Malaysia Oversight

STAR meet today to discuss use of AI, worker productivity, says Chief Secretary

By theStar in August 18, 2025 – Reading time 2 minute
STAR meet today to discuss use of AI, worker productivity, says Chief Secretary



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: The Special Task Force on Agency Reform (STAR) meeting on Monday (Aug 18) 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, says Tan Sri Shamsul Azri Abu Bakar.

The Chief Secretary to the Government 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 on Monday.

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 3%-7% 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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