Industry 4.0 set to cause job displacement – Mussen

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Mussen delivers his welcoming remarks at the opening of the outreach programme. — Photo by Muhammad Rais Sanusi

KUCHING: Industry 4.0 is set to bring about job displacement due to the high degree of technology and automation adoptions.

Assistant Minister of Industries and Investment Malcolm Mussen Lamoh, who pointed this out yesterday, said the country would need to prepare the skills set needed to operate in a highly technologically driven environment besides retaining displaced workers.

“Ideally, Industry 4.0 can be driven by the industry on their own with minimal government intervention required.

“However, Malaysia’s current manufacturing landscape is largely divergent across sub-sectors with some still resorting to manual labour while others are already high tech in their operations.

“These high tech firms require only a handful of technicians to be present for troubleshooting in the production line. Even then, troubleshooting can be done remotely.

“In short, human capital development is an important element in the adaptation of Industry 4.0,” he said before Deputy International Trade and Industry Minister Datuk Chua Tee Yong declared open an outreach programme on Industry 4.0 at Borneo Convention Centre Kuching here.

Mussen opined that changes would not come as easy for small and medium enterprises (SMEs) especially if they felt intimidated and apprehensive about where to begin in embracing Industry 4.0.

He then suggested that they start with solving the existing problem in their production process.

“For instance, you can integrate 3D printing and digital simulation in the prototyping stage to shorten the length of the product design phase, or employ big data analysis and internet to prevent recurring breakdown of machines to avoid downtime.

“You can even incorporate cloud computing and cybersecurity to ensure the integrity and security of the data of your company,” he said.

He was pleased to announce that SMEs in the state made up 6.7 per cent of the total 907,000 SMEs in Malaysia.

“With that, about 61,000 of businesses in Sarawak are SMEs. The contributions made by Malaysian SMEs in general and Sarawak in particular are very important towards creating job opportunities and uplifting the standard of living of Malaysians.

“I am certain that SMEs in Sarawak have bright prospects as well as competitive edge towards embracing Industry 4.0,” he remarked.

Pointing out that Industry 4.0 is a digital revolution, he said SMEs in the country ought to ask whether the digitisation process would affect their businesses.

He added that they needed to be able to see the value of Industry 4.0 from the aspect of productivity (to reduce the overall cost and improve productivity level), quality (to reduce human errors and flexibility) and shorter time to market.

“The move to Industry 4.0 will require leadership and change management. I hope SMEs will not fear the changes needed but be bold enough to make these changes,” he said.