New technology also bad for economic growth

Malaysia PM Mahathir Bin Mohamad

A common challenge affecting the steady growth of economies in this era is the transition from old to new technology, which is causing disruptions to steady economic growth in any sector of an economy.

Prime Minister of Malaysia, Mahathir Bin Mohamad, stressed this during the Asia Pacific Economic Cooperation (APEC) CEOs’ summit.

He said countries in the region need to adjust their strategies and practices so that they are able to deal with radical technological changes in their work and business environments.

He described technological disruptions as, the digitalization of the working environment, increase in robotics and artificial intelligence, data analytics and the advent of other technologies that affect the way people do business normally.

He also added that his country is a great example, where there is a decrease in the physical interaction of humans in the traditional way of doing business transactions, such as the taxi service and retailing.

“Businesses are losing clients to online retailers who market their products through digital apps, which are downloaded on smart phones,” he said.

“We can expect more disruption ahead when we become more automated, where skilled and unskilled workers will become less important and irrelevant in the work force,” he added.

The Prime Minister further said that if this issue is not addressed quickly with a proper solution, it can lead to high unemployment in the different sectors of an economy.

He concluded by challenging policy makers and the leaders of the different economies to accommodate everyone’s needs and ensure that no one is left behind during this age of technological disruption.