These are done by facilitating the transformation of the manufacturing industry and its companies, advancing to the next technological frontier and increasing their economic well-being. Nations and manufacturing companies that lead the way in embracing Industry 4.0 technologies and processes will win out over global competitors.
GOAL #9
Inclusive and sustainable industrial development is the main source of income generation, enables a rapid and sustainable increase in living standards for all people and provides the technological solutions for environmentally responsible industrialization. Sustainable consumption and production is about promoting resource and energy efficiency, sustainable infrastructure and providing access to basic services, green and decent jobs and a better quality of life for all.
GOAL #12
Without technology and innovation, industrialization will not happen, and without industrialization, development will not happen.
Transformation Drivers
Enabling Technologies
With Cloud Computing, many of the Industry 4.0 technologies can be made available to even smaller companies as a utility with minimal overhead. Provide access to finance: Availability of capital and incentives from the beginning ensures that Industry 4.0 programs have a solid start in the country.
Engage SMEs: Industry 4.0 technologies offer both opportunities for SMEs and the risk of leaving many behind. Deploy from above: Industry 4.0 is expected to have a far-reaching impact across all sectors, societies and the wider economy.
CASE FOR ACTION
2,119,158 employees
RMK-10
RMK-11
NUMBER OF ESTABLISHMENTS BY MANUFACTURING SUB-SECTOR
CONCENTRATION OF MANUFACTURING
PROFILE OF EMPLOYED PERSONS, MALAYSIA, 2016
NUMBER OF EMPLOYMENT BY MANUFACTURING
FOCUS SECTORS OF INDUSTRY 4.0
Source: Analyzed by ASM, Economic Census 2016 Manufacturing Sector, Department of Statistics, Malaysia Source: Labor Force Survey Report 2016, Department of Statistics, Malaysia.
As such, it is imperative for Malaysia to transform itself at an accelerated pace and embrace Industry 4.0 as a critical cornerstone to drive and sustain its future manufacturing competitiveness.
Malaysia
The WEF analysis identifies technology, human capital, global trade and networks, and institutional frameworks as key production drivers for Industry 4.0. The problems are summarized below, both on the demand side and on the supply side. Lack of awareness of the impact and need for Industry 4.0 technologies, both in terms of opportunities and business model disruptions, especially among SMEs.
Lack of experts in industry, universities and research institutions in most Industry 4.0 technologies Limited industry cooperation and involvement in Industry 4.0.
SUPPLY
To ensure that the new policy broadly addresses potential issues and challenges faced by Malaysian manufacturing companies, a series of industry and government agency workshops were held, involving a wide range of stakeholders. Low digital adoption, especially among SMEs (~20%) and limited use of automation in manufacturing (majority of companies use less than 50% of automation).
DEMAND
Addressing Malaysia’s Issues & Challenges
Insufficient local capabilities and capabilities in providing cybersecurity solutions that protect Industry 4.0 applications. Education program. No national platform and mechanism to coordinate programs and structure collaborative and aligned approaches to Industry 4.0 requirements.
Significant evolution in innovation
MOVING FORWARD
THE OBJECTIVES OF THE
POLICY ARE THREEFOLD – ACT
NATIONAL
FRAMEWORK BY
THE NATIONAL FRAMEWORK
THE FUTURE OF MALAYSIAN MANUFACTURING INDUSTRY
Malaysia's transformation requires an approach and an ecosystem that optimizes and balances the relationships between people, processes and technology. To bring the switching factors together and achieve optimal results, well-coordinated orchestration and top-level driven implementation will be important. The specific goals and objectives support the national vision for the transformation of the manufacturing industry.
They guide and measure Malaysia's progress in improving productivity, strengthening innovation capacity and capability, driving the shift to a higher skilled workforce and expanding the overall contribution of the manufacturing sector to the national economy.
The targets for the goals are developed from the 2016 baseline figures
THE STRATEGIC ENABLERS EXPLAINED
The Strategic
Enablers F.I.R.S.T
Funding
Infrastructure
Technologies
Skills & Talent
Regulations
Understanding and access to advanced, cost-effective and interoperable Industry 4.0 technologies is at the heart of unlocking the potential of Industry 4.0. The government aims to work with global and local industry companies to establish digital and Industry 4.0 demonstration and collaboration. Involve service providers for Industry 4.0 and link them with manufacturing companies to help implement technologies.
Provide outcome-based incentives, including tax incentives, to encourage investment in and adoption of Industry 4.0 technologies.
ItHenational
Strategy S1: Improve the capabilities of the existing workforce through national development programs specially designed for specific manufacturing sectors and support retraining and.
STRATEGIES
Strategy S2: Ensure the availability of future talent by equipping students with the necessary skills to work. Improve the capabilities of the existing workforce through national development programs specially designed for specific manufacturing sectors and support remanufacturing and. Ensure the availability of future talent by equipping students with the necessary skills to work.
FUNDING & OUTCOME-BASED INCENTIVES
STRATEGIC OUTCOMES
ACTION PLANS/PROGRAMMES
RATIONALE
Provide outcome-based incentives, including tax incentives to encourage investments in, and adoption of, Industry 4.0
Introduce dynamic and innovative financial products to encourage adoption of industry 4.0 technologies & processes
A set of comprehensive financial products that local firms, SMEs and start-ups, as well as multinational corporations (MNCs) can use according to their needs in the implementation and adoption of Industry 4.0 technologies and processes, at all stages of business life-cycle. To explore the alignment of existing alternative financing, including venture capital, crowd funding and other intermediaries to accelerate the adoption and implementation of Industry 4.0. In meeting the needs of diverse and innovative businesses, the government and the private sector will promote the implementation of Industry 4.0 through dynamic and innovative financing options for local firms, SMEs and start-ups.
Introduce dynamic and innovative financial products to drive adoption of Industry 4.0 technologies and processes. The adoption of Industry 4.0 technologies and processes.
ENABLING ECOSYSTEMS & EFFICIENT DIGITAL INFRASTRUCTURE
Strengthen the digital connectivity in and between industrial, education and training hubs to remove connectivity bottlenecks in
Enhance the digitalisation and integration of government processes and infrastructure along supply and manufacturing value chains
To assess priority government-related processes and elements affecting manufacturing and supply chains and Industry 4.0 transformation. A number of government processes are not yet digitized and will need to be optimized, digitized and integrated to support Malaysia's Industry 4.0 transformation. Industry 4.0-related services are an important element in helping Malaysian companies accelerate their transition to Industry 4.0, particularly in people development, process transformation and technology adoption.
Therefore, Industry 4.0 service providers need to be involved as an integral part of the ecosystem and connected to manufacturing companies, especially SMEs, which often have limited visibility.
Involve services providers for Industry 4.0 and link them to
REGULATORY FRAMEWORK & INDUSTRY ADOPTION
Increase awareness of the need, benefits and opportunities of Industry 4.0 technologies and business processes among
R2 STRATEGY
Create a platform and mechanism to help manufacturing firms, especially SMEs, assess and develop their Industry 4.0 capabilities
Better understanding among manufacturing companies of best practices, their own capabilities and transformation requirements A profile of the state of readiness of the local manufacturing industry in adopting Industry 4.0 for targeted technology improvement and support prioritization. To create tools and processes that will help manufacturing companies assess their capabilities and readiness to adopt Industry 4.0 technologies and processes. For many companies, Industry 4.0 will mean a major transformation, not only by investing in technology, but also by changing business processes and culture.
Create a platform and mechanism to help manufacturing companies, especially SMEs, to assess and develop their Industry 4.0 capabilities, especially SMEs to assess and develop their Industry 4.0 capabilities.
R3 STRATEGY
Improve data integrity, standards, sharing security to facilitate seamless integration of value chains and support intra-ministerial
UPSKILLING EXISTING & PRODUCING FUTURE TALENTS
S1 STRATEGY
Enhance the capabilities of the existing workforce through national development programmes specially designed for specific
S2 STRATEGY
Ensure the availability of future talent by equipping students with the necessary skillsets to work in the Industry 4.0 environment
To integrate the theory and practical applications of Industry 4.0 into tertiary education curricula, including structuring industry placement opportunities. To enhance and enhance the capacity and skills of educators, trainers and instructors in the manufacturing-related education sectors. Securing the pipeline of future talent in the manufacturing sector is important as advances in manufacturing techniques and processes require a more skilled and educated workforce.
Ensure the availability of future talent by equipping students with the necessary skills to work in the Industry 4.0 environment.
ACCESS TO SMART TECHNOLOGIES & STANDARDS
Establish digital/technology labs and collaborative platforms, especially public-private partnerships (PPP), to create awareness
Establish and implement standards for systems interoperability for smart manufacturing and Industry 4.0 technologies
To create an inventory of standards related to Industry 4.0 – consolidate, develop, harmonize, align with global standards and adopt. Standards and interoperability of systems are important to facilitate a broad adoption of Industry 4.0 technologies and processes, especially given the need for collaboration and integration throughout production. To prioritize technology development programs in Industry 4.0 that strengthen the overall research, innovation, commercialization and entrepreneurship capacity and provide solutions for priority sectors.
To improve manufacturing companies' understanding and access to existing Industry 4.0 research capabilities and ongoing R&D.
Intensify Research, Innovation, Commercialisation and
Increase the capacity and capabilities of Malaysian firms, start-ups, universities and research institutes in Industry 4.0 technologies to produce and commercialize high-value and innovative products and services. Growth opportunities in the manufacturing sector will need to be supported by technological innovation from the private and public research communities. A further step in Malaysia's innovation capabilities will be important to boost priority sectors and technologies and reinforce Malaysia's position as a preferred high-tech manufacturing destination.
Entrepreneurship (RICE) programmes and activities in specific Industry 4.0 technologies and processes that support and advance
Multi-Ministerial Jurisdictions The strategies and action plans in this policy framework are a systemic solution for the manufacturing industry and related services. It is based on the principle that each sector within the manufacturing industry has different levels of readiness to embrace and adopt Industry 4.0. As such, each manufacturing sector should consider which elements of these international standards can be adopted.
However, the agility and specialization of SMEs will be key to achieving the 10-year vision for the manufacturing sector.
The strategies and actions plan outlined
Not a one-stop solution Although every effort has been made to incorporate all possible interventions, this policy framework is not a one-size-fits-all solution. One size fits all – breadth and depth This document contains broad strategies and action plans. Recognizing the best practices among manufacturing ecosystems such as Germany and Japan, it recognizes that the needs and drivers of these countries are very different from Malaysia's.
In implementing the suggested actions, it is important to ensure that the solutions are valid and accessible to SMEs, and that the research community and larger businesses are more incentivized to collaborate with SMEs.
An exact replication of their successful systems would not work as well in Malaysia's context because of these differences.
To accelerate or improve the intended
Transforming Malaysia manufacturing sector is not a short-term process, with many industries having experienced significant
To accelerate or enhance the intended improvement, the intended outcome of these actions, a number of factors must be considered to identify the most efficient and effective implementation approach. The transformation of Malaysia's manufacturing sector is not a short-term process, with many industries experiencing significant processes, with many industries experiencing significant challenges for decades. Regardless of the sector's actions over the coming years, a supportive policy environment is required over the next decade to provide businesses with stability and allow them to implement these long-term strategies.
NATIONAL INDUSTRY
