Chua (third right) with Malcolm (third left) and others pose with participants at the opening ceremony. — Photo by Muhammad Rais Sanusi

KUCHING: Small and medium enterprises (SMEs) in Malaysia must be more innovative and creative in order to move up the global value chain with the help of new-edge technology.

In stressing this yesterday, Deputy International Trade and Industry Minister Datuk Chua Tee Yong said SMEs must also be mindful of the global change towards Industry 4.0.

“Globally, change is already happening and businesses have to embrace change in order to survive. Many industry players in developed countries have moved into the Industry 4.0 sphere, utilising the cyber-physical system holistically, ahead of us.

“Industries in countries like Germany, the United States and to a large extent Japan are the ones driving this initiative with minimal government intervention,” he said when opening an outreach programme on Industry 4.0 at Borneo Convention Centre Kuching here.

Chua stressed that the benefits of companies adopting Industry 4.0 technology would be significant.

He said success stories of some companies had shown tangible results where adoption of high technology had helped them increase productivity and products variation as well as to market products faster.

According to him, Adidas’ move in shifting its outsourced global manufacturing facility back to Germany is a prime example of Industry 4.0 at work.

“Notably, they deployed additive manufacturing or 3D printing to produce their renowned sport products,” he added.

Chua believes that low labour cost offered by developing countries would not be attractive enough as Industry 4.0 phases out routine jobs that require minimal human cognitive involvements with the use of robots and artificial intelligence.

He said Malaysia is not alone in experiencing the challenges of Industry 4.0 which he termed as a global megatrend.

“Advancement of technology is the impetus of emerging new business models that are disrupting traditional markets.

“Uber, Alibaba or Airbnb, for example, are forcing traditional manufacturers to rethink their current business models,” he pointed out.

Chua said the new business models moved away from owning assets or having experiences in the very sector they ventured into.

“It is a common trait of these leaders to be innovative, hence allowing them to meet customisation demands of today’s consumers.”

He thanked SME Corp Malaysia for co-organising the programme which was in line with the government’s efforts to create awareness of the importance and benefits of adopting Industry 4.0.

“The national policy on Industry 4.0 is being developed through engagements done by various quarters of the government through workshops, seminars and outreach programmes like this one as well as online consultation.

“The aim is to be as inclusive as possible in gathering feedback from stakeholders and increase the awareness of Industry 4.0,” he added.

Over 300 individuals from both the public and private sector attended the programme, which focused on helping SMEs understand and initiate change to their business operations.

Also present was Assistant Minister of Industries and Investment Malcolm Mussen Lamoh.