2018 PSDC INDUSTRY 4.0 WEEK
SPEECH BY CHIEF MINISTER OF PENANG
AT 2018 PSDC INDUSTRY 4.0 WEEK
13 NOVEMBER 2018
Mr André Holzhausen, Chairman of PSDC Management Council and Senior Vice President of B Braun Medical Industries Sdn Bhd
Dato’ Seri Wong Siew Hai, Chairman of the Electrical and Electronics Productivity Nexus (EEPN)
Prof Ir Dr Ahmad Fadzil Mohamad Hani, President and Group Chief Executive of SIRIM Berhad
Distinguished Members of the PSDC Management Council
En Muhamed Ali Hajah Mydin, CEO of the PSDC
Representatives from the Industry, Government, and Academia
Members of the Press
Ladies and Gentlemen,
Good afternoon, ladies and gentlemen. I am very pleased and honoured to be with all of you here at the 2018 PSDC Industry 4.0 Week. First and foremost, congratulations to PSDC for successfully kicking off its third consecutive Industry 4.0 Week. We are proud that PSDC is leading the charge as a catalyst in enabling the growth and proliferation of this new phase of industrial revolution in Penang and Malaysia.
When Industry 4.0 started to gain attention just several years ago, many perceived it as just another fad or a buzz word. However, in the past 2 years, we have seen how the industrial revolution has gained momentum worldwide and how it has made a huge impact on the global industrial and manufacturing landscape. Today, we operate in a world that is inhibited by geographical boundaries. The ability to provide high customisation at the lowest possible cost determines a company’s success as well as survival.
The evolution and convergence of technology has changed and transformed the way companies operate. It is not just about shifting from labour-intensive methods to technology-driven operations. From transforming the way products are designed, manufactured, and delivered, to managing and monitoring machine performance and the supply chain, Industry 4.0 has created endless possibilities and opportunities for everyone.
I would like to take this opportunity to encourage all companies, especially SMEs, to respond positively to change and embrace the new advancements in technology and innovation or risk losing our competitiveness and become irrelevant. We are aware that in adopting these changes, there are challenges and the risks involved and investments are also required. In the recent tabling of the 2019 National Budget, the Federal Government has committed a total of RM210 million to support the transition and migration to Industry 4.0 in the next 3 years. The Finance Minister also announced that RM2 billion has been allocated under the Business Loan Guarantee Scheme (SJPP) to provide guarantees of up to 70% as a way to incentivise SMEs to invest in automation and modernisation. Besides that, the Government will create a RM3 billion Industry Digitalisation Transformation Fund with a subsidised interest rate of 2% under Bank Pembangunan Malaysia Berhad, with the purpose of accelerating the adoption of smart technology consisting of driving automation, robotics and artificial intelligence in the industry. I strongly believe that the Industry in Penang will greatly benefit from this timely and much-needed stimulus.
Besides that, companies can also seek for support from PSDC. Since 2016, PSDC has been playing the role of an enabler in helping companies migrate to Industry 4.0 technology. They have been working hand-in-hand with their technology partners as well as the Government accelerating the adoption of Industry 4.0 among SMEs in Malaysia with minimum investment without replacing their existing equipment. From this Industry 4.0 Week, I trust that you will be able to see the proofs of concept for yourself and learn how technology migration can be personalised for your company.
With such a major shift in technology, the skillsets required by the Industry have also been redefined. Leadership and decision making are increasingly driven by data and companies are required to reskill and upskill their workforce to maintain their competitive edge and support the overall implementation of Industry 4.0. To ensure that there is a continuous supply of talent with relevant skills, the Penang State Government has been supporting technical training and apprenticeships through sponsoring and endorsing the German Dual Vocational Training (GDVT) Program, which is spearheaded by PSDC here in Penang. PSDC has also been instrumental in supporting the reskilling and upskilling needs of the Industry through its Industry 4.0 training programs. The 2019 Budget has also provided incentives for companies that invest in technical and vocational training, diploma and degree courses in engineering and technology, as well as those that participate in the National Dual Training Scheme for Industry 4.0, amongst others. I strongly urge that companies will take full advantage of these training provisions and opportunities and invest in their workforce to ensure future growth.
I would like to once again congratulate PSDC for leading this Industry 4.0 initiative and I look forward to seeing more SMEs transitioning to Industry 4.0 in Penang in the near future. With that, it is with great pleasure that I announce the official launching of the 2018 PSDC Industry 4.0 Week.
Thank you.