BERLIN: Malaysian businesses have to embrace the Fourth Industrial Revolution (Industry 4.0) as a present reality instead of expecting it to appear sometime in the future, or risked being left behind in a world that has already embraced technological advances, especially in the manufacturing and production sectors.
Although Industry 4.0 has been a buzzword since 2015, many Malaysian manufacturers are still heavily dependent on foreign labour for their production.
The right mindset is to be ever ready to experiment and discover ways where new technology can help increase efficiency, productivity and expand markets through digital platforms.
Since it was initiated in Germany in 2011, the Industry 4.0 revolution has been adopted by many countries and is sweeping through the developing world.
Industry 4.0 specifically refers to the digitalisation and automation of manufacturing processes which encompass the entire value chain, including suppliers, procurement, design, logistics and even sales, to result in better productivity and flexibility. The concern that kept Malaysian small and enterprises at bay is the fear that extensive worker retrenchment would be necessary to make way for Industry 4.0.
However, this was far from the case, as seen in Porsche’s plant in Stuttgart,Germany recently.
A media visit to the location gave a glimpse of the manner in which employees could remain a crucial factor in an automated system environment. It was amazing to see and understand how Porsche incorporated human-machine interactions, from pre-assembly, all the way up to the completion of the product.
The German motor vehicle manufacturer emphasised the value of skilled human workers, who are in charge of ensuring the smooth running and function of machines for the overall improved output.
Human Resources Development Fund (HRDF) Deputy Chief Executive, Muhammad Ghazali Abdul Aziz, said through Industry 4.0 and automation, labour is no longer a key factor and robotics utilising technology is poised to take centre-stage.
He said in the past, many multinationals invested in countries where the cost of labour is low.
“Today, labour cost is not as important as the infrastructure or environment or talent to implement Industry 4.0,” said Ghazali.
K-Pintar Sdn Bhd Chief Executive Officer, RA Thiagaraja, said the advantages of Industry 4.0 also include reducing reliance on low-skilled foreign workers in Malaysia.
“At the same time, we need to upskill and reskill the Malaysian workforce with the required skill sets they need to work in an Industry 4.0 environment. If we don’t do that, we may have to start importing skilled foreign workers to Malaysia,” he told Bernama.
Thiagaraja said the benefits of an Industry 4.0 model outweigh the concerns of many production facilities and supply chains, in that it would become more readily controlled with the availability of data at every level of the manufacturing and delivery process.
He said the technology could produce much more reliable and consistent productivity and output to result in increased revenues for businesses, as well as higher market share and profits.
Investments in proper education should also continue in order to develop the required talent, and the younger generation must be ready to shift towards a knowledge-based economy.
It was in driving this reality home that the Malaysian media were roped in to join a seven-day Industry 4.0 and Digitalisation Study Programme in Germany from Dec 4-10, which I was privileged to participate.
The programme, organised by human capital solutions provider, K-Pintar Sdn Bhd, with HRDF Sdn Bhd, in collaboration with Berlin-based European School of Management and Technology (ESMT) and the Malaysian Press Club, aims to expose local journalists to the revolutionary technology methods that are already at our doorstep.
ESMT is an international business school founded by 25 leading global companies and institutions which is reputedly among the most effective to educate people on Industry 4.0, digitalisation, crisis reporting and its related areas.
Throughout the course, 21 media practitioners were exposed to Industry 4.0 through a combination of classroom sessions and in-site visits where Industry 4.0 systems are already at play. — Bernama