Malaysia: “Industry 4.0” is set to create completely new business models while improving current ones within Malaysia’s manufacturing landscape, according to GlobalData.
Malaysia is one of the world’s leading manufacturing countries per capita. The sector employed more than one million people in 2016—a significant proportion for a country of 31 million, reported the Department of Statistics Malaysia (DOSM). It also constitutes over 80 percent of all exports and 23 percent of the country’s GDP, according to DOSM and Malaysia External Trade Development Corporation (MATRADE).
“On the supply side, the industry is seeing an increase in global commodity prices and diversification from traditional low-cost production markets. On the demand side, average order value is falling, demand for customization is increasing and margins are under pressure. To address these challenges and drive evolution of a technology-driven global economy, Malaysia is preparing to launch the national policy by mid-2018,” said Dustin Kehoe, Technology Service Director of APAC at GlobalData.
Industry 4.0 introduces the “smart factory”—where cyber-physical systems monitor real-time factory physical progress to make decisions in a decentralised way. The development is driven by several factors—from additive manufacturing, autonomous robots, big data analytics, to cloud computing, Internet of Things and system integration.
Kehoe added: “In terms of technology, Artificial Intelligence (AI) will drive IoT adoption and the two technologies are converging. The integration of AI and IoT will lead to further innovation, automation and data management. Manufacturing will be among the early adopters of AI-enabled IoT.”