Impact Studies
17 November 2024
Impact Study of AI, Digital, and Green Economy: Wholesale and Retail Trade Sector
Malaysia’s Wholesale and Retail Trade sector, contributing over RM232 billion and employing 1.8 million people, is rapidly evolving with AI, Digital, and Green Economy trends. The study found many roles highly or moderately impacted, underscoring the need for workforce upskilling and digital adaptation.
Authors:
Nursyazwani Zulhaimi, Ayu Sabrina Abdul Samat
MyMahir
Summary
With rapid development in the AI, Digital, and Green Economy, the Wholesale and Retail Trade sector is gearing to see significant impact to the Malaysian workforce. Over the next three (3) to five (5) years, it is vital for the Malaysian Wholesale and Retail Trade Sector to remain a key figure in the region in conjunction with its rapid rise worldwide. With a Global Market Value growing from USD78 trillion (RM341.4 trillion) in 2023 to a projected USD84 trillion (RM367.7 trillion) by 2024, reflecting a 7.7% CAGR. Consumer behaviour post COVID-19 saw a rise in online shopping and home deliveries gradually replacing in store visits. In Malaysia, this sector is vital to the economy, contributing RM114.1 billion from Wholesale Trade and RM118.5 billion from Retail Trade, employing around 1.8 million people. However, challenges like the BDS saw a rise in mindful spending and a transition towards more agile and technology-driven business models. The study highlights 23 key roles in Wholesale Trade and 57 in Retail Trade, assessing their vulnerability to these transformative trends. A significant percentage of these roles are either highly or moderately impacted by AI and Digital, indicating the need for workforce adaptation and upskilling. Looking ahead, embarking on this journey of continuous adaptation and innovation will be vital in preparing the Wholesale and Retail Trade workforce for ongoing advancements in AI, Digital, and Green Economy. To achieve this, the MyMAHIR Future Skills Talent Council (FSTC) will conduct regular needs assessments to identify immediate and future workforce skills gaps, analyse talent demands by sector and educational level, propose strategies, determine essential sector-specific skills, and periodically update these skills in response to technological advancements and evolving operating environments. Additionally, the council will align the educational system with the sector’s needs while actively fostering collaboration among government, industry, academia, and training providers to enhance Malaysia’s competitiveness and promote sustainable growth in the Wholesale and Retail Trade sector.
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