Private Sector Takes Centre Stage at Global Skills Forum 2025 in Malaysia

The world of work is undergoing seismic change — driven by digitalization, the green transition, demographic shifts, and rapidly evolving industries. Against this backdrop, the Global Skills Forum (GSF) 2025 held in Kuala Lumpur, Malaysia, on October 22–23, served as a vital platform for global dialogue on how to prepare workforces for the future. The event placed a strong emphasis on the pivotal role of the private sector in shaping and sustaining skills development systems that meet the demands of this transformation.

A Global Gathering for Future Skills

Organized by the Human Resource Development Corporation (HRD Corp) under Malaysia's Ministry of Human Resources, in collaboration with the International Labour Organization (ILO) and the International Organisation of Employers (IOE), the Forum convened policymakers, business leaders, training providers, and international organizations from across the globe. Over two days, participants explored how enterprise-led strategies could help align education and training systems with evolving market needs.

The event was also a landmark moment for Malaysia as it coincided with the country's Chairmanship of the Association of Southeast Asian Nations (ASEAN) and concluded the ASEAN Year of Skills (AYOS) 2025. The forum culminated in the adoption of a Joint Statement by ASEAN Manpower Ministers, reaffirming regional collaboration in advancing skills development and promoting mutual recognition of qualifications across borders.

Putting Enterprise at the Heart of Skills Development

In his keynote address, ILO Director-General Gilbert F. Houngbo underscored the indispensable role of enterprises in shaping effective workforce development strategies.

"No skills development strategy can succeed without enterprise engagement. This Forum rightly places the private sector at the heart of global skills and lifelong learning," said Houngbo.

His remarks resonated with business leaders and government representatives alike, who stressed that skills policies must evolve in tandem with industrial change and emerging technologies.

Deputy Prime Minister of Malaysia Dato' Seri Dr. Zahid Hamidi opened the Forum with a call to view skills as a foundation for human dignity.

"When we speak about skills we are not merely discussing training or employment, but restoring dignity to labour and building a future where progress and compassion walk hand in hand," he stated.

Echoing this sentiment, Steven Sim Chee Keong, Malaysia's Minister of Human Resources, emphasized that competence and opportunity are fundamental to the dignity of work.

"As the world discusses the future of work, we also have to work towards the future. The dignity of the worker comes not only from protection but also from competence and opportunity," he said.

Sectoral Dialogues and Future-Oriented Solutions

The GSF featured high-level sessions across diverse sectors — manufacturing, construction, mining, tourism, hospitality, and emerging digital industries. Discussions revolved around strengthening public-private partnerships (PPPs) and expanding Sector Skills Bodies (SSBs), apprenticeships, and Centres of Excellence. These collaborative models, participants agreed, are essential for identifying evolving skill gaps, shaping curricula, and ensuring workers remain relevant in an increasingly competitive global economy.

Apprenticeships and work-based learning emerged as key tools to bridge the gap between education and employment, enabling learners to gain practical experience while helping enterprises cultivate talent suited to their specific operational needs.

Technology and the Future of Work

The rapid evolution of artificial intelligence (AI), automation, and virtual reality (VR) is revolutionizing industries and redefining the very concept of work. Matthias Thorns, Vice President of the IOE, highlighted the urgency of keeping pace with these developments:

"We are at a pivotal moment. AI and emerging technologies are transforming industries, generating new types of jobs and demanding new skills at remarkable speed. Employers are finding it increasingly difficult to hire workers with the right skills in all sectors and regions."

Participants agreed that integrating AI, VR, and EdTech solutions into training ecosystems will be essential for creating future-ready workforces. Such integration not only enhances learning efficiency but also allows for personalized, adaptive, and immersive training experiences.

ASEAN's Regional Commitment

The culmination of the Forum under Malaysia's ASEAN Chairmanship was the Joint Statement by ASEAN Manpower Ministers, reaffirming collective efforts to strengthen skills ecosystems and foster cross-border cooperation in workforce development. This declaration builds on ASEAN's shared vision of creating an inclusive and innovative regional labour market.

ILO's Director-General Houngbo commended Malaysia's leadership, saying:

"I must recognize the outstanding work that the Government of Malaysia has carried out as ASEAN chair for the ASEAN Year of Skills 2025. The ILO stands ready to support Malaysia and ASEAN as you strive to realize your vision of a region whose workforce is ready to meet the challenges of the future."

Charting a Path Forward

The Global Skills Forum 2025 concluded with a strong consensus: the future of skills development must be inclusive, technology-driven, and industry-led. Governments and employers must continue to work hand in hand to ensure that workers are not left behind as industries evolve. The event underscored that private sector engagement — from multinational corporations to small enterprises — is not optional but central to ensuring that training systems are agile, relevant, and equitable.

As the global economy enters a new era of transformation, the Forum's message was clear: sustainable workforce development depends on strategic collaboration between the public and private sectors, backed by innovation, foresight, and a shared commitment to human potential.