Manufacturing in Malaysia is embracing ‘Industry 4.0’, which involves the integration of digital and physical technologies to improve business processes, operations, productivity, growth and innovation. Unlike previous eras, ‘Industry 4.0’ looks to create new business models and enhance existing ones, says leading data and analytics company GlobalData.
According to the Department of Statistics Malaysia (DOSM), manufacturing sector employed more than one million people in 2016. Malaysia External Trade Development Corporation (MATRADE) and DOSM report that the sector accounts for over 80 percent of all exports and 23 percent of GDP. However, manufacturers are under pressure and face significant challenges. ‘
Dustin Kehoe, Technology Service Director of APAC at GlobalData, says: “On the supply side, the industry is seeing an increase in global commodity prices and diversification from traditional low-cost production markets. On the demand side, average order value is falling, the demand for customization is increasing and margins by and large are under pressure.