What is the Industry4WRD Policy?
The Industry4WRD Policy is a national policy which aims to transform the manufacturing sector and related services within the period from 2018 to 2025. This policy consists of three visions in making Malaysia as:
- strategic partner for smart manufacturing and related services in the Asia Pacific;
- primary destination for investment in the high technology industry; and
- a total solutions provider for cutting-edge technology.
The Industry4WRD Policy is Malaysia’s response to Industry 4.0 and beyond, that calls for transformation of manufacturing sector and its related services to be smarter and stronger, driven, by people, process and technology.
A strong manufacturing sector would pave the way to enhanced productivity, job creation, innovation capability, high-skilled talent pool, economic prosperity and societal well-being.
Manufacturing firms in Malaysia, especially SMEs, have the potential to gain advantage from the adoption of Industry 4.0. With this in mind, this Policy was developed to propel SMEs forward so that they can be agile and adaptable to meet the challenges posed by the Fourth Industrial Revolution. As part of the Industry4WRD Policy, the Readiness Assessment programme will further assist SMEs to measure their gaps and readiness in order to guide their adoption of Industry 4.0 technologies.
Ultimately, the Policy will drive Malaysia to becoming a strategic partner for smart manufacturing and related services in Asia Pacific, primary destination for hi-tech industry as well as a total solutions provider for advanced technology.
This Policy is a collaborative effort of both Government and industry. Extensive stakeholder consultations have been undertaken in the past year to develop this Policy.
The Ministry of International Trade and Industry (MITI) spearheaded the development of the Industry4WRD Policy since the middle of 2017 together with several primary ministries, namely the Ministry of Finance, Ministry of Multimedia and Communications, Ministry of Human Resources, Ministry of Education, and Ministry of Energy, Science, Technology, Environment and Climate Change, as well as agencies, industries and stakeholders.
The objectives of the Industry4WRD Policy are formulated based on three main foundations which are Attract (A) – Create (C) – Transform (T):
- Attract (A) – attract stakeholders to shift towards the Industry 4.0 applications and technologies thereby enhancing Malaysia’s attraction as one of the preferred locations for smart manufacturing;
- Create (C) – create a holistic ecosystem to support the adoption of Industry 4.0 by industries and coordinate existing initiatives in various related aspects such as talent and workforce, funding, infrastructure and regulation; and
- Transform (T) – enable holistic transformation of the manufacturing sector to increase and strengthen productivity, cost efficiency, technology applications and innovation ability, development of local technology and establishment of more highly-skilled workers.
Fundamentally, five fields of primary enablers are highlighted, namely F.I.R.S.T:
- Funding and Outcome-based Incentives – F
- Enabling Ecosystem and Efficient Digital Infrastructure – I
- Regulatory Framework and Industry Adoption – R
- Upskilling Existing and Producing Future Talents – S
- Access to Smart Technologies and Standards – T
This policy consists of 13 strategies and 38 action plans. One of the main programmes under this Policy is the Industry4WRD Readiness Assessment programme planned to assess the level of readiness of an organisation shifting towards the Industry 4.0. The main objectives of this programme are:
- create a guideline on the level of readiness for an organisation in the usage of Industry 4.0 elements;
- identify areas of improvements in every dimension measured;
- recommend further actions to enhance efficiency and productivity; and
- develop a baseline for adoption by the industry.
Four planned targets based on data in 2016:
- Increase manufacturing productivity for every worker by 30% from RM106,647;
- Increase contribution of the manufacturing sector to the national economy from RM254.7 billion to RM392 billion;
- Strengthen innovation capacity and capability by improving Malaysia’s ranking in the Global Innovation Index from 35 into the top 30; and
- Increase the number of skilled workers in the manufacturing sector from 18% to 35%.
The adoption of Industry 4.0 will assist the industry, especially the small and medium-sized enterprises (SME) in increasing efficiency and productivity to remain relevant and competitive at domestic and global levels. The Industry4WRD policy will encourage the development of Malaysian’s own product and services using innovative manufacturing capabilities based on technology.
INDUSTRY4WRD READINESS ASSESSMENT
The Government will allocate RM 210 million from 2019 to 2021 to support the transition and migration to Industry 4.0. The Malaysia Productivity Corporation will carry out Readiness Assessments to assist up to 500 Small Medium Enterprises (SMEs) to migrate to Industry 4.0 technologies. Industry4WRD Readiness Assessment (Industry4WRD-RA) is a comprehensive programme to help firm assess their capabilities and readiness to adopt Industry 4.0 technologies and processes. The assessment uses a pre-determined set of indicators to understand their present capabilities and gaps, from which will enable firms to prepare to prepare feasible strategies and plans to move towards Industry 4.0. The Industry4WRD-RA will help firms to:
- Determine their state of readiness in the adoption of Industry 4.0 technologies
- Identify the gaps and areas of improvement for Industry 4.0 adoption as well as opportunities for productivity improvement and growth and
- Develop feasible strategies and plans to perform outcome-based intervention projects