MALAYSIAN CHALLENGES AND ITS WAY
A Track Record of Challenges and Solution
Malaysia issues &challenges
Lack of Centralised Platform
Lack of a centralised and easily accessible information platform to understand best practices and relevant use cases.
Lower Success Stories
Few visible success stories of applying Industry 4.0 technologies and processes by local companies.
Higher cost of adoption and longer payback period for Industry 4.0 technologies and processes.
Cost VS Benefits
Inadequate understanding of costs vs benefits and ability to conduct Industry 4.0 business case analysis.
Limited understanding of manufacturing firms of required future skills and expertise, and own readiness to embark on Industry 4.0 transformation.
Significant shortage of required talents, skills and knowledge for Industry 4.0, particularly in the areas of IoT, robotics and AI.
Intellectual Supply Chain
Ownership of Intellectual Properties due to inter-connectivity and information sharing along the supply chain.
Evolving customer expectations and demand for customisation of products and faster delivery
Lack of awareness on the impact of, and need for, Industry 4.0 technologies, both in terms of opportunities and business model disruption, especially among SMEs
Exposure to cyberthreats with increased connectivity and new technologies, especially IoT.
Lack of Digital Approach
Lack of integrated and digital approach to data gathering along manufacturing and supply chains.
Lower Digital Adoptation
Low digital adoption especially among SMEs (~20%) and limited use of automation by manufacturing firms (majority of firms use less than 50% of automation) .
Malaysia challenges on supply
Gaps of Deployment
Gaps in deployment of high speed broadband infrastructure in key industrial and training locations and not always able to support Industry 4.0 technology needs.
Limited digitalisation and digital integration of key Government agencies and processes into manufacturing and supply chain (e.g. some certifications, licensing, custom clearances, approvals, etc.)
Lack of Clear Standards
Lack of clear standards for equipment or systems that support local and global interoperability of Industry 4.0 technologies and processes.
Education syllabus and pedagogy for STEM-related subjects are not attractive and do not match with industry needs
Limited attractiveness of manufacturing as career destination for top talent.
No Sufficient Training Programs
Existing training programmes are not sufficiently geared towards Industry 4.0 and current pool of trainers are unable to keep up with the advancement of technology.
Insufficient local capabilities
Insufficient local capabilities and capacities in providing cybersecurity solutions that protect Industry 4.0 applications.
Shortage of Experts
Shortage of experts in the industry, universities and research institutes across most Industry 4.0 technologies.
Limited collaboration and industry take-up of Industry 4.0 outputs from universities and research institutes.
Limited Number of Players
Limited number of local players providing Industry 4.0 solutions across key technologies and not cost competitive vis-à-vis international players.
No financial Support
No specific financial support and incentives for Industry 4.0 technology development, ranging from R&D, prototyping, testing, scaling up to upgrading facilities.
Existing, but underutilised funds for training and development, and need for higher allocation for STEM education (e.g. scholarships).