Impact Studies
26 September 2025
Impact Study of AI, Digital, and Green Economy: Oil & Gas
Malaysia’s Oil & Gas sector toward efficiency and sustainability. Upskilling in AI, automation, and CCUS is key to ensure a just transition, where existing talent remains vital in driving energy innovation and resilience.
Authors:
Sabrina Abdul Samat, Sureshram Mathurayar Ramayiah
MyMahir
Summary
The Oil and Gas sector workforce must adapt to new roles and skill sets while leveraging existing expertise, ensuring alignment with global energy trends and evolving regulatory requirements. AI and automation are optimising operations, digital transformation is revolutionising data-driven decision-making, and green economy initiatives are accelerating decarbonisation and sustainability efforts. The growth of CCUS in Malaysia highlights this balance, where traditional oil and gas expertise remains crucial for deploying decarbonisation technologies at scale, even as workers acquire new CCUS-related competencies. Strategic investments in offshore storage and transport infrastructure show how traditional roles—from engineers to project managers—can pivot to support decarbonisation, provided targeted upskilling in CCUS technologies complements their experience. This ensures a just transition where current professionals remain central to Malaysia’s energy future. With these rapid advancements, there is an urgent need for strategic upskilling and reskilling across the sector. Workers in upstream, midstream, and downstream segments must develop digital, AI and sustainability capabilities while building on their core operational knowledge. Specialised training in predictive maintenance, automation, AI analytics, carbon capture and green energy will be critical to future-proofing the workforce. This dual focus ensures Malaysia's energy professionals remain competitive in a transforming energy landscape. The transformation of Malaysia's Oil and Gas sector requires collaboration between government, industry, academia and training providers (GIAT). This multi-stakeholder approach ensures policy frameworks, industry strategies and educational initiatives align with national workforce development goals, enabling a smooth transition into future-ready employment opportunities that value both new and existing skill sets. To accelerate adoption of AI, Digital, and Green Economy solutions, the Government must implement targeted policy changes. This includes funding, incentives and regulatory frameworks tailored to these sectors. Clear policies on carbon pricing, AI governance and digital workforce training will be essential to drive investment, ensure compliance, and foster workforce adaptability. These measures will create an enabling environment for innovation and growth, while addressing challenges posed by rapid technological advancements and climate change. Strengthening sector readiness for technological disruptions requires industry leadership in adopting new technologies, upgrading digital infrastructure, and transitioning to sustainable practices. At the same time, academia and training providers must redesign curricula to equip Malaysia's workforce with in-demand skills while preserving the value of hands-on operational experience. Strategic partnerships between industry and education providers can create jobready graduates and support lifelong learning for existing professionals. Aligning national strategies with global trends remains crucial. Malaysia's National Energy Transition Roadmap (NETR) and National OGSE Industry Roadmap (2021–2030) should incorporate workforce continuity planning alongside innovation goals. Workforce transformation must be prioritised at the national level, with focus on reskilling displaced workers, creating emerging job roles, and expanding career pathways that bridge traditional and new energy technologies. By embracing AI, Digital, and Green Economy solutions while valuing existing workforce capabilities, Malaysia’s Oil and Gas sector can position itself as a global leader in energy transition—securing both economic growth and workforce resilience. Now is the time to act, innovate, and invest in a workforce strategy that combines legacy expertise with future-ready skills.
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