Berhormat Dato’ Hajjah Hanifah Hajar Taib, Deputy Minister of Economy.
The report presented the following findings:
  1. Generative AI will change the way we work. It will reprioritize the types of tasks undertaken, and skills needed in the workforce, and will help (1) unleash creativity, (2) accelerate discovery, and (3) enhance efficiency. Generative AI has opened doors to more possibilities and is expected to play a role in tasks requiring creativity, curiosity, and looking at information differently. Therefore, the potential of generative AI lies in its ability to enable people to achieve greater creativity, effectiveness, and efficiency in their work.
  2. Generative AI has the potential to unlock USD113.4 billion in productive capacity in the Malaysian economy, equivalent to one-quarter of GDP in 2022. The manufacturing sector will contribute to half of these potential economy-wide gains from implementing generative AI, because it comprises a large share of the local workforce and accounts for high labour productivity.
  3. Generative AI could transform the work experience for workers in Malaysia. Close to two-thirds (65%) of workers in Malaysia will potentially use generative AI for between 5-20% of their regular work activities.
  4. Malaysia will need to equip its workforce with future-ready skills to thrive in an AI-powered future. The basic skills of Reading, Writing, and Critical Thinking will remain essential, and cross-functional skills will need to be recontextualised for generative AI in the workplace. It will also be important to close the digital skills gap in Malaysia as well as to improve skills to develop and manage AI, work with AI, and live with AI.
“Technology empowers us to foster innovation that embodies the essence of change. In an era marked by fierce competition and rapid development, shying away and resisting change is a hindrance to development. Instead, we need to embrace change and commit to the future of work so that we can benefit from it.
Generative AI will shift the focus within certain jobs but will not replace jobs entirely. The analysis in the study launched today suggests that while almost every worker could use generative AI to some degree, only very few would see generative AI used for more than 20% of their work. For the great majority, generative AI would be more of a tool to assist and support them. Those who can effectively leverage on the technology will find themselves at an advantage, and this will be happening across businesses and workplaces globally.” commented Yang Berhormat Rafizi Ramli, Minister of Economy in his speech which was read by YB Dato’ Hajjah Hanifah at the report launch ceremony.
“Generative AI marks a departure from the current way we live, work and play. It has immense potential yet to be unlocked and therefore it is imperative that we equipped ourselves with the right skills and mind set to tap and harness this potential and endless possibilities. Skills will need to be recontextualised and Malaysians will need to equip themselves with future-ready skills to thrive in an AI-powered future,” supports Fabian Bigar, CEO of MyDIGITAL Corporation and Head of Malaysia Centre4IR.
K Raman, Managing Director of Microsoft in Malaysia added, “AI is the defining technology of our time. At Microsoft, we believe AI is the ultimate amplifier. Used responsibly, AI has the power to transform different types of work across industries, enabling people to achieve greater productivity, efficiency, and satisfaction in the work they do.”
In his presentation of the report, Marcus Ng, Director of Economics Strategy, Access Partnership said, “Malaysia is standing in front of a huge potential economic opportunity. We must put in place the right policies and approaches to reap the benefits of AI, as well as guardrails to manage its risks, because that’s how we make sure that the gains from generative AI are sustainable, inclusive, and ethical.”
Preparing ourselves to harness generative AI technology will be the key to unlocking its potential. To this end, it is not enough for the Malaysian government alone to play an active role, but all stakeholders from the industry, academia, civil society and even the broader community must band together to leverage generative AI while managing its risks. The report emphasises the need to ensure coordination across the government on generative AI policy and regulatory matters, while also ensuring close collaboration between the public and private sectors to support responsible use of the technology.
The report provides for consideration a framework of recommendations to drive AI use focused on three main policy objectives:
  1. Increasing access and adoption: Ensuring the development of the necessary AI-ready infrastructure with fit-for-purpose, enabling digital policies and regulations. This includes supporting the AI-transition for businesses and having the right workforce readiness policies.
  2. Mitigating risks: Recognizing that there are risks and this requires a coordinated effort particularly on guiding responsible and ethical use of AI and establishing the necessary organizational checks and balances when using AI.
  3. Inspiring innovation: Finding the right balance between protecting and promoting innovation.
The report that was officially launched by Yang Berhormat Dato’ Hajjah Hanifah Hajar Taib, Deputy Minister of Economy, is available for download on MyDIGITAL’s website at www.mydigital.gov.my
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About MyDIGITAL Corporation
MyDIGITAL Corporation is a Strategic Change Management Office under the Ministry of Economy, incorporated in 2021 to lead national level change management through driving the execution of the initiatives under the Malaysia Digital Economy Blueprint and the National 4IR Policy. It serves as the secretariat to the National Digital Economy and 4IR Council (MED4IRN), chaired by the Prime Minister, that is responsible for leadership and policy direction of the digital economy and 4IR-related policies.
MyDIGITAL is an initiative that symbolises the government’s aspirations to transform Malaysia into a high-income nation that is digitally-driven and a regional leader in the digital economy.
About Malaysia Centre for Fourth Industrial Revolution (Malaysia Centre4IR)
Hosted by MyDIGITAL Corporation, the Malaysia Centre4IR is part of the World Economic Forum (the Forum) global network of Centre 4IR. It is the 1st centre in South East Asia and 19th in the global network. It is a dynamic and forward-thinking platform designed to ignite innovation, facilitate policy development, and drive collaboration on a global scale.
The partnership with the Forum provides access and connection to a vast pool of knowledge, best practices, and global insights from a network of like-minded organizations and countries, enabling learning and collaboration on cutting-edge projects.
For more information, please contact:
MyDIGITAL Corporate Communications:
Ellina Roslan: +6013 333 6790 | ellina.roslan@mydigital.gov.my
Zeliza Zainoor: +6019 267 7077 |zeliza.zainoor@mydigital.gov.my
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