(MENAFN) Malaysia’s Prime Minister cautioned G20 nations that artificial intelligence (AI) is poised to transform labor markets at "a pace our institutions will struggle to match" during the G20 leaders' summit held on Saturday in Johannesburg, South Africa.

Anwar Ibrahim highlighted the importance of coordinated policy, stating, "When policies are aligned and rules are predictable, shocks pass through with less damage.

Resilience comes from common preparedness, not isolation."

He emphasized that this lesson is critical because "the next disruption" could be even more challenging to withstand.

He further explained that "artificial intelligence will reorganize labor markets at a pace our institutions will struggle to match without early investment in transitions. Workers, especially the young and women, will face these shifts alone."

Reflecting on past experiences, Anwar noted that unpreparedness for globalization previously resulted in stagnant wages, declining trust, and the rise of grievance-based politics.

He warned that "with AI, destabilization becomes a real risk if countries enter this transition unprepared," describing it as “one of the defining challenges of our times.”

To address these challenges, Anwar urged nations to "equip their people, especially the young, for the speed of technological change," enhance social safety nets, and provide support to small- and medium-sized enterprises (SMEs).

He concluded by stressing that "global resilience cannot be built on fiscal exhaustion," emphasizing the need for countries to have the ability to "invest ahead of disruption, not after," and that multilateral development banks should be prepared to act "more quickly and work closely with countries."

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