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Malaysian firms must accelerate automation, says Investment Minister

Investment Minister Johari Abdul Ghani has stressed the need for local companies to rapidly adopt automation, clarifying that foreign workers are brought in for dangerous and difficult roles rather than to replace Malaysian employees.

LSN Malaysia · 8 September 2026

Malaysian firms must accelerate automation, says Investment Minister

Malaysia's business sector needs to prioritize automation to remain competitive and reduce its reliance on migrant labour, according to Investment, Trade and Industry Minister Johari Abdul Ghani.

Addressing concerns about foreign worker dependency, Johari clarified that migrant workers are primarily hired to fill positions in hazardous, dirty and physically demanding sectors where local workers are unavailable or reluctant to work. He stressed that the influx of foreign labour is not intended as a substitute for domestic employment.

The minister's comments underscore growing pressure on Malaysian manufacturers and service providers to modernize their operations through technological investment. Industry observers have noted that automation could help address labour shortages while improving productivity and workplace safety standards.

Government policy continues to encourage local enterprises across key sectors to upgrade their capabilities and reduce dependency on foreign workers through investment in machinery and digital systems. Economic analysts suggest that companies implementing automation strategies early may gain significant competitive advantages in an increasingly technology-driven regional marketplace.