The first three industrial revolutions transformed manufacturing and production through specific advancements
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4IR_The Government’s direction and supportPresentation.pptx
1. EMBARGO UNTIL 1 JULY 2021, 10am
29 JUNE 2021
ECONOMIC PLANNING UNIT, PRIME MINISTER’S DEPARTMENT
1
TERHAD
NATIONAL 4IR POLICY
The Government’s direction and
support
2. 2
1 What is the Fourth Industrial Revolution (4IR)?
2 What is National 4IR Policy?
3 Why do we need the National 4IR Policy?
4 How do we achieve the aspiration of the
National 4IR Policy?
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WHAT IS THE FOURTH
INDUSTRIAL REVOLUTION (4IR)?
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The first three industrial revolutions transformed manufacturing
and production through specific advancements
• Mechanisation of activities in
textile making and printing
• Introduction of steam
power for goods
transportation
• Emergence of factory for
mass market production
• Widespread electrification
• Widespread electronics
application, computing power
and global comms (internet)
• Automation in manufacturing
Impact: More high tech &
sophisticated products, rapid
exchange of information
Timeline (year)
1760 1840 1969 2010
1760-1840
Industry 1.0
Age of Mechanical
Production
Key advancements that have triggered profound change in each revolution...
1830-1915
Industry 2.0
Age of Science
& Mass Production
1969-2010s
Industry 3.0
Age of Digital
Revolution
2010s onward
Industry 4.0
Digital
Transformation
in Manufacturing
in 4IR
• Convergence of smart
technologies in manufacturing,
e.g. smart factory, advanced
robotics, IOT
Impact: Emergence of
factory
Impact: Longer factory
operations, Improvement of
living conditions through
job opportunities
Impact: Smart factory, emerging
tech across all services sector
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What is the Fourth Industrial Revolution (4IR)?
4IR refers to
● disruptive transformation of
industries through the
application of emerging
technologies, that
● permeates across digital,
biological and physical space
(i.e. combination of
technologies, in different
fields), that
● impacts all economic sectors
and aspects of life
Autonomous vehicles
Physical
Digital
Biological
Big data
Virtual reality
Augmente
d reality
Cloud computing
Advanced robotics
Advanced materials
3D
printing
Neurotechnology
Synthetic
biology
Bioprinting
Genetics
Blockchain
Internet of things
Artificial intelligence
Definition of 4IR 4IR technologies gives rise to the
convergence of the physical, digital
and biological realms.
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Professional, scientific &
technical activities
▪ Digital/ smart contracts
▪ Building Information Modelling System
▪ 3D scanning and photogrammetry
Healthcare
▪ Bio-robotics for mobility enablement
▪ Epigenetics
▪ AI diagnostics
Agriculture
▪ Smart farming, vertical farming
▪ IoT-enabled drones for
fertilisation and pesticide spray
Why does the 4IR matter?
To unlock growth opportunities and better manage economic
disruptions on traditional businesses arising from the 4IR
Transportation & logistics
▪ Shared mobility
▪ 4PL logistics solution
▪ Integration with wholesale &
retail trade (e-commerce)
Efficiency/ productivity
gains
New job creation
Transformation of 3D
jobs
Improved work-life
balance
New business
opportunities
New value creation
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Strategic approach were undertaken by other countries where
technology plays key role in socio-economic development to
achieve national aspirations
8
Leverage technological advancements to become
smart, green and safe country
In areas such as:
● Integrate data, network (5G) and AI
into industries and government
● Low-carbon energy through smart
grid, EV, hydrogen vehicles and
renewable energy
● Tech-based infra for schools and
higher education
Harnessing the potential of artificial intelligence
(AI) for socioeconomic benefits
“Government has
committed more than
S$500 million to fund
AI activities under the
Research, Innovation
and Enterprise 2020
(RIE2020) plan” -
Minister Heng Swee
Keat (Nov, 2019)
Society 5.0 - Incorporate new
technologies to balance economic
development, with resolutions of
social problems
Source: Korean New Deal; Channel News asia, Government of Japan Cabinet Office
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6th
Social media
penetration
9 of 10
Malaysians
go online via
smartphone
71%
Malaysians use
smartphones
Our Society Where is Malaysia globally?
41.0%
of Malaysia’s
GDP contributed
by SMEs 2020
62.7 %
SMEs Malaysia in
early stages of
digital maturity
62%
38%
46%
54%
18%
82%
Connected to
Internet
Not Connected
to Internet
Has Fixed
Broadband
No Fixed
Broadband
Has Web
Presence
No Web
Presence
Source: Malaysia’s Digital Economy, World Bank 2018; Internet Users Survey 2018, MCMC; We are Social and
Hootsuite Digital Malaysia 2019; WEF Global Competitive Index 2019, Global Innovation Index 2019
Digital
adoption by
businesses
in
Malaysia
Our Businesses
of 129 in overall
innovation performance
based on WEFGlobal
Innovation Index 2019
1st
8th
15th
35th
Other countries: Saudi Arabia 1st, Singapore 4th, UK 18th,
Japan 28th , Switzerland 33rd , Germany 38th
However, in the aspect of regulatory environment
Malaysia ranks relatively low at 64th
In terms of ability of to
provide high levels of
prosperity to citizens,
based on WEF Global
Competitive Index 2019
27th
1st
7th
28th
80%
Malaysians has
access to internet
Malaysia must be prepared as the world become more
connected and competitive, or risk being left behind
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To help address existing socio-environmental
challenges and grow sustainably
Carbon emission per capita Malaysia is
25% higher than its peers
Heavy reliance on low-
skilled foreign workers
(2010)
Documented 1.7 mil
workers
2.9 mil
(2019)
+70.6%
1.9 mil or 66%
low-skilled
Source:, World Bank (2020), DOSM (2020), MOHR (Aug 2020), Malaysian
Economic Statistics Review Vol1/2020
Ethics and values
Risk of irresponsible use and manipulation
of technologies by businesses and society
Digital divide
Inequal opportunities between the have’s
and have-nots, further affecting income,
rural-urban and gender equalities
To mitigate potential social-related risks
arising from 4IR
Job displacement
Changing skills and labour requirements
Societal well-being
Excessive device use leads to negative
impacts on family institution and social
connection
Eroding trust in society
Increasing cyber attacks, fast distribution
of information in society
81/ 149
(2021)
68/ 180
(2020)
5x increases in the number of
reported cyber threat incidents from
2008 to 2018
World Happiness
Report
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Malaysia can harness the full potential of 4IR for sustainable growth
while mitigating the associated risks
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In Malaysia, various efforts to improve society wellbeing and
economic sectors by leveraging technological advancements
Growing drone tech as emerging industry
Blockchain technology application
for vaccination certificates
WEF and MDEC are working
together to design and pilot policy
principles relating to drone.
Partnership
between MaGIC
and Air Asia for
Urban drone
delivery Sandbox,
to develop the
long-term viability
of urban drone
delivery service
“Microsoft is establishing its
first data center in Malaysia,
which is expected to create
19,000 jobs and generate
US$4.6 billion in revenue
for the country”
Drone tech in
precision farming
Catalysing
growth
through data
centre
industry as
key enabler
in ecosystem
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Sources: The Star, Digital News Asia
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Other countries, including our neighbours have policies and action
plans in place to harness 4IR and grow their digital economy
What are the trends?
2011 2014 2015 2016 2017 2018 2019
Hightech Strategie (Germany)
Advanced Manufacturing Partnership
(AMP) 2.0 (USA)
Industry4WRD: National Policy on Industry 4.0
Making Indonesia 4.0 (Indonesia)
National Strategy on Industry 4.0; Future Digital Economy
Towards 2030 and 2045 (Vietnam)
Robot Revolution Strategy, Society 5.0 (Japan)
Digital Luxembourg (Luxembourg)
Manufacturing Innovation 3.0, I-Korea 4.0 (Korea)
Made in China 2025, Next Gen AI
Development Plan (China)
Industrie 2025, Digital Switzerland (Switzerland)
Smart Nation Agenda, Digital Economy
Framework for Action (Singapore)
Thailand 4.0 Strategy, Digital Economy
& Society Development Plan (Thailand)
2011
2011
2014
2014 2017
2017
2017
2016 2019
2016
2019
2015
2015
2018
Global
ASEAN
2014 2018
2018
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Launch year of document
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Representatives from Ministries, agencies and private sector have
been engaged through various platforms to obtain inputs and
feedback
Background
A total of 24
rounds through
the studies’
governance
mechanism
8 rounds of Taskforce, 8
rounds of Technical
Committee, 8 rounds of
Steering Committee for the
inception, interim, draft final
and final stage of the
studies. The committees
comprise of representatives
from 22 Ministries and
agencies.
25 ministries,
51 agencies,
7 state gov,
460 companies,
22 industry
associations,
33 tech
providers
Refer to various
international
organisations
such as WEF,
OECD, UN, World
Bank
Desktop research
included using literatures
and publications
produced by international
organisation.
Stakeholders engaged
throughout the two studies to
validate issues, obtain on-
ground insights, seek feedback
and syndication the findings.
Medium included, interview,
focused meeting and public
sector and private sector 4IR
readiness survey.
External Reference
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Steers strategic socio-economic transformation
through ethical use of 4IR technologies.
An overarching policy that:
✔ Drives policy coherence and supports the delivery
of national interests
✔ Provides guidelines to address risks from 4IR
technology whilst preserving values and culture
✔ Creates conducive ecosystem to accelerate
digitalisation through convergence of technologies,
disciplines and facilitating the emergence of new
business models
National 4IR Policy
Towards balanced,
responsible and
sustainable growth
Business growth in
all sectors
Socio-environmental
well-being for all
Fit-for-future
government
What do we intend to achieve?
How do we deliver?
● Whole-of-nation approach
(People-Public-Private
Partnership (PPPP))
●Outcome-oriented cohesive
strategies and initiatives
● Delivery-driven governance
structure
What is National 4IR Policy?
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Digital economy and 4IR are interdependent and mutually reinforcing
Traditional log-book/
hand-written
records
Data entry into softwares
Location
Detection
Technologies
Cloud
Computing
Smart
Sensors
Internet
of Things
Mobile
Devices
Big Data Analytics
Advanced
Human-Machine
Interfaces
Customer
profiling
● Automate data generation
●Connected and accessible
to various devices
●Capable of generating
complex analysis
● More sophisticated
use of
technology
Charts the trajectory of the
digital economy contribution
to the Malaysian economy
and builds the foundation to
drive digitalisation across the
nation, including
bridging the
digital gap.
Outlines the key focus areas which
impact the rakyat, businesses and
government, in order to seize growth
opportunities and to address potential
risks arising from 4IR
4IR Examples
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Vision
Balanced, responsible
and sustainable growth
Sustainable Development Goals
SHARED PROSPERITY VISION 2030
-
National agenda
Enhance local
capabilities
to embrace
4IR across
sectors
Improve quality
of life by
leveraging
technological
advancement
Harness
technologies to
preserve
ecological
integrity
Development
for All
United,
Prosperous
and Dignified
Nation
Addressing
wealth and
income
disparities
Missions
12TH Malaysia Plan and 13TH Malaysia Plan
What is National 4IR Policy? - the vision & outcomes
QUALITY OF LIFE
• Malaysian Wellbeing Index(MyWI)* 136.5
• Longer and healthier life span
• Safer and secured living
• Meaningful use of time
LOCAL CAPABILITIES
• Top 20 in Global Innovation Index
• 30% productivity increase across all sectors,
compared to 2020 levels
• More higher-paid jobs
• Fit-for-future education and talent
• 3.5% GERD, including for 4IR related R&D
• More home-grown 4IR technology providers
• More efficient government services
ECOLOGICAL INTEGRITY
• Top 50 in Environmental Performance Index
• Reduce GHG emissions intensity by 45% by 2030
TO ACHIEVE BY 2030
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HOW DO WE ACHIEVE THE
ASPIRATION OF THE
NATIONAL 4IR POLICY?
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How do we achieve the aspiration of the National 4IR Policy?
▪ Social well-being as
the fundamentals
▪ Envisions aspired
lifestyle
▪ Leverage technology
to achieve the
aspirations
▪ Embraces the
fundamental cultural
and value heritage, as
well as humanity
Technology that
supports the desired
lifestyle, while
preserving humanistic
and societal values, as
well as cultural
heritage, focusing on
wellbeing of the rakyat.
What lifestyle
benefits society as
a whole
Overcome
social issues
Work-life
balance
Healthy living
Sustainable
living
Improve
quality of life
Focus on
happiness
index
Human-centric approach
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How do we achieve the aspiration of the National 4IR Policy?
4 POLICY
RESPONSES
32 NATIONAL
INITIATIVES
16 STRATEGIES
1. Seizing economic growth opportunities arising from 4IR
2. Creating a conducive ecosystem to cope with 4IR
3. Building trust and an inclusive digital society
OBJECTIVES
Equip the
rakyat with
4IR knowledge
and skill sets
Forge a
connected
nation through
digital
infrastructure
development
Future-proof
regulations to
be agile with
technological
changes
Accelerate 4IR
technology
innovation
and adoption
Public sector
Society
Businesses
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How do we achieve the aspiration of the National 4IR Policy?
5 FOUNDATIONAL
TECHNOLOGIES
Artificial Intelligence
Internet Of Things
Blockchain
Cloud Computing
and Big Data
Analytics
Advanced
Materials and
Technologies
Transportation and
logistics
Healthcare
Manufacturing
Sectors supporting socio-economic needs
Sectors that drive technology adoption
Supporting sectors
Utilities
Education Agriculture
Construction
Wholesale and
retail trade
Tourism
Finance and
insurance
Professional, scientific and
technical services
Arts, entertainment and
recreation services
Mining and
quarrying
Real estate
Information and Administrative and
communication services
support services
SECTORAL
FOCUS
10 60 SECTORAL
INITIATIVES
Sectors focus with potential integration with global value chain
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How do we achieve the aspiration of the National 4IR Policy?
National Digital Economy and 4IR Council chaired by the Prime Minister
supported by Ministers, relevant private sector representatives, academicians and CSOs
DIGITAL
TALENT
DIGITAL
INFRA. AND
DATA
EMERGING
TECH
ECONOMY SOCIETY GOVERNMENT STEERING
COMMITTEE
Strategic
Change
Management
Office
Agile regulation (including Good Regulatory Practice, sandbox): MPC
Cyber security: KDN, NACSA
Minister
of
KKMM
Minister
of
MOSTI
Minister
of MITI
Minister
of
KPWKM
KSN
Inclusivity and sustainability: EPU
Chair:
Minister of
MOHR
Chair: Minister in
Prime Minister’s
Department
(Economy)
Multiple Working Groups
Federal and state government-led initiatives
Private sector, CSOs,
academia-driven initiatives
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