Navigating the AI Era: Understanding Mechanisms, Impacts, and Policy Interventions for Inclusive Employment in Malaysia

The advent of artificial intelligence (AI) technologies in Malaysia presents a transformative yet complex landscape for employment dynamics, with implications reaching far beyond economic realms into societal well-being. As Malaysia strides towards high-income status, the promises of AI adoption in driving productivity and innovation are juxtaposed with concerns over potential job displacement, skill mismatches, and socio-economic inequalities. This paper delves into the nuanced interplay between AI and employment in Malaysia, addressing pressing research questions surrounding the differential impacts across demographic groups and regions. Through a multidisciplinary lens integrating quantitative analysis, qualitative research methods, and stakeholder consultations, we uncover the mechanisms driving disparities in employment outcomes. Drawing on theoretical frameworks such as skill-biased technological change and job polarization theory, we contextualize our findings within Malaysia's socio-economic landscape, highlighting the imperative of inclusive policy interventions. Recommendations emphasize the need for targeted skills development, equitable access to AI technologies, and comprehensive policy frameworks to foster inclusive growth. Looking forward, our proposed future research agenda advocates for longitudinal studies and comparative analyses to inform evidence-based policies, ultimately harnessing the transformative potential of AI to drive sustainable development in Malaysia and beyond.