international economics essay competition

High School International Economics Essay Competition (HIEEC)

HIEEC provides students the opportunity to demonstrate an accomplished level of writing and understanding of economic theory. Through the contest, students hone their academic and professional skills and exhibit their knowledge. 

The 2023-2024 Harvard International Economics Essay Contest is sponsored by the Harvard Undergraduate Economics Association (HUEA). This essay competition is open to high school students of any year and is a fantastic opportunity to demonstrate an accomplished level of writing and understanding of economic theory.

The top three winning essays will be published (with the author’s permission) on our website. A finalists list of the top submissions will be published online and adjudicated by a real-world economist. A list of names that will receive the "Highly Commended" distinction will also be published online​. The judges' decisions are final.

Entrants must choose one of the four prompts and write a response to it with a strict limit of 1500 words. Submission must be via the HUEA website and entrants are limited to submitting one essay with only the first submission being considered.

Each essay submission will have a $20 reading fee which should be paid upon submission of the essay. If this fee will impose a significant financial burden on your family, please email us. The deadline for submitting the essay is 11:59pm EST January 5th, 2025. ​​

The essays will be judged by the board of the HUEA, with the top 10 submissions being adjudicated by a Economics Professor at Harvard.

Terms & Conditions

The word limit of 1500 must be strictly adhered to. Any words past the limit will be truncated. This limit excludes references, footnotes, titles, headers and footers.

Essays must be written only by the entrant. Any outside assistance must be declared in the beginning or end of the essay.

Only your first submission will be accepted. Any further submissions will not be read.

References must be included, and any plagiarism will lead to disqualification.

References must be in Chicago or APA format. The only accepted document formatting is PDF. Any other format will not be accepted, nor will refunds be given to those who do not follow this rule.

No refunds are granted.

Grades 9-12 are permitted.

The essay must not be entered in any other competition nor be published elsewhere.

No individual feedback of essays will be granted.

The decisions made by HUEA by the final round of adjudication are final.

All winners agree to their names being published on the HUEA website.

November 1st – Essay Prompts released

January 5th, 11:59 PM EST, 2025 – Essay submission deadline

Late February 2024* – Highly Commended and Finalists notified

Early March 2024* – Winners notified, results published on the website​

*We received a high volume of submissions, therefore we anticipate that it will take us a couple more weeks to release the results. 

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Harvard international economics essay competition, description.

The 2023 Harvard International Economics Essay Contest is sponsored by the Harvard Undergraduate Economics Association (HUEA) in conjunction with the Harvard College Economics Review (HCER). This essay competition is open to high school students of any year and is a fantastic opportunity to demonstrate an accomplished level of writing and understanding of economic theory. Through the contest, student competitors hone their academic and professional skills and exhibit their knowledge to future employers and academic programs.  Competitors must construct a convincing argument using economic theory and real-world examples.  Winning essays will be published in the Harvard Economics Review and will be available for the greater Harvard community to read. Essays should focus on argumentation supported with facts and references, although data-based support is also welcome.

Announcing Our 2020 HIEEC Finalists and Highly-Commended

We are pleased to announce the finalists and highly-commended essays of our 2020 Harvard International Economics Essay Contest, co-sponsored by the Harvard Undergraduate Economics Association .

The 2020 Harvard International Economics Essay Contest is sponsored by the Harvard Undergraduate Economics Association (HUEA) in conjunction with the Harvard College Economics Review (HCER). This essay competition is open to high school students of any year and is a fantastic opportunity to demonstrate an accomplished level of writing and understanding of economic theory. Through the contest, student competitors hone their academic and professional skills and exhibit their knowledge to future employers and academic programs.

Competitors must construct a convincing argument using economic theory and real-world examples. Winning essays will be published in the Harvard Economics Review and will be available for the greater Harvard community to read.

2020 Finalists

Hana O’Looney-Goto

Hyungsoon Kim

Julia Massa

Nitheesh Velayan

Sarah Ouyang

Vikas Nibhanupudi

2020 Highly Commended Essays

Ameya Dixit

Connor Greenwood-Cribbin

Hannah Cifuentes

Jingzhao Ma

Kangzi Chan

Ki Myoung Cheon

Nandini Jha

Ngoc Lan Ho

Riku Kubota

Sakshi Modi

Sofia Faghihy

Tiara Siregar

Udeshna Srimal

Vidula Mannem

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HIR Academic Writing Contest

The Harvard International Review is a quarterly magazine offering insight on international affairs from the perspectives of scholars, leaders, and policymakers. Since our founding in 1979, we've set out to bridge the worlds of academia and policy through outstanding writing and editorial selection.

The quality of our content is unparalleled. Each issue of the Harvard International Review includes exclusive interviews and editorials by leading international figures along with expert staff analysis of critical international issues. We have featured commentary by 43 Presidents and Prime Ministers, 4 Secretaries-General, 4 Nobel Economics Prize laureates, and 7 Nobel Peace Prize laureates.

The Contest

Inspired by our growing high school readership around the world, we have run the Harvard International Review Academic Writing Contest since 2020 to encourage and highlight outstanding high school writing on topics related to international affairs.

Contest Format

Participants in the contest submit a short-form article on a topic in international affairs. Each submission will be read and scored by the Harvard International Review .

A number of contestants will be selected as finalists, who are invited to participate in a virtual HIR Defense Day. At the Defense Day, students will have the opportunity to give a 15-minute presentation and oral defense to Harvard International Review judges.

Submission Guidelines

All submissions must adhere to the following requirements, as outlined in the Submission Guide below.

Participants will have a choice of two different themes and must note which prompt they have chosen at the top of their submissions.

Theme A: Inequalities in a VUCA World

Theme B: Global Challenges and Collective Actions

Contestants may choose either topic above when writing the article.

Content: Articles should address a topic related to international affairs today. Potential categories include (but are not limited to): Agriculture, Business, Cybersecurity, Defense, Education, Employment & Immigration, Energy & Environment, Finance & Economy, Public Health, Science & Technology, Space, Trade, and Transportation. Articles should examine the theme from a global perspective rather than focusing on the United States.

Length: Articles should be at least 800 words but not exceed 1,200 words (not counting diagrams, tables of data, or authorship declaration).

Writing Style: Submissions should present an analytically backed perspective on an under-appreciated global topic.  

AI Policy : The usage of ChatGPT is prohibited. Judges will be running all articles through multiple AI checkers, and articles that receive high AI generation scores across multiple checkers will be disqualified.

Excellent contest submissions will aim to present a topic holistically from a balanced perspective. Evidence and nuance are critical. Submissions should be well-researched, well-informed, and formal in style and prose.

The HIR does not accept op-eds , otherwise known as editorials or opinion pieces for its competition. Articles are expected to have a thesis but should not have an agenda. Submissions should also not be merely a collection of facts.

As a journalist organization, we ask that submissions follow AP Style's newest edition . We also ask that submissions are culturally sensitive, fact-checked, and respectful.

Examples of pieces that would be considered excellent submissions are below.

Citation and Sources : All factual claims must be backed by a citation from a reliable source. All ideas that are not your own must be properly attributed. Citations should be made via hyperlinks. Non-digital sources are welcome but must be cited properly as per AP Style . See the examples above for examples of using hyperlinks for citations.

Click Here: Submission Guide

Contest dates.

There are three distinct submission cycles for the 2024 Contest.

Please note that contestants are requested to register and pay before becoming eligible to submit their articles prior to the submission deadline.  

Admissions are done on a rolling basis! Capacity is limited.

Spring 2024

Article Submission Deadline: May 31, 2024

HIR Defense Day: June 29, 2024

Summer 2024

Article Submission Deadline: August 31, 2024

HIR Defense Day: October 5, 2024

Fall 2024 / Winter 2024

Article Submission Deadline: January 2, 2025

HIR Defense Day: February 5, 2025

Contest Prizes

All submissions will receive a score from the Harvard International Review based on the Evaluation Rubric described in the Submission Guide. Contestants that receive a passing score without qualifying for a HIR Defense Day will receive individual prizes. Finalists will be eligible for the following Gold/Silver/Bronze medals based on their scores and performance in the HIR Defense Day.

Commendation Prize: HIR Certificate

Outstanding Writing Content / Style Prize : HIR Certificate

High Commendation Prize : HIR Certificate

Bronze Medal : HIR Certificate and name listed on website (global top 20 percent)

Silver Medal: HIR Certificate and name listed on website (global top 10 percent)

Gold Medal: HIR Certificate and name listed on website (global top three percent)

All scoring and prize decisions are final. The contest will not be able to provide additional detail beyond the scores provided by HIR graders. All contestants who manage to submit their articles will receive a certificate of completion.

Contest Eligibility:

United States

Students are eligible if they are in grades nine through twelve in any of the fifty states, the District of Columbia, the U.S. territories, or if they are U.S. citizens/lawful permanent residents attending high school overseas.

International

Students in countries outside of the United States (grades 9-12) are also welcome to submit. Submissions are expected to be written in English and with traditional American spelling. For more information on submissions in your country, please contact [email protected]

Register Here

+1 (603) 932 7897

[email protected].

Exclusive Guide to Harvard International Economics Essay Competition (HIEEC)

• Last modified 2024-10-22
• Published on 2024-09-27

Unlock Your Writing Potential: Students in Our Writing Competition Preparation Class Are More Likely to Secure Awards

1. what is high school international economics essay competition (hieec).

Sponsored by the Harvard Undergraduate Economics Association, the Harvard International Economics Essay Contest is organized to publish the top three essays in their online publications. HIEEC allows students to demonstrate an accomplished level of writing and understanding of economic theory. Students hone their academic and professional skills through the contest and exhibit their knowledge of economics in relation to real-world issues.

2. How do I Submit to the Competition?

In order to submit an essay for the competition, students must first choose one of the four prompts and write a response with a maximum word limit of 1500 words. Essays must be submitted in a formal academic style such as Chicago or APA. Please note that students are only allowed to submit one essay per person. The essays will be judged by the HUEA board.

Each essay submission will have a $20 reading fee.

The deadline for submitting the essay is 11:59 pm EST, January 5th, 2025. ​​

3. Who is eligible for the competition?

The contest is open to all high school students from grades 9 to 12 who have an interest in economics.

• November 1st – Essay Prompts released
• January 5th, 11:59 PM EST, 2025 – Essay submission deadline
• Late February 2024* – Highly Commended and Finalists notified
• Early March 2024* – Winners notified, and results published on the website​

4. What are the topics for HIEEC?

This year, the prompt hasn’t been released yet. Normally, each year, HIEEC presents new essay prompts focusing on a current and relevant economic issue. Past topics have ranged from global economic policies to the implications of technological advancements on markets. Below are last year’s prompts for your reference:

• Advances in artificial intelligence (AI) can potentially affect growth, inequality, productivity, innovation, and employment. OpenAI’s ChatGPT, in particular, has greatly increased public awareness about the significance of AI and its implications for the future. What impact will the development of AI have on economic inequality, the composition of the workforce, and economic output as a whole? How can nations prepare for the micro and macroeconomic changes brought about by AI?
• Measuring national and global economic activity allows us to understand how economies change in size and structure—how they grow and contract. In addition to Gross Domestic Product (GDP), government budgets, and the money supply, alternatives like the Human Development Index (HDI) and Gross National Income (GNI) are used to assess economic progress. What are the advantages of our current economic indices, including GDP, HDI, GNI, government budgets, and the money supply, and what areas are they lacking? Which indices do you find most helpful, and how can we enhance or combine them to improve our understanding of economic measurement?
• Proponents of income redistribution support the idea that redistribution policies will increase economic stability and give more opportunities to the less wealthy. Others, however, are more skeptical and believe it could negatively affect economic growth. Current redistribution methods include taxation, welfare, public services, and other monetary policies. What strategies for income redistribution should the U.S. adopt from other countries? What economic impacts could a wealth tax or super millionaire tax have? What type of redistribution is most effective and feasible? What would be the impacts of the U.S. enacting universal basic income? Discuss the implications of any of these issues and feel free to expand on other areas of economic redistribution.
• As the United States weighs the impacts of China’s rise to global prominence, economics and national security have become increasingly intertwined. As a result, the United States government has imposed tariffs and investment restrictions on China to limit the nation’s access to US markets and intellectual property (specifically in sensitive industries such as semiconductors). What are the economic implications of these policies for United States firms, consumers, and workers? Discuss the most important perspectives of the US-China trade war and suggest how both countries can manage the prospect of a changing economic order.

5. What are the prizes of the competition?

The top three winning essays will earn the opportunity to be published on the HIEEC’s website and adjudicated by a real-world economist. Last year, the essays were adjudicated by 2016 Economics Nobel Prize Winner Oliver Hart!

Students who receive Highly Commended distinction will also be published online.

85% of Aralia Students Place in Top Writing Competitions

6. how to structure your essay.

To structure a research-heavy essay, students can follow this guidance to help them get started with writing the introduction, the analysis, the argument, and the conclusion. More tips and tricks for writing a research paper can be found on How to Write a Research Paper: 6-Step Guide . This type of essay is a bit different from the traditional research essay with an experiment, since students won’t particularly do any experiment with economics research.

If you want to view examples for inspiration and a general idea of the structure, go to Research Paper Examples for High School Students .

First, define the economic prompt you will discuss in the essay. In the introduction, you can introduce your thesis statement, your main argument, or your response to the prompt you will discuss throughout the essay. Ensure that the argument is strong and comprehensive since it is essentially a summary of other parts of the essay.

After the introduction, you can delve into analyzing the chosen economic prompt. Before starting to write the research, all the research you have done should be synthesized in this part of the essay. Students normally use a combination of real-world data, case studies, and economic theories to support their thesis. This analysis should demonstrate to the judge a deep understanding of economic principles and the connection to broader economic trends or patterns around the world.

After analyzing the economics prompt, students should connect the analysis to the arguments. Students have the freedom to make any arguments that they consider relevant, but make sure to present the argument in a logical format, and support them with strong evidence from scholarly sources or empirical data.

Finally, the conclusion should be where you summarize your findings and present a forward-thinking solution or reflection on the topic. Make sure it ties back to your initial thesis.

7. How to stand out with your writing

Writing for this kind of competition can be nerve-racking and daunting, but with the right approach, you can stand out among the competition with a winning essay. Here are some tips and tricks to help ensure your essay can impress the judges.

Focus on Your Research to Develop Unique Perspective

Since HIEEC focuses mainly on your opinions and perceptions of the economic prompts, extensive research will make your essay more compelling and authoritative. In addition to internet research, don’t forget to explore academic journals, government reports, and textbooks to enhance your arguments with well-researched facts and data to uncover different perspectives. Connecting abstract economics theory to contemporary economic challenges and trends will show that your work is relevant to current global issues.

Students should find a unique angle or approach to their paper from their research. The HIEEC judges read thousands of essays on the same prompt, so having a fresh perspective can help you stand out from the crowd.

Provide Thought-Provoking Argument but Focus on Clarity

A well-structured essay is easier to read and helps make your arguments more compelling. If your writing is challenging to follow, it would be hard to get your point across even though you may have unique ideas. In addition, avoid overly complex sentences or jargon. While you should demonstrate an understanding of economic terms, a simple explanation is key. Judges are experts in this subject; therefore, it would be better to go straight to the point and communicate ideas in an accessible way. 

Attention to Detail

Pay close attention to formatting, citations, and grammar. Essays that are professionally presented, free of errors, and properly cited will demonstrate to judges that you are respectful of academic standards and follow the guidelines. Don’t forget to end your essay with a thought-provoking conclusion that will leave the reader keep thinking about your essay. 

The High School International Economics Essay Competition (HIEEC) provides an excellent opportunity for aspiring economists to showcase their analytical and writing skills. With its esteemed association with Harvard, thought-provoking topics, and the opportunity to refine your research abilities, this competition can open doors to future economic success.

Aralia Education offers various economics preparation classes , such as the National Economics Challenge and the John Locke Economics Essay Competition. You can also conduct economics research  with an expert instructor at Aralia Education.

8. Aralia's Courses

Students will use college-level economic theory and models to analyze the financial impact on the global economy. The economic tutor will provide students with the models and tools necessary to write an economic research paper. The economic research project encourages students to integrate their acquired knowledge of economic theory, phenomenon, data, and policy.

Aralia Education is an innovative online education platform for ambitious middle and high school students worldwide. Aralia’s instructors propel students forward by helping them build a strong foundation in traditional academic courses. They also actively engage and guide students in exploring personal interests beyond their school curriculum. With this holistic approach, Aralia ensures its students are well-prepared for college and equipped for success in their future careers.

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The Nottingham-World Bank Economics Essay Competition

Winning article.

• The Nottingham-World Bank Economics Essay Competition 2021 asked, “What would be the economic consequences for Malaysia if technology replaces 50% of current jobs in the country? Who would benefit, and who would lose? Would we be better off ultimately?”
• The Competition is open to all pre-university in Malaysia.
• Published below is the Grand Prize written by Gwendolyn Chan Hui Pei from SMK Batu Lintang, Kuching.

Technology: Killer or Saviour? By Gwendolyn Chan Hui Pei, SMK Batu Lintang, Kuching

Kiva robots. That’s the name of Amazon’s “holiday workers” in a warehouse located in Tracy, California. Kiva robots are like orange suitcases on wheels that makes the shelves in warehouses come to you. More than 3000 of these robots cruise Amazon’s warehouse floors in California, helping employees complete millions of orders. Before Kiva robots, Amazon workers had to comb through warehouse aisles just to find certain products to complete shipments. Now, workers just stay on platforms while the robots bring the shelves with the items directly to them. These 320-pound robots can lift up to more than 2 times their weight, has motion sensors to detect objects in their way and can travel at 3-4 miles per hour. The robot’s small footprint allows it to fit up to 50% more inventory in the warehouses while simultaneously increasing efficiency up to 20%, filling orders in 15 instead of 90 minutes. Many worry about the jobs taken away from them by these robots, however this was not Amazon’s intention. But still, can we deny the number of workers these robots have replaced?

Applied technology can be evidently traced back to as early as the pre-16th century. In ancient Greece and Rome, many free workers became jobless due to simple ancient Greek technology in that period such as gears, screws, rotaries and mills. To overcome this, leaders in that era launched many public works such as infrastructure projects and recreational projects financed by the government to create jobs for the people. Some rulers go to the extent of refusing or banning new inventions and innovations to save labour costs. Emperor Vespasian, a Roman emperor rejected a new method of cost-effective transportation of heavy merchandise saying: "You must allow my poor hauliers to earn their bread." In the medieval and renaissance period, European authorities often sided with “guilds” or the majority of the working population and proceeded to refuse or ban new technologies. The constant dilemma of whether to adopt new technology can be seen in the 16th-18th century in Great Britain. The effect of innovation on employment became a concern which can be evidently seen when Queen Elizabeth I declined to issue a patent for a knitting machine invented by an English clergyman called William Lee on the account that it might cause the layoff of textile workers.

In the 19th century, many controversies and debates over technological unemployment arose. David Ricardo, a British political economist voiced his opinion on the implementation of technology and believing that it is often very injurious and harmful for workers when people substitute machine for human jobs. While many other economists supported his stand, a French economist named Jean Baptiste Say was the first to respond to Ricardo’s argument saying that machinery does not compete with labour, and society would be better off because of the increased productivity. Say mentioned that a new machine supersedes a portion of labour of a human worker, but does not reduce the amount of product, saying that it would be absurd to adopt it if it did. At that time, water carriers were relieved of duty due to the introduction of the hydraulic engine. Say could not deny the problem and recognised that the water carriers were still unemployed. Therefore, he believed that 3 factors would considerably alleviate the detrimental effects of unemployment:

• New machines are gradually created and still more gradually brought into use, giving those who are affected time to adjust.
• Machines cannot be created without the input of considerable human labour, which can create jobs for some workers even as machinery may put others out of work.
• The circumstances of consumers, including workers affected by the replacement with machinery, is improved by the lower prices of consumer products. [Adapted and paraphrased from Bruce Bartlett (1984) Cato Journal, vol. 4(2), pages 625-650]

How would replacing 50% of the current jobs with technology look like for Malaysia, a developing country? Firstly, the controversial problem still remains - workers in Malaysia would be susceptible to technological unemployment or tech layoff. Figure 1 below depicts Malaysian jobs at risk of automation. With AI (Artificial intelligence) on the rise, and automation replacing jobs, semi-skilled and low skilled workers are at a high risk of losing their jobs. 90% of semi- skilled jobs such as support workers and salespeople consist of Malaysians and 4 out of 5 jobs at high risk of displacement are semi-skilled jobs as compared to low-skilled jobs. Although Malaysia heavily depends on low-skill foreign labour especially in manufacturing and industrial sectors and there is a possibility of the replacement with technology reducing our reliance on it, the probability of Malaysians being put out of their jobs is higher, leaving a large figure of Malaysian workers unemployed. This is because most blue-collared jobs are highly susceptible to automation and ironically, a large portion of those positions are held by Malaysians. This might cause Malaysians to switch to lower pay jobs or not being employed at all. The sosio-economy of Malaysians would be under immense pressure. Unemployed Malaysian workers would have to suffer a lower standard of life. Occupations that are routine based and have many manual tasks are more susceptible to replacement by technology as compared to jobs that are non-routined and require high cognitive skills. At the end of the day, although our economy may be growing due to rise in productivity and lower price in the long term, the wellness of our own Malaysian citizens may be neglected in the short term.

Source: Methodology adapted from Frey and Osborne (2013) and ILO (2016) data from ILOSTAT and DOSM, author’s calculation [Adapted from The Times They Are A-Changin’: Technology, Employment, and the Malaysian Economy by Allen Ng, Khazanah Research Institute ]

Not only are the welfare of Malaysians put at risk, but also the scale of the economic equality in Malaysia will be tipped. With the replacement of workers with technology, companies that adopt labour-saving technologies will monopoly the industries. Some firms have exclusive rights to methods of manufacturing products causing smaller firms to lose out in competitiveness because of higher cost-per-unit. This will cause a great difference in terms of income among high skilled workers and technology owners versus semi-skilled and low skilled workers. A greater inequality of wages within occupations will arise as only certain workers have the skills needed for certain jobs. Skills that are hard to acquire in the technological field also can cause wages to be unequal. On top of that, income inequality may result in a higher rate of health problems and social problems.

On another note, replacement of human labour with technology will cause Malaysia to face a massive restructuring in different sectors in the economy. As higher productivity with new technology lowers prices of goods and opens new sectors to be explored, new labour demand will be created in certain sectors. The demand for jobs will switch from manufacturing sectors to services in the future, just like how the demand for jobs switched from agricultural sectors to manufacturing sectors in the late 90s in Malaysia. The chart below depicts the change in share of jobs by sector, recording the construction with the highest share and the manufacturing sector a negative figure. An increasing proportion of jobs require at least a college level certificate if not advanced degrees. This proves the need for Malaysians to upgrade their skill levels to be qualified and to keep up with the times.

Figure 2: Change in share of jobs by sector

Source: ONET, BLS, EIU, HIS, Oxford Economics, McKinsey Global Institute analysis [Adapted from Automation and adaptability: How Malaysia can navigate the future of work (2020) ]

In conjunction with creating new demand in the labour force across different sectors in Malaysia, the substitution of jobs with technology can possibly add more value to occupations with the human element, making jobs that require human interaction more valuable. For example, when Automated Teller Machines were first created to automate simple tasks such as simple transactions and deposits, the remaining tasks that cannot be automated became more valuable. Bank tellers became people who form personal relationships with the customers and can sell them financial services at a high margin.

On the flip side, wealth distribution becomes an uprising problem as not everyone is given a fair share even with increased productivity and lower cost. Advancement in various sectors may result in a digital divide between different regions and demographics. Urban areas may continue to advance whereas rural areas which are neglected continue to deteriorate in terms of technological advancements because of the failure of implementation of technology as a whole. Areas that have limited access lack the resources to advance in technology. This may possibly create a wider gap between regions and races socially and in terms of progress and cause an increase in poverty among different races in Malaysia.

However, we cannot deny the possibility of Malaysia flourishing with the implementation of technology. In the 1990s the Malaysian government has always put a priority in making Malaysia an industrialized country with the 7th prime minister, Tun Dr Mahathir Mohamad launching Wawasan 2020. Since then, many efforts have been made in increasing Malaysia’s use of technology in different sectors. Though the replacement of jobs with technology might upset the labour force and possibly obsolete the field of manual labour in certain sectors in the short term, the demand for labour force in other trades will significantly increase in the long term. Increased production would increase supply, lowering the general cost of items, increasing the national dividend thus increasing our competitiveness in the global market. With time, a new demand of labour will be created placing new, skilled workers in those fields. Economic growth as a whole can be accelerated.

Technology replacing 50% of jobs also create high income jobs or increases the wages of existing workers that are involved in the field of technology but also widen existing income inequality at the same time. According to a study by Justin Lim, Kevin Wong, Rosaida Mohd Rasep and Sonia Kumari Selvarajan (2018), wages per worker in the ICT industry has risen proportionately from RM38,274 per annum to RM53097 per annum in 2015 whereas wages of workers in the non-ICT industry only rose by RM6150 in the course of 5 years. Because workers in the ICT industry comprise of a small share of the total labour force and small employment growth, the wage disparity between non-ICT workers and ICT workers has been widening and would likely continue to widen even more over time.

Figure 3: Wage per worker of ICT vs non-ICT Industry

Source: DOSM ICT Satellite Account, GDP by Income Approach, authors calculations [Adapted from Wage premiums in the digital economy: Evidence from Malaysia (2018) ]

With new technology being constructed, Malaysia can explore the possibility of taxing new technology or “robot taxes”. According to The Telegraph, Bill Gates even voiced out the opinion that robots that take away jobs from humans should be taxed, which can make up for income taxes from workers that lost jobs. This could slow down the speed of automation and its negative effects on the labour force. In August 2017, South Korea became the first to introduce the world’s first tax on robots by cutting tax incentives for investments to boost productivity. If 50% of jobs were to be replaced, taxes on technology could increase the country’s income and improve the citizen’s standard of life by giving back to the people, increasing economic development through new infrastructure digitally and physically.

In general, technology replacing 50% of jobs in Malaysia benefits most of the stakeholders in the long run and has the potential to generate economic wealth for Malaysia. New innovations and technology are churned out on a daily basis due to globalization. To be able to compete in the global market, Malaysia has to keep up with the times and take bold steps in adopting new technology in various sectors. Though there is a possibility of technology replacing human jobs, nothing beats the value of a human’s touch. To dampen the adverse side effects of replacing human workers with technology, policy makers need to create new alternatives in helping displaced workers readjust to new sectors and work environments. As for Malaysian citizens, we must not stand by the side lines idly, but instead hop on the wagon of change. Being active players in the labour force, we must not take the importance of education (especially in the field of technology) lightly and sharpen our sword of education thus increasing our skills. Only with technological intelligence can we as Malaysians stand out in the global market as drivers of change, standing out amongst nations that are technologically advanced.

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