Kuala Lumpur:Malaysia must prioritize initiatives in Budget 2027 to enhance the population's ability to adapt to artificial intelligence (AI), which in turn will elevate the country's competitive advantage.

According to BERNAMA News Agency, human resource consultant Mary Ratnam emphasized that a successful approach in the AI era hinges on developing people's capacity to learn, adapt, and create value as technology advances, rather than simply accessing the best technology. Ratnam, founder of Aspira Consultancy, highlighted the importance of building human capability alongside technological advancements.

She advocated for the upcoming budget, set to be unveiled on October 9, to include incentives that not only encourage AI adoption but also adaptation across a wide cross-section of the Malaysian populace. This, she believes, will help more Malaysians engage in the digital economy and foster a future that is innovative and inclusive.

Ratnam underscored the role of small and medium enterprises (SMEs), which make up 97% of Malaysia's small business establishments, in the AI adaptation process. She pointed out that while large organizations often receive the focus, significant improvements in productivity and competitiveness can be achieved by aiding smaller businesses in their AI journey.

Discussing Malaysia's competitive advantage, Ratnam noted that it lies in being AI-ready rather than just adopting AI. She pointed out the country's strong foundation in human resource development, skills training, and technical and vocational education and training (TVET) as crucial elements in this preparedness.

She further explained that while adopting technology is a one-time decision, adapting to technological changes is a long-term capability. This involves preparing various professionals, including teachers, nurses, entrepreneurs, and technicians, to thrive in an AI-integrated work environment.

Ratnam also addressed the challenges faced by employees, such as fears of job displacement and gaps in digital skills. She stressed the need for support and opportunities to build confidence, emphasizing that organizations must focus on creating learning cultures and encouraging continuous upskilling to lead teams through technological changes effectively.