KUALA LUMPUR, Jan 16 — Malaysia ranked 33 out of 83 countries globally in of the QS World Future Skills Index 2025, which evaluates the readiness of higher education systems to meet the evolving demands of the job market.

With a score of 69.8 out of 100 in the first edition of the index released today, Malaysia also ranked seventh in Asia, trailing behind Singapore which ranked first.

"A 2024 study revealed that 81 per cent of Malaysian employers still struggle to hire AI talent, despite 90 per cent prioritising these skills.

"Meanwhile, around 620,000 jobs across 10 key sectors are potentially at risk from Artificial Intelligence (AI), digitalisation, and green economy shifts, highlighting the urgent need for upskilling,” QS Vice-President of Strategy and Analytics Matteo Quacquarelli said in an accompanying press release.

The report also noted a possible global economic slowdown due to the skills gap between workers, the need for specific skills and rapidly evolving technology that may affect productivity and growth.

Out of four yardsticks – academic readiness, future of work, skills fit and economic transformation – Malaysia performed best in academic readiness with a score of 91.2 out of 100 and scored the worst in economic transformation with only 35.4.

Globally, the United States was the best performer in the index with a total score of 97.6 followed by the United Kingdom with a total score of 97.1.

QS reported that in 2020, higher education institutions in the United States spent US$81 billion (RM364 billion) on research and development (R&D) which accounted for 11 per cent of the nation’s R&D expenditure.

Higher education institutions in Japan and the United Kingdom spent around US$20 billion (RM89.9 billion) on R&D in 2020.

Globally, Singapore, South Korea and China ranked 9th, 10th and 11th respectively.

Ranked 25th globally, India is also up and coming as it scored 99.1 when its job market’s readiness to recruit for the most in-demand skills of the future was assessed.

The report stated that India is set to recruit graduates into AI, digital, and green jobs.

"Ranking just behind the US in second place, India is one of the leading nations in contributing to the future of work (category). Such a high score reflects India’s readiness to integrate AI into the workforce, suggesting a strong market for skilled graduates.

"Despite a global decline in venture capital (VC) funding, India has maintained its status as the second-largest destination for VC and growth funding in the Asia Pacific region,” the report noted.

Among its regional peers, Malaysia is ahead of Thailand, the Philippines and Indonesia which occupy the eighth, ninth and 10th positions respectively in Asia.

Further, the 2025 QS World Future Skills report listed the growing and declining skills globally:

Top 5 Growing AI Skills1. Machine learning tools2. Data science, analytics & data visualisation3. Natural language processing & chatbot development4. Cloud computing, encryption & infrastructure5. Data engineering, big data tools & data modelling

Top 5 Declining AI Skills1. Legacy AI & machine learning libraries2. Legacy NLP & voice recognition tools3. Older cloud & computing platforms4. Statistical and data analysis tools & knowledge-based systems5. Human-machine interface software & robotics

Top 5 Growing Digital Skills1. Cloud computing & infrastructure including Amazon EKS/ Microsoft Power Automate2. AI & machine learning3. Web, application and chatbot development4. Data science & analytics5. Security & compliance including AWS Security

Top 5 Declining Digital Skills1. Programming languages & frameworks including Jython2. Enterprise software & CRM systems including Sage Simply Accounting3. Data & database management4. Testing, monitoring & automation tools5. Graphics, multimedia & design software including Adobe Social

Top 5 Growing Green Skills1. Environmental science, conservation & climate change mitigation2. Agriculture, agroforestry & soil ecology3. Water & hydrology management including hydrological modeling software4. Renewable energy, geothermal heating & carbon management5. Wildlife & biodiversity conservation

Top 5 Declining Green Skills1. Legacy environmental tools & software including Envirodata Solutions2. Agricultural & crop management practices including crop rotation3. Garden design & ecological practices4. Solar architecture & energy efficiency tools5. Animal control & livestock management