LOCAL manufactures are still facing challenges in their attempts to prepare for the Industrial Revolution 4.0 (IR4.0).
Speaking to FocusM, the Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said many local manufacturers have yet to implement digitalisation on a full scale to meet future challenges.
“Based on an FMM-MIER Survey for the first half of this year, we found only 24% of local manufacturers have fully implemented digitalisation before the movement control order (MCO) was implemented in March.
“Another 12% went online during MCO. So, about 64% have yet to do it. This shows manufacturers are still facing numerous challenges when it comes to digitalisation,” he said.
On Oct 26, Parliamentary Select Committee for International Relations and Trade chairman Wong Chen said the COVID-19 pandemic ravaging the world would accelerate the pace of IR4.0 and Malaysia should be prepared for it.
“I think Malaysia’s IR4.0 ambition should be focused on implementing deliverables for manufacturing purposes.
“We do have some developments on big data and specialised manufacturing purposes but most of the inventions will be coming from abroad,” the PKR MP was reported saying.
In 2018, former Prime Minister Tun Dr Mahathir Mohamad launched the Malaysia’s National Policy on IR4.0 (Industry4WRD).
Industry4WRD is focused on digitally transforming Malaysia’s manufacturing sector and its related services to embrace IR4.0.
Elaborating on the matter, Soh said the biggest challenge facing local manufacturers are the lack of relevant knowledge to implement and digitalise their businesses in a safe and secure manner.
He added that it takes a combination of talent and technology for a manufacturer to go through digital transformation.
“One without the other will not cut it. Manufacturers have to train their workforce to be digitally literate and help them build the skills needed for innovation,” said Soh.
Budget and connectivity issues
In addition, he also said local manufacturers face budgetary constraints to implement full digitalisation comprehensively at one-go, leaving them to take a gradual approach.
“Manufacturers have to develop a plan that involves several phases over the years. Once a plan is implemented, it requires the company to sensibly invest in advanced manufacturing technology capabilities over time.
“This is to ensure it delivers return on investment (ROI) benefits such as increasing operational efficiency and reducing downtime,” he said.
Soh added that another challenge facing local manufacturers is Malaysia’s broadband coverage not being up the mark that is needed for businesses.
“For the country to ensure growth in the IR4.0 is broad-based and sustainable, key barriers related to the Internet and broadband connectivity need to be addressed.
“One of the key challenges is internet connectivity. Malaysia lags in its fast broadband coverage and adoption of wireless broadband services.
“Lack of market competition had also led to high price, low coverage and limited ambitions for fixed broadband in Malaysia,” said Soh.
