Leveraging on advanced technology is vital for Malaysia to foster a future-forward economy.
Technology has been rightly set forth by the Madani Government in making Malaysia an attractive investment destination in both traditional and digital industries while offer significant advantages for Malaysians and foreign investors alike.
Initiatives to support startups, enhance digital infrastructure and promote digital transformation across industries has spurred economic growth and create new opportunities for businesses, needless to say the vast number of jobs for Malaysians in becoming a digitally driven, high-income nation and a regional digital economy leader. Accelerating digital transformation, industry transition, and supply chain optimisation simply works to magnify Malaysia’s global growth potential into the new age.
Technology, is then a mainstay for growth as expressed in the NIMP 2030 which has set a mission-driven strategy to revolutionise Malaysia’s manufacturing while bolstering Malaysia’s ties, capacity and resilience for sustainable, long-term growth by increasing economic complexity, enhancing domestic industrial ties, and elevating Malaysian industries in the global value chain.
There exist two revolutionary forces towards being a frontrunner in global value chains today – the Fourth Industrial Revolution (IR 4.0) moving towards Industry 5.0 (IR 5.0) and Artificial Intelligence.
IR4.0 is the conception of emerging technologies in industries. The Nine Pillars of IR4.0 are Big Data, Augmented Reality, Simulation, Internet of Things (IoT), Cloud Computing, Cyber Security, Systems Integration, Additive Manufacturing, and Autonomous Systems. The evolution of IR 5.0 is to provide a vision of industry that aims beyond efficiency and productivity as the sole goals, and reinforces the role and the contribution of industry to society. One which places the wellbeing of the worker at the centre of the production process and uses new technologies to provide prosperity beyond jobs and growth while respecting the production limits of the planet.
Generative AI models have the potential to increase efficiency and productivity, reduce costs, and generate new growth. The power of these “foundation” models lies in the fact that they can perform not just one function but several. Forming any sensible generative AI strategy will require an understanding of how the technology might affect an industry and the businesses within it in the short and longer term.
The technology and its adoption are moving too fast. Research finds that generative AI can increase worker productivity across industries, adding up to USD7.9 trillion in value globally from adoption of specific use cases and the myriad ways workers can use the technology in everyday activities.
Adopting these changes quickly will reduce the impact losing competitive advantage in labour-intensive manufacturing to neighbouring countries, which offer lower labour cost while hasten improving their infrastructure.
