AI Could Put 680,000 Malaysian Jobs at Risk – ISEAS Study
An ISEAS study models two AI scenarios for Malaysia: 320,000 jobs at risk from GenAI alone, up to 680,000 with Agentic AI.
01/12Photo: Matt Moloney / CC0 1.0680,000 Malaysian jobs at risk from AI An ISEAS study by Lim Kok-Tiong models two scenarios: GenAI alone puts ~320,000 jobs at risk; adding Agentic AI pushes it to ~680,000. - 02/12
How many jobs will AI actually take? The study says ~320,000 under a GenAI-only scenario and ~680,000 when Agentic AI extends into multi-step workflows. These are estimates, not forecasts. jobs at risk under stress scenario 680,000 03/12The number behind the headline Under the GenAI-plus-Agentic AI scenario, up to 680,000 jobs face displacement risk. The services sector carries most of the exposure. - 04/12
Which sectors get hit first? Services employs ~10 million workers (65% of total employment) and contributes ~60% of GDP. ILO puts Asia-Pacific GenAI exposure at 22%. - 05/12VS
Current baseline 3.5% Stress scenario ~5.5% Unemployment could jump from 3.5% to 5.5% The study models a 2–3 percentage-point rise under stress scenarios. That shock is comparable to the 2020 pandemic trough. jobs lost to automation since 2020 300,000 06/12300,000 jobs already lost since 2020 KESUMA told Parliament in October 2024 that roughly 300,000 jobs had been lost to automation and AI over that period. - 07/12
Monthly statement What your safety net actually covers EIS payout (PERKESO) RM4,000/month max EIS duration 6 months EPF Akaun 3 average RM8,000 Akaun 3 depletion under 6 months e.g. If you lose your job tomorrow, here is what the current system provides before you run out of options. - 08/12
What the study says will happen next Phase 1: GenAI hits Gradient 4 roles Phase 2: Agentic AI reaches Gradients 2–3 Displacement may outpace reskilling speed
Two phases: GenAI augments high-exposure roles first, then Agentic AI extends into partially exposed workflows. - 11/12
What the study recommends Phased restructuring, not sudden cuts Targeted reskilling aligned to industry Adaptive safety nets for transition
The author calls for coordinated action between firms, government and workers before displacement becomes structural. - 📸
Screenshot this 680,000 is a ceiling, not a countdown
ringgit2u.comThe ISEAS study is a stress-test, not a prediction. Check your EIS status and EPF Akaun 3 balance now so you know your actual buffer. 12/12
Questions people ask
How many Malaysian jobs are at risk from AI?
An ISEAS study estimates up to 680,000 jobs under a GenAI-plus-Agentic AI scenario, and around 320,000 under a GenAI-only scenario. These are modelled estimates, not forecasts.
Which sectors are most exposed to AI job displacement in Malaysia?
The services sector, which employs roughly 10 million workers (65% of total employment) and contributes about 60% of GDP, is the most AI-exposed sector according to ILO occupation mapping.
What happens if I lose my job to AI automation?
PERKESO's EIS caps payout at RM4,000 per month for a maximum of six months. EPF Akaun 3 averages RM8,000 per member and may deplete in under six months. The study flags these as insufficient for prolonged structural displacement.
Has Malaysia already lost jobs to AI?
KESUMA reported in October 2024 that approximately 300,000 jobs had been lost to automation and AI in Malaysia since 2020. The annual breakdown was not provided.
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