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.

Business Budget

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.

Understanding Skills

Limited understanding of manufacturing firms of required future skills and expertise, and own readiness to embark on Industry 4.0 transformation.

Talent Shortage

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 Expectations

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 Digitalization

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

Education syllabus and pedagogy for STEM-related subjects are not attractive and do not match with industry needs

Limited Attractiveness

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

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.

Underutilized funds

Existing, but underutilised funds for training and development, and need for higher allocation for STEM education (e.g. scholarships).