Communications Minister Fahmi Fadzil stresses that technological disruption and innovation must be balanced to protect local businesses, workers, and public interest.
KUALA LUMPUR: Technological disruption must not come at the expense of jobs, local businesses and the wider social ecosystem, Communications Minister Fahmi Fadzil said, stressing the need to balance innovation with its impact on workers and businesses.
Speaking during a dialogue session on the Future Skills Framework for the Communications and Multimedia Sector, Fahmi said technologies such as the gig economy and e-commerce had brought significant benefits to consumers and workers, but had also created unintended consequences that could disrupt existing businesses and employment.
He cited the growth of courier services driven by the gig economy as an example, saying the proliferation of delivery platforms had affected the ability of established operators such as Pos Malaysia to sustain their services as they had in the past.
“We must look at the balance between allowing companies and businesses to carry out creative disruption, but not to the point where it causes damage and creates social problems,” he said.
Fahmi also pointed to the rapid growth of e-commerce, which has enabled consumers to purchase goods conveniently and often at lower prices, but has placed pressure on some traditional retailers.
He said some shopkeepers had complained that they were struggling to sell their products as consumers increasingly turned to online platforms.
“From our perspective, we want to encourage (these platforms), but it comes at a price,” he said.
Fahmi said the government therefore needed to ensure technological development did not result in large numbers of people losing their jobs or being left without fair and adequate incomes.
He noted that the rise of the gig economy had also prompted calls from riders for greater employment protection, while traditional businesses were increasingly raising concerns over the unchecked expansion of certain digital platforms.
“Every time during Hari Raya, we see videos of parcels piling up and being delayed because the volume is simply too high. There are consequences that we do not always see,” he said.
Fahmi stressed that the issue was not about rejecting technology or innovation, but ensuring that disruption was managed responsibly.
He warned that excessive dependence on technology platforms, particularly those operated by companies from outside the country, could eventually affect Malaysia’s economic resilience and public welfare.
“We must not allow it to disrupt public interests or the ecosystem to the point that we become dominated by technology or companies from outside whose sole intention is to make profits,” he said.
“If they make profits but leave us with the burden, that is where we need to draw the line.”
He said the government would continue to encourage innovation while ensuring that its wider effects on employment, businesses and society were taken into consideration when shaping policies and developing the future workforce.
