Malaysia Oversight

Chief Secretary to Govt: Agency reform task force to study findings on AI, raising worker productivity

By MalayMail in August 18, 2025 – Reading time 2 minute
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, Aug 18 — The Special Task Force on Agency Reform (STAR) meeting this evening will, among other matters, discuss studies by the United Nations University (Tokyo), McKinsey, and JP Morgan’s experience on increasing the use of artificial intelligence (AI) and enhancing worker productivity.

Chief Secretary to the Government (KSN), Tan Sri Shamsul Azri Abu Bakar, said National Institute of Public Administration (INTAN) Director Datuk Dr Mohd Zabri Yusoff has been tasked with presenting an initial report on the university’s study.

“This evening, the STAR meeting will convene in , and I have asked the INTAN Director to present the report submitted by the university. We will deliberate on the matter, and within two weeks, provide feedback to Prime Minister Datuk Seri Ibrahim,” he told Bernama and RTM after attending the Fly the Jalur Gemilang programme organised by the Malaysian Information Department.

Earlier, reminded the government machinery to be cautious of the “AI Productivity Paradox” in implementing the country’s digital transformation.

The phenomenon, he said, refers to the situation where significant investments in AI and digitalisation do not necessarily translate into higher productivity.

Citing studies by the United Nations University (Tokyo), McKinsey, and JP Morgan’s experience, said only three to seven per cent of AI adoption has a measurable impact on workers’ productivity or income.

He said this is a cause for concern as the government’s digital transformation and AI agenda is intended to boost output and productivity.

However, the “AI Productivity Paradox” indicates that productivity gains are not guaranteed despite technological investments, he added.

The prime minister has instructed Shamsul Azri and all department heads to study the issue and provide preliminary recommendations to address the challenge.

On the Merdeka Month celebration, Shamsul Azri said it was an initiative of the Prime Minister’s Department (JPM) to foster patriotism among civil servants.

“This programme is ongoing, and we encourage all units and departments to organise activities to celebrate Merdeka Month on their own initiative,” he added. — Bernama

 



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