MEF Says Many Job Losses During the Pandemic May Not Be Refilled

According to the Malaysian Employers Federation (MEF), many jobs lost during the pandemic may not be refilled when the economy reopens, even when the Malaysian population is fully vaccinated, due to the heavy changes in the employment landscape in the new norm. 

 

Lower labour demand due to automation and digitalisation

MEF's president Datuk Dr Syed Hussain Syed Husman said that the shift towards digitalisation, remote working, and automation of some jobs in industries such as F&B, leisure, and hospitality might reduce labour demand in these areas. 

He said that many employers utilised artificial intelligence (AI) and automation in manufacturing plants, warehouses, call centres and grocery stores to decrease workplace density and manage surges in demand. However, transportation, warehousing, and delivery jobs might increase due to the growing e-commerce and the delivery economy. 

He also said that employers learned to operate and do more with fewer workers as they automate jobs and optimise costs to stay competitive. 

Syed Hussain said that digitalisation and its transformation would change the work and resources structure. Digitalisation and further investment in automation and technology would also change the landscape of conducting business. The physical location would partly change into virtual offices and hybrid workplaces. 

 

Survey indicates the displacing of jobs by new tech

The president of MEF cited a 2020 survey by the World Economic Forum Future of Jobs, which showed that new technologies are displacing jobs. Some of the jobs are:

• Accounting clerk,

• Accountant and auditors,

• Administrative and executive secretaries,

• Assembly and factory workers,

• Bookkeeping and payroll clerk

• Data entry clerk, and 

• Business services and administrative managers.

The survey showed that the increasing demand is in jobs related to digitalisation, big data, and robotics for professions such as:

• Artificial intelligence expert,

• Data analyst,

• Data scientist,

• Digital transformation specialist, 

• Machine learning specialist,

• Robotic engineers, and 

• Software and application developers. 

Syed Hussain said that job roles such as Internet of Things specialist, information security analyst, and process automation specialist have newly emerged in rising demand from companies. This demand represents the growth of robotics and the return of cybersecurity threats. 

Many companies had to adopt automation as the pandemic disrupts the economy.
 

Taking the business online

The president of SME Association of Malaysia, Datuk Michael Kang, said small and medium enterprises (SME) have decreased or eliminated job functions related to administration, accounting, and sales. 

He said many SMEs had moved online because of the pandemic, and payments are made in advance via e-wallets, online bank transfers and other digital payment methods. Therefore, they restructured the workflow.

He said that businesses had moved business functions to cloud computing. For instance, accounting is outsourced, and some companies hire remote-working part-time accountants. Some SMEs used to have 20 employees in the accounting department but now have decreased to five. 

He added that manufacturers have automated production to reduce workers as the pandemic halts foreign labour hiring. Many manufacturers have automated labour-intensive production methods.

 

Preparing for the Industrial Revolution

Kang said that many SMEs are using AI to ease the manufacturing process, as it helps companies design products and prepare for the Fourth Industrial Revolution (IR 4.0).

He said that the entire process is automated, from receiving orders to procurement. The SMEs are using smart technology to trace orders, produce or procure, and deliver to customers. He added that the IR 4.0's adoption is to ensure business survival should another pandemic occur. 

According to Kang, it is expensive to go for automation in the early stages. But in the long run, companies can reduce operational costs from 20% to 50%, depending on the industry. It also enhances productivity and commits to the delivery schedule.

He stated that previously, businesses put their servers in the office and are now using cloud or virtual servers. He added that automation cuts labour costs and improves productivity, and employee reduction leads to fewer issues caused by human behaviours. 

 

Workers must reskill and upskill to keep up

Yi Wang of Anbound Research Center (Malaysia) said as automation and AI are replacing jobs, it might lead to severe structural unemployment. 

She said it would be essential for workers in the jobs most heavily hit to reinvent and upskill to move into new occupations. 

 

Source: The Sun Daily