Malaysia Must Embrace Industry 4.0 to Stay Competitive, Says Entrepreneur Development Minister

KUALA LUMPUR, — Malaysia’s future economic success depends on how effectively it embraces Industry 4.0, said YB Datuk Seri Mohd Redzuan Yusof, the Minister of Entrepreneur Development, in a keynote address at the National Conference on Industry 4.0 held at the Pacific B&C Ballroom, Seri Pacific Hotel today.

Speaking to a room filled with industry leaders, SME players, policymakers, and academics, Datuk Seri Redzuan emphasized that the pace of technological change presents both opportunities and significant risks. Citing global studies, he noted that 38% of CEOs had identified “the speed of technological change” as a key risk in 2018.

“The global shift towards technologies like blockchain, 5G, AI, and automation is inevitable. For Malaysia to remain relevant and competitive, our businesses—especially SMEs—must recalibrate their economic agendas and embrace these advancements,” he said.

Datuk Seri Redzuan highlighted findings from the World Economic Forum’s Readiness for the Future of Production Report 2018, which positioned Malaysia among the 25 leading countries in terms of Industry 4.0 readiness. However, he admitted that Malaysia still lags in areas such as institutional framework and digital adoption, particularly among SMEs.

With SMEs accounting for 98.5% of business establishments and contributing over 37% to Malaysia’s GDP, their role in advancing the digital agenda is pivotal. Yet, according to surveys, ICT adoption among Malaysian SMEs remains low—only around 10%, compared to 50% in countries like Germany and Japan.

“SMEs are mostly using the internet for basic activities. We are underperforming in digital business adoption compared to our ASEAN neighbors,” Datuk Seri Redzuan said, citing the Malaysia Productivity Corporation and Ministry of Finance reports.

He outlined three critical challenges in the digital transformation of SMEs: human capital, financial implications, and effective change management. He called on SME leaders to be “Talent Champions” and “Disruption Drivers” by investing in upskilling and leading change within their organizations.

“Industry 4.0 requires new IT infrastructure and skills, which may be costly initially. But these are necessary investments for long-term productivity and global competitiveness,” he added.
The Minister reaffirmed his ministry’s commitment to supporting SMEs through strategic initiatives aligned with Budget 2019. Under the third focus of the budget—fostering an entrepreneurial economy—the government has earmarked funds for SME financing, exports, digital technology adoption, and human capital development.

In his closing remarks, Datuk Seri Redzuan called upon all stakeholders to collaborate in transforming Malaysia into a fully entrepreneurial and digitally empowered nation.

“Industry 4.0 is more than a buzzword—it is a convergence of trends that will define our future. Let us maintain Malaysia’s place among the world’s leading nations in digital readiness,” he concluded.

— Asia News Today —