By: Assoc Prof Dr Wan Sallha Yusof & Ahmad Nizam Che Kasim

As artificial intelligence (AI) grows rapidly, Malaysia's aging population poses significant problems to the country's workforce. The demographic environment is always changing, which exacerbates these difficulties.

In 2023, the percentage of the population aged up to 14 years declined to 22.6 per cent, down from 23.2 per cent in 2022, suggesting a decline in the young age group. Simultaneously, the proportion of adults aged 65 and older rose from 7.2 per cent in 2022 to 7.4 per cent in 2023, accounting for 2.5 million people. By 2040, forecasts indicate that the proportions of young people (18.6 per cent) and older people (14.5 per cent) will be roughly equal.

This demographic shift will have a huge impact on Malaysia's workforce and economy, particularly given the rapid improvements in AI. While the populace of Malaysia ages, elderly people may struggle to adapt to new technologies, resulting in an older workforce. Individuals aged 45 and older comprised 26.1 per cent of Malaysia's workforce in 2015, a figure that is likely to climb as younger cohorts become scarcer in the future.

This demographic trend emphasises the importance of addressing any skill gaps among older workers, particularly in respect to digital and AI technology. Older workers are more likely to be unemployed or underemployed if they have not been exposed to these technologies during their careers.

AI, automation a two-edged sword

AI and automation are a two-edged sword in the labour sector. On the one hand, AI has the potential to automate repetitive tasks, eliminating positions traditionally held by elderly individuals and increasing employment insecurity. On the other hand, AI has the potential to provide new career possibilities that need a variety of skill sets.

The problem is to retrain an aging workforce to fulfil the demands of these new positions. Emphasising lifetime learning and continuing professional development is critical to ensuring that older workers have access to training programmes designed to assist them gain new skills relevant to an AI-driven employment market. Government policies and industry activities are critical to offering these training opportunities.

Programmes that focus on digital literacy and technical skills for older workers can assist bridge the gap between their existing capabilities and the requirements of a modern workforce.

Furthermore, workplace adaptations are required to accommodate the physical and cognitive changes that come with aging. Employers should investigate ergonomic workspaces and flexible work arrangements to improve the productivity and well-being of their older staff.

Access to healthcare and wellness programmes is also critical, allowing older workers to retain their health and remain engaged in their jobs.

Demographic trends also show that fertility rates are dropping, which will have a substantial impact on the future workforce. Malaysia's fertility rate plummeted to 1.8 births per woman in 2021, down sharply from 6.4 births per woman in the past. Coupled with rising life expectancy – expected to reach 80.1 years by 2045-2050 – the share of older people will continue to rise.

Policy and social support mechanisms are critical in reducing the negative effects of AI on an aging workforce. Older workers can benefit from stronger social safety nets, such as pensions and unemployment benefits.

Age-friendly employment regulations

Implementing age-friendly employment regulations, such as anti-discrimination laws and hiring incentives for older workers, can assist older persons better integrate into the workforce, ensuring they are not excluded and can continue to contribute meaningfully to the economy.

Cultural and societal views about elder workers also need to change. Recognising the importance of elder workers' contributions and experiences is critical. Promoting intergenerational collaboration in the workplace can capitalise on the capabilities of both younger and older employees, resulting in a more dynamic and inclusive work environment. Shifting societal views is required to sustain a diverse and adaptive workforce as technology advances.

To solve these problems, investing in skill development programmes tailored to older workers is critical. These programmes should prioritise increasing digital literacy and improving technical skills related to AI.

Public-private partnerships can improve the success of training initiatives by creating comprehensive programmes that are targeted to the demands of the aging workforce.

Policy changes are also required to encourage businesses to hire and keep older workers, including through tax benefits or subsidies.

Emphasising workplace innovations can increase older workers' well-being and productivity, such as adopting technologies that make work easier and more efficient or establishing flexible work arrangements.

Awareness campaigns can have a considerable impact on influencing cultural views regarding older workers by emphasising the value of their contributions and the benefits of a varied workforce.

By tackling these concerns through comprehensive initiatives, Malaysia can better equip its aging population to navigate the changing work landscape driven by AI breakthroughs. This method benefits older workers while also strengthening the Malaysian workforce's overall resilience and adaptability.

-- BERNAMA

Assoc Prof Dr Wan Sallha Yusof & Ahmad Nizam Che Kasim are with the Faculty of Business and Communication, Universiti Malaysia Perlis.