NOVEMBER 28 — The latest Global Talent Competitiveness Index (GTCI) by Insead places Malaysia at 46th globally, down from 35th a decade ago. Headlines quickly framed this as “Malaysia’s talent competitiveness is deteriorating.”
But the truth is far more nuanced.
Yes — Malaysia faces structural challenges in talent development, retention, and high-tech industries.
Yes — we must strengthen our education system, accelerate digital transformation, and attract world-class expertise.
However, the deeper issue is this:
Insead's framework is still rooted in the pre-AI, industrial-era definition of talent, and it fails to capture the new dimensions that truly determine global competitiveness in the 2025–2035 world.
The ranking measures 77 indicators across six pillars: regulatory environment, talent attraction, talent growth, retention, technical skills, and global knowledge skills.
But it omits the transformative variables that now matter most — the very strengths where Malaysia leads.
The GTCI Ranking Reflects Some Real Issues — But Not the Whole Story
We should acknowledge the genuine challenges: Malaysia faces ongoing talent outflow many engineers, doctors, accountants and digital professionals move to Singapore, Australia, China, Europe and the Gulf.
Our higher-education ecosystem has not fully aligned with AI, deep tech and new-economy needs.
Curricula remain slow to update; university–industry integration is insufficient.
Our economic structure still leans toward traditional sectors.
High-value manufacturing, biotech, AI, green tech and Islamic digital economy must scale much faster.
These issues are real.
But GTCI captures only the “skills” side of talent competitiveness, not the deeper factors shaping whether a country becomes a long-term talent magnet.
Insead did not measure Malaysia’s most important strengths:
Civilizational Value, Stability, Cultural Fusion, and International Talent Stickiness*
In the AI era, talent competitiveness is no longer just about how many engineers can you produce? How high is your salary? How efficient is your bureaucracy?
It is increasingly about:
1. Civilizational Value (文明价值)
Malaysia is one of the world’s most successful multicultural and multi-civilizational societies —
where Malay, Chinese, Indian and Indigenous communities coexist peacefully.
This environment produces rare capabilities:
Cultural intelligence,Multilingual fluency,Cross-civilizational understanding,Socio-Religious sensitivity and global adaptability
These cannot be taught by AI or measured by INSEAD, yet they are crucial in a fragmented world.
Civilizational Carrying Capacity (文明承载力)
A society’s ability to integrate diversity, resolve differences peacefully, and sustain long-term harmony is becoming a critical competitive advantage.Malaysia has this in abundance, but the GTCI does not quantify it.
Societal Stability and Safety
Malaysia has: No major natural disasters,Political continuity,low-level social conflict,a generally stable security environment.
In a world facing climate crises, wars, pandemics and polarization,stability is talent capital — but the index does not measure it.
Cultural Fusion Capability (文化融合能力)
Malaysia’s social model is not just diversity — it is genuine hybridization:Malay–Islamic identity,Chinese commercial culture,Indian civilizational heritage,and Western professional norms
This fusion produces precisely the kind of Glocal Talent (global vision + local sensitivity) that Multinational Companies(MNC) desperately need.
A Country Where International Talent Wants to Stay
Malaysia is becoming a preferred destination for:
Middle Eastern students,African scholars,Central Asian researchersand Indian Ocean and South Asian Muslim students,Digital nomadsand Young global entrepreneurs
They choose Malaysia because it is:safe,affordable,multicultural,English-friendly,Muslim-friendly,academically accessible and socially welcoming
This phenomenon — international talent stickiness — is not measured by INSEAD.
Malaysia’s Rapid Emergence as a Global Muslim Education Hub
Tens of thousands of students from the Gulf, Africa, Central Asia and the Indian Ocean region now pursue:
undergraduate degrees,master’s degrees,PhDs,professional programs,Islamic finance specializations,Shariah studies,science & engineering degrees
Malaysia is already an educational gateway for the Muslim world —something that no global ranking currently evaluates.These graduates eventually become: government officials,religious leaders,CEOs,diplomats busninessman and academics
They return home with deep cultural affinity for Malaysia.
This is long-term soft power of the highest order — yet invisible in the GTCI metrics.
In the AI Era, Talent Competitiveness Is Shifting From “Skills” to “Irreplaceability”
AI is automating:coding,analysis,translation,administrative work,routine communication,technical writing
So what remains valuable?The things AI cannot do:
cultural empathy,trust-building,cross-civilizational negotiation,value-based leadership,socio-religious understanding,human complexity management,moral decision-making and long-term relationship building
These are exactly the qualities Malaysian society naturally cultivates.If the world used a talent index that measures
“civilizational intelligence,” “cross-cultural fluency,” “societal safety,” “intercultural adaptability,”
Malaysia would be in the global Top 10.
Conclusion:
Malaysia’s talent competitiveness has not declined —Insead simply did not measure the new realities of the AI and civilisational era
GTCI highlights valid concerns that Malaysia must address.
We need reforms in:Education,AI skills,Industry upgrading,innovation ecosystems,immigration and talent visa policy
But the broader narrative is this: Malaysia’s talent competitiveness has not weakened.
Inead simply did not include the “new pillars” that define talent in the AI-driven, multi-civilizational world.
These missing pillars — Malaysia’s strongest advantages — include: civilizational value, civilizational carrying capacity, societal stability, cultural fusion capability, international talent stickiness and Malaysia’s emergence as a global Muslim education hub.
These are the forces shaping the next 20 years of global talent mobility — and Malaysia is positioned not as a follower, but as a pioneer.
When the world finally updates its metrics, Malaysia will no longer be seen as “falling behind,” but as a model for multicultural talent development, a strategic hub for the Muslim world, and a leading example of how nations can thrive in the AI-civilizational era.
* Dr. KP Chiew SilkRoad Global academy
* This is the personal opinion of the writers or publication and does not necessarily represent the views of Malay Mail.
