FSF Launched in Malaysia to Secure the Future of Financial Sector Workers, ETHRWorldSEA

The financial sector plays a key role in driving Malaysia’s economic growth and stability, contributing an estimated 6.7% to GDP in 2023, with growth forecast at 4.3% for 2024. As the financial sector continues to expand, employing 168,832 workers in the first quarter of 2024, developing a future-ready workforce equipped with in-demand skills is critical to the sector’s growth and sustainability.Key trends impacting the Malaysian financial workforce, namely GenAI, digital transformation, cybersecurity, sustainability, customer centricity and employee centricity, are fundamentally changing business models and job roles. According to Future of Workplace Report 2023 The World Economic Forum estimates that employers estimate that by 2027, 44% of workers’ basic skills will be lost and six in ten workers will require training, but only half will have access to appropriate training opportunities.

Recognizing the urgent need to address these challenges, the Asian Institute of Chartered Bankers (AICB) in collaboration with the Islamic Institute of Banking and Finance Malaysia (IBFIM) and the Malaysian Insurance Institute (MII) launched the first Future Skills Framework (FSF) to future-proof Malaysia’s financial sector workforce over the next three years by promoting skill enhancement and continuous learning. Led by YB Tuan Steven Sim Chee Keong, Minister of Human Resources Malaysia and Datuk Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia, the FSF will facilitate workforce transformation by aligning with Bank Negara Malaysia Financial Sector Action Plan 2022-2026 which emphasizes the importance of educating talents that will be able to meet the challenges of the future in order to increase the competitiveness of the financial sector.

The FSF identifies 159 critical jobs and 157 skills that will be in demand over the next three years, potential career paths, and access to almost 1,000 capacity-building programs. Among other things, it highlights the growing demand for skills in frontier technologies, sustainability, and Sharia.

Edward Ling, CEO of the Asian Institute of Chartered Bankers, said, “As Malaysia aims to achieve a 35% skilled workforce by 2030, the Future Skills Framework (FSF) is a key step in developing a future-ready financial sector. The FSF offers a transformative solution by emphasizing a ‘Skills First’ strategy that will revolutionize talent development and mobility across job roles and sub-sectors in financial services. AICB is proud to lead this initiative, reflecting our commitment to meeting the evolving needs of the industry, setting high standards for skill mastery and supporting continuous learning for sector development and professional excellence.”

Yusry Yusoff, CEO, Islamic Banking and Finance Institute MalaysiaHe added, “Our aspiration is that the Future Skills Framework (FSF) will enable IBFIM to support the development of highly skilled Islamic finance professionals, equipping them with the multi-faceted skill sets required to meet future needs.”

Paul Low, CEO of the Malaysian Insurance Institute, said: “The Future Skills Framework (FSF) supports the professional development of our members in the insurance sector and aligns our global standards and best practices. MII remains committed to ensuring that the training and education programmes we offer are relevant, well-adapted and aligned with the ever-changing needs of the insurance industry.”

The FSF also seeks to tailor educational training to the specific requirements of the financial sector, bridging the gap between employer requirements and employee skills. It identifies 15 Power (fundamental) skills that are relevant to all positions, complementing 142 Prime (technical) skills. Financial institutions can tailor the FSF to their unique requirements, using it as a guide for further validation and strategic planning to enhance talent development.