ACKNOWLEDGEMENT

We would like to acknowledge the contribution and assistance of many individuals and
organizations involved in this project. More specifically, to the authors, reviewers and editors
that took part in the completion of the Malaysian Strategic Technology Outlook 2017/2018
document. Without their support, this publication would not have become a reality.

On a personal basis, we would like to thank each and every one of the organizations for their
contributions. Our sincere gratitude and thanks goes to the authors who contributed their time
and expertise to this document. We are immensely grateful. Second, we wish to acknowledge
the valuable contributions of the reviewers and editors in ensuring the quality, coherence, and
content presentation of the document. Last but not least, many thanks goes to the team for their
effort and commitment to deliver the publication.:

External Contribution Internal Contribution Consultant Copyeditor

Aerospace Malaysia Innovation Centre (AMIC) Ani Suzila Anas Abdullah D.
Agensi Innovasi Malaysia (AIM) Ayuni Mohd. Rashid
BAE Systems (International) Limited
Boustead Heavy Industries Corporation Bhd (BHIC)
Azmil Mohd Amin Editorial Team
CMC Engineering Sdn Bhd - Haniff Ghazali Datuk Nik Ahmad Faizul Rushdi Abdul Rahim
DreamEDGE Sdn Bhd Dr. Ibrahim Abu Ahmad Mohd Nasir Md Ibrahim
FAVORIOT Sdn Bhd – Dr. Mazlan Abbas Dr. Raslan Ahmad Dr. Ibrahim Abu Ahmad
Indah Water Konsortium Sdn Bhd (IWK) Farah Abu Bakar Farah Abu Bakar
Keretapi Tanah Melayu Bhd (KTMB) Ida Semurni Abdullah Ali Noraida Md. Zain
Published by Majlis Amanah Rakyat (MARA)
Malaysian Industry-Government Group for High Technology (320059-P) Iliana Maziah Ismail Priscilla Annabel Bisop
Malaysian Investment Development Authority (MIDA)
MIGHT Partnership Hub, Ministry of Education Malaysia Izzatul Huda Mohd Jalil Izzatul Huda Mohd Jalil
Jalan Impact, MYBiomass Sdn Bhd Mastura Ishak Rosniwati Hasan
63000 Cyberjaya, Neuroware - R1 DOT MY - Mark Smalley Mohamad Azreen Firdaus Natrah Mohd Emran
Selangor, Malaysia. Petroliam Nasional Bhd (PETRONAS) Mohd Hasan Mohd Saaid Ani Suzila Anas
Pharmaniaga Bhd Mohd Nasir Md Ibrahim Zeti Akmar Tajudin
www.might.org.my Rolls-Royce Malaysia Sdn Bhd
Mohd Nurul Azammi Mohd Nudri
Sime Darby Plantation Sdn Bhd
© MALAYSIAN INDUSTRY-GOVERNMENT GROUP FOR HIGH TECHNOLOGY (MIGHT), 2018 Norsam Tasli Mohd Razali And last, but not least, special thanks to the
System Consultancy Services Sdn Bhd (SCS)
Nur Suraya Mustafar members of our Management for their thoughtful
Telekom Malaysia Bhd (TM)
All information is correct at the time of print. encouragement and close supervision:
Tenaga Nasional Bhd (TNB) Priscilla Annabel Bisop
All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, The Business Year Robert Tai Chiang Vun
electronic or mechanical, including photocopy, recording or any information retrieval system, without the UST Global Sdn Bhd - Basheer Kalanchera Advisor
Suzie Ismail
permission in writing from the copyright owner. Datuk Dr. Mohd Yusoff Sulaiman
Tengku Saifullizan Rahim
Designed by iedwrites Project Director
info@iedwrites.com Mohd Zakwan Mohd Zabidi
3
 Messages from
Dato’ Sri Mustapa Mohamed
Dato’ Sri Mustapa Mohamed
Minister of Ministry of International Trade and Industry
(MITI)
Malaysia has been developing its high
technology and manufacturing sector since
the 1970s. and is now ranked tenth in the world
in terms of high-tech manufacturing exports
according to the World Bank in 2015/16.
Moving forward, MITI and its agencies will
ensure that no efforts will be spared so that
the nation will continue to improve our export
performance and become the leading center
of excellence for high-tech manufacturing.
Recently, the world has seen a flurry of
innovative technologies that are creating a
huge impact; and at the same time disrupting
the manufacturing sector. Advancements in
robotics and automation, Internet of Things
(IoT), big data and others are impacting
productivity and competitiveness of
businesses globally. The World Economic
4 5
Advancements in robotics and
automation, Internet of Things
(IoT), big data and others are
impacting productivity and
competitiveness of businesses
globally.
Forum describes this phenomena as the
Fourth Industrial Revolution where the virtual,
physical and biological combine to produce
new technologies and products.
In this regard, MITI has embarked on
formulating the Malaysia Industry 4.0
Framework. The framework serves as a
reference document for industry players
that are involved in manufacturing and
manufacturing-related services to transform
their companies to become Industry 4.0
compliant. In order to realise this aspiration, five
(5) aspects are critical, namely, Infrastructure &
Ecosystem, Funding & Incentives, Technology
& Standards, Human Capital and Talent &
SMEs development. This initiative will prepare
the local industry to reap significant business
opportunities in the digital economy and
embrace the fourth Industrial Revolution (4IR).
This initiative will prepare the
It is heartening to note that more than 5,000 local industry to reap significant
multinational companies (MNCs) in Malaysia
have already applied some elements of Industry business opportunities in the
4.0 in their operations. At the same time, there
are companies that are still unaware or unable
digital economy and embrace
to implement any of the advancement brought the fourth Industrial Revolution
by Industry 4.0.
(4IR).
I strongly believe that this publication
‘Embracing Industry 4.0’ will serve as an
important preamble to the Industry 4.0
Roadmap that MITI will launch in the near
future. The close collaboration between
MIGHT and MITI will ensure that both reports
are qualified representations of the multi-
stakeholders’ views on the development of
Industry 4.0 in Malaysia.

Many activities and initiatives have taken
place in our bid to drive the country towards
a high-income nation by the year 2020.
Correspondingly, the launching of the inclusive
Science to Action (S2A), a national agenda
created to streamline and mainstream Science
and Technology (S&T) into nation building; has
been able to galvanize whilst complimenting
the various initiatives and stimulating the
ecosystem.
Information and insights gathered from the
Deliberations of Global Science Innovation
Advisory Council (GSIAC) and National
Science Council (NSC) are imperative to
providing the required impetus to ensure
that the governance and implementation of
activities are according to the shared agenda.
With these instruments, local STI ecosystem
6 7
Messages from the
Joint Chairs MIGHT and
President & Chief Executive Officer,
MIGHT
can be regulated and enhanced as appropriate
to meet industrial needs as we move forward
towards meeting Industry 4.0 challenges.
However, assistance and support in terms of
policy, financial and legal matters can only be
provided to a certain extent, since the state of
readiness from the industry players themselves
is pivotal in ensuring they successfully navigate
the dynamic technological advancement. Even
a component of Industry 4.0 e.g. the Digital
Revolution will impose enormous pressure
that will determine whether the competing
organizations can survive. Another area to
consider is the Social Media Revolution,
where the social web and mobile technologies
have created new opportunities as well as
challenges.
Science to Action (S2A), a national
agenda created to streamline
and mainstream Science and
Technology (S&T) into nation
building; has been able to
galvanize whilst complimenting
the various initiatives and
stimulating the ecosystem.
Malaysian Technology Strategic Outlook (MTSO) is our humble effort
to promote awareness of the challenges that are affecting and will
continue to shape; similarly, the local high technology arena.
With these continuing waves of revolution,
there is a need to address such development
impact and its value creation competently. All
the elements are inter-related and connected.
Talent development, knowledge capacity and
capability will warrant that the advancement of
S&T to be treated in a more holistic manner.
Our desire and taste for new innovation,
lifestyle and culture will need to be balanced
delicately. Environmental issues especially will
require viable STI-based solutions. The ability
to quickly adapt and adopt or more importantly
innovate will be the key; which when coupled
with a green mindset; will indeed bring
sustainability features to the forefront for all
activities.
As such, under the S2A publication series;
the Malaysian Technology Strategic Outlook
Prof. Tan Sri Zakri Abdul Hamid
Joint Chair, Government | MIGHT
(MTSO) is our humble effort to promote
awareness of the challenges that are affecting
and will continue to shape; similarly, the local
high technology arena. Respectively, it will be
our continuous effort to provide not only the
knowledge sharing by organizations within the
country but also to provide the essential bits
Tan Sri Dr. Ir. Ahmad Tajuddin Ali
FASc | Joint Chair, Industry | MIGHT
and pieces of the future that are influencing
Malaysia’s S&T landscape. Most assuredly,
MTSO is MIGHT’s contribution towards
advancing high technology aspects for the
nation, where we hope to serve not just our
members and partners but across industries
and the government alike.
On behalf of MIGHT and Editorial Team of
MTSO, we thank all members and partners of
MIGHT who have contributed to the success Datuk Dr. Mohd Yusoff Sulaiman
of this publication. President & Chief Executive Officer | MIGHT
GLOSSARY
Acronyms Meaning Acronyms Meaning Acronyms Meaning Acronyms Meaning

A O T
GSIAC Global Science & Innovation Advisory Council
GTP Government Transformation Programme

I
AEC ASEAN Economic Community OBM Original Brand Manufacturers TPPA Trans-Pacific Partnership Agreement
AI Artificial Intelligence ODM Original Design Manufacturers TVET Technical and Vocational Education and Training
OECD Organisation for Economic Co-operation and Development

D U
IFR International Federation of Robotics
OEM Original Equipment Manufacturers
IMP1 Industrial Master Plan 1 (1986 -1995)

R
DLT Blockchain, also known as Distributed Ledger Technology IMP2 Industrial Master Plan 2 (1996-2005) UAV Unmanned Aerial Vehicles
IMP3 Industrial Master Plan 3 (2005-2020) UGV Unmanned Ground-based Vehicles

E
ETF Exchange Traded Fund
IoT
IPR
Internet of Things
Intellectual Property Rights
R, D, C & I
REP
Research, Development, Commercialisation, and Innovation
Returning Experts Programme
W
ETP Economic Transformation Programme
M S WDI
WEF
World Development Indicators
World Economic Forum

F
FDI Foreign Direct Investments
M&A
MOSTI
Merger and acquisition
Ministry of Science, Technology and Innovation
S2A
S4G
Science to Action Initiative
Science for Governance
WIPO World Intellectual Property Organisation

MTDC Malaysia Malaysian Technology Development Corporation S4I Science for Industry
FOR Fields of Research

N
S4WB Science for Well-being
FTA Free Trade Agreements
SME Small and Medium Enterprises

G
ST strategic thrusts
NBOS National Blue Ocean Strategy
STEM Science, Technology, Engineering and Mathematics
NEM New Economic Model
G2G Government to Government STI Master Plan Science, Technology & Innovation Masterplan
NIS National Innovation System
GC game changers STP Social Transformation Programme
NPSTI National Policy on Science, Technology and Innovation 
GCR Global Competitiveness Report
NSC National Science Council
GDP Gross Domestic Product
NUOF Newton-Ungku Omar Fund
GERD Gross Expenditure on Research & Development

8 9

This publication is intended to inform and
promote awareness on the latest development as
well as challenges that are shaping the local and
global high technology landscapes. It also covers
the sharing of experience and expectations of the
local players. Besides key issues affecting the
landscapes, the publication also features the steps
necessary to move forward. As the technologies
keep moving and policy changed, some of the data
may appear outdated at the time of reading.
In this edition, Industry 4.0, its background and
the challenges are presented. Descriptions of the
technologies and platforms involved including
assessments on readiness are provided. The
selected success stories of local or international
companies in adopting these technologies are
highlighted, followed by government initiatives in
meeting the challenges whilst supporting progress.
Readers of this report may benefit from the
overview and in-depth explanation of the respective
topics presented to be able to relate with the
current science and technology environment that
is progressively transforming human lives around
the globe. Some issues discussed could have
sounded familiar but being directly deliberated by
the key industry players have projected them in a
clearer trajectory for the society to comprehend
and embrace the changes open-heartedly.
Like the beacon of a lighthouse guiding ships at
night, the report intends to serve as a guideline from
10
PREFACE
whence the affected segments of the society can
chart their future to co-exist harmoniously amidst
the ever-changing world brought about by science
and technology. By looking at the advancement
from different angles, the masses will gain insights
into the realm of knowledge that becomes the pillar
of the very report to arrive at any conclusion that
best fits their survival needs, be it in policy, business
or livelihood as a whole. This report will also serve
as part of the input in formulating the National
Industry 4.0 Blueprint while complementing the
efforts made by MITI in preparing the local industry
with the advancement of Industry 4.0.
This publication is presented in four (4) parts
and arranged in the following order:
Part A: Technology Spotlight
Begins with an overview of Industry 4.0 including
the global and local perspectives as well as
success stories. Articles on selected major and
emerging industries will be presented here such
as blockchain, construction as well as robotics.
In short, this section presents the technologies
involved with specific sectoral developments. It
will be concluded with four (4) case studies on
selected companies on how new technologies have
transformed/affected their businesses.
Part B: Malaysia High Technology Eco-system.
Presents Government initiatives to prepare the
country for the digital revolution era. The section
entails the programmes and projects to improve
the current ecosystem to meet the challenges; from
policies to governance, from studies to strategies,
and from talent to patent. Also in this section,
selected organisations share their visions and
efforts in driving progressively towards their goals.
It features their expectations and approaches
at deploying the advantages of the next wave of
industrial revolution to generate the country’s
economy.
Part C: Technologies of the future
This part contains a brief infographic on Industry
4.0. as well as introducing 21 tipping points of
emerging/disruptive technologies. This will be
followed with Infographics on 20 technologies of
the future.
Part D: Views from the Industry
The final section contains twenty (20) special
articles “‘Views from the Industry”’; i.e. insights
and sharing from selected organisations, agencies
and ministries on their visions and efforts in driving
progressively towards their goals; dispersed
throughout this section. The articles feature their
expectations and approaches at addressing the
challenges of the next wave of industrial revolution
to generate the country’s economy.
EXECUTIVE SUMMARY
The science, technology and innovation
framework has been put in place to foster the growth
of the fourth industrial revolution with elements
imperative to thrust the national agenda forward. The
country’s foray into high technology industries was
spurred by the realisation of the disproportionate
distribution of value that multinational corporations
imparted to their local partners in terms of industry
linkages, labour development and technology
transfer. The vision to go big on the heavy
industry development programme has led to the
establishment of the automotive, steel and cement
industries. Worthy of mention is the Industrial
Master Plans implementation that paved the way
for the expansion of the manufacturing sector and
the creation of the digital economy through the
Multimedia Super Corridor (MSC) initiatives. The
Third Industrial Master Plan which will culminate
in 2020 has had the touch of Industry 4.0 in the
areas of artificial intelligence (AI), robotics, cloud
computing and the Internet of Things (IoT) en
route to becoming a high income and advanced
economy.
To encourage the industry’s participation in
technological excellence, the government has
made available a number of incentive packages
in promoted activities and new technologies to
spur research, development, commercialisation
and innovation activities. Financial assistance is
accessible by both local and foreign companies,
providing support through the federal or state
governments and to a certain extent, arranged
based on government-to-government funding Worthy of mention is the
initiatives. Malaysia has entered into Free Trade
Agreements with various economies as a multi-
Industrial Master Plans
pronged strategy to explore business activities
with high return potentials in investment, trade
implementation that paved the
facilitation and intellectual property rights (IPR)
on top of economic cooperation. The contribution
way for the expansion of the
of the small and medium enterprises too must
not be dismissed albeit low on the total export
manufacturing sector and the
front, since the labour force needs to make an
impact on the value chain through increased
creation of the digital economy
through the Multimedia Super
productivity and improved technology for them to
be able to integrate into ASEAN’s vast network of
Corridor (MSC) initiatives.
multinational corporations.
The government foresees some challenges in
achieving its target to become an advanced nation
by 2020 across the scientific and technology
innovation domain due to the currently soft
investment in R&D, low commercialisation drive
as well as inadequate S&T workforce. These
shortcomings have been quickly addressed by
having in place the mechanism for the players to
thrive from the policymakers to the industries,
universities and research institutes’ perspectives.
The adoption of scientific policies and programs on
governance, well-being and industry is proof of the
Government’s commitment to strengthen, facilitate,
support and communicate science to the target
groups while adhering to the objective of preparing
the nation to become an advanced economy.
11

Under the patronage of YAB
Prime Minister of Malaysia,
MIGHT is governed by a Board
of Directors, helmed through
the joint-chairmanship of
prominent private sector
personality and the Science
Advisor to the Prime Minister.
12
ABOUT MIGHT
The Malaysian Industry-Government Group for
High Technology (MIGHT) was established
as an independent, industry-driven non-profit
organization on 22nd February 1993 and was
formally incorporated as a company limited
by guarantee on 15th October 1994. It is an
organization built on the strength of public-
private partnership with members represent
both local and international, from industry,
government and academia.
Under the patronage of YAB Prime Minister
of Malaysia, MIGHT is governed by a Board
of Directors, helmed through the joint-
chairmanship of prominent private sector
personality and the Science Advisor to the
Prime Minister. MIGHT is a consensus building
platform for industry-government in the drive
to advance high technology competency in
ABOUT S2A
The initiative aims to intensify
Science in building a Knowledge-
based Economy with the
objective of raising the profile of
Science and Technology (S&T) to
support nation building.
Malaysia. Its core purpose is addressing the
country’s needs in response to the effects of
Science to Action (S2A) is an extension of the current National Transformation Agenda. The
initiative aims to intensify Science in building a Knowledge-based Economy with the objective of
globalization and trade liberalization on future
raising the profile of Science and Technology (S&T) to support nation building.It was launched
economic growth through the accelerated use
of high technology.
by the YAB Prime Minister in November 2013 and comes under the purview of the Science
Advisor to the Prime Minister. MIGHT is the Implementing Agency to coordinate and manage its
MIGHT also acts as a key interlocutor, bringing programmes.
together policy and technology nurturing to
advance high technology interests in Malaysia.
Apart from that MIGHT also takes on the role For more information, please visit http://www.might.org.my/
of nurturing high tech industries via catalytic
interventions program when the need arises.
Programs and activities will include building
strategic partnerships and alliances,
technology acquisition and nurturing capacity
building as well as strengthening the growth of
these sectors through policy interventions and
flagship programs.
13
CONTENTS
Acknowledgment 1
Messages from Dato’ Sri Mustapa Mohamed 2
Messages from the Joint Chairs MIGHT and
President & Chief Executive Officer, MIGHT 3
Glossary 5
B. MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 41
Malaysian High Technology Industries: A Rendition of Its Journey 43
Incentive and Financial Support 45
A Quick Guide to International Initiatives 46
11 Malaysia Plan (11MP) – Spurring High Technology Development
th
47
National Blue Ocean Strategy (NBOS) 48
Internet of Things (IoT) 90 System Consultancy Services Sdn Bhd (SCS) 141
Neurotechnologies 92 Telekom Malaysia Bhd (TM) 143
Photonics 94 Tenaga Nasional Bhd (TNB) 145
Pocket Supercomputer 96
Smart Cities 98
Bibliography 147
Storage for All 101

Preface 6 National Policy on Science, Technology and Innovation (NPSTI) 50 The Sharing Economy 103

Executive Summary 7
About MIGHT 8
About S2A 9
A. TECHNOLOGY SPOTLIGHT 11
The Fourth Industrial Revolution 12
Exploring Blockchain for Malaysia 15
Construction Industry – Shaping the Future 16
Rail Industry – Rolling Forward Towards Seamless Journey 20
Robotics Industry - Opportunities Abound 25
Case Studies: 28
GRAB 29
iProperty.com 31
InneoNusa 33
Jobstreet.com 35
Vehicle Telematics Online Services (VTOS) 37
Science to Action (S2A) - National STI Transformation Programme 53 Ubiquitous Computing 105
Vision as the New Interface 107
Executive Summary of OECD Reviews of Innovation Policy
Malaysia 2016 54 Wearable Internet 109
Transforming STI Governance 56
Global Science and Innovation Advisory Council (GSIAC) 57
National Science Council (NSC) 59 D. VIEWS FROM THE INDUSTRY 110
Aerospace Malaysia Innovation Centre (AMIC) 111
Talent Development in Industry 4.0 61
Industry and Innovation Culture - Understanding Patent Trends in Agensi Innovasi Malaysia (AIM) 113
Malaysia 63 BAE Systems (International) Limited 115
Boustead Heavy Industries Corporation Bhd (BHIC) 117
DreamEDGE Sdn Bhd 120
C. TECHNOLOGIES OF THE FUTURE 65
FAVORIOT Sdn Bhd 121
Infographics on Industry 4.0 65
Indah Water Konsortium Sdn Bhd (IWK) 122
21 Tipping Points 66
Keretapi Tanah Melayu Bhd (KTMB) 124
3D Printing 69
Majlis Amanah Rakyat (MARA) 126
Advanced Material 71
Malaysian Investment Development Authority (MIDA) 127
Artificial Intelligence and Decision Making Robotic and Service 73
Ministry of Education Malaysia 129
Big Data for Decision 75
MYBiomass Sdn Bhd 131
Blockchain and Distributed Ledger 77
Petroliam Nasional Bhd (PETRONAS) 132
Connected Home 79
Pharmaniaga Bhd 135
Digital Presence 82
Rolls-Royce Malaysia Sdn Bhd 138
Driverless Car 84
Sime Darby Plantation Sdn Bhd 140
Implantable Technologies 86

14 15
 PART A
TECHNOLOGY
SPOTLIGHT
18 A | TECHNOLOGY SPOTLIGHT Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 19

The connection of people, things and systems creates dynamic, self-organising,

TECHNOLOGY SPOTLIGHT real-time optimised value-added connections within and across companies.
These can be optimised according to different criteria such as costs, availability
The Fourth
The FourthIndustrial
Business
Revolution
Industrial Opportunities
Revolution and Challenges
Opportunities and Challenges
Government
Technology-enabled
and consumption of resources.” platforms
1. The convergence of technologies that brings 1. Transparency in governance.

The Fourth Industrial Revolution

manufacturing and services to a different level. 2. New technologies to control domestic crises.
The Evolution to Industry 4.0 2.
3.
Increase agility and innovation level of companies.
Increase efficiency of productivity and its value.
3. New ways to engage the public and improve
communication and crucial information dissemination.
Industry 1.0 used water and steam power to mechanise production. Industry 2.0 4. Lower logistic & communication costs. 4. Efficiency in delivery, policy and decision-making
5. Upskilling of talents to match industries needs processes.
used electric power to create mass production. Industry 3.0 used electronics 6. New industries, new jobs. 5. Pressure to be agile in adpating to continuous
The first Industrial Revolution is a period taking place in the middle of the 18th and information technology to automate production. Now Industry 4.0 is 7. Replacement of automization/mechanizations - changes.
century when peoples in Europe and America shifted from rural communities building on Industry 3.0, the digital revolution that has been occurring since the rise of the machines. 6. Risk of cyber threats & bio-weapons
8. Pressure of fulfilling customer behaviours &
living on farming to a society that thrived on industries. Even if manufacturing the middle of last century. It is characterised by a fusion of technologies that is demands/expactation. Digitalization
and production of items were common before the revolution, the labour was Disrupting existing age
blurring the lines between the physical, digital, and biological spheres. Through value chain
rather manual than mechanised carried out in a household to meet the market every revolution, it is evident that technology will again re-define the industries People
demand. and thus, jobs created through it. 1. Increased connectivity.
2. New exciting technologies that calls for now high-end skills.
The new system brought about scientific advances and technological 3. Ease of performing tasks and errands with the new Competitiveness
Industry 4.0: Opportunities and Challenges technologies and digitalization (booking taxis, paying bills etc).
Rapid phase

innovations that would revolutionise transportation, communication and
transaction like they had never been before, changes that catapulted the human
civilisation to one that prospered on the invention of new machines maximising
production on minimum workforce. Iron and steel became the gears that drove
the industry which was fuelled by steam and coal while other aspects of the
human lives went through just as many changes in terms of social, politics and
economics.
Britain, being the springboard of the Industrial Revolution, later expanded its
dominant of the global marketplace through its vast empire while at the same
time, trying to guard the spread of industrialisation in vain. It was not long
before it began to impact other countries in Europe via export of machines and
human capital. The revolution eventually crossed the Atlantic to massively hit
the United States, thrusting the nation forward in the development of industry.
Coined by the German government – “the term Industry 4.0 stands for the fourth
industrial revolution. Best understood as a new level of organisation and control
over the entire value chain of the life cycle of products that is geared towards
increasing individualised customer requirements. This cycle begins at the
product idea, covers the order placement and extends through to development
and manufacturing, all the way to the product delivery for the end customer,
and concludes with recycling, encompassing all resultant services. The basis
for the Industry 4.0 revolution is the availability of all relevant information in
real time by connecting all instances involved in the value chain. The ability
to derive the optimal value-added flow at any time from the data is also vital.
Industry 4.0 is here to stay, which builds on the previous revolution. The pace
is too fast and the impact is too broad to be ignored. As mentioned, Industry
4.0 will disrupt almost all industries, existing value chains in all countries with
the rise of age of intensified digitalisation and convergence of technologies that
are disruptive but impactful in driving the competitiveness and improving the
quality of life.
Placing Malaysia within the global value chain is necessary. Hence, the World
Economic Forum (WEF) has identified 21 disruptive industries which must be
in our equation to promote further competitiveness and productivity. This will
eventually lead to the creation of new industries and hence new definition of
jobs. As repeatedly highlighted by the WEF and other platforms, this revolution
will have various impacts on the businesses, governments and individuals.
Industry 4.0 shall witness the rise of machines that will likely replace the
traditional routine jobs that are currently being performed by humans. Hence,
there is a compelling need for Malaysia to focus on developing high-skilled
talents for these new breeds of industries to come. For Malaysia to be able
to keep up with this revolution and these whole new industries, the political
willingness must be equivalently high. Setting up a conducive environment for
the talents to develop, technology breakthroughs and others, it is imperative to
set supportive policies in place to motivate these organisations in driving their
competitiveness to the next level and hence, elevating the productivity for the
future.
4. Exposed to cyber threats. Disruptive technologies
5. Opportunity for cross-cultural understanding and cohesion.
6. Risks of spreading extreme ideas & ideologies, incite
hatred and cause chaotic situation.
In becoming a high-income nation, Malaysia must continue to endeavour in
increasing its productivity where it aims to increase its productivity growth
at 3% to 4%, double than 2% achieved over the last 10 years. In view of the
rapid global evolution and in ensuring the country’s preparedness for these
uncertainties, we should view productivity at a whole new level, in line with the
Industry 4.0 and other subsequent turns of events.
Where Are We?
So, the next right step to do is to prepare the country for Industry 5.0 while
continuing with the Industry 4.0 activities that would assist to catapult the
country to the next level.
By “leveraging its foundational strengths in innovation, talent, and strong
industrial ecosystem clusters", it could compete against and surpassed the
low-cost rivals. This is achieved by focusing on creativity, innovation and value-
added activities and going strong on advanced technology. The shift to the
higher-value, advanced manufacturing is now shaping the country’s global
competitiveness, going forward. As reported by the Global Federation of
Competitiveness Council (GFCC) in a report prepared by Deloitte, such as the
2016 Global Manufacturing Competitiveness Index (GMCI), “China is actively
PRODUCTIVITY
Ability to innovate to increase productivity
Broad impact
pivoting toward a more technologically advanced manufacturing paradigm
to align with other global, innovation-oriented markets. The resulting shift
is creating an opportunity for other nations to strengthen their position as
lower-cost global manufacturing destinations.” Malaysia is identified as one
of the Mighty Five (MITI-V) economies that are going to capitalise on China’s
advancement. Its strength as cited in the report “remains strongly focused on
assembly, testing, design, and development involved in component parts and
systems production, making it well suited to support high-tech sectors.”
According to Ir. Bobby Gafur Umar, CEO of Bakrie & Brothers, Indonesia,
and member of Malaysia’s Global Science and Innovation Advisory Council
(GSIAC), relative to other ASEAN countries, Malaysia is considered to be a step
ahead in terms of innovation and technology development. Malaysia has the
right tools to lead the ASEAN technology-based industries. And, following the
correct approach to the situation and continued progress, Malaysia may find
itself at the forefront of the ‘ASEAN Technology Community’ within the recently
enacted ASEAN Economic Community.
20 A | TECHNOLOGY SPOTLIGHT Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 21

TECHNOLOGY SPOTLIGHT DevelopingBlockchain

Developing BlockchainThrough
ThroughConsortia
Consortia

Exploring Blockchain For Malaysia

REGION NAME LEADERS SECTOR GOALS
AMERICAS R4 Overstock Financial Services Blockchain solutions for small businesses.
Project Jasper Bank of Canada, Payments Canada Financial Services Issuing, transferring and settling central bank-issued assets on a distributed ledger network.

Digital Asset Holding DAH Financial Services Building distributed, encrypted straight through processing tools to improve efficiency, security, compliance and
settlement speed.

Hyperledger Linux Foundation, IBM, DAH Standards & Platforms Open source collaborative effort created to advance cross-industry blockchain technologies.

CU Ledger (Credit Union) MWCUA Financial Services Investigating the viability of a private, permissioned distributed ledger that can be used by credit unions.

Block Rx Project iSolve Pharmaceuticals Verify and enhance the integrity of the drug supply chain and to accelerate new drug development.

Hashed Health Hashed Health Healthcare Active projects include supply chain, claims lifecycle, payments, medical records, insurance, and other use cases.

EUROPE FCA Sandbox Project Financial Conduct Authority Financial Services ‘Safe space’ in which businesses can test innovative products, services, business models and delivery
mechanisms in a live environment.

Dutch Logistics Group TKF Dinalog, TU Delft Transportation Logistics Study how the distributed ledger technology can advance operations to bolster efficiency and effectiveness, as
well as reduce supply chain footprints.

Blockchain began to emerge in the public as one of the underlying technologies
for Bitcoin, the first cryptocurrency created as a counter model to centralised
authority.
Technically, ‘Blockchain’ is a form of distributed ledger (DLT) that groups
batches of transactions in blocks and subsequently connects in a chain to
authenticate the values transacted. In this append-only system, the new added
block contains the hash of prior block(s) in the chain in order to maintain the
integrity of the data. While no system is completely immune to outside attacks,
blockchain is built on the concept that increasing the size and distribution of the
network will make it more secure. The ability of blockchain as the intermediary
that allows internet to transact store, move and transact values has earned it
the name the ’internet of value’.
be overcome for the technology to mainstream. Blockchain itself is a complex Fundchain Scorechain
technology that continues to evolve at fast speed and there are many regulatory
B3i Aegon, Alliance, Munich RE, Swiss RE, Zurich
implications that are still being inspected worldwide. The various competing
platforms are also contributing to the implementation challenge, whereby Swiss Financial Consortium Swisscom, Swiss stock market, Zurich Cantonal
Financial Institution
interoperability and standards is one of the subjects being discussed by the
Blockchain and DLT working group under the International Organization for CLS Blockchain Consortium CLS
Standardization (ISO) and formalised in April 2017 as ISO TC 307.
Digital Trade Chain Deutsche Bank, HSBC, KBC, Natixis, Rabobank,
Societe Generale, Unicredit
The creation of cryptocurrency is not the only unique proposition of blockchain
ASIA ChinaLedger Alliance Wangxiang Blockchain Labs, Internet Securities
technology. Agility and experimental development are to be expected from the Commission of the Securities Association of China
young industry. Community-based technology development is embedded in the
Financial Blockchain Ping An
culture of this technology, as evidenced by the early blockchain communities Shenzhen Consortium
such as Bitcoin and Ethereum. In May 2016, the Ethereum community created
Financial Services Explore the potential of blockchain technology to improve efficiency and create new business opportunities
in the asset management industry.
Insurance Developing standards and processes for industry-wide usage and to catalyze efficiency gains in the insurance industry.
Financial Services Facilitation of selling shares outside of a stock exchange. Prototyping blockchain based real life trading of
OTC equity clearing, settlement and reporting.
Financial Services Focus on improving security and efficiency to the foreign exchange settlement industries through use of
open-source Hyper Ledger Fabric blockchain to generate new pathways for foreign exchange.
Financial Services Simplifying trade finance processes by addressing the challenge of managing, tracking and securing
domestic and international trade transactions for SMEs.
Standards & Regulation Adapting technology to Chinese business needs and ensure regulatory compliance in an environment
with positive government interests.
Financial Services Communication tool for companies and a platform for information sharing concerning blockchain studies.
Performing joint research on the blockchain application and create collective projects for its testing in the
financial sphere.

the unique Decentralised Anonymous Organisation (the DAO) to operate like Blockchain Study Group Deloitte Tohmahsu Group Financial Services Collaboratively testing the technology for uses in bank-to-bank payments.
There are many different blockchains, and each can be designed for different a venture capital fund for the crypto space and built as ‘smart contract’ on Ripple Jaanese Bank SBI Ripple Asia Financial Services Enable round-the-clock settlement at a significant cost reduction to its members and their consumers.
purposes. Access to the platform is determined by the design of the platform, Ethereum blockchain. Consortium The consortium says banks will pay about 90% less in fees.
i.e. whether it is a public or permissioned blockchain, whereby the latter sets a AUSTRALIA ISO/ TC 307 ISO Australia Standards Standardisation of blockchains and distributed ledger technologies to support interoperability and data
specific requirement for participants to access. Both public and permissioned Consortium involving multiple industries continue to dominate the industry interchange among users, applications and systems.

blockchain have useful applications, much like the internet and corporate landscape. What is unique about the blockchain consortium is the ability to MIDDLE EAST Global Blockchain Council Dubai International Financial Centre Authority Government Help UAE authorities and corporations better understand this technology and consider its regulatory implications.
intranets. unite competing businesses in developing the technology. GLOBAL Enterprise Ethereum Ethereum Foundation Standards &Technology Coordinate the engineering of an open-source reference standard and private "permissioned" version of the Ethereum
(tech based) Alliance blockchain that can address the common interests of enterprises while working with developers from the Ethereum
ecosystem.
Blockchain has often been cited for its benefits in providing increased
transparency while reducing cost, but there are many challenges that need to
22 A | TECHNOLOGY SPOTLIGHT Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 23

A recent development arising from the crypto 2. Japan - Decentralise Renewable Energy
community has been the meteoric rise of the Examples
EXAMPLES of OF
Services UsingUSING
SERVICES Blockchain
BLOCKCHAIN Trading PoC:Blockchain
PoC: BLOCKCHAIN for ELECTORIC
for Electoric POWER SYSTEM
Power System
‘Initial Coin Offering’ (ICO) which is also known Kyushu, Japan has joined global efforts to
Finance International Trade Contents Public Sector Authentication Power exchange in community grid line
as ‘token sales’. Intervention from China and other Payments
innovate on improving the distribution and
Digital Trade Chain Media Streaming Transition into Digital ID (Kyushu University and neighbouring municipalities)
governments have brought the regulatory factor to (Veem, Ripple) (KBC, Cegeka Belgium) (Streamium) Blockchain-supported (OneName, Shocard/ trading of renewable energy in a pilot project
Economy Netki) Blockchain based electric power trading
the forefront of this matter. Remittance for Games Dubai Blockchain involving the Kyushu University and community Power Grid Router operates by trading on Blockchain
Developing Country Sharing Services (Xhai Studios) Strategy Verification of grid line.
(Bitpesa) (Voxelnaut) Medicine
Use Cases for Blockchain RideSharing Service Land Title (Block Verify)
Remittance for (LaZooz) Govt of Georgia +
From cryptocurrencies, blockchain expanded Muslim Blockchain has the potential to improve
Bitfury Certification of
its foothold first into the financial sector offering (Abra, Blossoms) Communication Authenticity centralised energy legacy systems through the Community Grid Line Power Grid
Medical SNS UK Digital Strategy (Ascribe/Verisart)
new values under financial technology (fintech) Social Banking 2017
creation of distributed hybrid system involving Router
(ROSCA) (Synereo, Reveal)
Medical Information both large power plants and microgrids
solutions. Blockchain has continued to be explored (BitHealth)
Digital Catapult A campus of
Kyushu Univeristy
Messenger Centre
beyond the fintech areas, as new potential cases Stock Exchange Research powered by distributed energy resources such
(Overstock, Symbiont) (Getgems, Sendchat)
Basic Income Swarm Robotic as solar power.
for the technology expand with the growth of (GroupCurrency) MIT, EC Horizon 2020
Crowdfunding Tokenisation
the technology itself. Many Proof of Concept (Weifund, AtaPlus) Tokenisation Future Prediction Notories
(POC) initiatives such as provenance and supply (Ethereum) (Digital-Antwerp & 3. USA – Protection of National Security High School Park Police City Hall Child Care Civic Centre
(Waves Platform) Future / Market Centre
Ghent) IoT Industrial Base (NSIB) Procurement
chain management crossing many sectors, e.g. Prediction
Storage IoT
automotive, energy and healthcare have been (Augur)
(Adept, Filament)
A paper published the Foundation for Defence Inter-grid
Data Storage
implemented. (Storj, BigchainDB) Distribution Public Sector of Democracies has proposed a new type of Power
Management Generation
Point / Reward Micro Insurance cyber forensics utilising blockchain to improvise Renewable Energy
Heat
Distributed Drone Supply Chain Mgmt Consuelo Energy
While some may see the blockchain technology Registry (Skuchain) Gift Card Exchange legacy systems for acquiring international & Battery Sharing
Cogeneration
(Applied Blockchain) (GyftBlock) Insurance - Engineering Energy
as a disruptor to current businesses, others from Tracking Mgmt (Chaintope)
goods in the identification of the origin of goods
Blockchain Consortium
governments and industries and even societies (Provenance, Luxtag.io) Reward for Artist (Powerledger) used for what it calls NSIB as a defence against
Asset Management (PopChest) (Grid Singularity)
are managing it as a game-changing technology P2P Market Place sabotage.
(OpenBazaar) Power Company
to provide a positive outcome for the beneficiaries. Asset Management Prepaid Card
(Melonport, Alphapoint) (BuyAnyCoin)
Below are some of the examples: Digital Asset Mgmt. Gold storage 4. Dubai – Dubai Blockchain Strategy
& Trading (Colu) (OpenBazaar, Hellogold- Reward Token
Sharia Compliant) (Loyyal)
2017 - The Dubai Blockchain Strategy targets
1. China - Central Bank Digital Currency Land Management to make Dubai the first blockchain-powered
(Landstead, Chromaway) Diamond Ownership
Rather than a piecemeal approach, China has (Everledger) government by 2020. The Dubai government
incorporated Blockchain as part of its 13th estimates that its blockchain strategy has
five-year-plan technology platforms targeted the potential to generate 25.1 million hours of
to provide the country with a game-changing economic productivity each year in savings,
advantage. As one of its early blockchain while reducing CO2 (in full) emissions.
effort, the People’s Bank of China (PBOC) has
created a special team since 2014 to look into 5. Malaysia - HelloGold - Simplifying Purchase
the issuance of the national digital currency as of Gold
a part of its efforts to improve the effectiveness Founded in 2015 and headquartered in Kuala
of control measures by the bank itself in terms Lumpur, HelloGold built the world’s first Shariah
of money supply, tax evasion and money compliant gold digital application that changes
laundering. the way gold is transacted. HelloGold uses the
24 A | TECHNOLOGY SPOTLIGHT
blockchain technology in a state-of-the art
online security system which is supported by
fully audited processes to guarantee proper
ownership of the physical gold and help owners
determine the true value of their assets. As gold
trading, including the pawn system is widely
used in Malaysia, the blockchain technology
could be very useful in the identification and
authentication of ownership of the gold asset.
6. Afghanistan – Financial Inclusion
Ms Fereshteh Forough established the first
coding school for girls in Afghanistan with the
intention to help them strive for financial and
social independence. As an advocate for Bitcoin,
she promoted the use of this technology among
her students for them to learn about financial
independence and inclusion.
Opportunities for Malaysia
While fintech and the financial services industry
continue to innovate by capitalising on the
blockchain technology, Malaysia is also looking at
use cases in other industrial applications that can
elevate the competitiveness of the country. This is
summarised by Datuk Dr. Mohd Yusoff Sulaiman,
President & CEO of MIGHT when he says, “Malaysia
is looking at the digital technologies and how they
interact with each other to create synergy.”
There is an increasing interest in Malaysia to
develop blockchain as a new enabler for the country
in private and public setting, and below are some
of the current local stakeholders in the blockchain
sphere:
There are many challenges that Malaysia can
potentially benefit from blockchain technology
to provide the country with a new competitive
advantage:
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 25
1. Healthcare 5. Energy Distribution
THEMalaysian
The MALAYSIAN BLOCKCHAIN
Blockchain STAKEHOLDERS
Stakeholders Malaysia’s medical tourism is one of the 12 key In anticipation of the rise in domestic use of
SECTOR ORGANISATIONS CURRENT INPUTS economic areas forecasted expected to grow renewable energy and the culture of active
Technology Talent Market Funding Policy Awareness at compounding annual growth rate (CAGR) electricity consumer, often called ‘prosumer’
INDUSTRY ASSOCIATION OF BANKS MALAYSIA of 30.05 per cent over the next eight years, because they both consiume and produce
BLOCKCHAIN ACCESS MALAYSIA reaching some US$3.5 billion before the end electricity, a framework such as the one
FINTECH ASSOCIATION OF MALAYSIA of 2024, according to Transparency Market deployed by Japan and other countries can
COMMUNITY BASED ORGANISATION – Research (TMR). Malaysia can benefit greatly become a benchmark in developing a workable
(inc. ETHEREUM, Blockchain Start-Up KL, NEM )
by deploying the blockchain technology to keep business model for Malaysia that will benefit all
GOVERNMENT BANK NEGARA MALAYSIA
SECURITIES COMMISSION
the medical data transfer safe from theft and the stakeholders, including energy providers tin
PRIME MINISTER’S DEPT -EPU
exploitation. A similar effort is being undertaken developing capabilities in managing energy.
PRIME MINISTER’S DEPT –MIGHT
by The Food and Drug Administration (FDA)
PRIME MINISTER’S DEPT – AIM USA through a collaboration with IBM. 6. Mobility and Transportation
PRIME MINISTER’S DEPT – MAMPU Engine data is a goldmine that can help the
MITI 2. Plants and Plantation Authentication Government in managing the safety and
MOSTI Authentication of plant records can benefit security of users. It can also be deployed to
MOSTI - STANDARDS/ SIRIM plantation crops such as palm oil that manage cargo and others.
MOSTI - MIMOS undergoes the process of Sustainable Palm Oil
MOSTI- CYBERSECURITY certification (CSPO) as well as the monitoring Many have commented that blockchain doesn’t
MCMM of protected plant species such as orchids and solve everything. It is true. What the blockchain
MCMM - MDEC medicinal plants in managing biodiversity. technology has demonstrated is that the problem it
MCMM - JPDP solves is not necessarily the obvious, and that it can
ACADEMIC UNIVERSITI TEKNOLOGI MALAYSIA
3. Monitoring of export items via transhipment work with other technologies as an enabler to help
UNIVERSITI UTARA MALAYSIA
Frequently, Malaysian products are rebranded users achieve their objectives. As it matures, more
UNIVERSITI TENAGA MALAYSIA
as the produce of the transhipment country of this will become apparent.
UNIVERSITI ISLAM ANTARABANGSA
before being shipped to a third country. A
UNIV SAINS ISLAM MALAYSIA
system to identify the source of product can
UNIVERSITI SAINS PAHANG
provide a valuable audit trail for trade data
UNIVERSITI KEBANGSAAN MALAYSIA
collection.
ACRONYM ORGANISATIONS ACRONYM ORGANISATIONS 4. Food Authentication
EPU ECONOMIC PLANNING UNIT MIGHT MALAYSIA INDUSTRY-GOVERNMENT GROUP ‘Halal’ authenticity remains one of the biggest
FOR HIGHTECHNOLOGY
unexplored areas that can benefit from the
AIM AGENSI INOVASI MALAYSIA MAMPU THE MALAYSIAN ADMINISTRATIVE MODERNISATION AND
MANAGEMENT PLANNING UNIT
blockchain features. Durian, and other high
value food and beverage exports can become
MITI MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MOSTI MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION
a proactive method in responding to audit
SIRIM SIRIM BERHAD STANDARDS DEPARTMENT OF STANDARDS MALAYSIA
requirements imposed by other countries on
MIMOS MIMOS BERHAD MCMM MINISTRY OF COMMUNICATIONS AND MULTIMEDIA Malaysian products.
MDEC MALAYSIA DIGITAL ECONOMY CORPORATION JPDP JABATAN PERLINDUNGAN DATA PERIBADI
26 A | TECHNOLOGY SPOTLIGHT Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 27

Automation as a Key Technology Indicator that Change the Construction

TECHNOLOGY SPOTLIGHT Industry
The application of automation technology in support by artificial intelligence is
being seen available in the construction industry. Many technologies, especially
in artificial intelligence are advancing; to evolve machine or robots towards
these inspections are perform manually which is will contribute delay in results
and even worse, the risk taken by human worker could be fatal. Using drones,
wider areas of construction can be covered in a shorter time. In addition to
the coverage, drones have innovative lenses that can capture detailed, close

CONSTRUCTION INDUSTRY – automation which are being applied to reduce human workers’ involvement.
Shaping the Future
However, at the moment, the intelligent machine control is still lacks of flexibility
and accuracy to handle tasks in a complex environment. With the introduction
of artificial intelligence and current innovation on machine learning and
algorithms, the learning curve of machines can be shortened.
up images and send the data in real time to computer systems and intelligent
machines which can provide prompt results through data mining. Once this has
been completed, builders can use the information to perform pre-construction
simulations, allowing them to test various hypothesis and designs, and most
importantly lower the risk of error before breaking ground for the first time.

One good example of automation in the construction is the use of drones in
site inspection. Before a single piece of foundation is built, the construction
site requires a series of inspection to understand various data points, such as
soil, drainage, vegetation and surface space conditions. Once the construction
process starts, further inspections are necessary to ensure the safety of workers,
compliance, quality, progress and other critical data points. Traditionally, all
It is undeniable that the advancement of automation is approaching the
construction industry much faster than expected. The basic hardware and
communication tools in automation has been applied in current practices in
the construction industry. The emergence of artificial intelligence that has the
ability to understand more complex algorithms and also complex computing,
will transformed automation towards autonomous system.

Introduction Technologies in the Construction Value Chain

The introduction of new technologies in the 4th industrial revolution is changing The significant of construction industry to Malaysia’s Economy
the landscape of the construction industry. Even though these technologies are ▶▶ By 2030, the volume of construction output will grow to $15.5 trillion Virtual reality Prefabrication BIM Automated
still at their infancy stage, they are going to impact the construction industry as and modular sorting
worldwide; leading by three countries, China, US and India, which account
whole, including the planning, design, construction, operation and management Parametric design construction Continuos
for 57% of all global growth. – PwC, Global Construction 2030. rendering monitoring Deconstruction
of future cities and communities. The technological transformation to be
▶▶ By 2020, the construction industry is expected to contribute 5.5 per cent to Robots and and control robots
observed in the construction industry will not only involve the component Drones for in site automated
manufacturing and building construction processes, but also in the areas of the Malaysian Gross Domestic Product (GDP), from 4.4 per cent to the GDP
inspection production
architectural and engineering design and building demolition. The introduction in 2015. – RMK 11 & CIDB, CIDB Annual report 2015. systems
of digital tools and robotics in designing the buildings structures physically and ▶▶ The construction industry creates significant opportunities for Malaysia
theoretically (prototype) and its management via business intelligence tools workforce. In 2013, 9.5 per cent of Malaysia’s total workforce are registered
such as virtual simulation, data mining and decision support system are some under the construction industry, where 75 per cent of the workforce are Component On-sites Demolition/
Design Engineering Commissioning Use
examples of these new technological applications. Malaysian. Employees in the industry include professionals such as Manufacture Construction Deco
engineers, architects, planners, and surveyors, in addition to skilled and non-
Various expertise with multi-disciplinary approaches is a must for construction skilled construction workers. - CIDB, Construction Industry Transformation
companies to adopt the emergence of technologies derived from the 4th Programme 2016-2020.
industrial revolution. In order to move forward, the construction companies Automated
need to be partners with start-ups that have the specific technology know-how dimensioning
Autonomous soil
and are responsive to market trends. The construction companies also need to preparation Building automation
Digital Information
work with architectural firms, building material providers and energy providers
to create innovative products. As a result, the construction companies will 3D printing and Predictive
Modeling (BIM) maintenance
benefit from the holistic networking to close the capabilities gaps in adopting Virtual reality robots on-site
the emerging technologies.
Adopted from Lux Research 2015
28 A | TECHNOLOGY SPOTLIGHT
The Changes are along the Value Chain of the
Construction Industry
The emergence of new technology brought upon
by the 4th industrial revolution will bring a major
impact along the construction industry’s value
chain. Most of the emerging technologies are
believed to become the norm in the future as an
inevitable trend. For example, the used of digital
tools with advanced applications such as virtual
reality and advance modelling software will offer
architect a whole new way of designing. The
architectural design process will be simplified
where architect is allowed to integrate properties,
quantities and spatial relationships of the building
components; visualise their design; simulate
building performance; and even estimate
compliance of buildings towards specific standards
such as green building standards.
The introduction of 3D printing will give an impact,
especially in Industrial fabrication of building
components. By combining the architectural
design, modelling with 3D printing, builders can
print prefabricated building components (panels
or modules) and assemble the components on
the construction site. Moreover, on-site work
process will be simplified with the prefabricated
components and the integration of technology
such as digital tools and robotics. Digital tools and
robotics help in facilitating the process by providing
data to the construction workers. The advancement
of software platforms with these technologies helps
contractors to manage projects by utilising drones to
provide 3D maps that detail construction progress
in real time. They also enable the application of
augmented reality to guide workers for installation
and inspection. All the available technologies have
blurred the boundaries of architectural design and
construction.
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 29
The introduction of technologies also impacts the
tail end of the value chain which is the demolition and
recycling. Improvement on building sustainability
TECHNOLOGY SPOTLIGHT
requires both a more efficient demolition process
and better sorting systems. Due to the tedious, dirty
and dangerous nature of the tasks, robotics is a
reasonable choice for the future demolition process
RAIL INDUSTRY –
Rolling Forward Towards
and waste-sorting jobs. Advancement in demolition
robotics such as an integrated system that is
capable of disassembling concrete structures and
separate concrete from rebar and debris is believed
Seamless Journey
to be available in the market and will see more
adoption of the technology in the future.
Conclusion
The influence of the 4th industrial revolution through
its disruptive technologies in the construction
industry is an on-going activity. The impact of
A modern, fast, reliable and clean public transportation system is a catalyst At the end of 1990’s, we build our first urban metro line that is LRT; that connects
technology adoption has changed the process
for growth in a modern city such as Kuala Lumpur. The transformation and districts within the Klang Valley. It did not stop there as we have also invested
and blurred the boundaries in the construction
upgrading of the public transport sector is one of the main criteria outlined in monorails, airport express and most recent, Mass Rapid Transportation or
industry’s value chain. The way of the working
during the 2015 Budget by the YAB Prime Minister Malaysia, Dato Sri Najib Tun MRT. The announcement of East Coast Rail Link (ECRL) and Kuala Lumpur –
environment will shift and people who are involved
Razak. Singapore High Speed Rail project have also brought all global attentions to
in this industry need to adopt towards the changes.
Malaysia.
Finally, even though revolution in technology
It is mentioned frequently in Malaysia’s Government Transformation Program
massively evolved, the contribution of human
and embedded in a Greater Kuala Lumpur vision, to establish a ‘Seamless On 10th October 2014, Najib stressed his commitment to strengthen the public
workers cannot be ignored especially for complex
Journey’ that can reduce congestion and time, while increasing productivity transportation sector offering higher quality public bus and train service. This
judgement and flexibility.
and higher economic growth. will support the economic growth and softens the impact from inflation and
higher fuel costs.
In Malaysia, the public transport transformation program had commenced
since end 90’s when the Government eliminated the mini bus service in Kuala A 130 years’ development
Lumpur. The government had introduced a number of modern and efficient Rail projects and developments are now spearheading the nation’s future
express bus service schemes. Comfortable and cleaner intercity and intra-city towards 2020. From the humble beginning 130 years ago, when the first railway
bus services were also created ensuring better frequency of services. line was built by British in Kuala Sepetang, Perak to Taiping, connecting the
biggest tin mining industry in the world to the international market. The rail line
In the early 1990’s, the era of electric train has finally reach our shores. We had slowly began to connects town to town, state to state, coast to coast and carry
constructed a modern double tracks electrified lines in stages. It became the not only goods but also passengers.
first intercity lines which has now developed and almost completed its northern
to southern connectivity beginning Padang Besar towards the southern From steam to diesel powered locomotives, the railway line in Tanah Melayu
Peninsula. at that time created many new townships and had sparked the beginning of
30 A | TECHNOLOGY SPOTLIGHT
modern urbanization in the country. People began to move closer to the railway
lines, and leaving behind the riverside trails which was originally the connecting
‘highways’ linking old rural villages and remote establishments.
Developed countries has long been prioritising on development of systematic,
efficient, clean and safe public transport for the people. For example, in large
cities such as London, Paris and New York; the population are at ease using
public transport. Even in large Asian cities like Singapore, Hong Kong, Shanghai
and Beijing, the trend is the same.
This trend will contribute to lesser carbon release and minimize energy waste.
This will ensure a better environment with less pollution.
An integrated land public transportation system
The government is committed to offer low cost and affordable public transport
system to public needs based on: -
▶▶ Ensure timely arrivals and departures increasing the public trustworthy;
▶▶ Increase the quality of the public transport;
▶▶ Easy access to public transport;
▶▶ Ensure sufficient capacity to meet current and future passenger demand.
The cities of today should be free of traffic congestion. The cities should be
environmental friendly with many alternative options for public transport as well
as sheltered pedestrians’ infrastructures. Every bus, taxi or train stations should
be interconnected to reduce costs and public access. This will also ensure free
flow and safe access for public.
A number of bus consortium were introduced to replace the previously out-
dated bus services. The infrastructure for train services were being modernised
with modern intercity train service offering higher speed, safety features and
different comfort options. A new intra-city service was also introduced utilising
electrified train and double tracking system known as the Komuter service.
The Komuter train service now connects the Klang Valley connects to the
main satellite towns such as Klang, Seremban and Rawang. This enhances the
economic value and increases the commercial growth rate in these areas.
The other land transport infrastructures include bus, taxi, train, light rapid
transit (LRT), KTM Komuter, KL Monorail, Express Rail Link (KLIA Express,
KLIA Transit) and the MRT, that will be the latest addition. Even Uber system
also is now well received by public and the traditional taxi operators.
Malaysian Technology Strategic Outlook 2017/2018
Colourless Public Transport
Public transportation should not have any social barrier. This means a Company
Managing Director or a Chief Executive Officer Can together share a bus ride
with a labourer, sharing the same facilities. London, Hong Kong and Singapore
are very much advance in educating their citizens to appreciate the public
service. We should see public transport hubs as a common centre, where
we can meet people, socialise and make use of all the facility surrounds the
location.
Common Ticketing System
With the increase in integrated public transportation terminals and stations,
such as the Tasik Selatan integrated terminal; with integrated bus, taxi and train
services; the government should take the initiative to create a one-ticketing
system for all services. The 1Ticket system will offer better value and cost
savings in the long term. This will create a seamless connectivity of a daily
individual journey from home to work or schools to recreational locations.
For example, in Hong Kong, public can use an Octopus cards for any public
land and water transport, as well as for shopping.
Transit Oriented Development
TOD has sensationalise the urbanisation and also channel up the property
industry into a new dimension. Previously in Malaysia, all new townships and
housing development will come in line with any highway projects. We can see
in Peninsular Malaysia, all major new township are all locates alongside the
North South Expressway. With the introduction of TODA concept, developers
and local government has together ventured into developing residential
neighbourhood based on the location of the train stops.
It usually starts as a big multi story complexes which has residential unit on
the upper floor and shop lots on the ground. The best benchmark for this is
Hong Kong, where in every station serves as neighbourhood centre which
has accessibility to residential, workplace, recreation, restaurants, groceries,
market and even banks and post office.
This TOD concept works well with the Generation Y which has completely
unique set of mind. They appreciate accessibility and would like to use public
transport to commute to work and socialise. They may live in Station 1 and
works in Station 13. They will frequently visit their favourite hangouts at Station
5 after works. In the weekend, they will bring their expensive bicycles and went
Malaysian Technology Strategic Outlook 2017/2018
to Station 8 which is near a bicycle trails. The Gen Y completes the end of
urbanisation and migration in Kuala Lumpur. In future, lesser people will travel
long way to their home town for Festivals and celebrations as most of the
Grandpa and Grandma are all residing in Klang Valley.
TOD concept works well with township developers in Klang Valley. TOD also
can be implemented in less density area especially in the area which has
tourism value and recreational facilities. Taman Negara stops along the East
Coast line (Tumpat Line) is a god example where hoteliers should work together
with KTMB to jointly develop a tourist centre complete with hotel, groceries,
supplies and restaurants.
The Made in Malaysia Rail systems capability
The rail industry has altogether RM150 billion worth of projects in the pipeline
towards the year 2030. It consisted of KVMRT2, KVMRT3, LRT3, GEJBDT, ECL,
HSR and countless medium-size projects such as Skypark, Johor Port, and Port
Dickson etc. Local companies has the experiences needed, plus the strength,
capabilities and competencies in all six major spheres in the system works
engineering for rail industry, namely;
i. Signalling,
ii. Rolling Stocks,
iii. Telecommunications,
A | TECHNOLOGY SPOTLIGHT 31
iv. Power & Electrification,
v. Track-Works and
vi. Automated Fare Collection (AFC)
All these 6 spheres are dynamic and has developed over the years in all major
operators’ line. They have migrated from manual to automated, from traditional
to digital, from conventional to driverless. The latest migration was in the LRT
Line 1 and 2, which are now running on Communication Based Train Control
(CBTC). The locals played important part being the partner, the sole distributor,
the installer and system integrators and also as recipients for the technology
transfer.
Locals have proved the excellent delivery with total accountability, by
strengthening the horizontal line of all System Integration Works (consists
of installation, integration and interface). Some local companies have move
further to become Engineering, Procurement, Construction and Commissioning
company (EPCC) and have developed capability in delivering projects in turnkey
basis. It means to have a total vertical project management from the stage of
design, procurement, installing and integration, interface and finally, test and
commissioning. These EPCC companies were previously the active recipient
for the horizontal system integration scopes.
32 A | TECHNOLOGY SPOTLIGHT
Becoming Rail Player with a Towering Personality
To become relevant and significant in the industry globally, rail industry in
Malaysia must stand united and focus to achieve all these capabilities:
i. A combined depot consists of assembly line, work plant, foundry, together
with support from local heavy machinery and plants such as steel,
electronics, mechanical and research based infrastructure. (A concept of
Airbus construction)
ii. A combined integration centres and awesome local System Integrator
(SI) workforce that easily mobilize that can engineered the whole
telecommunication spheres.
iii. A formula to have a powerful financial connectivity that can manage
procurement, risk, testing at site and factory, exchange rate, credit,
commercial and legal as one synergy force.
iv. An establishment of Integrated Project Management Team for the locals
that can manage all engineering and projects work in the EPCC format and
also as a turn-key basis. This enables cost efficiency and reduce wastage
in resources. It promises to respect the equal distribution of portions to the
selected and qualified locals.
Malaysian Technology Strategic Outlook 2017/2018
It is time for the Malaysian rail industry players to play a bigger role as
integrated solution providers and a genuine manufacturer. This initiative should
be supported by sufficient participation in projects and rail developments that
can guarantee positive economic scale. Moving forward, the unity between rail
operators and rail players can spearhead all combining all efforts and equally
distribute the scopes and components to the members, while championing the
reliability and trust from the client and public.
Efforts in localisation
We should simplify the interaction and discussions with the Government to
discuss on the localisation while create more job opportunities for Malaysians.
Concentrate with the major and critical issue with the aspiration to increase
localization by consolidating capacity and capabilities of local rail industry.
This will provide the local companies more opportunities and better chance to
capitalize Government contract.
We can work together to achieve a common objectives and goals. We can
also plan for strategic initiative such as Vendor Development Program and
strengthen the Rail Value and Supply Chains Network.
Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 33
Clustering will distribute companies equally depending on their respective
genuine capabilities and competencies. They may be EPCC, SI, Trader, Vendor,
Distributor, Local Partner etc. This enables more planning and a successful
active involvement in Maintenance, Repair & Overhaul (MRO) scopes that are
usually controlled by OEM manufactures.
The future in Multiple Rail Operators
Generally, we know that the two biggest rail operators in Malaysia that is
Prasarana and KTMB are operating in a very tight budget. There are many
complications that can contradict their vision to move forward. To simplify,
in order to net a handsome profit, an annual increment of ticketing price is a
compulsory. But, rail has always been a nation back bone that move the people,
economy and the country as one. Rail is always about the public and nation.
Therefore, a strategic formula that can guarantee efficiency is needed, and the
best idea is to have multiple rail operators.
Currently, KTMB handles operation of Komuter, Intra-city and freight. Altogether,
it demands a huge investment in operation and development cost. KTMB also
needs to serve the less density sectors such as East Coast Line and manage
the expensive freight operations. Along the ETS route from KL to Ipoh, there are
also a huge demand of local feeder train that stops at selected stations. Sectors
such as Tanjung Malim – KL, Taiping – Ipoh, Bukit Mertajam – Sungai Petani
and Seremban – KL has a steady flow of commuters.
KTMB alone has thousands of freight and cargo wagons that easily transport
Rationalisation of these services will separate the key operation into individual products from Bangkok to Singapore and from Port of Penang to Port of
entity. Freight and passenger must be independently operated. Inter-city and Tanjung Pelepas worth millions of ringgit. Key responsibility of RAC is to ensure
local feeder daily rides and frequency can be increased if managed separately. that the asset is fully mobilise and all non-ticketing revenue aspects reaches
It will then connect with the other land modes such as bus services in Tasik the optimisation.
Selatan or the LRT Lines in KL Sentral.
Prasarana on the other hand owns hundreds of electric trains that serves as
Establishment of Rail Assets Owners the rail backboned in Klang Valley. Prasarana carries an ultimate exposure in
Rail Assets Owner (RAO) such as Prasarana Berhad and Rail Assets advertising and infotainment segment that can be the way forward in E-news
Corporation played an important role in spearheading the rail industry forward. and E-applications.
They are responsible to plan ahead, managing the stations, tracks and fleet
and also to handle non-ticketing revenues. They are the biggest land owners Rail Asset owners can assist the telecommunication and ICT industry forward
under the TOD concept. The stations, tracks, bridges and even empty reserve towards fully enabling the concept of Internet of thing (IOT) – a full concept
land can generate lucrative income from advertising, telecommunication and where every day object have internet connectivity. Public can plan their journey,
rental facility. notification can be sent to their mobile phones with special dedicated apps
and the common ticketing system may support cashless travel. This also will
create a platform for a digital content, currently the Malaysian way forward in
the creative and ICT initiative.
34 A | TECHNOLOGY SPOTLIGHT Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 35

Operators such as KTMB and Rapid Rail, or any other independent organisation development strategy and framework, proposed by China government that
and companies can rent the rolling stocks from the rail asset owners. They will
fully concentrate on the operations side and focuses into ticket collection while
focuses on connectivity and cooperation among countries primarily between
the People's Republic of China and the rest of Eurasia.
TECHNOLOGY SPOTLIGHT
rail asset owners regularly maintain the rolling stocks and stations and invest

ROBOTICS INDUSTRY -
into new development. HSR will travel from Singapore to Bangkok, where it will then travel to Ho Chi
Minh and Hanoi and finally completes the land-based "Silk Road Economic
This practise creates efficiency – enables every individual party to perform
within their boundary. Rail assets owner can invite private funding to jointly
Belt" (SREB) in Kunming provinces. ECRL on the other hand will completes
the oceangoing "Maritime Silk Road" (MSR) connecting the east and west Opportunities Abound
develop TOD. And even to jointly build new stations that will increase the bypassing Singapore. China will then play a vital role in South China seas.
market value of the local township. This is shown in the construction of Kajang
2 Stations in KTMB line.
Both rail projects will establish Malaysia in the world map, linking Malaysia as a
catalyst of transportation growth in South East Asia region. The global market for robotics is
To ensure local growth together with the rail developments We must ready to embrace the impact. Rail transportation brings greater
worth USD16.7 billion in 2014, and the
Limitations such as system intellectual property and industrial standard have connectivity. At the same time, it will bring us closer to development and forecast for industrial robots during
guaranteed an international monopoly in rail industry; particularly in the system
works engineering. We, as Malaysian, have always been too dependent on the
challenges in maintaining our core values and characteristic as a great nation
with pride and sovereignty. the period 2016 through to 2018 is
international system design, hardware, software and the whole engineering
competencies provided by the international brands.
estimated at 15% average growth
per year.
On the other hand, Malaysian companies have successfully only to become
the local entity which received technology transfer and providing system
integration scopes. Little was delivered to us. Much has been taken away
without a balanced program and planning that will enhanced our Malaysian rail
operators and contractors’ capabilities.
INTRODUCTION

Advanced robotics has been recognised as an emerging technology by prepared to face the challenges of Industry 4.0, so as to compete effectively
Therefore, a clear policy such as Industrial Collaboration Program (ICP) has
industry observes around the world. According to McKinsey, advanced against economies equipped with the advantages of advanced robotics and
been successfully strengthen and protect the industry from globalisation.
robotics is ranked fifth among the “twelve potentially economically disruptive automation.
Malaysian industry manages to turn this phenomenon around by actively
technologies”, with a potential economic impact of between USD1.7 to USD4.5
participate in the international scene. We have already exported our expertise in
trillion by 2025. The current macro trend in driving the proliferation of robotics The global market for robotics is worth USD17.9 billion in 2015, and the forecast
rail operations such as in Saudi Arabia, and supporting rail telecommunications
is Industry 4.0. Industry 4.0 is defined as the “digitization of the manufacturing for industrial robots during the period 2017 through to 2019 is estimated at
project in Middle East and South East Asia. Our SCADA solutions are accepted
sector, with embedded sensors in virtually all product components and 13% average growth per year. Forecasts for professional service robots is also
in neighbouring countries such as in Singapore and Indonesia. We have
manufacturing equipment, ubiquitous cyberphysical systems, and analysis of encouraging, with a projected USD23.0 billion worth of cumulated market size
footprints of Malaysian rail system integrations all over Asia, and we aim higher
all relevant data. Among the various enabling technologies for Industry 4.0 from 2016 to 2019, and USD22.3 billion for personal robots in the same period.
– to finally one day, produces our very own electric rolling stocks.
is advanced robotics. Industry 4.0 has already gained industrial acceptance
in developed economies, where 20% of companies surveyed in Germany Under the context of a favourable market condition, this article attempts to
Conclusion responded that implementation of Industry 4.0 measures in their operations examine some encouraging signs of opportunities for robotics, from a local
Until the year 2020, Malaysia will become centre of attractions from global rail
have already begun, while the U.S. is registering about 16% in the same survey. perspective. The intent of this article is to prompt local companies to explore
players with the largest rail projects in South East Asia namely; High Speed Rail
Other developed and developing economies, such as Korea and China are also further on the potential of robotics in their businesses, both as a provider, as
(HSR) and East Coast Rail Line (ECRL). The estimated value of development
forging ahead with their respective implementations. Malaysia, being among well as an adopter of robotics related products and services.
is RM100 billions. HSR charts the expansion of One Belt, One Road (OBOR)
the top 25 leading exporters of merchandise trade in the world, will have to be
36 A | TECHNOLOGY SPOTLIGHT Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 37

OVERVIEW OF THE GLOBAL ROBOTICS MARKET
According to the International Federation of Robotics (IFR), the robotics
market is made up of three categories of robots, namely industrial robots,
professional service robots, and personal (domestic) service robots. Industrial
robots are generally referring to robot manipulators used in industries, such
as welding robots used in the manufacturing of automotive. Both professional
and personal service robots are classified as service robots that performs
useful tasks for humans, which excludes applications for industrial automation.
Professional service robots are intended for commercial use, while personal
service robots are for non-commercial or domestic use. Examples of service
robot applications are unmanned aerial vehicle for plantation surveillance and
automated pool cleaning robots.
In 2015, the world-wide market for robots was worth approximately USD17.90
billion, of which industrial robots contributed 62% (USD 11.13 billion),
professional services robots 26% (USD 4.60 billion), and personal service
robots 12% (USD 2.21 billion). In the case of industrial robots, the reported
USD11.13 billion reflects only the sales of robotic manipulators (robot arms),
whereas the complete robotic systems (including the manipulator, software
and engineering services) is generally valued at about three times the value
Estimated World-wide
Estimated World-wide Robot
Robot Market
Market by by Sales
Value in 2015
Sales Value (USD(USD
in 2015 million)
million)
of the manipulators. Thus, the world-wide market value for industrial robotic SIGNS OF POSITIVE OPPORTUNITIES
systems could potentially be as high as USD33.39 billion.
Ample Room for Industrial Robots in Malaysia
Industrial robots have traditionally been, and still are the dominant force behind Robot density is still relatively low in Malaysia. Robot density is the measure as reflected in Figure 3. These corresponding manufacturing sub-sectors are
the robotics industry. However, the year on year (Y-on-Y) growth in the sales of the intensity of robotic applications in a given sector. It is widely used in the electrical & electronics, motor vehicle and transport equipment, chemicals &
of industrial robots have slowed down in 2012 to 2.6%, from its height of 45.8% Manufacturing sector to gauge the available opportunities for the adoption of chemical products, and food related products. Collectively, they contributed
in 2011. Nevertheless, sales have since begun to pick up in 2014 and 2015, robots related products and services. Robot density is measured by the number 50.8% of the total value added in the manufacturing sector in 2015. This could
registering 12.9% and 3.7% growth, respectively. of robots (applied) per 10,000 employees. According to IFR, Malaysia’s robot indicate that a large proportion of Malaysia’s manufacturing sector (in terms of
density in the Manufacturing sector is about 33 industrial robots per 10,000 value added) is highly suitable for the application of industrial robots.
The market for professional service robots is dominated by three main employees in 2015. Compared to the world-wide average of 69, there are still a
segments, these being the medical, field robotics, and defence segments, lot of room for the application of industrial robots in Malaysia’s manufacturing Therefore, a low robot density in a manufacturing sector dominated by
registering USD1.46 billion, USD1,09 billion, and USD1.03 billion of sales in sector. industries that are highly suitable for the application of industrial robots, could
2015, respectively. Medical service robotics are mostly contributed by surgical potentially be a sign of pent-up demand for robotics and automation products
and rehabilitation robots. Field robots are mostly centred on agricultural Incidentally, the industrial subsectors that consumes the most industrial robots and services in time to come.
applications, such as milking robots. Military service robots are primarily are also among the highest value adding manufacturing subsectors in Malaysia,
autonomous robots, such as Unmanned Aerial Vehicles (UAVs) and Unmanned
Ground based Vehicles (UGVs). Nonetheless, the segments with the highest
growth are robotics for logistics and underwater systems, with Y-on-Y growth
of 52% and 48% in 2015, respectively.
Robotic Densityininthe
Robotic Density theManufacturing
Manufacturing Sector
Sector 20062006 - 2015
- 2015 Comparisons between top value added manufacturing
Personal service robots are primarily for domestic use, accounting for USD2.21 sub-sectors
Robotic Density and
in theleading roboticsSector
Manufacturing consuming industries.
billion sales in 2015. 52.9% of personal service robots were sold to perform No. of Robotics per 10k Workers
Leading Industries that Consumes the Most Leading GDP Contributing Manufacturing
60
Industrial Robots World-wide (2014) Sub-Sectors in Malaysia (2014)
domestic tasks, such as floor cleaning/vacuuming and lawn moving, amounting
to USD1.17 billion. Entertainment and education robots contributed USD1.02 50
52
42.4% 25.7%
billion and elderly/handicap assistance robots contributed USD16.8 million.
49
28.0% 12.7%
40

12% In 2015, the global robotics industry has achieved a remarkable milestone with
sales value reaching a record high of USD17.90 billion. The overall robotics
36
12.8% 10.9%
Personal Service Robots 30
8.8% 7.6%
4,600.2 market grew 7.5% (Y-on-Y). Professional service robot category registered the
3.0% 7.0%
highest growth with 21.7%, followed by industrial robots at 3.7% and personal 20

service robots at 1.4%. Moving forward, the global robotics market is looking 5.0% 36.1%
26%
10
evermore favourable, supplemented by the continuing expansions of robotic 6
4
applications and the pursuit of Industry 4.0. 0.0% 20.0% 40.0% 60.0% 40.0% 30.0% 20.0% 10.0% 0.0%
62%
2
Professional Service Robots 0
2,216.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Automotive Electrical & electronics
Industrial Robots The investment environment for robotics related businesses is much more Electrical & electronics Refined Petroleum
11,133.0
favourable now than decades ago. Investor’s attitudes toward investing in Metal & machinery Chemicals & Chemical Products
CHINA INDIA INDONESIA MALAYSIA PHILIPINES THAILAND Plastic & chemical products Rubber & Plastic Products
robotics have shifted drastically from hesitant to confident, with funding tripling Food, beverages & tobacco Transport equipment
Source: International Federation of Robotics, MIGHT
from USD395 million in 2014 to over USD1.25 billion in 2015, according to Lux Others Others
Source: IFR, MPC, MIGHT
Research. Gauging from the flurry of M&A activities in recent years, and the
World-wide Sales Value: USD17.9 billion entrance of new and financially strong players from the technology space (such
as Google and Amazon), the growing interest in robotics related investments is
Source: Internatinal Federation of Robotics, MIGHT likely to continue for some years to come.
38 A | TECHNOLOGY SPOTLIGHT Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 39

Encouraging Government Policies Professional service robots have made steady in-roads into medical robotics,
Applications of Professional Service
Servic Robots
Robotsinin2015
2015
The need to automate local industries to increase productivity has been echoed Overall, Malaysia’s national policies do promote the adoption and production defence applications, logistic systems, and field robotics (agriculture and
mining). Collectively, the sales values of these application areas have reached
(Sales Values, Sales Growth)
in many policies since the early days of the Industrial Master Plan 2 (1996-2005) of robotics and automation. However, further planning at the sectoral level
– IMP2. Currently, there are several Government policies that promotes the with tangible targets will be required in order to guide all stakeholders in the USD 4.37 billion, and constitutes 95.1% of total sales for professional service
USD millions Year-on-Year Growth (%)
development of automation related products and services, such as the Industrial implementation and realisation of the aspirations set forth in these policies. robots in 2015. Among the various sub-categories, logistic system registered
Masterplan 3 (2006-2020) and the Economic Transformation Programme the strongest growth of 52.3% (Y-on-Y) in the same year. Examples of SALES VALUES
1,600 1,463 60%
professional service robots includes, medical robots to assist in performing 52.3% (USD Millions)
(E&E-EPP13). Other sectoral plans, such as the National Automotive Policy The Malaysian Government appears to be adamant in pursuing the path of 31.8%
1,400
2014 and the 3rd National Agricultural Policy (1998-2010) also touched on the increasing productivity and reducing foreign labour dependencies through surgery, automated guided vehicles for logistic handling, and milking robots for
livestock farming. 1,200 45% SALES GROWTH (%)
need to adopt robotics and automation to improve productivities and reduce automation. Moving forward, as these plans and policies begin to transpire 1,038 1,097
foreign labour dependencies. into programmes and projects for implementation across the 11th Malaysia 1,000 22.6% 23.8%
Plan period, local demands for robotics and automation related products and Personal or domestic service robots experienced the slowest growth in
800 779 30%
Table below is a summary of selected national policies, which are related to services is likely to improve, creating greater opportunities for local companies 2015, despite it being the best performing category in 2014. Among the sub- 16.9% 19.6%
600
robotics and automation. The promotion of robotics and automation can to participate in the provision of robotics and automation products and services. categories, applications for domestic cleaning robots (vacuuming robots),
robots for toys and hobbyists, and robots for educations are the largest sales 400 10.8% 15% Source:
be viewed from two distinct perspectives, (i) the adoption or utilization of 10.1% 224
contributor to this robot category. Collectively these three applications have International
robotics and automation to improve productivity, and (ii) the manufacturing 200
1.5% 4.9% Federation of
of robotics and automation related products and services, where one would achieved 5.29 million unit sales in 2015, and constitutes 97.5% of total unit sales Robotics, MIGHT
0 0%
complement the other. Majority of the national policies analysed emphasises to the personal service robot category. Medical Defence Logistic Field Others
Robotics Applications System Robotics
on the adoption of automation for two main purposes, improve productivity
and reduce dependency on foreign labours. IMP3 and ETP E&E-EPP13, on For industrial robots, the new trend is “collaborative”. The industry is breaking
the other hand, focuses mostly on promoting the production of locally made down barriers through advanced technologies and the newly minted ISO/
automation products and services. TS-15066:2016 safety standards. In the past, industrial robot manipulators
are considered dangerous, as the force exerted by them can cause significant
of Professional
Applications of Personal or Domestic Service
Service Robots Robots in 2015
in 2015
injuries to operators working within the same vicinity. As such, safety standards
Summary of selected national plans and policies, which are (such as ISO-10218-1/2:2006) were enforced to segregate and isolate robot
(Sales Values, Sales Growth)
related to robotics and automation manipulators from human interactions, usually through physical barriers like USD millions Year-on-Year Growth (%)
fences and enclosures. This safety requirement has been limiting the type 40%
POLICIES PROMOTES
of applications for industrial robot manipulators to repetitive, hazardous and 34.4%
1,400 SALES VALUES
heavy lifting jobs that are normally unsuitable for manual handling by human 35% (USD Millions)
Production and
Industrial Master Plan 3 – 2006 to 2020 (IMP3) operators.
Adoption 1,200 30%

11th Malaysia Plan (11MP)

Expending Robotic Applications That said, with the advent of new technologies and new safety standards, robot 1,000 1,173 25%
SALES GROWTH (%)

Adoption Industry observers have identified the extension of use-cases of service robots 52.9%
Strategy Paper 19 – Energising Manufacturing Sector manipulators are now safer and more aware of the environment in which they 1,027
as a key signal that underlies the robotic trends going forward. The industry is 800 20%
operate in. Through advanced intelligence, safety mechanisms (such as torque 46.3%
New Economic Model (NEM) Adoption beginning to embrace the potential of service robots, which are intended for 600 15%
sensing actuators) and friendly human-machine interfaces, small payload
applications outside of the traditional industrial or manufacturing environment.
Economic Transformation Programme (ETP) E&E NKEA industrial robots can now work side-by-side with their human counterparts
400 7% 10%
Production in production lines, without physical barriers or safety concerns. This new Source:
EPP 13: Growing Automation Equipment Manufacturing The advent of new technologies is now enabling new service robotic applications
generation of industrial robot, termed collaborative robots, is likely to expand 200 5% International
to expand rapidly into non-traditional areas, such as agriculture and logistics. 0.9% 17 Federation of
National Automotive Policy 2014 (NAP) Adoption the application of industrial robots into more areas within the production shop 0.8%
This expansion in application is apparent in the remarkable growth of service 0 0% Robotics, MIGHT
floor, and perhaps beyond the factory and into our everyday lives. Robots for Entertainment Elderly & Handicap
3rd National Agricultural Policy (1998-2010) Adoption robots in recent years, as indicated in Figure 4 and Figure 5. Domestic Tasks Robots Assistance

40 A | TECHNOLOGY SPOTLIGHT
Robots Are More Affordable Now
Robots are more affordable now
Traditional industrial robots were mostly procured by large corporations, due
mainly to the high cost of investment and long return on investment (ROI) period.
Instead, the new generation of small payload collaborative robots are more cost
effective, and have much shorter ROI period. As observed by the Financial
Times, “The prospect of being able to pay off the cost of a robot in slightly
more than a year …….. has brought industrial automation to within the reach
of China’s (and Malaysia’s) millions of small and medium-sized manufacturers,
creating the conditions for a productivity surge.”. Studies have also shown that
the return on investment for industrial robots with a 10-year life-cycle is now
down to as short as 1.7 years. With a short payback period and the opportunity
to create a surge in productivity and quality, the investment proposition for the
adoption of robotics and automation is now increasingly attractive and more
attainable by small and medium-size enterprises (SMEs).
About 97.3% of all businesses in Malaysia are made up of SMEs, and there are
about 37,861 SMEs in the manufacturing sector. As industrial robots become
more affordable and their ROI more attractive, a surge in adoption by SMEs
will create ample market opportunities for local system integrators and robot
manufacturers.
TECHNOLOGY SPOTLIGHT
Malaysian Technology Strategic Outlook 2017/2018
CASE
STUDIES
IN SUMMARY
The global robotics market is growing, with double-digit growth experienced in
the last five years, and a total market size reaching USD17.9 billion in 2015. New
robotic technologies are also expending robot applications at a phenomenal
rate, further enlarging the market envelope with professional and personal INNEONUSA
service robots.
Four encouraging signs of opportunities were presented, which could be
the prelude for more possibilities ahead. These signs are, a) ample room for
industrial robots in Malaysia, b) encouraging Government policies, c) expending
robotic applications, and d) robots being more affordable now.
Market opportunities for Malaysian robotic companies is abound, both
domestically and internationally. As Malaysia strives to automate her industries
to improve productivities and reduce foreign labour dependency, more market
opportunities will be created. However, a comprehensive robotics sectoral
plan is required, if Malaysia is to pursue robotics and automation as a strategic
industry to stay competitive.
The future impact of robotics and automation is likely to be far-reaching, from
addressing national challenges to the possibility of creating a new and strategic
industry. As the world strives to win the race for Industry 4.0, Malaysian industries
must rise up to the challenge, and embrace this new era of industrialisation.
42 A | TECHNOLOGY SPOTLIGHT
TECHNOLOGY SPOTLIGHT
CASE STUDY 1
GRAB
THE COMPANY
Grab began as a taxi-hailing application in 2012,
but has extended its product platform to include
private car services (GrabCar), motorcycle taxis
(GrabBike), social carpooling (GrabHitch), last mile
delivery (GrabExpress) and many more. Grab is
focused on pioneering new commuting alternatives
and for drivers and passengers with an emphasis
on speed, safety and reliability. Started as GrabTaxi,
a mobile application that assigns available cabs
nearby to commuters using mapping and location-
sharing technology, the business has grown to
become Southeast Asia’s largest taxi-booking
mobile application. Grab currently offers services
in 39 cities across 6 countries, with over 710,000
drivers in its network.
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 43
CASE STUDIES
THE TECHNOLOGY MARKET POTENTIAL
GrabTaxi is capitalising on the popularity of ride-
sharing services that are sprouting up worldwide $25 BILLION MARKET FOR TAXIS, CARS, MOTORBIKES AND DELIVERY IN SE ASIA
to meet growing demand for better ways to catch a
cab in major cities. Instead of flailing unsuccessfully
during rush hour or in bad weather, commuters
can use GrabTaxi to track the assigned taxi on
HIGH POPULATION Population of more than 620 million accross
the region - larger than the entire EU or
the smartphone as it arrives by curb side. The DENSITY AND DEVELOPING North Amrica.
application is available in Singapore, Malaysia, PUBLIC TRANSPORTATION 12 megacities accross SE Asia (population > 2 million),
Thailand, Vietnam and the Philippines, and has INFRASTRUCTURE including 4 cities larger than NYC.
250,000 active users and more than 25,000 drivers.
Grab is rapidly growing a multi-modal transport IDEAL WIDESHARING GROWING CONSUMER BASE AND
platform and proprietary payment system across
Southeast Asia.  With over 36 million mobile
MARKET INCREASING USAGE OF ON-DEMAND
downloads of the Grab app to date, Grab has 95% Car ownership ranks among 70 cars per 1,000 people in SE Asia SERVICES
market share of third-party taxi-hailing apps and the lowest in the world. compared to 103 in China and
574 in United States. SE Asia middle-class expected to double
more than 50% market share in private cars in the by 2020 to more than 400 million people,
markets in which it operates. As Grab develops compared to China’s expected 600 million
its products, it leverages a model of distributed in the next 10 years.
engineering teams to access specific sets of
expertise in each of its R&D centres around the Strong emergence of online to offline (O2O)
world, such as machine learning, predictive data services due to increasing smartphone
penetrations, whihc is expected to double
analytics, mobile-first technology, and consumer- in the next five years in Indonesia and the
focused user experience. Philippines, and exceed 100% in Malaysia
and Singapore.
44 A | TECHNOLOGY SPOTLIGHT Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 45

TECHNOLOGY SPOTLIGHT CASE STUDIES

CASE STUDY 2
iPROPERTY GROUP LTD
iPropertyIQ

THE COMPANY THE TECHNOLOGY MARKET POTENTIAL

iProperty focuses on developing and operating
leading real estate portals and delivering the most
comprehensive set of related real estate services
and project marketing across the Region. The
company operates property portals and delivers
advertising solutions to its advertisers in the
markets of Malaysia, Indonesia, Hong Kong, Macau,
Singapore, India, and the Philippines. Its property
portfolio also includes iProperty Buyers Club, a
group buying Website that offers property buyers
and investors a platform to get property deals;
iProperty.tv, the regions first video-only property
website; and CommercialAsia.com, a commercial
property website. The company also operates
property expos and publishes a property magazine
targeting the English-speaking segment of the local
market.
Property has the largest property portal in Asia
and has been gathering enormous amount of data
since it was established in 2007. It has designed
a Big Data division to lead its Big Data initiative.
The division is entrusted with creating value from
iProperty-owned data since it was formed in late
2014, and to observe at ways to use Big Data to
boost the Group’s leadership position in Asia.
Previously, the organisation had issues attaining
insights from the large amounts of data collected. It
was an uphill task in manipulating and utilising the
data effectively which took a long time to perform
manual interpretations of the large amounts of data.
As a result, iProperty could not effectively provide
property trends and carry out real estate market
research. Therefore, iProperty leveraged several
Big Data technologies and data warehouses. With
an average of 1.5 million user behavior transactions
collected daily, iProperty needed a proper data
warehouse system and sufficient computing power
to analyze all the data.
The Cassandra Google’s BigQuery
Southeast Asia is the world’s fastest-growing
real estate market with a population of more than
Database Platform
500 million people. Currently, iProperty group known for its scalability and high real-time data streamed will enable
owns portals that are market leaders in Malaysia,
performance capability. access and manipulating the data
efficiently.
Thailand, Indonesia, and the Hong Kong region, with
a popular portal in Singapore. Digital advertising
and property markets are probably going to stay
solid into the future with Asian economies growing
at double or triple the rates of their Western Microsoft’s Azure Tableau
counterparts. iProperty’s potential is noticeable if MachineLearning combine variety of data sources to
it is ready to make an interpretation of first-mover
perform prediction with the data provide rich analysis, while creating
favorable circumstances into predominant sites powerful and interactive visualisations
collected for better understanding
that advantage from a network effect of attracting on cunsumers needs. that provide insights into property and
the most buyers and sellers. consumer trends in Asia.

iProperty’s Big Data product is called iPropertyIQ

and it is a critical enabler for all aspects of its
business where Tableau is an important tool to
help present the analysis effectively. Effective
visualisation is extremely important to present
analysis in an easy to understand manner to make
an impact on the audience.
46 A | TECHNOLOGY SPOTLIGHT
TECHNOLOGY SPOTLIGHT
CASE STUDY 3
INNEONUSA
THE COMPANY
InneoNusa Sdn Bhd is a joint venture company
between Telekom Malaysia Berhad (via its
nominee VADS Lyfe Sdn Bhd), UEM Sunrise Bhd
(via UEM Land Bhd) and Iskandar Investment
Bhd (via Iskandar Innovations Sdn Bhd). It is
the establishment which will provide managed
ICT services and Smart solutions to real estate
developments in the Iskandar Puteri Johor. Smart
Services provided by InneoNusa cover Smart
City and Smart Building services which include to
build, provision and manage the Smart Building
services. For Smart City services, InneoNusa
designs, builds and operates services that cover
safety and security services and energy and
facility management. The partnership reflects the
dedication and commitment of key stakeholders in
Iskandar Malaysia to create a vibrant and attractive
business and lifestyle environment. They help to
transform Iskandar Malaysia into a global player in
innovation and sustainability.
CASE STUDIES
THE TECHNOLOGY
Smart City Iskandar Malaysia is an added-value-
enabler, and an initiative aimed at providing ease of
doing business, as well as to improve living quality
in Iskandar Malaysia. The framework focuses
on 3 areas namely Economy, Environment and
Social and promotes 6 dimensions namely Smart
Economy, Smart Governance, Smart Environment,
Smart Mobility, Smart People and Smart Living.
With the centralised command centre in Iskandar
Puteri, Johor, Inneonusa will be able to provide
a single nationwide monitoring dashboard to
coordinate operations of smart services involving
physical devices and sensors, vehicles, buildings as
well as incidents and events which is the first ever
in Malaysia.
The objective of Integrated Operations Centre
(IOC) is to manage the operations of smart services
nationwide such as smart ICT, safety and security,
smart mobility, city-wide services, energy and
facilities management, digital signage as well
as citizen portal. The application of Integrated
Operations Centre (IOC) is for Internet of Things
(IoT) operations of Smart City services. A smart
city operates via people, embedded electronics,
software, sensors, and network connectivity that
enables the data to be collected, exchanged and
analysed into valuable and timely information at
the IOC. The IOC in turn, provides 24/7 support
Malaysian Technology Strategic Outlook 2017/2018
throughout the year via Artificial Intelligence (AI)-
based proactive monitoring with services such as
situational awareness, smart services analytics,
emergency response as well as alarm management.
The efficiency of the IOC relies on the information
and communications by a large pool of sensor
network. This means optimising a city’s operations
to make it a better place to live, work and play for
its community.
Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 47
MARKET POTENTIAL
Smart Services which are knitted together by the
IoT offer the prospects of people and businesses
doing more with less in enhancing safety and
security to create sustainable and privileged
communities. Smart City Iskandar Malaysia brings
about vast benefits to the locals in the form of job
and business opportunities and improved quality
of life that includes better healthcare, educational
services, and both hard and soft infrastructure. It
tackles modern urban challenges and transforms
the quality of life and economic growth in building
smart, connected and inclusive communities in all
five flagship zones – state capital Johor Baharu,
Nusajaya, Western Gate Development, Eastern
Gate Development and Senai-Skudai to help
propel the country into a First World economy
under a 20-year blueprint.
In Iskandar Puteri, these smart services are for
the various property development projects owned
by UEM Sunrise and IIB such as Puteri Harbour,
East Ledang, Ledang Heights, Gerbang Nusajaya,
Southern Industrial and Logistics Clusters (SiLC),
and EduCity. The integrated operations centre in Iskandar Puteri employs technologies for safe cities.
Source: The Star Online
48 A | TECHNOLOGY SPOTLIGHT
TECHNOLOGY SPOTLIGHT
CASE STUDY 4
JOBSTREET.COM
THE COMPANY
JobStreet.com was founded in Malaysia in 1997 to
improve lives through better careers and now is
part of SEEK Asia which leads the online market
place in Asia. The local service is centered around
local presence, knowledge and insight with about
150 local employees in which it operates. With
understanding and insights on each market, as
well as passion for technology, JobStreet aims to
provide jobseekers with the best opportunities and
deliver exceptional values to employers.
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 49
CASE STUDIES
JOB TALENT
ADS SEARCH
Attract great talent Search and connect with
effectively via Richer Job Ads the right talent instantly
THE TECHNOLOGY MARKET POTENTIAL
Total
JobStreet.com offers a comprehensive suite of The region, with a combined population of over Talent
Sourcing
100 million
interactive recruitment services and maintains half a billion, is one of the most populous regions in
the largest database of jobseekers by far and the the world thus making it a highly potential market Solution
pool of talent continues to grow. At the same time, where direct recruitment is becoming less attractive
JobStreet has the dominant share of the recruitment
talent than recruitment via a website. Thousands of jobs
market and is the trusted recruitment partner to are currently offered on websites, so promoting
majority of recruiters in Malaysia and Asia. 375 million the company’s brand name is the main factor in
attracting high-calibre candidates while reducing
EMPLOYER BRANDING
SERVICES
SIVA RECRUITMENT
CENTRE
The big data analytics technology is changing the
monthly visits turnover and recruitment costs for a company.
Promote Employee Value Manage talent Job Ads and
Proposition (EVP) and Talent Search via an
6000
interaction between candidates and employers in attract the best talent Integrated platform
recruitment to the benefit of candidates. Enterprises Nowadays, the recruitment is impacted by the
will face a lot of difficulties in recruitment if they
global resources following which shaped the talent sourcing
Source: JobStreet.com
don’t change their recruitment methods. By landscape:
applying technology in recruitment, high growth in serve over 1. Mobile explosion – how to best engage talents
90,000 employers
using smartphones means candidates can access on the go?
job opportunities easier. 2. Candidates are no longer active or passive – they
3.4 million
are constantly monitoring
The success in Malaysia is accentuated by the 3. Candidates are motivated by more than just
candidates trusted JobStreet
many awards and accolades presented on a salary
with their talent profiles
national and regional level. JobStreet is known as 4. HR today is being pressured to do more with less
Asia’a 1st Richer Job Ad/ Company Profile, 1st salary
matching and 1st mobile application recruitment
provider. Continuously investing in product and
By providing great local service centered on local
presence, knowledge and insights, proactive
93% of talents use the service for
job searches and applications
89% top of mind brand mention
technology to deliver innovative solutions while customer service and training, JobStreet is
addressing marketplace dynamics through delivering 48% of job placement or eight times
integrated sourcing, collaborative screening and more compared to any talent sourcing channels.
amongst the Malaysian talents
end to end EVP, Jobstreet established a Global
Development Centre in Kuala Lumpur.
50 A | TECHNOLOGY SPOTLIGHT
TECHNOLOGY SPOTLIGHT
CASE STUDY 5
VEHICLE TELEMATICS ONLINE SERVICES (VTOS)
THE COMPANY
VTOS is a next generation insurance telematics
service provider and Big Data company focussed on
safety for all road users and with a mission to save
lives. A wholly Malaysian-owned company with
an international patent on its insurance telematics
system and the first commercially operating
insurance telematics provider in the country. VTOS
is the partner to the Malaysian Motor Insurance
Pool (MMIP) which has the participation of all the
insurance companies. VTOS is recognised by the
insurance industry as an important component of
their risk management tool.
Driving Nature Applied Risk Profile (MyDNATM)
provides the basis for the computation of dynamic
and personalised motor insurance premiums in a
de-tariffed market covering all types of vehicles
including cars, goods vehicles and buses. This true
measure of your driving nature can significantly
bring down the cost of insurance cover by not
relying on static traditional demographics and
social data to calculate your premium. Your
premium is dynamically calculated based on your
unique driving nature and risk profile.
VTOS’ additional services include IoT Architecture
support and Big Data Analytics (data mining,
predictive analysis) towards trend spotting, policy
making and accident forensics (investigation,
CASE STUDIES
fraud detection). By shaping and improving driving
nature, VTOS makes driving safer for road users,
insurance more affordable whilst providing 21st
century connected mobility.
THE TECHNOLOGY
Today we live in a connected world and this is
only going to be more so tomorrow. The world is
switched on and everyone wants fingertip access
to everything. Businesses and corporations have
to change to fulfil this need or be forced out of
existence. Data is the next oil. Personal preferences
are all captured in the cloud today except the true
driving nature – not just what sort of driver you are
but who and why you are the driver you are. VTOS’
Driving Nature Applied Risk Profile (MyDNATM) is
the first and only technology that does this today,
in real-time, finally allowing for truly dynamic and
customised motor-related insurance.
MyDNATM is an objective gender-neutral measure of
a driver’s risk appetite which reflects how the driver
handles the vehicle, anticipates and responds to
road signage, layout, traffic, weather conditions,
including adherence to gazetted speeds, emergency
lane use, etcetera which generally go undetected
due to limitations of current enforcement.
Malaysian Technology Strategic Outlook 2017/2018
MyDNATM is the world’s first insurance telematics
solution that contextualises a driver’s behaviour
taking into account surrounding environmental and
situational data to determine and derive the driver’s
risk appetite at that instance i.e. their true ‘driving
nature’.
MyDNATM captures and processes data over a
thousand times every second for a more accurate
reading of driving nature and to very accurately
detect real crash events. All data are transmitted in
real-time to back-end system.
VTOS’ proprietary algorithms process all these
data against simultaneous Cloud data as well
as Driver ID data which gives context to all our
measurements to compute the driver’s unique
Driving Nature Applied Risk Profile (MyDNATM)
score. This translates into a more reliable and
accurate measure with which insurance companies
are able to use to tailor a dynamic and customised
motor-related insurance.
Additionally, MyDNATM provides Advanced
Crash Detection & Reconstruction by analysing
its highly granular real-time data triggered by a
G-force event to determine whether the event
is a crash or not, in order to alert the Medical &
Emergency Services. Specially-developed vehicle
Malaysian Technology Strategic Outlook 2017/2018 A | TECHNOLOGY SPOTLIGHT 51
type specific algorithms and protocols accurately developed technologies (patent pending) that will
to identify the difference between a false alert
and real collision. This provides the insurance and
integrate specific driving pattern recognition such
as drunk driving and distracted driving. On the
loss adjusting industry with accident forensics – latter, with level two and three autonomous driving
in conjunction with the current practice of using coming online in the more advanced markets,
governments – specifically regulators – and insurers
anecdotal accounts from eye witnesses and on-
site investigations – revolutionising the industry’s need to have a real-time measure of human drivers’
claims management and control. performance/nature i.e. real time spatial awareness
now more so than before.
VTOS’ own-developed ‘Near Me’ Technology
allows our system to identify and correlate the
Expanding its use to the government and other
stakeholders, the implementation of a MyDNATM
locations/speeds of other MyDNATM equipped
data repository can provide countries with
vehicles nearby to identify speed and/or driving
comprehensive national data on commercial
abnormalities. This works especially effectively
drivers’ driving, vehicles’ and roads’ usage and
with our proprietary Mapping Capability that allows
traffic profiles which can be used for a variety of
correlation of vehicle speed to gazetted road speed
purposes as well as for data analytics to provide
to better identify speeding incidents. Finally, couple insights into the transport industry, policy-making
this with Differential GPS Technology allowing
VTOS to further identify appropriate lane usage of
and to help resolve many of the current issues
faced.
the vehicle (e.g. emergency and overtaking lanes).
The immediate to longer term benefits would be
improved road safety for the various road users and
MARKET POTENTIAL reduced loss of lives and injuries.
The primary target markets are those countries
whose insurance industry have been recently
liberalised and those which have high accident
and fatality rates such as those in Africa and South
Asia. The incorporation of the various technologies
makes MyDNATM highly innovative as it is able to
cater to the various regional driving habits and
attitudes as well as the common lack of driver
training. Many new drivers in these countries would
have had little or no training on road etiquette nor
on economics of safety.
At the same time, the greater target is the global
motor insurance market of developed countries.
First world needs of on-demand connectivity,
tailored products and services create the perfect
opportunity for MyDNATM. VTOS has further
 PART B
MALAYSIA
HIGH TECHNOLOGY
ECO-SYSTEM

Competitiveness in the fourth
industrial revolution depends on
the vibrancy of the technology sector
especially in high technology. A healthy high
technology sector is an engine for innovation
that can give Malaysian companies the
advantage of participating in a highly
competitive environment.
Malaysian Technology Strategic Outlook 2017/2018
Malaysian High Technology Industries:
A Rendition of Its Journey
The Malaysian high technology industries began
in the late 70s with a major policy shift to the
country’s manufacturing or industrialization
strategy. It re-introduced the Import Substitution
Industrialisation (ISI) strategy as the second phase
of the manufacturing-based industrialisation
development strategy. But its re-introduction
was not without a twist. It focused prominently
on investments in heavy and high-technology
industries.
The export-oriented or export-led industrial
development approach, aggressively adopted
in the 70s, was not abandoned either but will
be assisted with ISI with some tweaking. It still
remained as one of the main strategic moves for
national economic development. This was because,
in spite of its immense contributions towards rapid
economic growth and development, the export-
led strategy has some severe shortcomings to
country’s sustainable economic development.
Heavy investments made by companies, especially
the multinational companies (MNCs), were
predominantly in the low-wage and labour intensive
assembly manufacturing activities that did not
require highly skilled labour. Further, the industrial
linkages, supposedly to be developed through
investments by the multinational companies
(MNCs) with the local companies, remained weak
and insignificant. Its lack of technology transfer
to the domestic companies was another cause of
concern among policy makers.
In late 1970s, the government decided to embark
on a grand scale a heavy industrial development
B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
programme, mirrored to the ones in South Korea.
The idea was to promote indigenous development
of high-tech cum-heavy industries in the country
and foster industrial linkages, much lacking in the
country. This turn of event led to the formation
of Heavy Industries Corporation of Malaysia
(HICOM) in 1980 to spearhead the heavy and high
technology industrial development in the country.
The programme has spurred the developments
of these industries in many sectors including the
automotive, steel industry and cement supporting
the national industrial agenda in the key areas
of high technology and heavy industries, the
Scientific and Industrial Research Institute of
Malaysia (SIRIM) and  the Malaysian Institute
of Microelectronic Systems (MIMOS) were
established in 1975 and 1985, respectively. SIRIM
served as a national organization for standards
and quality developments will also act as a national
R&D centre in promoting technological excellence
in the Malaysian industry. While MIMOS, poised to
be a premier R&D centre in ICT, will support applied
research in frontier technologies, and to transform
the landscape of the Malaysian indigenous
industries.
In 1986, the Government implemented the First
Industrial Master Plan (IMP1:1986 -1995). IMP1 has
laid down the foundation for the country’s industrial
and technological developments, leading to the
expansion of the manufacturing sector. To support
it, other technology-related agencies were created,
namely, the Malaysian Technology Development
Corporation (MTDC -1992) and the Malaysian
Industry-Government Group for High Technology
55
(MIGHT -1993). Though not in the same breath and
focus as compared to SIRIM and MIMOS, these
newly formed agencies are promoters to hasten the
development of indigenous technologies as well as
the development of a high technology industry in
the country.
A decade later, the Second Industrial Master
Plan (IMP2:1996-2005) was unveiled. With its
two key thrusts, ‘Manufacturing Plus-plus and
Cluster-based Industrial Development’, IMP2 has
reinforced and deepened the development of the
manufacturing sector. It led to the to the increased
of value-added activities, enhanced productivity,
greater industry linkages as well as facilitate the
growth of manufacturing-related services. It was
also during this IMP period, the Multimedia Super
Corridor (MSC) initiative was announced and the
Multimedia Development Corporation (MDC) was
incorporated to manage the mammoth project.
As an international test bed for local and global
ICT, telecommunication and media companies to
locate their research and development (R&D) and
advanced production activities, the MSC initiative
laid the foundation for the development of the
country’s digital economy. The last year of IMP2 saw
the formation of the Malaysian Biotech Corporation
(now known as Bioeconomy Corporation), which
is responsible for facilitating the growth and
the development of the biotechnology-based
companies. Apart from these companies creating
greater demand for skilled knowledge workers in
the biotechnology industry, they also assisted in the
progress of the national bio-economic initiatives.
56 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 57

In retrospect, the period of IMP1 is akin to the

era of the second industrial revolution with mass
Yet a big question remains: Has the country
embraced the spirit of Industry 4.0? As reported in
country is also geared up for it since it being ranked
11th in the world (2014). According to World Bank
High-Technology
High-Technology Exports
Exports Yet, arguably a big portion of ‘Made in Malaysia’
high technology exports are not actually the real
Hence, strengthening technological innovation
with a focus of creating own brand name apart
production at its core. While the period of IMP2 is the ‘2016 GE Global Innovation Barometer’ recently Malaysia is the 11th world largest exporter of high
(currency in
USDUSD billion)
billion) “Malaysian-made” products. Most of them are from adding value in the manufacturing sector is
sort of reminiscing the age of the third industrial - ‘a significant number of Malaysian executives are technology products (see Table 1). With USD63.38b produced either by multinational corporations the way forward. Now is right time for the country,
revolution with greater automation and rising more positive about entering the fourth industrial worth of technology exports in 2014, Malaysia’s Country 2014 (MNCs) operating in the country or by domestic after constantly maintaining a relatively high global
application of the digital technology. These two revolution as compared to their peers globally’. This achievement is a testimony of its technological 1. China 558.61 companies as contract manufacturers, as alluded competitiveness ranking and having successfully
industrial transformations, having successfully positive perception has strong ties with country’s prowess though still much behind the top three by the former Malaysian Prime Minister, Tun Dr. developed its STI competency in the recent
made their marks in Malaysia’s industrial state of readiness. Moreover, if international global exporters of high technology, namely, China 2. Germany 199.72 Mahathir Mohamad. Currently, the presence of years, to leverage on the presence of FDI through
developments, in particular to high-tech and heavy competitiveness rankings serve as indicators for an (USD558.61b), Germany (USD199.72b) and Hong 3. Hong Kong 192.72 the Original Design Manufacturers (ODMs) in acquisitions and operations of foreign technologies
industries, in the last three decades, are currently economy relative state of readiness for industry 4.0, Kong (USD192.72b). In short, Malaysia has made the country are few and far in-between. It is even apart from strengthening its current R&D
being spiced up with a touch of Industry 4.0 that is then it is evidently clear that Malaysia is ready. great strides in high technology industries in the 4. United States 155.64 rarer in the case of Original Brand Manufacturers capabilities. More importantly, while propelling
going to revolutionise the world in future. past. 5. Singapore 137.37 (OBMs). It is noted that past efforts have contributed itself to move up the value chain and to catch up
Further, if high-tech exports are used as another to the development of a big pool of OEMs rather with more advanced countries in industry 4.0, it
Arguably, the current IMP3 (2005-2020) is already indicator for state of readiness, obviously, the 6. Korea 133.45 than the developments of ODM or OBM despite must now strive to produce a number of indigenous
entering the path of the fourth industrial revolution. 7. France 114.70 numerous policy and incentives measures have MNCs with market and technical supremacy in the
Artificial intelligence (AI) and Robotics, cloud been implemented by the government in the fields like biomedical science, robotics and aviation
computing, the Internet of Things (IoT) and the like,
including advances in biotechnology are some of the
INTERNATIONAL COMPETITIVENESS
International Competitiveness
8. Japan 100.95 past. Therefore, it is not surprising then that the
OEMs account for a large majority of Malaysian
which are high-tech in nature.
9. United Kingdom 70.65
areas that have actively been stimulated in recent manufacturing outputs and exports in the country
years. IMP3 with the theme ‘Malaysia – towards WORLD BANK WTO 10. Netherlands 70,.31
global competitiveness’ reflects the country’s 11. Malaysia 63.38 Considering the path-dependence nature of
natural progression of becoming a high income
DB (Doing Business by WB) ITS (International Trade Statistic) innovation for most developing countries including
and advanced economy by 2020 through greater
2016:18 (189) Leading Merchandise Exporters - Extra EU 12. Switzerland 55.91 Malaysia, the local technological capabilities
utilisation of technology and heavier emphasis on
2015: 18 (189) 2014:17 (5) deepened as firms or industries moved along
2013:19 (50) 13. Mexico 49.40
product or process improvement via R&D. the value chain from simple sub-contracting
14. Belgium 43.70 assembly roles to ODM or OBM. Malaysia has
In this regard, Malaysia’s future global IMD, SWITZERLAND INSEAD, FRANCE 15. Thailand 34.99 indeed demonstrated its technological capabilities
competitiveness in the fourth industrial revolution in making those high technology products and
depends on the vibrancy of the technology sector WCY (World Competitiveness Yearbook) GII (Global Innovation Index) 16. Canada 31.55 exporting them. More so, the high technology
especially in high technology. A healthy high 2016:19 (61) 2015:32 (143) 17. Vietnam 30.86 exports are products of high R&D intensity
technology sector is an engine for innovation that 2015:14 (61) 2014: 33(142) produced by such important industrial sectors as
can give Malaysian companies the advantage of 18. Italy 30.74 aerospace, computers, pharmaceuticals, scientific
participating in a highly competitive environment. 19. Philippines 23.84 instruments and machinery. Without the highly
The New Economic Model (NEM) which is the basis trained-workforce, the domestic high technology
of all development plans, centres on effort to bring
WEF, SWITZERLAND WEF, SWITZERLAND 20. Czech Republic 23.08 industry will not thrive and Malaysia will not make it
Malaysia closer towards its goal of becoming a high- as one of the top producers and global exporters of
GCR (Global Competitiveness Report) GITR (Global Information Technology Report)
income nation that is both inclusive and sustainable Source: World Development Indicators (WDI), July 2016 high technology products.
2015: 18 (140) Networked Readiness Index
by 2020. It will thus require a higher level of quality 2014: 20 (144) 2016:31 (139)
investments and boosting of the private investment 2015:32 (143)
in higher value-added industries.
58 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 59

High Technology Incentive Approval by Industry, 2010 - March 2016

Malaysian High Technology Industries: A Rendition of Its Journey MANUFACTURING Scientific & Measuring Equipment
Manufacturing
PROJECTS Electronics & Electrical Products
Incentive and Financial Support Projects
APPROVED Approved
HIGH
Machinery Manufacturing

Several methods of financial assistance and support are accessible for the List of Ministries & Government Agencies Providing
Under The MIDA High
TECH INCENTIVE
Plastic Products
Rubber Products
industry players in Malaysia e.g. funding, grants, Public Private Partnership
(PPP) and incentive packages. These financial assistances are offered to
Financial Assistance Technology Incentive
(2010 - MARCH 2016) Chemicals & Chemical Products
qualifying companies in various industries; and many are involved in high 0 200 400 600 800 1000 1200 1400 1600
R&D Funds & Grants RM Millions
technology. Figure 1 illustrates plainly the relevant ministries and government Total Investment: RM3.28B
agencies that provide the respective funding, grants and/or incentives to foster Domestic Investment: RM1.75B Chemicals &
Chemical Products
Rubber
Products
Plastic
Products
Machinery
Manucfacturing
Electronics & Scientific &
Electrical Products Measuring Equip.
mostly specific areas towards overall business growth specially to encourage
Foreign Investment: RM1.53B 2010 0 0 0 0 159,382,417 667,920,000
and assist research, development, commercialization, and innovation activities.
2011 15,810,100 0 3,216,000 0 668,195,060 0
One of the key agencies involved is Malaysian Investment Development 2012 0 0 0 33,646,089 58,677,770 0
Authority (MIDA), which has been continuously promoting the high technology Funding Agencies
2013 238,084,000 150,000,000 52,990,000 19,448,262 167,263,071 332,018,403
industry. Under the Incentives for High Technology Projects (Refer Figure 2 for 2014 0 0 0 0 162,721,019 345,837,000
the approval indication), high technology companies i.e. companies which are
2015 0 0 0 0 39,284,082 0
engaged in promoted activities and/or in the production of promoted products;
Jan-March 2016 0 0 0 0 0 164,255,708
in areas of new and emerging technologies below are eligible to apply.
Foreign & Domestic Investment on High Technology, 2010-March 2016
1. Advanced materials-Nano particles and their formulations Other Incentives Chemicals & Chemical
100% 2010 Products
2. Design, development and manufacture of: Advanced connectors, Advanced 90% 2011
Scientific & Measuring 7%
display, Advanced electronic components, Advanced semiconductor 80% 2012 Equipment
devices, Advanced substrates, Data storage devices or systems, Digital Rubber Products
entertainment or infotainment products, Electronic machines and
70% 2013 35% 12%
60% 2014
equipment system or devices, Electronic security and surveillance Source: MIGHT Analytics Plastic Products
systems or devices, High-density modules or systems, Information
50% 2015 Employement 1%
and telecommunication products, systems or devices, Optoelectronic Apart from the incentives offered by MIDA to all foreign and local investors, 40% Jan-March 2016 Total: 7516
equipment, systems or devices each State Government also has within their own development plans; additional 30% Machinery
initiatives to assist interested investors and/or companies. These initiatives 20% Manufacturing
3. Development and manufacture of: fine ceramics or advanced ceramics, are supported by corridor development authorities in accordance to their 10%
Electronics & Electrical 2%
high strength composites, polymers or biopolymers respective regions and focused sectors/industries as shown in Figure 3 below. Products
0%
The five economic corridors are initiated to bridge development imbalances Domestic Investment Foreign Investment
43%
4. Development, testing and manufacture of: bio diagnostics, fine chemicals, throughout the country, and have certainly been pushing forward the country's
pharmaceuticals economic growth through public-private partnerships (PPP). Therefore, both
State Government and corridor development authorities are offering general Source: MIDA, MIGHT Analytics
5. Iron and Steel-Super fine wire of diameter 2.0 mm and below incentives and sector-based incentive according to the regions.
60 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 61

Apart from the incentives offered by MIDA to all foreign and local investors,
each State Government also has within their own development plans; additional
initiatives to assist interested investors and/or companies. These initiatives
are supported by corridor development authorities in accordance to their
respective regions and focused sectors/industries as shown in Figure 3 below.
The five economic corridors are initiated to bridge development imbalances
throughout the country, and have certainly been pushing forward the country’s
economic growth through public-private partnerships (PPP). Therefore, both
State Government and corridor development authorities are offering general
incentives and sector-based incentive according to the regions.
Additionally, other than incentives above, industry players can likewise apply for
funding/grants under the ministries and Government agencies such as CREST,
MOSTI, TERAJU, SME Corp, AIM, SIRIM etc.
Besides domestic funding arrangements offered by the Government, its
agencies, and private financiers, there are also Government to Government
(G2G) funding initiatives. Newton-Ungku Omar Fund (NUOF) is a prime
example. Funded by the Governments of the United Kingdom of Great Britain
and Northern Ireland; and Malaysia, NUOF requires the activities done to be
jointly undertaken by organizations coming from both countries; to support the
research and innovation capacity of Malaysia for long term sustainable growth
through expanding and maximizing cooperation in research and innovation
between policy makers in Government, its agencies, research institutions,
higher education institutions, companies and enterprises. This will provide an
important framework towards promoting increased research and innovation
collaboration supporting long-term, sustainable partnerships and contribute to
economic growth and the tackling of major challenges faced by Malaysia.
In terms of funding, another important player in this area is Malaysian Debt
Ventures (MDV); formed to support the national agenda for high value and
high impact projects, it has expanded its financing focus to fund these high
value technology projects and businesses ranging from end-to-end financing
to liquidity solution. Besides MDV, there are more than 50 registered venture
capital management corporations in Malaysia i.e. Cradle Seed Ventures
Management, Malaysia Venture Capital Management, Malaysian Life Sciences
Capital Fund Management, Malaysian Technology Development Corporation
etc.

Regional Development Corridors with their Respective Focused Sector/Industry

Iskandar
Corridors NCER ECER SDC SCORE
Malaysia
Authority Iskandar Region Nothern East Coast Sabah Regional
Development Corridor Economic Economic Corridor
Authority Implementation Region Development Development
(IRDA) Authority Development and Investment Authority
(NCIA) Council Authority (RECODA)
(ECERDC) (SEDIA)

Location/ State of Johor, States of Perlis, States of Kelantan, Sabah Sarawak

Areas of Southern Kedah, Penang Terengganu and (East Malaysia) (East Malaysia)
coverage Peninsular and Nothern Pahang as well as
the district of
Malaysia Perak
Mersing in Johor

Focused Education Agriculture Agriculture Agriculture Aluminium

Sector/ Financial Human Capital Education Green Glass, Marine
Industry Healthcare Development Manfacturing Technology Engineering
ICT & Creative Infrastructure Oil & Gas Human Metal-based
Industries Manufacturing Petrochemical Capital Oil & Gas
Logistics Tourism Tourism Infrastructure Timber-based
Tourism Manufacturing Tourism
Tourism Aquaculture
Livestock
Source: MIDA Palm oil, Tourism Source: NUOF, MIGHT Analytics
62 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
A Quick Guide to International Initiatives
It is foregone conclusion that international trade
is and will continue to be an important contributor
to Malaysia’s economic growth and development
– especially when considering our relatively small
domestic market. Our international trade has
experienced tremendous growth throughout the
last four decades with a total trade from mere
RM9.45 billion in 1970 to RM1.47 trillion in 2015.
Indeed, the country has managed to maintain
a positive trade balance, exporting more goods
than it imports with exceptions in 1982, 1991 and
between 1994 and 1997. In 2015, it posted a positive
trade balance of RM94.29 billion whilst the highest
recorded was prior to the global recession in 2008
at RM143.21 billion.
Our trade policy is to pursue the effort towards
creating a more liberalising and fair global trading
environment. Today, the Free Trade Agreements
(FTAs) pursued with selected countries are not
confined to liberalisation and market opening
measures alone. Instead, they are comprehensive
and include investment, trade facilitation,
intellectual property rights (IPR) as well as
economic cooperation in various areas such as
competition policy, standards and conformity
assessment, information and communications
technology, science and technology, education
and training, research and development, financial
cooperation, Small and Medium Enterprises
(SMEs) development and paperless trading. Table 1
is a quick reference to the list of FTAs that Malaysia
is currently pursuing.
Malaysian Technology Strategic Outlook 2017/2018
List of FTAs that Malaysia is Embarking on Including the List Under Negotiation
ASEAN, RCEP &RCEP & TPPStates
Current Free Trade ▶▶ Malaysia-Australia, Malaysia-Chile, Malaysia-India, Malaysia-
Agreement Japan, Malaysia-New Zealand, Malaysia-Pakistan, Malaysia-
Turkey
▶▶ ASEAN-Australia and New Zealand, ASEAN-China, ASEAN-
India, ASEAN-Japan, ASEAN-Korea
▶▶ Trade Preferential System-Organization of Islamic Conference
(TPS-OIC)
▶▶ Developing Eight (D-8) Preferential Tariff Agreement
RCEP
Under Negotiation ▶▶ Malaysian-European Union Free Trade Agreement (MEUFTA)
▶▶ Malaysia-EFTA Economic Partnership Agreement (MEEPA)
▶▶ ASEAN-Hong Kong Free Trade Agreement (AHKFTA)
▶▶ Regional Comprehensive Economic Partnership (RCEP)
Source: AsiaFoundation.org
Pending Ratification and
▶▶ Trans-Pacific Partnership Agreement
Entry Into Force
Currently, in reference to Table 2 factsheet, the ones
that are becoming the hot topics of the day are
the Trans-Pacific Partnership Agreement (TPPA),
Regional Comprehensive Economic Partnership
(RCEP) and ASEAN Economic Community (AEC).
These three economic initiatives will have a huge
impact on our total trade movement, where high
technology will certainly play an obvious role in
maintaining our relative competitiveness.
Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 63
ASEAN,
TPP Member Member States: The Differences Other regional initiatives include:
ASEAN Strategic Plan for SME Development
SMEs are one of the key drivers and contributor to
China Japan the GDP of ASEAN economies. It enables greater
India Australia
integration of women and youth into the economy and
South Korea New Zealand
generated more than 50% of employment in many
United States
Canada ASEAN member states. According to the ASEAN
Chile Secretariat, SMEs employ 52% to 97% of all workers
Peru
but their share of total exports remains small, between
Mexico
ASEAN
Laos 10% and 30%. This means much remains to be done
TPP12
Myanmar Brunei
Indonesia Malaysia to strengthen the role of SMEs in driving ASEAN
Philippines Singapore economic integration.
Thailand Vietnam
Cambodia
The  ASEAN Strategic Action Plan for SME
Development  laid out five key strategies: (i) promote
productivity, technology and innovation (ii) increase
Source: AsiaFoundation.org
access to finance (iii) enhance market access and
‘internationalisation’ (iv) enhance policy and regulatory
environments and (v) promote entrepreneurship and
human capital development. Based on the analysis by
S. Rajaratnam School of International Studies (RSIS),
most SMEs in the region are not fully equipped to
deal with the new business realities presented by the
ASEAN and RCEP. It is projected that SMEs will face
intense competition from the entry of multinational
corporations and cheap imports post RCEP. Therefore,
productivity and technology improvements will drive
the integration of SMEs with the production networks
of multinational corporations, and this can be done
through specialised training within ASEAN SMEs to
help boost their labour productivity to the levels needed
to become qualified suppliers in global value chains.
64 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 65

Malaysian High Technology Industries: A Rendition of Its Journey

11th Malaysia Plan (11MP) - Spurring High Technology
List of FTAs that Malaysia is Embarking on Including the List Under Negotiation
Development
Fact Sheet on TPPA, RCEP & AEC Malaysia has had a sterling economic performance a wide spectrum of the society, the country is
in the past and was once dubbed by the World currently in dire need of a ground-breaking growth
TPPA RCEP AEC Bank as one of the eight East Asian miracle formula that can rapidly propel itself to a greater
Initiatives Trans-Pacific Partnership Agreement Regional Comprehensive Economic Partnership ASEAN Economic Community economies. It was frequently quoted by the height. Therefore, to catch-up with the advanced
International Monetary Fund (IMF) and the World economies, an innovation-led growth strategy is
Integrating ASEAN member states to create a Bank as a model economy, to be emulated by the only option for Malaysia.
Brings together 16 countries into a huge cohesive
single market and production base, enable a highly other developing countries. Since the bout of
Forging stronger trade and investment ties between economic partnership which aims to streamlined and
Purpose competitive economic region, create a region of the Asian financial crisis, it has no longer able to This policy prescription is in line with the World
US & Japan and 10 Pacific Rim countries integrate the ASEAN +1FTAs into a single and more
equitable economic development, and a region fully bounce back to its glory days. Post-crisis growth Bank (2008) views on the need for Malaysia to aligned to the World Bank’s policy prescriptions.
coherent trade investment architecture in the region.
integrated into the global economy is only averaging 5.5% per annum. Moreover, to increase its supply of ‘modern tradable’, apart Malaysia is indeed on the right track since these
Asia Pacific Rim (excludes China, India, South Korea) ASEAN and states which ASEAN already has existing realise its Vision 2020’s high income target, the from Malaysia’s policymakers’ continuation of game changers and strategic thrusts are deeply
Area of Coverage ASEAN country truly requires a major and radical economic promoting the same ‘productivist’ policies such as entrenched in the innovation-led growth model
and North America free trade agreement
transformation – a total overhaul of the economy in education, meritocracy, openness, competition, embracing the elements of ‘technology, innovation
12 in total 16 in total 10 in total perhaps. sound market fundamentals etc., to jump start the and value-addition’ in the national innovation system
US (leading), Japan, Australia, New Zealand, Brunei, Brunei, Cambodia, Myanmar, Laos, Vietnam, Singapore, Brunei, Cambodia, Myanmar, Laos, Vietnam, ‘modern tradable’. Modern tradable are innovative, (NIS). For example, the Game Changer 4 (GC4):
Countries
Canada, Chile, Malaysia, Mexico, Peru, Singapore, and Malaysia, Indonesia, Philippines, Thailand, China, India, Singapore, Malaysia, Indonesia, Philippines and It is now at the crossroads. The 11MP is the ‘last mile’ advanced and sophisticated technological products Embarking on Green Growth and Strategic Thrust
Vietnam South Korea, Japan, Australia and New Zealand Thailand. or the final lap towards becoming a high income and services which are produced and traded 4 (ST4): Pursuing Green Growth for Sustainability
Population and developed nation by 2020. The challenge lies generally by the rich advanced countries like the and Resilience, will accelerate the adoption and
805 million (11.2%) 3 billion (45%) 620 million (8.6%) in the nation’s ability to generate a new wave of United States and the Organisation for Economic diffusion of high and advanced technology to
(% of world population)
prosperity for the country. Can the country still Co-operation and Development (OECD). realise the sustainability and resilience goals.
Nominal GDP apply the old ‘East Asian Miracle’ formula if it plans
US$28tr (36.4%) US$17.23tr (33%) US$2.5tr (3.2%)
(% of global GDP) to join the rank of high income country by 2020? So, to increase the supply of modern tradable and Similarly, GC5 and ST6, with science, technology and
Total trade More importantly, how can the country map the leverage on globalisation, Malaysia should focus innovation (STI) as the vital ingredients to increase
US$9.58tr (25.1%) US$10.6tr (26%) US$2.56tr (6.7%) route to navigate away from the middle-income on the three big T’s i.e. technology, tradability productivity and raising national competitiveness,
(% of global trade)
trap and soar towards a high-income economy? and transportability besides emphasising on will both advocate the consumption of technologies
expanding its social and physical infrastructures, including high technologies as well as the
Still wedged in the middle-income trap, Malaysia’s and ‘focusing on productivist policies’ in its service production of these technologies by industries.
gross national income (GNI) per capita is only and manufacturing sectors. These are some of the Further, GC4 in relation to ST1 will be challenging
USD10,570 (2015), short of the World Bank’s World Bank’s policy prescriptions to depart from indeed for science and technology in addressing
threshold of USD12,476 set in 2016 to qualify as a the middle-income trap and arrive at the goal of the issue of the poor and the ‘bottom 40% of the
high-income economy. This positions Malaysia at becoming a high-income nation by 2020. households’. What sort of innovation, and what is
15% lower than the standard threshold. Past growth it that science and technology can offer to mitigate
strategies have worked well for the country prior The six game changers (GC) and the six strategic the issue of the poor and the vulnerable groups?
to the Asian financial crisis but as it is affecting thrusts (ST) espoused in the 11MP are very much
 Table Header (replace)
66 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 67

ICT Industry Contribution to GDP and Net Exports in Current Prices, 2015
Figure: Game
GameChangers
Changersand Strategic
and Thrusts
Strategic of 11th
Thrusts of Malaysia PlanPlan
11th Malaysia The GCs and STs acts a guide.
Contribution to GDP
Six Game Changers (GC) of 11MP In the 11MP too, opportunities and offerings were (RM billion)
mentioned in three strategy papers prepared
QC1: QC2: QC3: QC4: QC5: QC6: relating to STI as follows:
Unlocking the potential Uplifting B40 households Enabling industry-ied Tech- Embarking on green Translating innovation to Investing in competitive ICT Services, Content
of productivity towards middle-class nical & Vocational Education growth wealth sites & Media
a) Strategy Paper 15 (Driving ICT in the
society & Training (TVET)
Knowledge Economy) ‘emphasises on driving 63.9
ICT in the knowledge economy through innovation ICT
ICT Industry
Six Strategic thrusts (ST) of 11MP and productivity to enhance competitiveness RM196.2 billion Manufacturing
E-Commerce
and wealth creation’; and ‘focuses on ICT as an
16.8% 55.8 45.6
Focus area A: Uplifting B40 households towards a middle-class socisty imperative enabler for a knowledge economy,
ST1: Focus area B: Empowering communities for a productive and prosperous society especially in the areas of industry, infrastructure, Other ICT
Enhancing inclusiveness towards Focus area C: Transforming rural areas to uplift wellbeing of rural communities
Focus area D: Accelerating regional growth for better geographic balance
human capital and digital inclusion. These enablers Total GDP: Industries
& Import
Trade
an equitable society
Focus area E: Enhancing Bumiputera Economic Community (BEC) opprtunities to increasewealth ownership will increase productivity through innovation, RM1.17 trillion Duties 21.1
thereby enhancing competitiveness and wealth 9.9
Focus area A: Achieving universal access to quality healthcare creation’. The way forward to drive ICT in the
Focus area B: Providing adequate and quality affordable housing to poor, low and middle-income household knowledge economy and to ensure it continues to
ST2: Focus area C: Creating safer living environments for thriving communities
contribute to the country’s gross domestic product
Improving wellbeing for all Focus area D: Improving road safety and emergency services to reduce fatalities
Focus area E: Enculturating the spirit of 1Malaysia to foster social cohesion and national unity (GDP) and exports are through the execution of the
Focus area F: Promoting sports for healthty living and unity four proposed main strategies namely: RM239b RM193.7b
EXPORTS IMPORTS Net Exports: RM45.3b
ST3: Focus area A: Improving labour market efficiency to accelerate economic growth
Focus area B: Transforming TVET to meet industry demand
i.
ii.
Re-energising ICT Industry,
Developing high quality ICT talent,
Source: Econimic Planning Unit and
Development of Statistics Malaysia
Accelerating human capital
development for an advanced Focus area C: Strengthening lifelong learning for skills enhancement iii. Improving digital infrastructure, and
nation Focus area D: Improving the quality of education for better student outcomes and institutional excellence
iv. Pursuing digital inclusion. i. Moving towards complex and diverse products, i. Enterprise innovation, and
ii. Enhancing productivity through automation, ii. Social innovation
b) Strategy Paper 19 (Energising Manufacturing iii. Stimulating innovation-led growth,
ST4: Focus area A: Strengthening the enabling environment for green growth
Focus area B: Adopting the sustainable consumption and production concept Sector) charted the new strategic direction for the iv. Strengthening growth enablers, and All these pronouncements in the 11MP, even though
Pursuing green growth for Focus area C: Conserving natural resources for present and future generations manufacturing sector in the 11MP to produce ‘high v. Ramping up internationalisation. they do not specifically mention the importance
sustainability and resilience Focus area D: Strengthening resilience againts climate change and natural disasters value, diverse and complex products’, underpinned of high technology in the national development
by intense R&D as well as process and design c) Strategy Paper 21 (Translating Innovation agenda, they do contain some elements of it. The
Focus area A: Building an integrated need-based transport system improvements, standards compliance, enhancing to Wealth) describes the efforts made by the Plan document discreetly alludes to the serious
ST5: Focus area B: Unleashing growth of logistics and enhancing trade facilitation
Focus area C: Improving coverage, quality and affordability of digital infrastructure
market intelligence and stronger collaboration Government in the 11MP to ensure greater tone that the country has engage in a continuous
Strengthening infrastructure to between the various stakeholders besides innovation in its development agenda. There enhancement and sustain the high technology
support economic expansion Focus area D: Continuing the transition to a new water services industry framework
Focus area E: Encouraging sustainable energy use to support growth leveraging on ASEAN Economic Community (AEC) will be a greater push for returns of Research, sectors which have been its current major exports
and Trans-Pacific Partnership Agreement (TPPA) Development, Commercialisation, and Innovation as well as prepare its state of readiness for the
in expanding global and regional markets. Five (R, D, C, & I) investments. Strategies will be targeted fourth industrial revolution.
ST6: Focus area A: Transforming services
Focus area B: Energising manufacturing
Focus area E: Growing dynamic SMEs
Focus area F: Translating innovation to wealth strategies have been identified as follows: at two levels with the aim of translating wealth:
Re-engineering economic growth Focus area C: Modernising agriculture Focus area G: Investing in competitive cities and regional
for greater prosperity Focus area D: Transforming construction economic corridors
68 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
National Blue Ocean Strategy (NBOS)
While ‘blue sky thinking’ might be a fatigued
management cliché, experience from Malaysia
suggests that the ‘Blue Ocean’ approach offers
practical tools for innovation in public services.
The Blue Ocean Strategy has been adopted by the
Malaysian Government and applied to a range of
its services and results, so far, indicate that it could
prove useful in public sector contexts elsewhere.
The Malaysian Government adopted the
NBOS in 2011 as one of the keys to the National
Transformation Plan. Prime Minister Najib Razak
has said: “Blue Ocean Strategy is a management
tool which can be applied in the Government’s
administrative context as it enables us to think out
of the box with good results.” He wants every civil
servant to adopt four elements enshrined in the
Blue Ocean Strategy when carrying out their daily
duties: ‘reduce’, ‘eliminate’, ‘create’ and ‘increase
opportunities’.
The Blue Ocean Strategy has been applied
to prisons, housing, water supply and several
other services in Malaysia and has encouraged
collaboration between the police and the army.
Blue Ocean thinking has meant to develop holistic
solutions through seeing things from service users’
perspectives and eliminating steps in bureaucratic
processes. This has led to the creation of one-
stop-shops at Urban Transformation Centres
in principal locations, which house government
services, private agencies, businesses, NGOs, and
youth facilities in one place and are open every day
including Sundays. Results include reducing the
time taken to issue a passport from three days to
half an hour.
In the case of Malaysia, the NBOS is working to
breakdown the silos among ministries, agencies
and the private sector for all to work together and
make best use of the resources. Essentially, the
Blue Ocean Strategy is a strategic planning and
operations to deliver programs and services to the
public that are high impact, low cost, and rapidly
executed.
One recent example of the strategic collaboration
under the NBOS is to develop a DNA marker that
will help validate the authenticity of durians called
Mi-Trace. Since 2011 Malaysia has been exporting
frozen durians as premium products, especially
D24 and Musang King, to China. The unique taste
of the Malaysian-bred Musang King durians has
made the fruits highly sought after in China. The
price of these durians has even fetched up to more
than 10 times than the price in Malaysia. A single
Malaysian Technology Strategic Outlook 2017/2018
Musang King can sell up to RM110/kg in China
and the demand outstrips supply. It is interesting
to note that a decade ago, due to an oversupply
of durians in the market at low prices from other
countries, the local durian industry was at its lowest
point and most of our durian farmers had to opt out
and venture into the oil palm industry instead. By
using Mi-Trace, the system allows the consumers
to check the authenticity, place of origin, the
packaging date and logistics information using
the IoT to do real-time tracking and we can even
trace the tree of origin for each durian product. This
process conveniently self-regulates the market by
overcoming any attempts by other countries to
counterfeit the Malaysian durian export.
Mi-Trace is a technology platform developed by
MIMOS (the national research and development
centre in information and communications
technology), and a result of strategic collaboration
efforts between MIMOS, Department of Agriculture
and the Federal Agricultural Marketing Authority
in accordance with the NBOS adopted by the
Malaysian Government. MIMOS also worked with
the National Institutes of Biotechnology Malaysia
(An agency under MOSTI), which developed a DNA
marker that would help validate the authenticity of
the durians.
Malaysian Technology Strategic Outlook 2017/2018
This is how Mi-Trace works - before purchasing
any durian products, the customers scan the QR
code on the packaging box with the smartphone.
The system allows the customers to check the
authenticity, the place of origin, the packaging date
and logistics information using the IoT to do real-
time tracking, and they can even trace the tree of
origin for each durian product.
Simultaneously, when consumers scan this barcode
with their smartphones, the system collects
information of their location, browser and phone
type. This will allow the digital service providers
to monitor the shipments, market hotspots and
consumption trend. Local durian exporters will
then be more equipped with information about
the logistical processes and the markets, enabling
them to enhance their efficiency and profitability
by customising their service. Subsequently, the
multifaceted information captured by the system
will reshape the business processes as business-
customer relationship is improved.
With consumers becoming increasingly concerned
about the origins and supply chain of a product,
traceability systems are an effective marketing
tool for virtuous business practices of companies.
Combined with social media, traceability provides a
B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 69
One recent example of the strategic collaboration under the National Blue
Ocean Strategy is to develop a DNA marker that would help validate the
authenticity of durians called Mi-Trace.
very effective marketing tool especially for premium underlying assumptions, for example by changing
products, hence, a new form of digital marketing public behaviour to reduce demand and involve
that tells the ‘story’ behind the product can help users in service design. Whilst with all strategic
sustain brand loyalty. Consumers will share the management frameworks such as ‘Blue Ocean’, it is
story of their purchases, leading to repeat sales and important to remember that public service delivery
recommendations to the peers, as observed in the is not a ‘perfect’ market. Some desirable social
cases of the Beluga Caviar and the Korean Ginseng. objectives or outcomes cannot be delivered through
normal market mechanisms and the normal rules of
As a result of the implementation of Mi-Trace, demand and supply do not always apply in a public-
by the end of 2016, the export value is expected sector context. However rather than stripping
to increase by 30%. Consumers appreciate the away services as a response to austerity, in these
convenience of validating the products’ authenticity tough times for public services everywhere, Blue
with their phones - a simple measure to resolve the Ocean thinking can help strategies and prioritise
issue of product trust. With the greater utilisation innovation and income generation - and lead to
of Mi-Trace for a wider spectrum of industries, entirely new ways of doing things.
the application of Mi-Trace potentially expands
to other premium agricultural produces or food
products. It can be used in the tracking and tracing
of Halal, sustainable compliance or pharmaceutical
products. The same concept of Mi-Trace can be
further extended in, just to name a few - inventory
or asset tracking and management system as well
as document tracking system to be applied by other
domain industries.
Lastly, applying the Blue Ocean Strategy
to ‘reduce’, ‘eliminate’, ‘create’ and ‘increase
opportunities’ refocuses thinking and questions
 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 71

National Policy on Science, Technology

& Innovation (NPSTI)

Malaysia has an overarching goal of becoming a R&D

R&DIntensity:
Intensity:Gross
GrossDomestic
DomesticExpenditure
ExpenditureononR&D
R&Dasasa percentage
a percentageofofGDP,
GDP,
high income and advanced nation that is inclusive 2000-2014
and sustainable by 2020. From this perspective, 2000-2014
STI is unquestionably important in ensuring the 4.5 Korea
establishment of a scientifically advanced and 4.0 Israel
progressive society as embodied in Vision 2020. Japan

The country has not been aggressive

3.5
Malaysia envisions a society that is creative and
innovative not only as a consumer of technology 3.0 United
States

enough in pursuing the course and is

GERD as % of GDP
but also as a contributor to the scientific and 2.5 OECD
technological advancement for the country. 2.0 EU28
China

undeniably far behind in commercialising its

1.5
In this context, the Government endeavours to
1.0
strengthen and mainstream STI in all sectors and

R&D outputs, especially those that resulted levels of national socio-economic development and 0.5
transformational agendas such as the Government
2000 2002 2004 2006 2008 2010 2012 2014
Transformation Programme (GTP), Economic
from Government-funded researches. Transformation Programme (ETP), and Social
Transformation Programme (STP). However, it
needs to overcome some of the hurdles. These are
Gross Expenditure on R&Don
Gross Expenditure (GERD) (1996-2011)...
R&D (GERD) (1996-2011)
common challenges affecting not only Malaysia but RM Million GERD/GDP
also many other developing economies as well as
10000
the developed economies around the globe.
9000

One challenge that is currently faced by the country 8000

is its low investments or expenditures on R&D. In 7000
2012, Malaysia’s gross domestic expenditure on
6000
R&D (GERD) was 1.13%, much lower than the
5000
OECD countries - Korea, Japan and the USA. It is
even lower than that of China. If Malaysia aspires 4000

to be a developed nation by 2020, it should aim to 3000

achieve a minimum GERD of 2.0%. 2000

1000

1996 1998 2000 2002 2004 2006 2008 2009 2010 2011

Current Expenditure Capital Expenditure Total GERD/GDP

72 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
With low GERD, the possible implications on
national competitiveness will be:
i. inability to develop/produce novel technologies,
products and services that can compete in the
global market
ii. inability to produce high value-add products;
iii. inability to generate new knowledge and
technologies which are critical for Malaysia to
become a knowledge-based economy; and
iv. inability to attain excellence in R&D, a
prerequisite for nations to attract world-class
corporations.
Another challenge is the issue of research
commercialisation. Malaysia does not suffer so
much from an ‘innovation gap’, but it suffers more
from a ‘commercialisation gap’. The country has
not been aggressive enough in pursuing the course
and is undeniably far behind in commercialising
its R&D outputs, especially those that resulted
from Government-funded researches. This lack of
performance can perhaps be linked to the fact that
most Malaysian research institutions including the
universities have only begun to seriously focus on
commercialisation activities since the 9th Malaysia
Plan. In the 9th Malaysia Plan, preliminary estimates
showed that about 7.8% of public-funded R&D
has successfully been commercialised, more than
double of what was achieved in the 8th Malaysia
Plan at 3.4%.
The implications on national competitiveness will
be:
i. low rate of innovation among industries;
ii. inability to create new businesses and
knowledge-based industries; and
iii. low contribution to economic growth and
employment creation.
Malaysia is also facing another challenge in
the form of the shortage of skilled and talented
workers where researchers, scientists, engineers
and an innovative workforce are urgently needed.
Student enrolment in the field of S&T especially
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 73
at postgraduate level in the public institutions is STI fundamentals. It addresses the increasingly
still inadequate despite the demand by industries
especially for engineers and technicians. To make
challenging landscape, not only to the Government
but also to the industries, universities, research FRAMEWORK FOR THE NATIONAL POLICY ON SCIENCE,
matters worse, the brain drain symptom continues
to haunt Malaysia.
institutes and the entire National Innovation
System (NIS). The policy framework of NPSTI is
TECHNOLOGY AND INNOVATION (NPSTI)
grounded on 5 Policy Foundations namely, the STI
As of 2010, the World Bank estimated the Malaysian for policy, policy for STI, industry commitment in
diaspora at about one million and one third of STI, STI governance and STI for a stable, peaceful,
them were with tertiary education. The World prosperous, cohesive and a resilient society.
Bank’s 2011 Report even showed that the number A High Income, Inclusive & Sustainable Nation
of Malaysians with tertiary education who moved NPSTI will be implemented through 6 strategic
abroad tripled in the last two decades. This talent thrusts, briefly as follows: Transformation
outflow threatened to erode the country’s skills ▶▶ Advancing scientific and social research, Programme
base and derailed its ambition to be a developed development and commercialisation that National Social Political
and high-income nation by 2020. These human focuses on 9 focus areas through increasing Transformation Transformation
Programme Programme
capital issues will naturally affect the much-needed Malaysia’s gross expenditure on R&D (GERD)/ (NSTP) (PTP)
R&D manpower and talents to propel the country gross domestic product (GDP) from the current
towards an innovation-led growth economy. The 1.13% to 2.0% by 2020
current ratio of researchers per 10,000 workforces ▶▶ Developing, harnessing and intensifying
at 58.2 is rather inadequate. Malaysia needs at least talent through increasing the current ratio of A scientifically advanced nation for socio-economic transformation
a ratio of 70 researchers per 10,000 workforces. The 58.2 researchers per 10,000 workforces to 70 and inclusive growth
potential implications on national competitiveness
Vision
per 10,000 workforces by 2020 and attracting
will be: Malaysian professionals working abroad Advancing and mainstreaming STI at all levels and in all sectors
i. inability to attract world-class companies to via Returning Experts Programme (REP) Mission
invest in R&D in Malaysia, and coordinated by Talent Corporation
ii. inability to compete in emerging technologies ST 1 ST 2 ST 3 ST 4 ST 5 ST 6
▶▶ Energising the industries to undertake R&D
such as biotechnology, nanotechnology etc.
to spur innovation and commercialisation, to Strategic Advancing scientific
and social
Advancing scientific
and social
Energising
industries
Transforming STI
performance
Transforming STI
performance
Enhancing
create wealth and high value jobs, and to sustain
So, the question then was what would be the best growth with 70% of the R&D expenditure from
Thrusts research research
development and development and
ways for the country to address these issues? the private sector and 30% from the public communication skill communication skill
The policy strategy employed by the Government sector by 2020
then to tackle these challenges was through the ▶▶ Transforming STI governance through a
formulation of NPSTI, which was to be implemented STI for Policy
sound institutional and regulatory framework,
from 2013 to 2020. and well-functioning national innovation system
(NIS) Policy for STI
Malaysia endeavours to strengthen and mainstream ▶▶ Promoting and sensitising STI through the
STI in all sectors and levels of the national socio- enculturation of STI at all levels to create a Industry Commitment to STI
economic development. NPSTI is thus a new scientifically advanced, creative, innovative and
Foundation
national policy that cuts across all sectors of the progressive society, and
economy. Its ultimate goal is to transform Malaysia STI Governance
▶▶ Enhancing strategic international alliances
to be a scientifically-advanced nation. through global and regional collaborations and
partnerships essential in the world economy STI for Stable, Peaceful, Cohesive and Resilient Society
NPSTI adopts an integrated and holistic approach that is undergoing rapid globalisation and
to enable Malaysia to innovate based on strong technological advancement.
Source: NPSTI, MOSTI (2013)
74 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
Science to Action (S2A) - National STI
Transformation Programme
In implementing the National Policy for Science,
Technology and Innovation (NPSTI), the
country has adopted the Science to Action (S2A)
Programme. Like any national transformation
programme, S2A is liken to the ETP of STI. This is
a programme announced by YAB Prime Minister of
Malaysia on the 1st of November 2013. It is led by
the Science Advisor Office, through MIGHT, and
in close collaboration with all ministries involved
in STI. This is an initiative which would rejuvenate,
consolidate and realign existing programs, projects
and strategies and where appropriate create new
ones. The objectives of the programme is two-fold:
i. S&T Supporting Nation Building
ii. Raising the profile of S&T in national
development
The implementation of S2A will have the following
targets in mind:
a. Global Competitiveness Index: Targeting
Malaysia as a top 10 nation;
b. Global Innovation Index: Malaysia firmly
recognized as a top 10 nation;
c. Gross Domestic Expenditure on R&D:
Increasing the country’s GERD to 2%
S2A is based on 3 main thrusts, namely, Science
for Governance, Science for Well-being and
Science for industry.
Malaysian Technology Strategic Outlook 2017/2018
SCIENCE TO GOVERNANCE
The thrust is to strengthen public and private service delivery systems in order
to create a conductive environment and ecosystem tnat can become a catalyst
to the development of science.
SCIENCE TO WELL BEING
The aim is to upgrade the Rakyat’s standard of living through the usage and mastery
of science, technology and innovation. This initiative emphasizes excellence in the
national education system especially in the field of STEM (Science, Technology,
Engineering and Mathematics) by giving specific concentration to the young
generation and youths.
SCIENCE TO INDUSTRY
The focus is to establish an innovation culture and strengthen the capabilities of the
industry to generate new wealth. These include the effort to inculcate the Silicon
Valley culture of “Innovate or Perish”. The key to this must be to encourage the
Government-Linked Companies (GLC) and Small and Medium Enterprises (SMEs) to
venture into the new potential growth areas where returns on investments are multi-folds.
Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 75
Strategic focus of the S2A will be to: Besides S2A, the Government is currently formulating an STI Master Plan
a) strengthen the scientific environment by ensuring research careers are
based on the decision by the National Science Council (NSC) at its inaugural
facilitated and research institutions strengthened to reach their full potential Meeting, chaired by the YAB Prime Minister, on 28th January 2016. The Master
in an environment that fully support them; Plan together with the S2A Initiative will embrace the elements of the fourth
industrial revolution which is in-sync with the current innovation-led growth
b) facilitate science to ensure the efficiency and effectiveness of the model adopted by the Government, to propel the country to a high income and
research system, and fostering research potential which involve developing advanced economy by 2020 and beyond.
and implementing peer-review processes, strengthening the analysis and
ex-post evaluation of research programmes and policies, and horizon-
scanning of new and emerging technologies as well as trends;
c) support ‘borderless science’ to ensure all types and levels of
collaborations among researchers and research organisations, driven
by scientific needs and relatively free of administrative obstacles, will not
only enhance or maximise cross-border collaborations but also optimise
collaborative approaches and sharing of research infrastructures of all
types including capacity building; and
d) communicate science to ensure research outputs are communicated
and utilised in the best way possible, both within and beyond scientific
communities through knowledge sharing, dialogues and public
engagements.
76 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
Science to Action (S2A) - National STI Transformation Programme
Executive Summary of OECD Reviews of Innovation
Policy Malaysia 2016
Malaysia’s Achievements and Challenges
Malaysia is one of Asia’s great success stories.
Its economic and social development since
independence has been impressive. High
economic performance was based on a profound
transformation into a diversified economy. Malaysia
has climbed the income per-capita ladder and is
now close to achieving its goal of becoming a high-
income country. It succeeded in poverty reduction
and many other aspects of human development.
This has meant better lives for many.
However, Malaysia has also been facing challenges.
Economic growth has slowed in the aftermath of the
1990s Asian financial crises, the rate of investment
dropped, productivity growth slowed and some
export market shares declined. Comparative
advantage based on low labour costs has dwindled
as the economy matured. The East Asian region
has been undergoing rapid change and Malaysian
firms are facing new competition.
Malaysia has benefited much from the integration
in global value chains (GVCs). It could benefit even
more through accelerated upgrading towards
sophisticated goods and tradable services of high
knowledge content. This would help raise the
comparatively low share of domestic value added
in gross exports.
Malaysia’s Innovation Imperative
To respond to these challenges, Malaysia needs to
rely more on innovation-driven productivity gains.
As the examples of Korea and others have shown,
improvements in domestic innovation capabilities
can translate into sustained growth in productivity
and gross domestic product (GDP).
Malaysia has recognised the challenge: it has
done much to advance its science, technology and
innovation (STI) capabilities and invested much
in education. Research and development (R&D)
expenditure has grown from 0.2% of GDP in 1996
to nearly 1.26% in 2015. Building a well-performing
innovation system requires persistent commitment.
Improving Public Governance of the Innovation
System
Malaysia’s STI governance is characterised by a
multiplicity of advisory committees and councils
as well as ministries, agencies, etc. engaged in
STI policy making, funding and implementation,
each of which is equipped with its own strategic
framework and policy instruments. A rationalisation
of Malaysia’s STI governance structures is needed
to achieve better co-ordination across government
and ultimately, higher impact at lower cost.
Malaysian Technology Strategic Outlook 2017/2018
A continued effort has been made to create
a simplified and efficient architecture of STI
governance. The newly created National Science
Council (NSC) should provide consistent mid- to
long-term strategic orientation and government-
wide co-ordination. A new Research Management
Agency (RMA) should manage the allocation
of research funding based on an efficient and
transparent selection of research proposals and
evaluation of results. This reform should now be
implemented.
Drawing lessons from previous experience, it
is important to i) assign clear roles to the NSC
relative to already existing institutions with related
mandates; ii) ensure a clear and consistent relation
between the NSC and the RMA, and separating
strategic and operational functions, and iii) ensure
efficient information flows between the NSC and
the relevant ministries and agencies, including
the RMA. The RMA should be built upon an
organisational model which allows it to fulfil its
mission with sufficient resources and autonomy.
Malaysian Technology Strategic Outlook 2017/2018
Fostering Innovation in the Business Sector –
Upgrading in Value Chains
Raising business firms’ in-house innovation
capabilities should be a central priority of Malaysia’s
STI policy. This priority should extend to a broad
range of businesses, including domestic small and
medium-sized enterprises (SMEs) which barely
innovate and do not engage in R&D, often for lack
of skills or funding.
Fostering business innovation requires a
transparent set of public support measures which is
at the same time accessible, effective and coherent
and meets the needs of different types of firms – in
particular, those of SMEs, which need continuous
and hands on support. Regional innovation centres,
in conjunction with already existing measures, could
provide SMEs easy access to critical resources for
innovation capacity building.
The upgrading of Malaysian enterprises in
GVCs can be supported by fostering relations
between multinational enterprises (MNEs) and
domestic suppliers, including SMEs, through
dedicated initiatives and incentives beyond the
support already in place. Support networks and
collaborative platforms – such as the Collaborative
Research in Engineering, Science and Technology
platform (CREST) – provide useful experience.
B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
Enhancing the Contribution of Higher Education
Institutions (HEIs) to Innovation
The contributions of HEIs to innovation are manifold
and comprise the provision of skilled human
resources, the generation of knowledge through
R&D and the commercialisation of research results.
Malaysia has profoundly expanded, diversified
and reformed its university system over the last
decades.
While some outcomes are encouraging, several
expectations have not yet been met. The overall
contribution of HEIs to innovation could be
increased by emphasising the provision of high-
quality education and skills which are needed
to nurture and grow innovative businesses and
often are in short supply. To provide the right set
of incentives, the corresponding monitoring and
performance metrics need to be reviewed.
77
At the same time, the effort to strengthen the quality
and relevance of research needs to be maintained
as impact of research tends to be low and much
of the intellectual property generated remains on
laboratory shelves, un-commercialised. High-
quality research carries an enhanced potential for
commercialisation and relevance in tackling societal
challenges. Focus and impact of university research
can be improved by priority setting and creating
critical mass through larger-scale collaborative
programmes The Malaysian research system would
also benefit from clear policies for strengthening,
developing and maintaining research infrastructure
and from a national research infrastructure plan
and periodical inventory assessments.
Strengthening the contribution of public research
institutes (PRIs) to innovation PRIs play an
important role in Malaysia’s innovation system
78 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
through their applied research, technology transfer
and information services. However, they vary and
have seen their R&D funding fluctuate widely.
Exceptions are cess-funded (commodity-oriented
statuary) PRIs. Overall, the research and technology
transfer capacity of PRIs remains underdeveloped.
The PRIs need reform and modernisation based
on an assessment of their respective mission
and competences. Those assessed favourably
regarding their potential should be encouraged to
develop their research strengths and technology
transfer capacity by complementing own revenues
by a healthy mix of competitive and institutional
funding, subject to regular evaluation. For the
remaining institutes, other options – including their
merger, downsizing or, discontinuation, if required –
should be considered.
Efficiency gains can be reaped by enhancing
linkages between universities and PRIs, e.g.
through joint formation of advanced human
resources (PhD programmes and training),
research collaboration and sharing of equipment.
Strengthening the human resource base and
skills for innovation Human resources are the
key to innovation. Accordingly, education has
been a major focus of Malaysia’s development
effort: literacy rates are comparable to the OECD
level, and an increasing share of the population is
receiving tertiary education. Businesses (especially
innovative ones) still find the lack of suitable skills
an important barrier. A shortage of skills prevails in
numerous domains, including university graduates
and specialised technicians.
There is a need to improve the relevance and
quality of skills across the board – in both tertiary
education and technical and vocational education
and training (TVET). The match between the
supply of skills and the needs of industry should
be improved, e.g. by including industry in curricula
development, improving the delivery of the TVET
system, and increasing the attractiveness of TVET
courses.
Malaysia has developed several initiatives and
strategies such as the ‘Human Capital Development
Strategic Reform Initiative’ and the ‘Malaysia
Education Blueprint 2015-2025 (Higher Education)’
to address human resources issues. The focus
should now be put on the implementation of these
various blueprints and plans and on setting up a
mandatory schedule to evaluate the outcomes of
these initiatives.
Malaysia faces a number of challenges. But there
are immense opportunities to be seized, if these
are tackled successfully: Malaysia is located in
one of the most dynamic regions of the world, in
the proximity of the world’s largest, most populous
and dynamic emerging economies, the People’s
Republic of China and India. For a country of about
30 million and the potential of its diverse population,
this environment offers great opportunities of
exploring and developing niches that can generate
prosperity in a sustainable manner.
Main Recommendations
1. Implement the continued effort to create a
simplified and efficient architecture of STI
governance with the NSC providing consistent
mid- to long-term strategic orientation and
government-wide co-ordination, and the RMA
managing the allocation of research funding
based on an efficient and transparent selection
of research proposals and evaluation of results.
2. Make raising business firms’ innovation
capabilities a central priority of Malaysia’s
Malaysian Technology Strategic Outlook 2017/2018
innovation policy and implement an accessible,
effective and coherent set of public support
measures designed to best meet the varied
needs of different kinds of firms, in particular
those of SMEs, which need continuous and
hands-on support.
3. Enhance the higher education institutions’
contribution to research and innovation by
emphasising the provision of high-quality
education and skills needed to upgrade
businesses, while continuing efforts to
strengthen excellence and relevance of research
with enhanced potential for commercialisation
and for addressing societal challenges.
4. Reform and modernise the public research
institutes based on an assessment of their
respective mission, competences and
governance. Enable those assessed favourably
to develop their strengths by complementing
their own revenues through a healthy mix of
competitive and institutional funding, subject to
regular evaluation. For the remaining institutes
consider other options, including their merger,
downsizing or discontinuation, if required.
5. Improve the match between the supply of skills
and the needs of industry, inter alia by including
industry in curricula development, improving
the delivery of the TVET system and increasing
the attractiveness of TVET courses. Focus at
this stage on the implementation of the various
blueprints and plans and set up a mandatory
schedule to evaluate the outcomes of these
initiatives.
Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 79
Science to Action (S2A) - National STI Transformation Programme
Transforming STI Governance
Global Science and Innovation Advisory Council
(GSIAC)
GSIAC Governance Structure, Vision, Mission and Key Objectives
Robust economic progress is imperative to ensure that Malaysia achieves
its aspiration of becoming a developed nation by 2020. Industry 4.0 has STRUCTURE OF THE COUNCIL
the potential to raise global income levels and improve the quality of life for VISION
populations around the world. Hence, as rightfully mentioned by Deloitte in a CHAIRMAN Developed nation status for Malaysia by 2020
The Honourable Dato’ Sri Mohd Najib through science, technology and innovation
report on Industry 4.0 and its challenges “great focus must be given to transform
bin Tun Abdul Razak
our manufacturing industry in response to the challenges posed by Industry Prime Minister of Malaysia MISSION
To provide the Prime Minister with
4.0.” Therefore, it is critical for Malaysia to work closely, collaborate and learn
The Secretary authoritative, polley-relevant advice on matters
from the developed nations in order not to be left behind in addressing these concerning innovation, science and technology,
Prof. Tan Sri Zakri Abdul Hamid thereby contributing for Malaysia’s achievement
challenges. Science Advisor to the Prime Minister of Malaysia
of a high-income nation status by 2020
The Latest GSIAC Council Members
The Head Secretariat (2016-2018)
Seeing the need and importance to strike and intensify a high-level global
Datuk Dr. Mohd Yusoff Sulaiman
cooperation on research and businesses as well as obtaining the cutting-edge President and Chief Executive Officer, MIGHT 18 International Council Members
21 National Council Members
advice on STI from global experts, the YAB Prime Minister of Malaysia set up
the Global Science and Innovation Advisory Council or better known as GSIAC
which convened for the first time on 17 May 2011 in New York. By creating KEY OBJECTIVES
GSIAC, Malaysia is positioning itself towards a scientifically-advanced nation
1
Providing strategic advice and as sounding board on
pursuing socio-economic transformation and to achieve an inclusive growth Malaysia’s aspirations of being a developed nation by
by 2020. 2020, through science and innovation;
2
Benchmarking Malaysia’s ranking and competitiveness in Science
and Innovation againts technologically advanced countries, and
GSIAC is chaired by the YAB Prime Minister with support from MIGHT as the improving Malaysia’s capabilities in science & innovation;
3
main secretariat. The governance structure of GSIAC as well as the overarching
Value adding to the achievement of Malaysia’s economic
Vision, Mission and key objectives is as illustrated in Figure 1.1. transformation programme objectives;
4
Intensify capacity building through industry-academia
collaboration with world experts and globally renowned organization;
5 Generating and increasing bilateral trade and
investment value in short, medium and longer-term.
80 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 81

International council members consist of industry leaders from many cutting-

edge fields, prominent academicians as well as celebrated Nobel Laureates. GSIAC FOCUS AREA Through GSIAC, several initiatives and meaningful Mainstreaming GSIAC – The Overarching Structure
Meanwhile, the National council members consist of key ministries’ officials, collaborations which benefited the nation were
corporate leaders and entrepreneurs. successfully conducted. The breakdown of them
can be summarised as below:
HUMAN CAPACITY GREEN FUTURES
To help Malaysia meet the global challenges, GSIAC’s focus areas are Human BUILDING MALAYSIAN BIOMASS INITIATIVE
Capacity Building, Smart Communities, Nutrition and Health, and Green (MYBIOMASS SDN. BHD.) ▶▶ 7 collaborations on Human Capacity Building
SMART GRID COLLABORATION
Futures. Apart from these, GSIAC also represents the International Advisory ▶▶ 2 collaborations on Green Futures
INNOVATIVE DIGITAL ECONOMY ▶▶ 2 collaborations on Nutrition & Health
Panels on Biotechnology and Information and Communications Technology.
DIGITAL MALAYSIA ▶▶ 2 collaborations on establishing JV Fund on
Since its inception, many projects have been initiated under these focus areas High level discourse on key
as shown in Figure 1.2. Green Technology and to foster the growth of High level discourse on key priority areas of Malaysia, chaired
priority areas of Malaysia, chaired GSIAC NSC by YAB Prime Minister which is
green technology industry through competition
Program Rimbunan Kaseh (Smart Communities), My Body is Fit & Fabulous
GSIAC and accelerator programme
by YAB Prime Minister more focuesd on implementations
on the ground
(MyBFF) and Bitara STEM (Human Capacity Building) are among the pilot
SMART
initiatives that truly benefited the people. They have been successfully expanded COMMUNITIES NUTRITION HEALTH An assessment on GSIAC Phase 1 was
nation-wide and have created interests among the international communities. SMART CITIES | ISKANDAR MALAYSIA, MY BODY IS FIT AND FABOULUOS PROGRAM conducted in 2015 which among others, provided
(MINISTRY OF HEALTH)
MELAKA GREEN CITY recommendations to continue the momentum and
SMART VILLAGES |
The Journey of GSIAC Phase 1 (2011-2015) which primarily centred in the United amplify GSIAC’s positive outcomes. Because of this
ADWG1 ADWG2 ADWG3 PROGRAM1 PROGRAM2 PROGRAM3
States of America (USA) and embarking into Phase 2 this year is as illustrated assessment and in the effort to mainstream GSIAC
below. for Phase 2, the structure of GSIAC was revisited, as
shown in Figure 1.4. Sub-advisory panels consists of local and international Working committees on various areas such as STEM & health
Summary of GSIAC Journey (2011 – 2017) members on key priority areas such as biotech, ICT, smart city
etc for advisory purposes and provide high level summary
to deliberate on implementation status of projects
The success of GSIAC programs and initiatives is for the main GSIAC meeting - Chaired by minister in-charged
GSIAC Inaugural Meeting 3rd GSIAC Meeting GREEN FUTURES HIGH LEVEL FORUM 5th GSIAC Meeting GSIAC ASSESSMENT 7th GSIAC Meeting INDUSTRY 4.0 – ACCELERATING DIGITAL testament to the GSIAC’s impact on the nation.
17 May - New York city, USA 23 September - CEO SESSION: STI STRATEGIES OF 28 September - THE ELEVENTH MALAYSIA PLAN 3 April - New Delhi, India ECONOMY & BIOECONOMY AGENDA FROM
San Francisco , USA INNOVATION New York City, USA THE OECD COUNTRY REVIEW ON TALK TO ACTION However, a separate platform is needed to enlarge NOTE:
DRIVEN COMPANIES FOR GREEN MALAYSIA INNOVATION POLICY HOW INDUSTRY 4.0 ABLE TO ACCELERATE
SUSTAINABLE FUTURES DIGITAL ECONOMY AGENDA and build on that success on a national magnitude. 1. NSC : National Science Council
2. ADWG : Ad-hoc Working Group
4 INTERNATIONAL COLLABORATIONS EXCHANGE OF MEMORANDUM OF BIOECONOMY AND INDUSTRY 4.0 – IMPACT Ultimately, a fortified governance structure is
AGREEMENT (MOA) BETWEEN AND OPPORTUNITIES
ON GREEN, STEM, NANOTECHNOLOGY,
SMARTGRID MALAYSIA INSTITUTE FOR essential in ensuring the high-level advice at the
INNOVATIVE NANOTECHNOLOGY DEVELOPING AN INDUSTRY 4.0 NATIONAL
GREEN FUTURE CREATION OF MYBFF PROGRAM
(NANOMITE) AND HARVARD POLICY
global level is being translated efficiently at the
INNOVATIVE DIGITAL ECONOMY - IDE NOBELIST MIINDSET PROGRAM
STEM BITARA PROGRAM UNIVERSITY. DEVELOPING A BIOECONOMY ROADMAP national level, including the implementation of its
SMART COMMUNITIES DEVELOPMENT OF TALENT AND FUTURE JOBS –
HUMAN CAPACITY BUILDING “MYDIGITALMAKERS MOVEMENT” PROGRAMS programmes and initiatives to mainstream and
MALAYSIAN BIOMASS INITIATIVE
institutionalise GSIAC, as shown above.

2011 2013 2015 2017 By having diverse council members in areas of It is fervently hoped that the country will continue

OUR JOURNEY 2012 2014 2016 importance and significance for Malaysia and
beyond, it is hoped that this combination will
to develop and prosper, and make significant
contributions in the global arena besides GSIAC to
2nd GSIAC MEETING CRADLE TO CAREER/ HUMAN CAPACITY BUILDING 4th GSIAC Meeting SUSTAINABLE DEVELOPMENT 6th GSIAC Meeting FOSTERING MALAYSIA’S FUTURE: NEW INDUSTRY, NEW JOBS definitely give a more meaningful advice during continue to contribute value-adding partnerships
16 May - SMART COMMUNITIES 24 September - SCIENCE TO ACTION 17 May - London CHALLENGES OF SUSTAINABLE DEVELOPMENT: JOB CREATION
the annual meetings. This will enable Malaysia to that provide win-win outcomes and sustainability in
New York City, USA MALAYSIAN BIOMASS INITIATIVE New York City, USA AND WEALTH GENERATION
IDE - DIGITAL MALAYSIA STEM FOR TEACHERS
THE COMPETITIVENESS PILLARS FOR SUSTAINABLE AND
learn more from these leaders as well as giving the rising above the global challenges including many
MYBFF PROGRAM
TESTING COLLABORATION ON MYBIOMASS NOBELIST MINDSET INNOVATIVE NATION opportunity to share and obtain endorsement on posed by Industry 4.0.
5 INTERNATIONAL COLLABORATIONS ON HUMAN STEM INITIATIVES EXPANSION PROGRAMS THE 4TH INDUSTRIAL REVOLUTION
CAPACITY BUILDING SMART CITY: STATE LEVEL CHALLENGES AND OPPORTUNITIES FOR INTERNATIONAL our best practices from them.
COLLABORATION ON NUTRITION SCIENCE GLOBAL STEM ALLIANCE COOPERATION IN SUSTAINABILITY SCIENCE
RESEARCH COLLABORATION – NANOMALAYSIA AND IBM BALANCING ECONOMIC DEVELOPMENT & CONSERVATION EFFORTS
THE JEFFREY D. SACHS CENTER ON SUSTAINABLE DEVELOPMENT
82 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
Science to Action (S2A) - National STI Transformation Programme
Transforming STI Governance
National Science Council (NSC)
In 2013, YAB Prime Minister announced Malaysia’s
Science & Technology agenda aptly named
“Science to Action” (S2A) in mobilizing science and
technology to Malaysia’s advantage. The agenda
identifies transformation of STI governance, the
well-being of the people as well as the growth of
industries as the main thrust to ensure the country
enjoy sustainable growth beyond 2020.
To support this agenda, the government realized
that addressing issues relating to governance
will be of utmost importance because it is where
most STI activities originate. This is reflective in the
thrust Science for Governance (S4I), with the goal
as follows: -
1) Strengthening Science Governance
Transforming & strengthening the STI
governance structure to create an ecosystem
where STI knowledge and industries could
grow and prosper.
2)
Strengthening Governance through
Science
This goal set out to improve and strengthen
national governance through evidence based
decision making, providing government with
STI based tools and methodologies.
A sound governance mechanism is reflected
by the transparency of decision making
process, accountability to the society and
stakeholders, participation of all related parties
and responsiveness to the needs of the nation. In
the context of a national council for R&D&C&I, a
sound governance is normally associated with the
composition of the council, clarity in mandates and
objectives.
A recent strategic move was made to reduce the
number of STI advisory councils on the national
level. Having recognised the need for a central
coordinator in the implementation and monitoring
of public R, D, C, & I initiatives, the National
Science Council (NSC) was established and the
first meeting was commenced in January 2016.
The council creation is part of the bigger agenda of
strengthening STI governance. NSC must serves as
the platform for national level deliberations, whereas
for international advisory the focal point would be
the Global Science & Innovation Advisory Council
(GSIAC). The symbiosis between GSIAC and this
council would deliver impactful implementation of
STI agenda/programmes through guidance and
inputs received from both councils. Information
and insights gathered from GSIAC and NSC are
imperative to providing the required impetus to
ensure that the governance and implementation
of activities are per the shared agenda. With these
instruments, local STI ecosystem can be regulated
and enhanced accordingly to meet industrial needs
as we move forward towards meeting Industry 4.0
challenges.
Malaysian Technology Strategic Outlook 2017/2018
“The rationale behind NSC’s
formation is to ensure the STI
agenda can be monitored and
managed under a ‘mothership’
council, and avoid duplication in
terms of administration, outlook
and priority.”
YAB Prime Minister
The setup and composition of the current NSC is
consistent with the international practices. The
membership includes representatives from all
ministries with R, D, C, & I oversight, private sector
with commercialisation intent and academics with
in-depth knowledge of science aspects.
At present, the NSC is the highest body that sets
short- to long-term strategic policy direction for
STI in Malaysia. Chaired by the Prime Minister,
NSC membership comprises 28 representatives
from the Government, academia and private sector.
This includes 13 cabinet ministers, as well as 6
other public sector delegates, 2 science advisors,
3 academicians, and 4 corporate figures. MOSTI
Malaysian Technology Strategic Outlook 2017/2018
and the Science Advisor’s Office serve as the Joint
Secretariat to NSC. The primary roles of NSC are
to set national STI strategies and provide advisory
and guidance on national STI issues, including R,
D, C, & I.
All ministries include the R, D, C, & I agenda in
their strategic policy development. The strategies
are then cascaded down to their respective
reporting agencies, i.e. intermediary bodies or
Public Research Institutes (PRIs). Nevertheless,
MOSTI is the mandated ministry in developing
national STI policy especially in applied research,
whereas MOHE focuses on basic research, while
MITI focuses on commercialisation. The reporting
mechanism between implementers and their
respective parent ministries is given. There is little
evidence on an institutionalised inter-ministerial
communication mechanism which is tailored to
B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 83
the cross-cutting nature of R, D, C, & I agenda Prime Minister Datuk Seri Najib Razak chairing the first National Science
in national policy setting apart from NSC. This
communication mechanism is critical to ensure
Council (NSC) meeting in Putrajaya.
the strategic direction of R, D, C, & I agenda is a
well-communicated decision, which is being set
National Science Council (NSC)
objectively. Hence, NSC serves as the best platform
▶▶ Recently established following the streamlining
for inter-ministerial policies to be deliberated and
of various STI councils chaired by the Prime
approved.
Minister
The expected benefit of the proposed governance
by NSC on the highest-level stems from the ▶▶ Highest national body with oversight over short-
alignment of policy implementation to national to long-term STI policies, including R&D&C&I, in
strategic agenda. The participatory approach Malaysia
and inclusiveness of various stakeholders in NSC
is expected to foster more coherent R, D, C, & I
▶▶ Chaired by the Prime Minister, with
national policy especially in the face of dynamic and
representatives from the Government, academia
bigger challenges with the advent of Industry 4.0.
and private sector

The success of global companies will
result from labour effectiveness which
is driven by the digitisation of knowledge
workers and quality by advanced analytic
and development time.
Malaysian Technology Strategic Outlook 2017/2018
Science to Action (S2A) - National STI Transformation Programme
Talent Development in Industry 4.0
Introduction
We are now at the inception stage of the
Industry 4.0, which is partly a new approach in
manufacturing that makes use and integrates the
latest technological inventions and innovations,
particularly in information and communications
technology. All new developments and technologies
in the fourth industrial revolution have something in
common – they leverage the power of digitisation,
and the information technology connective
elements.
The way in which Industry 4.0 gives talent
management a shot in the arm is by delivering a
better forecast result for top managers and the
Human Resource department. With the provision
of data accessibility for Industry 4.0, decision
makers will be able to have real-time update
regarding influence factors of talent demand such
as visualising how market demand for human
capital change patterns. Through this information,
the uncertainty of talent development plan can
be greatly reduced and amended as per the real
demand rather than speculating based on the old
data.
HR has the key function of initiating and guiding
the breakaway from outdated corporate cultures or
management styles. However, to do so, it must first
reinvent itself to gain from this destructive creative
B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM
energy for the rebuilding of new contemporary
structures, methods and tools. If a change is to be
successful at all, it must take place on a digital and
cultural level.
Based on the WEF’s The Future of Jobs Report, 10
top skills have been identified as prerequisites to
support the explosion of the industrial revolution
4.0 in four major clusters in talent management.
The four major clusters are analytics, ICT literacy,
STEM (science, technology, engineering and
mathematics) knowledge and entrepreneurship
whereas the 10 top skills that will drive talent
management during the age of industry 4.0
is complex problem solving, critical thinking,
creativity, people management, coordinating with
others, emotional intelligence, judgement and
decision-making, service orientation, negotiation
and cognitive flexibility.
Knowledge Worker
Industry 4.0 has an immeasurable impact on the
world of employment which cannot be foreseen in
its entirety. The penetration of all living and working
areas through the Internet will only increase in the
future. Therefore, companies have the task to start
the engine running now by setting the course of
their future directions as well as to raise their talent
management platform to the next level.
85
Where the growth of the Industry 4.0 is concerned,
knowledge worker is one of the four key aspects of it
that will impact the supply chain in this challenging
economic environment. The success of global
companies will result from labour effectiveness
which is driven by the digitisation of knowledge
workers and quality by advanced analytic and
development time. Employees in the Industry 4.0
are in a permanent on-boarding process in terms
of new situations and contents which mean that
training must be adapted to suit the revolution.
The focus is on adapting the learning formats such
as e-learning or using the social media platforms
to provide a dynamic learning mechanism that is
available anytime and anywhere.
The rise of intelligent machines will signal the
deterioration of knowledge workers that demands
for the crucial need to develop skills in the supply
chain. Employers will need to look into their
workforce more closely in the advent of the robotic
workers, especially with their human employees’
efficiency in parallel with the development of the
industrial revolution 4.0.
Technical & Vocational
In Malaysia, the technical and vocational education
and training (TVET) is accorded a high priority
in the nation’s industrialisation agenda. With the
vision of becoming an industrialised nation in 2020,
86 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 87

MOBILE
DEVICES

Malaysia must prepare a well-educated, skilled of every revolution, promising opportunities arise
and competitive workforce to answer the complex for those who are willing to grab them. Nowadays, CLOUD IoT
challenges of the future. The Government has anyone can start a company with limited resources COMPUTING PLATFORMS
ytics as core ca
placed a major emphasis on the human resource and the collaboration between humans and
& Anal pab
development and designed a strategic policy to technology will be greater, thus creating new jobs ata ilit
y
enhance Malaysia’s competitive edge over other with real growth potential. D
ion an d inte
sat gra
developing countries. In this era of globalisation
giti ical and horiz tio
and the knowledge economy (K-economy), the As an example, the world’s second largest economy AUGMENTED Di f vertvalue chains onta n LOCATION DETECTION
o l
future of Malaysia’s competitiveness depends on is embracing mass innovation and entrepreneurship REALITY/WEARABLES TECHNOLOGIES
the skills of its workforce. It is therefore critical to to seize the opportunities of the new development
assess the impact of globalisation on the technical- paradigm by nurturing an environment that
vocational education and training systems to encourages new ideas, tolerates mistakes and
prepare a proficient human resource. supports new businesses. Once entrepreneurs

p ro d u c t a n d s
INDUSTRY 4.0
recognise industry 4.0 as the intelligence-driven

cess
The role of TVET towards achieving sustainable revolution, they shall have the skills and ability to MULTILEVEL CUSTOMER ADVANCED HUMAN-MACHINE
INTERACTION AND

D i git a er v
development in the age of industry 4.0 is to embark operate in different cultural settings, and the ability INTERFACE

r ac
me ss
on the development process in the direction of the to create opportunities through innovation in the CUSTOMER PROFILING

sto s i n e
expert scenario which involves the development growing dynamism of new technologies, new

tis a i c

cul bu
of expert systems as a tool for qualified skilled industries and new business models.
n

ti o e
t
workers. We need to shift our focus to the stages of
offof gi

a
vocational development as an individual’s lifelong The key to success in entrepreneurship is e ri Di and
s
process to build one’s career. In doing so, we will adaptation of creativity in innovation. Creativity will BIG DATA ANALYTICS n g
mo del AUTHENTICATIONS &
also need to increase sustainability and the control become one of the foremost necessity skills. With AND ADVANCED
y FRAUD DETECTION
of man over technology. This is where the workers an avalanche of new technologies, new products
ALGORITHMS Da
ta b ili t
&A pa
should maintain their capabilities of shaping work- and new ways of working and thinking, candidates
n a l y tic s a s c o re c a
processes and carrying responsibilities. will need to become more creative to benefit from
such changes.
Entrepreneurship & Innovation
According to the WEF research, an estimated of Industry 4.0 focuses on the end-to-end digitisation 3D
7.1 million jobs currently handled by humans are of all physical assets and integration into digital
likely to disappear worldwide due to technological ecosystems with value chain partners.
SMART SENSORS 3D PRINTING
changes. But history also shows us that in the wake
88 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 89

01 Industry 4.0: Enabling manufacturers to

increase competitiveness... INDUSTRY 4.0 04 Industry maturity in
Industry 4.0 implementation 05 Country maturity
in industry 4.0 implementation

THE STATE OF THE NATIONS The most mature adopter:

57%
Industries planning
The most mature the heaviest investment Countries with similar maturity footprints:

03
BUSINESS GROWTH: EFFICIENCY GAINS: industries: between now and 2020:
Smart products Smart production Key findings 32%
Aerospace
Smart services Smart factories Electronics
26%
Electronics Process 21%
The least mature adopter:
85% of business see 89% are aware of the potential of Process Machinery
14%
02
the potential of industry 4.0 information efficiency through the
...but are business making the implementation of data standards
most of the opportunity? Yet only 15% have dedicated
strategies in place Yet only 11% have systematically
The first in-depth study into industry implemented data security

06
4.0 readiness and standards
Toward 2020:
The 5 leadership characteristics to help seize competitive advantage

400+ Almost 87% see the value of

a predictive maintenance strategy-
driven by real-time data 81% are aware of the potential of
01 02 03 04 05
Yet 91% surveyed companies in monitoring machine status for
Asset efficiency German speaking countries maintenance purposes
focus - a key driver dont’ measure operating
of competitiveness Yet only 17% have put Agree and implement Be flexible in Build strong Focus on Build a clear
efficiency based on real-time principles into practice
data industry-wide data sourcing key skills partnerships in order quick wins holistic roadmap
standards to innovate quickly

Aerospace
Machinery
Automotive 88% consider energy management important
Process Yet only 15% regularly implement
Electronics practices into their processes
90 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 91

Trends of Global Patents and Malaysia Patents Sectors Patent Landscape

Science to Action (S2A) - National STI Transformation Programme The information technology and telecommunications
GLOBAL INVENTIONS OVERVIEW (2015) sector have been selected to be compared with
Industry and Innovation Culture - Home Biotechnology
the global patent trends. The idea is to understand
Malaysia’s performance in the filing of patents for
Understanding Patent Trends In Malaysia
Appliances (?)
(86301) both sectors especially by considering the area of
interest as well as the intensity of patents filed in

Food, Beverage &

the respective sectors.

Oil & Gas (?)

Introduction

Tobacco (?)
Innovation is a driver of the economic success and growth of a country. One behind compared to other countries that have similar R&D expenditure per Medical Pharma- Semicon- Aerospace
i. Information Technology
of the indicators to measure innovation is through its patent activities. Patent GDP like Russia, Brazil and Canada for the year 2015. The report indicate that Information Technology Automotive Telecommuni- Devices ceuticals ductors & Defense The global trends for the information technology
(429806) (166867) cations (166601) (118658) (116286) (116286) (71633) subsector in 2015 have shown an increase in
is a document that records an invention for providing solutions to specific Russia is placed 11th on WIPO while Brazil is at the 23rd place and Canada is Cosmetics &
technology problems. By understanding the area of patents filed, the space ranked 12th in patent filing. The result shows that Malaysia has a lot to do to Well Being the computing subsectors which grows to 14%
for invention can be identified through the applicants’ preferences on filing the improve its patent-filing performance, at least to be on par with countries that compared to the 2014 data. The other subsectors
MALAYSIAN INVENTIONS OVERVIEW (2000-2015) that have experienced an increase within the
patents. Consolidating the filing trends will show the invention landscape of spend as much as Malaysia does in R&D.
the country and help to understand the country’s research and development Medical Oil & Gas information technology sector are the printers
Devices (69) (48) and screen subsectors with 6% and 5% growth
(R&D) priorities, funds and resource allocations. The output can then be used Malaysian Patent Landscape

Cosmetics &
respectively.

Food, Beverage & Tobacco

Pharmaceuti... Well Being

to compare or benchmark the local performance i.e. the Malaysia’s applicants’ Notwithstanding the above, the trend of patents filed by Malaysians

Telecommunications
preferences with global patent trends. corresponds with the global patent trends. However, the main concern is on
Where information technology is concerned, a

Home Appliances
Semiconductors
the volume of patents filed by Malaysia applicants. The trend indicates that
considerably high number of patents have been
Malaysian Research & Development Landscape out of the 12 sectors in 2015, more focus was given on five main sectors Information Aerospace
which are the information technology, automotive and telecommunications, filed for the computing and printer subsectors
The R&D activities are widespread throughout the various Fields of Research Biotechnology Technology Automotive & Defense
with 87 and 14 patents recorded in the country

(89)

(78)

(FOR) such as engineering and technology, information, computer and
communication technology (ICT), medical and health sciences, applied
sciences and technology, agricultural sciences and technology, social sciences,
humanities, and economics, business and management. A look at the top three
main FORs in Malaysia for year 2016 discovers that the three main sectors are
engineering, ICT and science.
(74)
(81)
medical and pharmaceuticals. Interestingly for Malaysia, the top five patents (294) (136) (63) (39)
filed within the period of 2000 and 2015 are in the biotechnology, information (see Figure 3). In relative comparison with that
technology, semiconductor, telecommunications as well as food, beverage and of the global patent-filing trends, the result has
tobacco sectors with the highest number of patents filed for biotechnology at Subsectors Invention (Malaysia 2000-2015) supported the findings that the Malaysia’s patent
294, 136 for information technology, 89 patents for semiconductor, 81 more for activities move in synch with the global trend in the
telecommunications and 78 filed in the field of food, beverage and tobacco information technology subsector.
100

(Figure 1). This indicates that Malaysia’s patent filing trend is in line with the 80
87
global trend in sectors like information technology and telecommunication. As the matter is further researched, it has been
Study shows that the engineering and technology are the top FOR with a
65 found that the volume of patents filed in Malaysia
percentage of 21.3% that reflected the importance of electrical and electronics 60
57 for the information technology sector between the
industry that are contributing about 22.1% to the manufacturing output in The global patent trends are also being compared against the Malaysian patent
40 46 43 42 year 2000 and 2015 is rather low compared with the
Malaysia. The high percentage of engineering and technology in 2016 also subsectors to understand the similarities on the sectors of interest by patent
applicants. The results identified that the top three subsectors for the Malaysian 32 key global players. For example, the State Grid Corp
indicates the rising importance of this field, which is in parallel with the 11MP 20
23 19 17 15 of China filed a total of 7479 patents alone within
where the government seeks to create wealth through innovation. The second patent trends are computing, general biotechnology and data transmission,
6 the stipulated period, far surpassing Malaysia in the
most important FOR is ICT with an estimated 18.7% followed by applied way above nine other subsectors. This result has supported the findings of two
same segment at only 139 files recorded in a period

ng

gy

ion

ing

rch

es

ry

in

ng

ls

s
nic
fe t
main sectors that are in line with the global patent trends which are from the

ria
sciences and technologies at 12.0%.

Sk
rge
vic
olo
uti

i
ss

ion

rill
Sta

Sa

ga
te
De
mp

su
mi
hn

,D

Ma
dit
of fifteen years.

Or
r&
ns
tec

g
is,
te
Co

on
information technology and telecommunications sectors respectively.

rin

ed
ga
Tra

cre

os
Bio

ir c

plo

nc
Su

gn
Dis
ta

/A

va
ral

Ex
Dia
Da
The World Intellectual Property Organisation (WIPO) has placed Malaysia at

ng

Ad
ne

ati
Ge

He
the 33rd place in patent filing for year 2015. In terms of ranking, Malaysia is still
92 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 B | MALAYSIA HIGH TECHNOLOGY ECO-SYSTEM 93

Patents filled for Global and Malaysia for Information Technology Subsectors ii. Telecommunications Comparison of Malaysia Inventions with Top 10 Global Innovators: Patents Filled for Global and Malaysia for Information Technology
The global patent for telecommunications indicates Information Technology Subsectors
a decreasing trend for most of the subsectors
Global Information Technology Subsector Inventions except for the telemetry control & tele-control as Company Inventions (2015) Global Telecommunications Subsector Inventions
(% change for 2014 and 2015) well as the data transmission which recorded a 38%
and 3% increase in both subsectors respectively. State Grid Corp China 7479 (% change for 2014 and 2015)
Scanner -1% On the local shore, Malaysia recorded a total of Canon, Japan 6370
57 patents filed for the telecommunications sector Telephone Exchange Systems -6%
Screen 5%
in data transmission network, making it as the Samsung, S Korea 5792
Telephone Communication -2%
Smart Media 0% most active among the other subsectors in the IBM, US 4205
Printers
telecommunications segment in Malaysia. Multiplex & Multiple Access -4%
6%
Ricoh, Japan 3539
Telemetry & Telecontrol 38%
Computing 14% Between the period of 2000 and 2015, Malaysian Google, US 3164
applicants recorded a mere 81 patents filed for the Digital Information Transmission -5%
-2% 0% 2% 4% 6% 8% 10% 12% 14% telecommunications sector. In the corresponding Huawei, China 2799
period, Samsung of South Korea filed 4132 number Telephone Subscriber Equipment -7%
Lenovo,China 2798
of patents in total, which is easily fifty times more Data Transmission Networks 3%
MALAYSIA INFORMATION TECHNOLOGY SUBSECTOR INVENTIONS than what the Malaysian patent activities could LG, S Korea 2521
generate. This indicates that the intensity of the Tencent Technology Shenzhen, China 2418 Mobile Telephony -4%
patent movement in the telecommunications sector
in Malaysia is still at a very moderate level. Malaysia 2000-2015 136 inventions -10% 0% 10% 20% 30% 40% 50%

Conclusion Comparison of Malaysia Inventions With Top 10 Global Innovators:

Printers Screen There is room for improvement as far as innovation Telecommunications MALAYSIA TELECOMMUNICATIONS SUBSECTOR INVENTIONS
(14) (14)
in Malaysia is concerned. With the kind of support Multiplex & Telephone
Computing Scanners
(87) (17) Smart Media (4) given by the Government at the moment coupled Company Inventions (2015) Multiple Access Exchange
with the stimulating environment influenced by (9) Systems
Samsung, S Korea 4132 (7)
the private sector, innovation in Malaysia is only
going to register growth as the nation progresses. Huawei, China 3496
More incentives should be offered to individuals
LG, S Korea 2795
and companies keen to go for patent-filing where Digital Telemetry
a clearer area of research can be planned in order Information &
State Grid Crop China 2585 Data Transmission Networks Transmission Telecontr...
to create a wide-ranging innovation atmosphere (57) (5) (3)
ZTE Corp, China 1960
in the country. In the near future, Malaysia will
see a paradigm shift in its patent landscape from Qualcomm, US 1841
being a technology user to becoming a technology
Ericsson, Sweden 1424
creator and eventually embark on a well-matched
innovation competition with the rest of the key Sony, Japan 1129
global players.
NTT, Japan 1129
Fujitsu, Japan 1087
Malaysia 2000-2015 81 Inventions
 PART C
TECHNOLOGIES
OF THE
FUTURE
 Degree of complexity
low medium high very high
INDUSTRY 4.0
FIRST SECOND THIRD FOURTH
INDUSTRIAL REVOLUTION INDUSTRIAL REVOLUTION INDUSTRIAL REVOLUTION INDUSTRIAL REVOLUTION
through the introduction of mechanical production facilities through the introduction of a division of labor and mass through the use of electronic and IT systems that further through the use of cyber-physical systems
with the help of water and steam power production with the help of electrical energy automate production

First mechanical loom, First assembly line First programmable logic 2016
1784 Cincinnati slaughter houses, controller (PLC), Modicon 084,
1870 1969

1700 1800 1900 2000 today

Source: DFI - German Research Center for Artifial Intelligence (2011)
96 97
 98 C | TECHNOLOGIES OF THE FUTURE Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 C | TECHNOLOGIES OF THE FUTURE 99

21 Tipping Points
Based on the Technological Tipping Survey by World Organisations need to overcome key implementation
Economic Forum’s Global Agenda Council, here is the 6 barriers for a holistic implementation of Industry 4.0.
megatrends and 21 tipping points that will change the
world.
Top Barriers to Industry 4.0 Additional Top Barrier mentionedRegulation
21 TIPPING
Privacy
by more advanced manufacturers

2
Identity, morality and International security

POINTS ownership when working with thirdControl of digital

Computing, ethics

1
Difficulty in coordinating actions across different Concern about data party providers
Communications organisation units Uncertain aboutHuman 4.0 vs outsourcing and lack of infrastructure
industry connection knowledge
& Storage Lack of courage to push through radical transformation about providers
Everywhere Lack of necessary talent e.g. data scientists Challenges with integrating data from disparate sources in order to enable
3D PRINTING & CONSUMER PRODUCTS IMPLANTABLE TECHNOLOGIES
People & Concern about cybersecurity when working with third Industry 4.0 applications
Internet 3D PRINTING & HUMAN HEALTH INTERNET OF THINGS (IOT) party providers Prompt evolution of supportive governance
Lack of business case that justifies investment in the
underlying IT architecture

3
3D PRINTING & MANUFACTURING OUR DIGITAL PRESENCE PEOPLE GOVERNMENT

6
A SUPERCOMPUTER IN YOUR POCKET ROBOTICS & SERVICES IMPACT TO
Source: McKinsey industry 4.0 Global Expert Survey 2016
The
Internet of Top Barriers to Industry 4.0 Additional Top Barrier mentioned STAKEHOLDERS
The Digitisation
MEGATRENDS Things AI & DECISION MAKING SMART CITIES by more advanced manufacturers
of Matters
AI & WHITE COLLAR JOBS STORAGE
Difficulty FOR ALL actions across different
in coordinating Concern about data ownership when working with third party providers
organisation units Uncertain about industry 4.0 vs outsourcing and lack of knowledge

4
BIG DATA FOR DECISION LackTHE CONNECTED
of courage to pushHOMES
through radical transformation about providers
Lack of necessary talent e.g. data scientists Challenges with integrating data from disparate sources in order to enable BUSINESS
Artificial BITCOINS & BLOCKCHAIN Concern
THEabout cybersecurity
SHARING ECONOMYwhen working with third Industry 4.0 applications

5
Intelligence & party providers Prompt evolution of supportive governance
Big Data DRIVERLESS CAR Lack UBIQUITOUS
of business case that justifies investment in the
COMPUTING
The Sharing underlying IT architecture (McKinsey industry 4.0 Global Expert Survey 2016)
Economy & Customer expectations
Distributed GOVERNMENT & BLOCKCHAIN VISION AS NEW INTERFACE Data-enhanced products
Source: McKinsey industry 4.0 Global Expert Survey 2016
Trust Privacy Regulation Collaborative innovation
WEARABLE INTERNET
Identity, morality and ethics International security New operations modals
Human connection Control of digital infrastructure Source: WEF
(WEF)

PEOPLE GOVERNMENT
 Health (Medical)
100 C | TECHNOLOGIES OF THE FUTURE
$46 mil Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 C | TECHNOLOGIES OF THE FUTURE 101

by
3D Printing
2020 Advanced Material

GLOBAL GRAPHENE
Manufacturing
3D printing is a process of making three dimensional solid objects (Architecture, Advanced materials with high-performance
from a digital file. Also known as additive manufacturing, the object is Automotive,
Manufacturing(Wohler Research) characteristics are increasingly finding their
Aerospace)
(Architecture, 3D printing market is

MARKET
created through layering of specific filament material. Advanced 3D way into automotive, building material,
$348 mil expected to grow up to
Automotive,

CARBON FIBRE
3D printing market is
$21b
Aerospace)
printers use one or more materials, including plastic, resin, titanium, clothing and other large consumer-
$348 mil expected to grow up to

2016
polymers and even gold and silver.
Consumer
$21b oriented markets. Among top materials
Consumer are bio-based materials, carbon fibres and
$89 mil
Manufacturing
3D printing is no stranger to the aerospace and the automotive
$89 mil graphene in terms of its market potential,
application, innovation and IP landscape. CFRP
industries. Airbus has 3D-printed metal parts for its 300-series of Health (Medical) R&D on this technology, which underpins
$46 Health
mil (Medical)
aircraft that are 50% lighter and stronger, while Ford uses 3D printing
to improve the quality of their design. In 2014, Ford has 3D-printed $46 mil by all manufacturing sectors, is essential for
the industry growth. The trends include NATURAL FIBRE
their 500,000th part and the engine cover for the new 2015 Mustang.
2020 by improved materials for 3D printing

2020
application, increased material property
Human Health
The rise of 3D printing has introduced a ground-breaking technological
(Wohler Research)
GLOBAL
using carbon nanotube i.e. solar panel,
embedded sensing materials in IoT devices
GRAPHENE USD20m
MARKET CARBON FIBRE USD2.87b
feat, producing medical devices, surgical instrument, orthodontics, i.e. gesture sensor in smartphone and

2016
(Wohler Research)
prosthetics, skin graft, implants and even organs and blood vessels. enhanced functionality using graphene i.e.
touchscreens and batteries.
Consumer Products CFRP USD20.44b
3D printing enables customisation at no additional cost, giving a
sustainable solution compared to mass production. It also enables
consumer to co-design objects to get a more personalised product.
NATURAL FIBRE USD3.8b
Some of the products that can be produced are toys, small scale
protoypes, phone covers and cosmetics.

WHERE ARE WE NOW?

11%
WHERE ARE WE NOW? There are about 100 local and international companies in Malaysia; First Solar that produces
Owning a home-use 3D printer can cost around RM4,000-RM8,000 manufacturing companies

11%
photovoltaic (PV) solar systems for the international market, CTRM that manufactures aircraft parts
on the average, thus a cheaper option is to find a shop that specialises have switched to volume
manufacturing companies
have switched to volume
and components and DK Composites which is known for its composite architectural structures.
in 3D printing. There is a lot of local companies that offer services that production of 3D printed
production of 3D printed To further develop the industry, MIGHT has established the National Composites Centre (NCC) as
manufacture prototypes for SMEs and personalised consumer products parts or products
parts or products a national centre to deliver world-class innovation to facilitate the advancement into the industrial
such as 3D Cipta, Pebble 3D Sdn Bhd and 3D Printer Sdn Bhd. (PWC 2014)
application, while the Advanced Composite Training Centre (ACTC) supplies skilled composite
(PWC 2014) (PWC 2014) technicians to the composite manufacturing industry. NanoMalaysia, custodian of the National
Graphene Action Plan 2020, has identified graphene as one of the key nanomaterials to add

11%
value to four high-growth sectors: electronic devices & systems, energy & environment, food &
manufacturing companies agriculture, and healthcare, wellness & medicine.
have switched to volume
production of 3D printed
parts or products
 For 2015, CIO.com reported that:
For 2015, CIO.com reported that:

102 C | TECHNOLOGIES OF THE FUTURE Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018
31.25
For 2015, million
millionCIO.com
31.25 messages reported that:
messages 347,222
C | TECHNOLOGIES OF THE FUTURE
347,222 tweets
103
twee
sent through sent through tweeted within tweeted with
Facebook Facebook 60 seconds 60 secon
Artificial Intelligence and Decision Making Robotic and Service Big Data for Decision 31.25 million
messages 347,222
For 2015, CIO.com reported that: tweets
sent through tweeted within
Facebook 60 seconds
3.3 48,611 photos 448,800
Artificial intelligence (AI) refers to the science Amazon’s  Echo, like Siri, connects to a very Artificial Intelligence and Collar Jobs Every business has access to million
of making machines to imitate human thinking
and behaviour to solve complex problems.
smart cloud capability that takes advantage of
AI. AI capabilities are also being programmed
Future workforce need to keep up with the
shift in skills required in the next 10 to 20
data, from transactional, mobile,
financial and behavioural data,
sent through 48,611 photos
posts
300
tweeted
tweets
hours
videos
of
within 300 hours
videos
to customer research data and uploaded on Youtube
Machine learning, computer vision, natural into robotic solutions including self-driving years or face the risks of unemployment, Facebook 60 seconds uploaded on Youtu
language processing, robotics and cognitive cars. stagnant wages and low productivity. social media data. What’s more,
computing is all part and parcel of AI. Most of
the AI solutions today are spearheaded by IBM is one of the organisations that invests
Some jobs will disappear and new jobs
will be created. For example, creativity
as technology evolves and
buying trends change, more 48,611 photos 300 hours
videos
of

the big players in information technology. The heavily in AI through the launching of its IBM is crucial in the future as robots may be and more data is becoming
uploaded on Youtube
application of AI can be used in phones, cloud Watson Group. The supercomputer is well- faster but not as creative as human (yet). available. However, it is the

65,972 500 hours

computing, business intelligence, healthcare,
robotics, space and even for marketing
and customer interaction. The  Apple’s
Siri  capabilities in iOS or Google’s search
solutions such as Google Map and Google
known for winning the quiz show ‘Jeopardy’ However, negotiation and flexibilty skills ability to transform all these data of
in 2011 and has since revolutionalised many will be replaced by machines, and that into actionable insights that is photos videos
by
industries such as healthcare, education, will manipulate the mass of data to make invaluable. Many companies
posted on Instagram/ uploaded on Youtube
legal, retail and engineering. decisions for humans. According to WEF, AI
machines will be part of a company‘s board
leverage on big data analytics
(BDA) to adapt their product
60 seconds 2020 by

Chrome are some examples of AI applications. of director by 2026. and services to better meet data from nearly
2020
38.5 billion
customer needs, optimise
operation and infrastructure and by data from nearly
find new sources of revenues.
2020IoT-enabled 38.5to analyse.
devices will be
available for companies billion
WHERE ARE WE NOW? (Gartner)

Recently, Hong Leong Bank partnered with

WHERE ARE WE NOW? data from nearly
by IoT-enabled devices will be
available for companies to analyse.
IBM  Watson  to introduce cognitive banking.
Leveraging on IBM  Watson’s cognitive
Examples of AI in particular areas: Malaysia is making steady progress
in becoming a big data and analytics
38.5 billion
2020 (Gartner)
(Gartner)

technology, it will function as an online customer Technology Developer Details (BDA) hub in Southeast Asia. IoT-enabled devices will be
According to MDEC, digital economy data from nearly
self-service advisor with 24/7 support for available for companies to analyse.
cardholder enquiries, as well as an internal
service supporting the bank’s call center service
Unmanned Aerial
Vehicle system
Unit-Remote Sensing
MOSTI, Malaysian
Remote Sensing Agency
(MRSA), MMU and UST
Data from UAV-RS integrate with existing
data for evaluation and prediction of flood
and to assist in decision making for a quick
has contributed 17.8% to the nation’s
GDP and it can reach up to 18.2% 38.5 billion
(Gartner)
Example of BDA usage in business
advisors. (UAV-RS) Sdn Bhd and efficient action by 2020. In Oct 2016, National
Malaysia Airport
IoT-enabled devices will be Improvement on its customer service
e-Commerce Strategic Roadmap Airline Holdings Bhd
Smart Lock-Up system MIMOS & Royal System used AI to analyse human motion was launched to support the agenda
available for companies to analyse.
Artificial intelligence can also be applied in Malaysian Police in cells and prison perimeter through (Gartner) Example of BDA usage in business
disaster management and public safety. surveillance cameras and it is announced that 2017 will be Tripfez & Salam Processing requests for hotels, bookings,
Tourism prices, reviews etc.
‘The Year of the Internet Economy’ for Standard
Malaysia. Airline Malaysia Airport Improvement on its cust
Local service HoldingsProcessing
ServisHero, Kaodim, Bhd requests for available local
Example of BDA usage
marketplace in business
Freelancer services, quotations, ratings, reviews etc.
Tripfez & Salam Processing requests for
Tourism South East Asia’s largest online
prices, reviews etc.
Work MalaysiaJobstreet
Airport Standard
Improvement on company
employment its customer service
Airline Holdings Bhd
Localin
Example of BDA usage service
business ServisHero, Kaodim, Processing requests for
marketplace
Tripfez & Salam Freelancer
Processing requests forservices, quotations, rati
hotels, bookings,
Tourism
 “UBIQUITOUS”
HOME

104 C | TECHNOLOGIES OF THE FUTURE Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 C | TECHNOLOGIES OF THE FUTURE 105
“CONNECTED” AMBIENT
HOME INTELLIGENCE
Overview: 1970 2010 2017 2025
Blockchain and Distributed Ledger Blockchain is a secure, shared, distributed ledger Connected Home
SHARED “SMART”
‘Blockchain’ is a form of distributed ledger Blockchain value is directly linked to the number
of organisations or companies that participate
By utilising the IoT, connected home as an HOME INTERNET INTERNET
(DLT) that groups batches of transactions in in them. There is huge value even for the fiercest intelligent network is capable of connecting
blocks that subsequently connect in a chain of competitors to participate with each other in
these shared database implementations.
and controlling the various appliances
to authenticate the values transacted. In this through remote control, remote security
append-only system, the newly-added block and intelligent energy used system. All “UBIQUITOUS”
SECURE LEDGER
contains the hash of prior block in the chain these smart devices i.e. smart steering HOME
in order to maintain the integrity of data. The Uses cryptography to The database is ‘append
only’ system as a process
(doors, HVAC), lights control, smoke HOME HOME HOME
ability of blockchain to be the intermediary create transactions
that are impervious to to maintain the integrity of and fire sensor, in-house control panel, AUTOMATION AUTOMATION AUTOMATION
that allows internet to transact store, move and fraud and established record every transaction that thermometer as well as camera and sensor “CONNECTED”
a shared truth. occurs and make it tamper
are now available in the market. With the
AMBIENT
transact values has earn it the name ‘internet resistant (Please rephrase) HOME INTELLIGENCE
of value’. RIBUTED release of connected home system such as Focus on “lifestyle” Integrates “lifestyle” “Ambient Intelligence”which
DIST Cloud SmartHome System, it is estimated (lighting & entertainment) security/safety and energy. design to recognize, predict
While the first successful use case for There are many replicas of
that the global connected home market will in-house control only. Accessible via internet. and respond to the
blockchain has been the cryptocurrency, there the blockchain database. reach USD100 billion by 2018. “SMART” needs, liifestyles
In fact, the more the HOME INTERNET andINTERNET
habits of occupants.
are many potential applications for blockchain replicas there are, the more
technology beyond financial sector such as authentic it becomes.

provenance and supply chain management

crossing many sectors, e.g. automotive, energy (Microsoft Corporation: https://azure.microsoft.com/en-us/blog/)
and healthcare. Many proof-of-concept efforts HOME HOME HOME
have been implemented in these areas. WHERE ARE WE NOW? AUTOMATION AUTOMATION AUTOMATION
Malaysia itself is looking at both fintech and non- Understanding Blockchain: The Internet-Intranet Comparison The adoption of connected home devices is
fintech applications of blockchain technology, still low in Malaysia with USD7 million revenue Focus on “lifestyle” Integrates “lifestyle” “Ambient Intelligence”which
Both public and enterprise blockchains have useful applications, much like the Internet recorded in 2016. However, CAGR of 42.3% (lighting & entertainment) security/safety and energy. design to recognize, predict
particularly to enhance the competitiveness in-house control only. Accessible via internet. and respond to the
and corporate intranets resulting in a market volume of USD29 million
of key industries that will improve Malaysia‘s needs, liifestyles
resilience in the future. in 2020 is expected with the penetration rate of and habits of occupants.
PUBLIC BLOCKCHAIN ENTERPRISE BLOCKCHAIN 0.9%. International brands such as Sharp has (www.designingbuildings.co.uk)

It is estimated that nearly 71 fintech startups introduced Cloud SmartHome System to the
Type of Blockchain Open access to everyone Limited access: local market since 2014. Apart from that, Archtron,
are mushrooming in Malaysia, offering
services in personal financing, online funding
1. Consortium a local company, has launched BLUGUARD REVENUE RECORDED
Revenue recorded
2. Fully Private Smart Home System series tailored for the
platform and B2B banking and payment. As
an effort to promote innovation and protect
Platforms Bitcoin, Ethereum, Hyperledger
residential, commercial and industrial sectors 2016 USD7 million
consumer interests, Bank Negara Malaysia that comply with the international standards.
Public (Inter-) Private (Intra-)
has introduced fintech regulatory sandbox.
This is to regulate fintech and to help startups
Meanwhile, WNM, a smart home provider with
a product called SmartZone Intelligent System 2020 USD29 million
Comparison The Internet Intranets & IT was recently awarded with ASEAN’s Most
experiment with new products and services in
Google, Amazon ORACLE, IBM Recognised Brand in Smart Home Automation
a safe environment.
Innovation Excellent Award. Revenue recorded
(Coinbase: State of Blockchain Q3 2016)
2016 USD7 million
 Expected growth of
Self-driving Car sales
106 C | TECHNOLOGIES OF THE FUTURE Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 C | TECHNOLOGIES OF THE FUTURE 107

Digital Presence Driverless Car 2025 2035

up to $42 billion growth of
Expected up to $77 billion
Self-driving Car sales
About 50% of the world population are Driverless car, also known as autonomous
internet users with 70% of them active on the vehicle is a car with embedded advanced
2015 ANNUAL NO. OF 2015 ANNUAL
2025 NO. OF
2035
social media. Digital presence is not limited computational system, GPS (Global
to individuals but for companies to promote GROWTH USERS Posiitoning System), sensors and monitoring GROWTH USERS (BCG report)
their businesses since at least 43% of online system to recognise any dynamic up to $42 billion up to $77 billion
consumers have social media accounts. GLOBAL POPULATION +4% 7,395b conditionGLOBAL POPULATION
of the road. Tech companies and +1% 30.45m
The benefits of having the digital presence automakers are investing heavily in self-
are to increase awareness, increase traffic
INTERNET USERS +10% 3,419b INTERNET USERS
driving technology including Ford, Google,
+1% 20.62m
to the websites, better understanding ACTIVE SOCIAL MEDIA ACCOUNTS +10% 2,307b Volvo,
ACTIVE Tesla MEDIA
SOCIAL and BMW, among others.
ACCOUNTS +7% 18.0m (BCG report)
of the perception, able to develop the
target market and for greater favourable MOBILE CONNECTIONS +4% 3,790b MOBILE
Driverless car CONNECTIONS
is expected to largely +4% 43.43m
perception on product/company. impact the cab industry. In Pittsburg US,
you can now experience the ride from an
(We are Social, Singapore)
autonomous car. Currently the trial ride
will be monitored by Uber engineers using
Volvo and Ford vehicles, with the target of Once autonomous vehicle
having 100 self-driving cars on the road by is widely used sales of regular
cars will drop as much as
WHERE ARE WE NOW?
40%
the end of 2017.
Once autonomous vehicle
Three quarters of Malaysians are internet users Many countries such as Australia, western is widely used sales of regular
2015
withANNUAL NO. OFactive social media
most of them having 2015 ANNUAL NO. OF cars will drop as much as

40%
Europe and the US plan to replace
GROWTH USERS
accounts like Facebook, WhatsApp, Instagram GROWTH USERS conventional cars to driverless ones by
and LinkedIn. As mobile connections exceed
+4% 7,395b
the number of the country’s population, 56%
GLOBAL POPULATION +1% 30.45m 2030. However, the question on the safety of
the technology has always been highlighted
(Barclays) (Barclays)
+10%
of people tend to use3,419b
mobile messengers as a INTERNET USERS +1% 20.62m especially after the recent accident in May
way to communicate followed by map services 2016, when a man was killed after the Tesla (Barclays)
+10%
and video streaming. 2,307b
However, Malaysians ACTIVE SOCIAL MEDIA ACCOUNTS +7% 18.0m car crashed into a tractor-trailer on a Florida
prefer to make online purchases through their
+4% 3,790b to using mobile
laptops or desktops compared MOBILE CONNECTIONS +4% 43.43m highway. WHERE ARE WE NOW?
devices. Among the well-known Internet Service Singapore is the first country to have on-demand driverless taxi. Together with Grab, American-
Providers (ISPs) in Malaysia are TM, Celcom, (We are Social, Singapore) based developer nuTonomy has developed an app where users can request for a ride in a
Maxis and Digi while Nuffnang and Advertlets modified Renault or Mitsubishi electric car. The trial ride is still limited to specific locations but it
are known for blog advertising services. is expected to expand until Singapore migrates to a fully self-driving taxi fleet by 2018.

Currently, Grab operates in Singapore, Indonesia, the Philippines, Malaysia, Thailand and
Vietnam. Although we have yet to adopt the technology just yet, we may be hailing a driverless
taxi sooner than you think.
 TECHNOLOGY 6.7% CAGR
APPLICATIONS
108 C | TECHNOLOGIES OF THE FUTURE USD133 billion byMalaysian
2020 Technology Strategic Outlook 2017/2018 C | MINIATURIZATION
TECHNOLOGIES OF THE FUTURE 109

IoT
Malaysian Technology Strategic Outlook 2017/2018

WIRELESS CONNECTIVITY
is being enabled by advance in

DEEP
IMPLANTABLE NEURO INCREASED DATA STORAGE CAPACITY
MINIATURIZATION

IoT
Implantable Technologies DEVICES SIMULATOR Internet of Things (IoT)
BRAIN WIRELESS CONNECTIVITY

COCHLEAR
Iot Market
is being enabled by advance in
INCREASED DATA STORAGE CAPACITY
RETINAL
SIMULATION
Implantable, also referred to as embeddable The IoT can be defined as the network of TODAY 2020
technology where a class of objects can be GASTRIC IMPLANT physical objects that contain embedded 300,000
DEVELOPERS
4.5 million
DEVELOPERS 2013 13% 2020
IMPLANT Iot Marketcompound
$1.3 $3.04
inserted directly into the human body to PACEMAKER technology such as intelligent sensors devoted to IoT will be devoted to IoT
trillion annual growth trillion
modify, enhance or heal in ways that non- which can communicate, sense or interact rate (CAGR)
TODAY 2020
embedded devices cannot. With 6.7% CAGR with internal or external systems. Back in 300,000 4.5 million
or USD133 billion market forecasted by year 2008, there were already more objects DEVELOPERS 2013
DEVELOPERS According to International 13%Corporation2020
Data (IDC)
2020, it is predicted that new products TECHNOLOGY connected to the internet than people, devoted to IoT will be devoted to IoT $1.3 compound
trillion annual growth
$3.04
trillion
will be launched including implantable APPLICATIONS with the ATMs among the first of the IoT rate (CAGR)
smartphones, healing chips, cyber pills, solutions that went online. The rapid growth
implantable birth control, brain computer NEURO of the IoT market has created a variety of
(International
According to International Data Data Corporation
Corporation (IDC) (IDC))

interface, melt-able bio-batteries, smart

dust, identity implants and implantable
IMPLANTABLE SIMULATOR IoT solutions i.e. health monitoring system,
smart home, wearable devices and smart
smart organs. Among the major players
DEVICES cities. The increasing number of connected
are AdvanSource Biomaterials Corporation, devices and data availability will require the NATIONAL IoT STRATEGIC ROADMAP

GASTRIC
Collagen Matrix Inc., CorbionPurac and The Global Market: IoT to be secured and safely stored.
Ceradyne.
PACEMAKER 6.7% CAGR
NATIONALasIoT
Malaysia theSTRATEGIC ROADMAP
Premier Regional IoT
(www.electronicdesign.com)
USD133 billion by 2020 WHERE ARE WE NOW? Development Hub
As stated in the National IoT Strategic Roadmap
published by MIMOS, Malaysia has a wide
potential for IoT since there are well-established Malaysia as the Premier Regional IoT
Development Hub
WHERE ARE WE NOW? mobile operators and high internet penetration
rates. Various incentives and cyberlaws are
The medical devices industry is one of the fastest growing sectors of the MALAYSIAN already in place to promote the ICT development
healthcare spectrum in Malaysia which comprises over 190 manufacturers, MEDICAL 2020 & BEYOND in Malaysia. Among the potential opportunities
MISSION OUTCOMES GOALS STRATEGIES
mainly in the production of medical gloves. The industry has transformed
DEVICES High value added products for growth are in the application & services
from manufacturing simple device range of products to higher value- sector with RM7.5 billion of revenue followed by
To create a national
ECOSYSTEM to enable
ECONOMY
RM9.5B [2020] 1. Conductive
Ecosystem
SHORT-TERM
1. Transformation of
added and technologically advanced products including cardiac INDUSTRY device producers with RM4.3 billion forecasted MISSIONof use
the proliteration OUTCOMES
RM42.5B [2025] GOALS STRATEGIES
SME’s
pacemakers, stents, orthopedic implantable and prosthetic devices and by 2020.
and industrialisation
of IoT as a new source 2. Conductive
Strengthen
Malaysian
2. Alignment with
existing initiatives
others. Under the 11th Malaysia Plan, the industry is encouraged to intensify
its technological capabilities in areas of highly invasive implantable devices.
1990s To create a national
of economic growth
ECOSYSTEM to enable
EMPLOYMENT
ECONOMY
14,270 jobs [2020]
RM9.5B [2020] 1. Ecosystem
Technopreneurs SHORT-TERM
1. Transformation of
Conventional medical GAME-CHANGING
Several initiatives were formulated under the Medical Devices EPPs to drive
the growth of the industry while leveraging on the electrics and electronics
devices
the proliteration of use
and industrialisation
of IoT as a new source
RM42.5B
EDGE [2025]
146 local patents to be
EMPLOYMENT
3. Malaysia as the
2. Strengthen
Regional Develop-
Malaysian
ment Hub
SME’s
1.2. Alignment
Iot Malaysiawith
2.existing
Open Innovation
initiatives
of economic growth exploited Technopreneurs Framework
industry. Among the players are St Jude Medical, StraitsOrtopaedics and 14,270 jobs [2020] 3. Open Community
OrthoMedic. GAME-CHANGING
Data Framework
1980s EDGE
146 local patents to be 3. Malaysia as the
Regional Develop-
ment Hub
1. Iot Malaysia
2. Open Innovation
Rubber based product exploited
(National Internet of Things (IoT) Strategic Roadmap, 2014) Framework
3. Open Community
Data Framework
110 C | TECHNOLOGIES OF THE FUTURE Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 C | TECHNOLOGIES OF THE FUTURE 111

Neurotechnologies Photonics 2020

2020 is to be more than
is to be more than
USD 724.2 billion
2020billion
USD 724.2
Neurotechnology is a technology that allows enhancement, alteration Photonics is the science and application of lights is to be more than
or scanning of the brain and its related neurological tissues and systems. (photon) to generate, control and detect particles of 2015 2015 USD 724.2 billion
Instruments and techniques used to develop neurotechnology include light used in: was USD
was USD 452.2 billion 452.2 billion
brain imaging systems (fMRI, PET, EEG), biochips (DNA microarrays,
protein chips, RNA chips), genetic engineering techniques, cellular
▶▶ Optical communication (fibre optic, infra red)
2015
implantation and electronic stimulation. The field of neurotechnology ▶▶ Optical imaging (weather satellite, night vision, flat was USD 452.2 billion
was first revolutionised by the brain-imaging technology. Some of screen display)
the examples are MRI and computerised tomography (CT) scanning
▶▶ Optical data storage and computing (DVD, CD)
machines, which allow medical professionals and researchers to
diagnose the brain and find the treatment for injuries and diseases as ▶▶ Optical detector (medical optic, mall scanner)
well as to better understand how the brain works.
BrainGate is a brain implant system
built by Cyberkinetics (now owned ▶▶ Lasers (laser welding, laser surgery, laser show) The global market for
Neurotechnology also produces psychopharmaceuticals, by BrainGate Co.), designed to help ▶▶ Spectroscopy (anti-terror, chemical and biological
photonic technologies
(MarketandResearch.com)
psychological conditioning, neurofeedback and magnetic stimulation. motor-impaired individuals such as detections)
A good example of the pharmaceutical drugs are the medications patients with amyotrophic lateral ▶▶ Quantums optics (quantum teleportation,
The global market for
used to treat attention deficit disorder (ADD) and attention deficit
sclerosis (ALS) or spinal cord injury quantum cryptography, single photon optics) photonic technologies
hyperactivity disorder (ADHD) which alter the brain chemistry for the
purpose of changing human behavior. However, modifying (either to communicate and interact with
Devices that run on light have a number of advantages
The global market for
(MarketandResearch.com)
treating or enhancing) the function of the brain for these purposes society.
over those that use electricity. Light travels at about 10 photonic technologies
raises some ethical and legal issues.
times the speed that electricity does, which means (MarketandResearch.com)
that data transmitted photonically can travel long
distances in a fraction of the time. 1 high efficiency
solar panel 500 high efficiency
solar panel 6,500 high efficiency
solar panel

WHERE ARE WE NOW?

In Malaysia, there are six universities offering courses related to neuroscience ▶▶ Analysis of big data
WHERE ARE WE NOW? energy for energy for energy for
and cognitive science namely University of Nottingham, UPM, UiTM, USM,
UNIMAS and University of Reading.
(E.g. bioinformatics and machine translation) Photonics is one of the promoted activities under the
manufacturing sectors defined by MIDA. Any companies
125 smartphone
per year 261,000 200
NYC subway car trips per year x circular travel around
▶▶ Analysis of networking structure or relationships that involve in manufacturing of photonics devices the earth in a Toyota Prius
Since 2002, a company called Neuramatix has been researching, (E.g. social networking) and components, optoelectronics equipment/devices/
developing and commercialising neural technologies powered by a components and optical fibres/products are eligible to
proprietary neural engine called NeuraBASE™. This approach provides the ▶▶ Control of intelligent systems apply for the pioneer status and investment tax allowance.
ability for machines to learn pattern from data and to express information (E.g. robotics, unmanned aerial drone) Solid-state lighting and solar cells are also heavily
in much the same way as the human brain learns, stores, retrieves and promoted in the Economic Transformation Program (ETP)
expresses information. The technology can be used in the analysis of data through subsidies, matching investors and the promotion
(SaveOnEnergy.com)
(SaveOnEnergy.com)
from a broad range of applications including: of national champion, LED Consortium Sdn Bhd.
112 C | TECHNOLOGIES OF THE FUTURE Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 C | TECHNOLOGIES OF THE FUTURE 113

Pocket Supercomputer 2G 3GInternet

4G Internet
5G Internet
Smart Cities Global Smart
Global
Global
andEurope
North
Citiesi
Smart
SmartCities
America
and North
inin2025
Citiesi
and North America America
in Will
2025 will be
2025 Mostly
beWill
Mostly in Europe
in
be Mostly in Europe
Texting
1991 Texting
1998
Access
2008 Texting Access
2020? Texting Access
Ultra HD
Selected Smart Cities in 2025
Selected Smart Cities in 2025
Though personal computers offer Video Smart
& 3D cities
Video are capable to integrate
increasingly more complex functions, existing services and ready to implement
they are getting smaller with about 70% new services to enhance quality and
of users have at least two connected performance of urban services, reduce COPENHAGEN

devices including the smartphone, laptop, cost and resource consumption and COPENHAGEN

2G 3G 4G 4G
AMSTERDAM
mobile and etc. As the sales of pocket Texting Texting Texting Texting Smart
effective engagement with their citizens. VANCOUVER BEIJING
Homes AMSTERDAM
supercomputer is increasing through the It is projected that 70% of the global VANCOUVER BEIJING
years, the applications evolve from calls population will live in cities by year 2050.
and messages to more sophisticated 1991 1998 Internet
2008
Internet Internet
2008 To accommodate this boom, in the next 40 Oslo Helsinki
internet platform beyond computers. (http://techpp.com Access Access Access years, the Government must build the same Stockholm
London Oslo
Today, it is possible to send an email, call amount of urban capacity that previous Toronto Paris Berlin Helsinki
Seattle Vienna Stockholm
a client and alter one’s daily agenda on ancestors took 4,000 years to create. By San Fransisco New York Barcelona
London TOKYO
one convenient piece of equipment that 2025, smart cities are expected to mostly Los Angeles Chicago Toronto Paris Berlin Tianjin Seoul
Seattle Vienna Wuhan
is small enough to take everywhere. Even concentrate in Europe and North America New York Barcelona
Video Ultra HD San Fransisco Shenzhen

Pocket
financial transactions are made through the & 3D Video and the market will be worth USD1.5 trillion Los Angeles Chicago Tianjin Seoul
telephone which offers a greater range of by 2020. CALGARY
Wuhan
Shenzhen
communication, greater interactivity with
the outside world while creating a true
mobile office within one unit. Supercomputer Smart
Homes
CALGARY

SINGAPORE

11 million smartphone users SINGAPORE

SYDNEY

in 2016
Purchases on their smartphones 45% WHERE ARE WE NOW?
Uses
Used digital wallets
Texting
10%
Texting
In the region, Malaysia has done quite well in terms of social welfare, critical infrastructure and
economic internationalisation. Recently, the country’s first integrated operations centre (IOC) for IoT
(Forbes Smart City List, Innovation City Index,
Specific Smart Project Websites for Each City,
WHERE ARE WE NOW? operations of smart city services has been set up by Inneonusa in Iskandar Puteri, Johor to provide Frost & Sullivan)

Over the past five years, the relationship between voice and data traffic is
interchanging. The increase in data traffic with voice and SMS decreasing
is a global trend across both developed and emerging markets. In Malaysia,
the telecommunications sector has shown similar decline in voice and
SMS revenue as a result of reduction in use. In 2015, mobile voice revenue
declined by 7.3% to RM11.69 billion from RM12.61 billion in 2014. This was
also contributed by the aggressive deployment of both fixed and mobile
Texting
2G 3G
broadbands. Following the upward trend of global smartphone markets, a single nationwide monitoring dashboard to coordinate operations of smart services involving
Malaysia’s expansion of its smartphone market is expected to hold steady physical devices and sensors, vehicles, buildings as well as incidents and events. Also, Malaysia is
Internet
at around 1% annually with 11 million smartphone users projected in 2016. running a trial of smart city technologies by building a smart traffic management system in Cyberjaya
1991 1998 Access
In 2015, about 45% of smartphone users in the country made purchases on for better traffic management which is likely to be rolled out to other cities. While in Penang, a smart
their smartphones and more than 10% of them used digital wallets. Current city is proposed to be developed along the southern coast of the island. The city will have their own
smartphone manufacturers in Malaysia are Ninetology and CSL. self-cleansing system to prevent erosion and siltation.
Texting
114 C | TECHNOLOGIES OF THE FUTURE The Evolution of Data Storage Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018
The sharing economy
C | TECHNOLOGIES OF THE FUTURE
will grow from: 115

$15b
in 2013
$335b
in 2025
Storage for All The Sharing Economy

Storage capabilities evolve from disk The digital revolution brought by technology (PWC)
8 inch Floppy 5 1/2 inch USB Drive SD Micro SD Cloud
storage to cloud which sees a tremendous Disk Floppy Disk has taken the sharing concept forward and
drop in storage price as it is almost free. The created opportunities where individuals The sharing economy
cloud storage global revenue has shown can monetise their skills and underutilised will grow from:

$15b $335b
continuous growth with projected revenue resources. Numbers of sharing platforms
of USD4.04 billion in 2016. Now, about 1 have emerged and are changing
Exabyte of data is stored in the cloud which businesses in finance, accomondation,
Commercially in 2013 in 2025
is equivalent to 9 billion pieces of DVD’s. available transport, online staffing and video and
However, the most secured way to protect 1971 1976 2000 2010 2010 2009 music sharing.
the stored data in the cloud is by using a
service specifically engineered for backup, Maximum Companies like Uber and Airbnb have
capacity 1.2MB 1.2MB 2TB 256GB 128GB ~5ZB
not the storage to avoid costly disruptions. taken technology advances like the big
Some of the well-known cloud storage data analytics, cloud storage and location- (PWC) (PWC)
providers are Dropbox, Google Drive, Cost per GB £1000 £800 £0.5 £0.8 £0.5 <50gb free based GPS and breathed new life into
OneDrive, iCloud and Box. old-fashioned concepts like car-pooling
and crashing for the night at a friend’s
THE EVOLUTION OF DATA STORAGE house while travelling. More importantly,
The Evolution of Data Storage (www.pixelpelican.co.uk) these enterprises took advantage of what Provider/Platform Services/Product
the Internet and mobile technology had
to offer to organise the ‘sharing economy’ AirBnB Home-sharing host
from something informal and ad-hoc into
WHERE ARE WE NOW? something bigger, better and accessible to Uber, Grab, Taxi Cab-sharing/

#8
Monger vehicle-sharing services
anyone with a smartphone.

0.5b
Through a cohesive national effort to develop a conducive cloud
ecosystem in Malaysia, MDEC is driving the awareness of cloud computing Plate Culture Home-cooked meal service
ecosystem towards the implementation of software as a service (SaaS)
and future rollouts of infrastructure as a service (IaaS) and platform as a Kfit Fitness-sharing platform
service (PaaS). According to Asia Cloud Computing Association, Malaysia
is ranked number 8 out of 14 Asian countries in 2016 with among the
highest points for cybersecurity. If compared to other non-Asian countries,
WHERE ARE WE NOW?
Malaysia can be placed on par with Brazil, South Africa and the UAE based
on cloud readiness. There are several cloud providers based in Malaysia #8
2016 0.5b 2020 Malaysians have swapped, loaned and rented items informally for quite sometime. While the
sharing economy is still young in Southeast Asia, a Nielsen consumer report suggested that
namely Exabytes, VADS, Shinjiru, SKALICloud and others. It is projected #8 out of RM0.5 billion consumers in the region are opening up to the idea, showing that 75% of Malaysian consumers
Provider/Platform
that by 2020, the computing and storage market in Malaysia will reach were more likely to use shared products Services/Product
or services.
RM0.5 billion.
14 2016
Asian countries
2020 market
#8 out of RM0.5 billion AirBnB
There are Home-sharing
several platform-sharing start-ups host the ‘cake’ of conventional
in Malaysia, sharing
14 Asian countries market
business activities such as cab service, food service and even fitness service.
Uber, Grab, Taxi Cab-sharing/
Monger vehicle-sharing services
 2020s
Pervasive/
116 C | TECHNOLOGIES OF THE FUTURE Malaysian Technology Strategic Outlook 2017/2018 Ubiquitous Malaysian Technology Strategic Outlook 2017/2018 C | TECHNOLOGIES OF THE FUTURE 117
Computing
2010s (Embedding
Cloud & processor in
Centralized Distributed Internet Mobile Transported
UbiComp every live
Ubiquitous Computing Technologies object) Vision as the New Interface DIGI-CAPITALTMTM REALITY MATRIX
2000s (Anywhere,
Anytime,
1990s World Wide Anyuser)
Ubiquitous Computing also called UbiComp Web (www) Better known as Augmented Reality (AR) IMMERSIVE VR MIXED REALITY
is an embedding processor in every live Technologies i.e. Google Glass and Virtual Reality (VR),
Client Server
object. For example, users can interact with 1970-80s Distributed the interaction is moving from interface (i.e.
computers (which can be in many different Technologies mouse and keyboard) to smart screens
forms like laptops, computers, glasses, MainFrame 2020s and to using intuitive interaction in the
watches, refrigerators, terminals, etc.) constantly Technologies future. Intuitive interaction will see devices
Pervasive/
because of UbiComp’s existence. UbiComp Ubiquitous responding to ambient cues and intentional
is mainly designed to appear anywhere and Computing movements to create empathetic and

IMMERSIVE
2010s (Embedding
everywhere that employs internet, middleware, processor in personalised experiences through gesture,
operating system, mobile code, sensors and Transported every live mood and gaze. With the industry reaching
Technologies
Evolution Of Computing
other technologies to support and operate the object) USD80 billion a year by 2025, the potential
2000s (Anywhere,
system. Anytime, of AR/VR technology is extremely diverse.
1990s World Wide Anyuser)
Web (www) Among the top products are PlayStation
Client Server Technologies VR, Samsung Gear, HTC Vive and GoPro.
1970-80s Distributed
MainFrame Technologies
Technologies

VIRTUAL REALITY AUGMENTED REALITY

WHERE ARE WE NOW? Evolution Of Computing
Malaysia’s aim is to have 95% internet penetration by (www.szamitasifelho.com) WHERE ARE WE NOW?
the year 2020. Currently, the internet penetration rate AR is a growing market in Malaysia and has a
in Malaysia is about 72.2% with national household
broadband penetration rate reaching 77.3%, which Digital device ownership great growth potential. Local companies such
as e-Trifecta has introduce AR products into
exceeds the 75% target set in the 10th Malaysia Plan (% per adult population) the market by connecting the traditional print

AMBIENT
2010 – 2015. For further growth, the connectivity advertising world with its digital counterpart.
capacity to international destinations is also being Although AR for advertising in Malaysia is nothing
increased. These changes underway complement Smartphone 71% new, the utilisation of AR in adding a digital
the High Speed Broadband Project Phase 2 (HSBB2) layer over the existing offline advertisements to
and Suburban Broadband Project (SUBB) towards
achieving the 11th Malaysia Plan 2016 – 2020 targets.
Mobile Phone 96% increase engagement with consumers is still
low. On consumers’ view, VR devices has started
Currently, the 4G LTE roll out has achieved 53.6% of
the population’s coverage, ahead of the 50% target
Laptop/desktop computer 35% to enter the local market and is well accepted.
VR devices are sold as low as RM50 in the local
set for 2017. The target speeds are set at 100Mbps Tablet device 14% market.
for urban households and at least 50% of suburban VIRTUAL AUGMENTED
and rural households with 20Mbps. TV Streaming device 4%
(www.digi-capital.com)
118 C | TECHNOLOGIES OF THE FUTURE Malaysian Technology Strategic Outlook 2017/2018

Wearable Internet Infiltration of sensors

FUTURE Rise of hidden wearables

Globally, 97 million of connected wearable
devices were recorded in year 2015 with
TRENDS Interchangeable & responsive interfaces

projected CAGR of 44% by 2020. Started in Blurring boundaries of physical & virtual worlds
early 70s with calculator watch to android
wear/Apple watch which marked 2014 as
the Year of the Wearable, the technology
CONTINUOUS HEALTH MONITORING SYSTEM
PART D
evolved to smart home, women’s wearable
and virtual reality applications. Among
trending products are Pebble Time
Steel, Apple Watch, Fitbit Blaze, Garmin HOSPITALS/CLINICS CAREGIVERS DOCTORS

VIEWS
Forerunner 235, Samsung Gear, Huawei
Watch and Garmin Vivo manufactured by
Fitbit, MI, Apple, Garmin, Samsung and etc.

2015 97 MILLION
WEARABLE DEVICES AUTO SOS & os
pitals/Clin

FROM THE

ics
PANIC DEVICE

INDUSTRY
Doctors

2020 CAGROF 44%

Phone Calls, regivers

SMSes & Local Ca
Alerts with GPS
WHERE ARE WE NOW? PhoneLocation
Calls, SMSes & Local Alerts
As of January 2016, the market acceptance with GPS Location
is still low with only 1% of adult population
in Malaysia owning wearable devices. As a
start, the Government has initiated a programHealth info
called Continuous Health Monitoring to create WiFi
continuous diagnostics and precision treatment
by medical experts while utilising IoT such as u d Comput
lo i
measure vital data like heartbeat, amount of WIFI HEALTH INFO CLOUD COMPUTING
C

ng

exercise and number of calories.

(National IoT Strategic Roadmap)
120 D | VIEWS FROM THE INDUSTRY
VIEWS
FROM THE
INDUSTRY
THE BASIC PREMISE
According to the Statistics Department, our economy expanded 5% in
2015. Correspondingly from MIDA, the manufacturing sector recorded the
highest productivity level growth in 2015; in its Productivity Report 2015/2016.
It surmised in the report that the sector’s performance was due to strong
domestic demand and encouraging exports, especially to the United States
and other advanced economies following the global economic recovery. It also
quoted on the higher use of automation, modernisation, and digitalisation of
processes & systems; that results in reduced dependency on the low skilled
labour as shown by the slower growth of employment.
The statement above simply highlights the inexorable move towards utilising
the latest elements of within “technology” and its dynamics have to offer.
Manufacturing sector is a key driver of the economy, accounting for 25% of the
country’s gross domestic product (GDP) and more than 60% of total exports.
Therefore, as we move forward, adopting the principal grouping of technologies
and its platforms, now known as Industry 4.0 is crucial for the nation to stay
globally competitive.
As its gets clearer, it is moving beyond doubt that the traditional manufacturing
business model is promptly changing, and new innovative models are emerging.
Consequently, incumbents must be astute to recognise and react to these new
competitive challenges. From the productivity increase noted above, we can
safely assume that many of the key players in the various sectors have taken
the plunge. However, there are a few still sitting on the fence deliberating what
to do with this convergence of technologies and platforms – the amalgamation
of which, will result in major changes for the economy and its development.
Coined by the German government – “the term Industry 4.0 stands for the fourth
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 121
INDUSTRY 4.0 However, as industrial internet of things bring
assets and data online, companies will also need
Coined by the German government – “the term
Industry 4.0 stands for the fourth industrial
to give special importance to increase in demand
for cyber security and protection.
revolution.”
industrial revolution. Best understood as a new level of organization and control
over the entire value chain of the life cycle of products that is geared towards
TECHNOLOGY: PEOPLE:
increasing individualized customer requirements. This cycle begins at the
Many companies have already invested heavily on systems like ERP, MES, etc. Due to Industrial 4.0 initiatives, there will be some peculiar shifts in the workforce
product idea, covers the order placement and extends through to development
The Industrial Internet of Things will bring them a step higher, i.e. connecting profiles across all industries. Some of the conventional roles and positions
and manufacturing, all the way to the product delivery for the end customer,
everything, everywhere. From here onwards, everything has or will be within companies will become redundant. However, as those disappear, there
and concludes with recycling, encompassing all resultant services. The basis
embedded with various sensors that produce new data sources such as videos will be many new roles, primarily high skilled and technology savvy ones
for the fourth industrial revolution is the availability of all relevant information
and other unstructured data; which can now be stored and analysed almost created. There will be a major need for talent proficiency in Digital and Data
in real time by connecting all instances involved in the value chain. The ability
as effectively as classic structured data. When you add in Big Data Analytics sciences; Cybersecurity, IoT, Augmented Reality, 3D Printing, Sensors, Machine
to derive the optimal value-added flow at any time from the data is also vital.
capability, with the elements of Industry 4.0 added, it will enable degrees of Intelligence, etc.
The connection of people, things and systems creates dynamic, self-organizing,
flexibility and visibility across the value chain that simply was not possible till
real-time optimized value added connections within and across companies.
now. Big Data Analytics will provide real-time analysis, mitigate deviations, and Therefore, in any organisation, the Industry 4.0 initiatives must be championed
These can be optimized according to different criteria such as costs, availability
ultimately identify causes of waste whilst reducing it definitively. This augurs from the top. In addition to providing executive support, they must take the
and consumption of resources.” Source: Platform Industry 4.0 (translated from
well with the current and future economic goals of sustainability - helping lead to orchestrate their workforce, by retraining and redeployment of existing
German).
companies bring their lean manufacturing initiatives to the next level. From workforce, strategically hiring the right talent from outside; and driving change
then on, predictive production and pre-emptive maintenance will be easily management to handle inevitable future disruptions apart from preparing the
Technologies behind Industry 4.0 like the Industrial Internet of Things, Big Data
achieved from the integrated data sharing over the length of the value chain. organisation into adapting and adopting the new technologies and platforms.
Analytics, and Artificial Intelligence are not new. However, Industry 4.0 provide
the means to connect these capabilities in new and transformative ways to
However, as industrial internet of things brings assets and data online,
create new opportunities and help address routine challenges for companies
companies will also need to give special importance to increase in demand
better; such as regularly delivering a first-class customer service, with shorter
for cyber security and protection. Evaluations must constantly be made to
lead-time, at a reduced cost, providing a greater number of product variants
ascertain dangers and must urgently tailor their risk management and security
and/or achieve mass customisation.
strategy holistically; to handle all these connected assets and sharing of data
to effectively improve operational security and assuredly protect it from attack
Although the general direction for adaption of Industry 4.0 is clear, the
across the value chain.
journey each company has to take to get there is not. Nonetheless, we believe
stakeholders in Malaysian manufacturing including the services sectors need
to pay special attention to following areas to maximise full potential and/or the
very least to begin realising the awesome transformative effects of Industry 4.0.
122 D | VIEWS FROM THE INDUSTRY Malaysian Technology Strategic Outlook 2017/2018

METHODOLOGY: The most important thing is to decide what

In general, looking at the various studies and articles on meeting the challenges
of Industry 4.0; the companies must first align their Industry 4.0 related
question you are trying to answer with the data i.e.
roadmap to their operational priorities, customer needs, competitive advantage the hypotheses you are trying to validate, the usage
to be gained, and not to specifically to their technological readiness only. It also
calls for prudence since just because the technology exists or is in vogue does around them to make the business case, and the
business value you are trying to generate. Manufacturing sector is a key
not mean one should use it.

The matter of fact, understanding what you can leverage from existing
investments should be the starting point. If you have bought any equipment
over the last few years, it probably already has vast numbers of data collecting
driver of the economy, accounting
sensors that you might not be using appropriately or even realise that it is there.
Maximise or optimise before deciding to invest in new technology/equipment.
for 25% of the country’s gross domestic
Sometimes add-ons and simply utilising a new application (software) can
improve the productivity required.
product (GDP) and more than 60%
Next, clearly define the problems and opportunities these new capabilities will
of total exports. Therefore, as we move
be required to solve before jumping into analysing the data. The most important
thing is to decide what question you are trying to answer with the data i.e. MOVING FORWARD – forward, adopting the principal grouping of
the hypotheses you are trying to validate, the usage around them to make the
business case, and the business value you are trying to generate. Analysis of all OUR SELECTED ORGANIZATIONS technologies and its platforms, now known
the “big” data, once collected, will definitely open further avenues to improve
business. Additionally, with the new technology/equipment to be put in place,
As we conclude the basics, the need to evolve to meet these challenges is a
as Industry 4.0 is crucial for the nation to
analysis will be needed to look into what further business opportunities can be
realised with the new capabilities.
dire necessity. Our nation at the very least requires its industry players to be
vigilant, robust, and opportunistic; to enable them not to merely survive the
stay globally competitive.
dynamic changes and challenges, but rather to successfully thrive amidst them.
Finally, the phases of change will need to be planned. With the current
economic climate, for most companies, it does not matter to start small but
You will find below some of those organisations that have shown their mettle in
to do it continuously. Implementation and innovation, similar to education and
meeting the vibrant technological leaps and onslaught and driving progressively
training; must go hand in hand. Analysing, testing and proving of the concept
towards their goals, each with its unique realisation, approach, methods and
must not divert attention from truly and effectively resolving the identified
means.
problems within a specified time period. Once it has been decided, the remedy
or developed plan need to be promptly communicated and rolled-out; to move
towards resolving matters and generating the required business value. More
than often, not everything will be done right the first time around. Prepare for
anticipated and estimated failures; progressively improve, adopt, adapt and
improvise as you move forward whilst constantly examining data produced
using the various platforms put in place in the world of Industry 4.0.
124 D | VIEWS FROM THE INDUSTRY
Aerospace Malaysia
Innovation Centre (AMIC)
VIRTUAL REALITY APPLICATION IN AEROSPACE MALAYSIA INNOVATION CENTRE
Virtual Reality (VR) application has been in used for
quite some time, but lately it has gained momentum
due to the advancement of the technology, and
most importantly the steep drop of the price tag
for mass consumers to own a VR equipment. A
Head Mounted Display (HMD) set, together with
its application is already available through Oculus
Rift, HTC Vive and Google Cardboard. Sony Project
Morpheus will also be joining the fray later in 2016.
Although all these applications are meant for the
gaming industry, real world application can also
benefit from this advancement. For example, in the
architecture industry, the majority of construction
projects in Malaysia still rely on 2D drawings and
mock-ups to demonstrate their ideas. A step-
up would be to model all the objects in a CAD
software and view everything from a computer
monitor or projector. The disruptive technology
of VR today, will bring an entirely new experience
by transporting the user to an immersive digital
environment, where the user will think that he/she
is really facing the model and is able to interact with
the digitized construct.
The most important component of a VR setup
is the viewing experience. To make it immersive,
a user needs to be able to see everything in 3D.
The conventional 3D glasses from a cinematic
experience found in the movie theatre does not
equate to the Virtual Environment (VE) viewing
experience. This is because in a VE, the picture
projected on the screen is not only in 3D (as per
the cinema experience), but the viewing frustum
will be adjusted according to the intended viewer
movement (limited to one viewer at a time). The
objects projected on the VE screen also needs to
be in 1 to 1 ratio to the actual real life size of the
objects.
There are three methods most used in a VE, which
is i) HMD; ii) power wall; and iii) CAVE (Computer
Aided Virtual Environment) or multiscreen
projection. Combination of HMD and power wall
or CAVE can also be used in a collaboration mode.
There are pros and cons for each method. The HMD
is the cheapest, but it has the shortest duration
before an average user gets “cyber sickness”. The
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 125
The haptic arm end-effector will act as a driller tool, AMIC will continue to strive for excellence and
whereas a human driller will be immersed in VE making research, technology and innovation as
that imitates their working environment in a factory. the key enabler to keep Malaysia competitive in the
The haptic arm will give feedback to the user region and technologically advanced to face new
performing the drilling task. This involves complex challenges in the future.
mathematical calculation to be embedded in the
logics of the haptic arm. This project is currently
going through the validation phase, whereby expert
drillers from the industry are testing the system,
CAVE which consists of at least 3 screens; front, left and data are being collected for qualitative and
and right screen will give maximum immersiveness quantitative measurement of the system.
but only organisations with generous budgets will
be able to implement such configuration. Thus, AMIC is also jumping on the international
the power wall which consist of one big screen is bandwagon, and is championing to accelerate
the usual way for organisations to carry out its VR Malaysia into the Industry 4.0 revolution in the
projects. aerospace arena – as part of its Factory of the Future
research theme. In July 2016, the ‘Virtual Reality
A decent VR system will allow navigation and Online Robot’ project was launched, marking it as
manipulation of the objects using a gadget mostly the first project which could truly be characterized
known as a flystick. There are also trackers and as an Industry 4.0 type project within AMIC. The
markers to keep track of the user movement in the objective is to create a virtual robot, so that an actual
VE. In an ergonomics related project, markers are physical KUKA robot will be able to imitate the
attached to strategic parts of the human body so movement of the virtual robot. A typical application
that the VR system can keep track of the users’ is in the painting task whereby an expert can perform
posture while they are performing a task. complex painting in the virtual environment, but the
Figure 2: Haptic device and HMD kit available at AMIC
actual work takes place at another site connected
by the internet. The Robot Operating System (ROS)
Aerospace Malaysia Innovation Centre (AMIC) has nodes will act as the interface to create seamless
already implemented a VR system which consists connection between all the machines. The physical
of a power wall, combined with a HMD. This KUKA robot will also be able to detect if there are
allow the user to wear the HMD, while observers any objects, or human workers obstructing the
outside the system will be able to view his actions. intended path while processing data from sensors,
A very important equipment in AMIC is the 6DOF trackers and markers. A special algorithm will be
haptic arm which is used in the VIRISTAM project built to recalculate the next best path to get to its
to imitate the force feedback of an applied force. position without compromising the safety rules and
VIRISTAM, short for ‘Virtual Reality Immersive guidelines.
System Training for Aerospace Manufacturing’ is
a project to produce validated innovative training The move towards Industry 4.0 unavoidable. The
using VR as its tools for manufacturing tasks such mastery of VR and other technology as mentioned
as the drilling of a composite panel. above will be crucial in achieving that target. Figure 3: Experiments with experts in VR session and physical session
Figure 1: Tracking (markers) constellation
126 D | VIEWS FROM THE INDUSTRY
Agensi Inovasi Malaysia (AIM)
MOVING TOWARDS A HIGH VALUE ECONOMIC ECOSYSTEM
WITH GRAPHENE
Industry 4.0 will yield a new generation of automation technology and
production systems, designed and implemented virtually in tight collaboration
with suppliers and partners.
The world has seen three industrial revolutions. The
first focused on mechanical automation and steam
power. The Second was characterised by the further
development of electric power to create higher level
of automation that led to mass production. The
Third, propelled by the rise of digital technology,
was driven by computers and communications
technology.
The enhanced automation and digital connectivity
in the Third Industrial Revolution changed the
way how people interact with the world around
them, and it forbore the Industry 4.0, also known
as the Fourth Industrial Revolution. Presented by
Professor Klaus Schwab, Founder and Executive
Chairman of the World Economic Forum, the
Fourth Industrial Revolution is characterised by
higher degree of automation and connectivity.
The growing role of robotics, artificial intelligence,
3D printing, neuro-technology and information
technology (IT) are cutting across all sectors. The
Fourth Industrial Revolution book said, “We are at
the beginning of a revolution that is fundamentally
changing the way we live, work, and relate to one
another.” With each advance, technologies emerge
and converge, leading to new paradigm shifts in
industries – opening new opportunities for novel
combinations across physical, digital, mechanical
and biological systems.
In essence, Industry 4.0 has transformed the global
production system. Advancing trends of automation
and manufacturing technologies are leading the
convergence of the physical manufacturing world
with the digital manufacturing world. Industry
4.0 refers to this as Cyber Physical Systems,
integrating smart machines, logistics systems and
production facilities that allows peerless digital-
based integration manufacturing.
Industry 4.0 will yield a new generation of
automation technology and production systems,
designed and implemented virtually in tight
collaboration with suppliers and partners.
These insist upon adaptability, flexibility, self-
adaptability and risk management, to remain
competitive. Recognising the potential benefit of
autonomous systems, robotics, and 3D printing,
will see governments feature more in technology
investments to progress national capabilities.
One of these technology investments that Malaysia
has made is in Graphene. The Global Graphene
market accounted for USD62.36 million in 2014,
and is projected to register a CAGR of 42.1% to
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 127
Malaysia as one of the early adopters of graphene.
Discovered in 2004 by Geim and Novoselov,
graphene offers lucrative opportunities for Malaysia
in the innovation sphere. The NGAP 2020 facilitation
offered by the government is a platform for local
companies to explore new market opportunities
through offering value add products derived from
this innovation initiative.
The commitment rendered by more than 20
companies currently participating in the program
reflects high interest in graphene commercialisation
in Malaysia among local companies. The action
plan is perceived as an established funnel available
reach USD1, 039 million by 2022. Graphene is the
in innovating graphene-based products and
world’s first 2D material which has unique features
simultaneously promoting innovation in the relevant
such as ultra-light and extremely tough. Graphene
industries. Driven by market demand, participating
comprises of carbon atoms in honey comb lattice
companies foresee potential revenue increase and
structures which makes it stronger than steel and
market capitalisation through graphene innovation.
it is also extremely flexible. It has superior electrical
conductivity and heat resistance.
Besides amplifying program reach and providing
on-going facilitation support for product
This emerging and highly versatile carbon-based
development and scale up activities, the action
nanomaterial is widely considered to be one of the
plan aims to establish a business and investment At the launch of NGAP 2020 in July 2014
most promising materials discovered in the past
platform in assisting scale up companies to connect From left: CEO of Nano Malaysia Berhad Dr. Rezal Khairi Ahmad, CEO of AIM Mark Rozario, Deputy Minister of Science, Technology
decade. Graphene has vast potential to further
with potential up-takers and investors; leverage on and Innovation YB Datuk Wira Dr. Abu Bakar Mohamad Diah, CEO of PEMANDU Dato’ Sri Idris Jala, Minister of International Trade and
develop Malaysia’s innovation agenda and presents
know-how developed in the product development Industry YB Dato’ Sri Mustapa Mohamed and Director of Palm Oil & Rubber NKEA of PEMANDU Ku Kok Peng.
a unique opportunity for Malaysia to develop a high
stage, and offers licensing opportunity to interested
value economic ecosystem with its industries.
parties.
These attributes possess innovation potential
In addition to partnering with strategic companies exposed to NGAP 2020 in 2015. NanoMalaysia, to assisting local companies and industries to
for higher value products and are relevant in
with high spill-over effects in respective ecosystems had announced that 360 new products will be successfully innovate with Graphene and moving
addressing rising market demand in the five key
and establishing reliable local supply chain for commercialised under the NGAP 2020 and the forward, will continue to explore the economic
applications sectors under the National Graphene
graphene innovation, the action plan also guides action plan aims to generate about 9,000 jobs and potential of remaining application areas as
Action Plan 2020 (NGAP2020) namely Lithium ion
the continuous scouting of cross-cutting graphene- RM20 billion (USD4.86 Billion) GNI impact by the identified in the NGAP 2020 study.
battery/ultracapacitor, rubber, plastics, conductive
based technology that is potentially beneficial for year 2020.
inks and nanofluids.
high value applications, transfer of technology and
establishment of R&D centres in Malaysia. NGAP 2020 lays the foundation for Malaysia
NGAP 2020 was developed by Agensi Inovasi
to catalyse several of its existing and emerging
Malaysia (AIM), with NanoMalaysia Berhad
Since 2014, 18 projects in these areas were endorsed industries to increase global competitiveness. In
appointed as the Lead Agency. The launch of
by NGAP 2020 and 89 new companies were setting the action plan, Malaysia is committed
National Graphene Action Plan 2020 positioned
128 D | VIEWS FROM THE INDUSTRY
BAE Systems (International) Limited
INDUSTRY 4.0: THE NEED FOR MANUFACTURING INDUSTRIES TO STAY
RELEVANT AND BE AHEAD OF THE CURVE
Manufacturing enterprise is impacted by market
conditions, customers, suppliers, the economic
environment, and the means of distribution. The
successful manufacturing company therefore
needs to constantly innovate to expand in an
environment influenced by so many factors outside
of its control.
Manufacturing has led innovation from the industrial
revolution to the era of instant communication
and today manufacturing is embracing the
digital transformation which has the potential to
revolutionise their performance.
Digital transformation, better known as “Industry
4.0”, encompasses a wide variety of technologies
ranging from 3D printing to robotics, new materials
and production systems.
Industry 4.0 has unlimited potential for global
high technology manufacturing companies such
as BAE Systems. For example 3D printing could
dramatically shorten the delivery times for aircraft
parts thus reducing required the stock inventory
and associated cost for industry and customers.
BAE Systems first embraced this approach in 2014
when the company began producing 3D printed
fighter jet components on site at a Royal Air Force
base delivering significant cost savings to the Royal
Air Force. As the technology catches up, these new
advances could optimize and shorten the supply
chain reducing lead time and storage costs for
spare components.
Partnerships are essential for any company in
unlocking the full potential of Industry 4.0. BAE
Systems works closely with a range of partners,
including governments, other major defence
companies, SMEs and universities to deliver new
capabilities and cost and efficiency savings to its
customers.
For example, in Malaysia, BAE Systems has teamed
with Loka Wireless Sdn Bhd, a Malaysian systems
developer which develops and markets Machine
to Machine (M2M) and Internet of Things wireless
communications systems.  the potential of new technology. Scientists and
The two companies have partnered to jointly develop
and market NAVSOP, an advanced positioning
system that exploits existing transmissions such
as Wi-Fi, TV, radio and mobile phone signals to
calculate the user’s location to within a few metres.
The unique feature of NAVSOP is that it is able to
calculate a location in areas such as indoor spaces
and urban canyons where GPS is unable to provide
an accurate location.
With the emergence of Location Based Services
(LBS) and location based Internet of Things, (IoT),
accurate indoor positioning has become ever
Malaysian Technology Strategic Outlook 2017/2018
Manufacturing has led innovation
from the industrial revolution to the
era of instant communication and
today manufacturing is embracing
the digital transformation which has
the potential to revolutionise their
performance.
Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 129
In conclusion, a commitment to innovate combined more important and NAVSOP is expected to be
a key enabler for such applications. Examples of
with investment in R&D is required to fully exploit the IoT applications using NAVSOP include  Location
Aware Wearables, Location Aware Robotic
potential of new technology. Navigation, and real-time location & monitoring
systems at Ports, Mines, and O&G platforms.
The system has multiple applications and will
produce huge benefits to the customer including
real time stock control management which will
enable the supply chain to plan its manufacturing
schedule with greater accuracy to reduce waste
and cost.
In conclusion, a commitment to innovate combined
with investment in R&D is required to fully exploit
engineers at BAE Systems for example, continue to
explore futuristic technologies inspired by Industry
4.0 that could be incorporated in military and civil
aircraft in 2040 or even earlier.
Advanced on-board 3D printers could enable a lead
aircraft to enter an unknown scenario and quickly
manufacture an effective toolset for any task, while
self-healing materials could allow jets to quickly
repair themselves from damage sustained in flight.
One of the many models used in the BAE Systems wind tunnel facility which are created by 3D printing.
BAE Systems along with its Malaysian partners are
exploring ways in which the advantages of Industry
4.0 can lead to greater opportunities in Malaysia
and across Asia.
130 D | VIEWS FROM THE INDUSTRY
Tan Sri Dato’ Sri Ahmad Ramli
Executive Deputy Chairman & Managing Director
Boustead Heavy Industries Corporation Bhd
Boustead Heavy Industries
Corporation Bhd (BHIC)
Boustead Heavy Industries Corporation is one of
the largest shipping corporations in Malaysia, a
long established key player in the shipbuilding and
its related services. Having been operating since
2005, the industrial group is primarily involved
in the shipbuilding, fabrication, ship repair as
well as defence and naval system maintenance
industries. Tan Sri Dato’ Sri Ahmad Ramli Mohd
Nor, the Executive Deputy Chairman and Managing
Director of BHIC shared that the corporation has
a diverse portfolio in the shipping business where
it is also actively developing the maintenance,
repair and overhaul (MRO) segment with a heavy
investment made to upgrade its facilities apart from
looking at new yards to complement the existing
infrastructure.
“Currently, the MRO activities are being carried out
in our Langkawi yard catering for the smaller yachts
whereas the oil and gas sector is being undertaken
in our Penang facilities,” he said.
As one of the main drivers of the national economy,
BHIC is also working diligently to improve its
participation in the local defence sector on
aerospace which has seen it collaborating with
the air force and enforcement agencies for the
MRO operations. On top of the local customers, it
is also the primary service provider for the Airbus
defence helicopters while at the same time, trying
to penetrate new markets to widen its presence in
the aircraft business.
Malaysian Technology Strategic Outlook 2017/2018
“As a proactive business entity, BHIC has invested
in engineering and design to pave the way towards
competing at the global arena with our innovative
concepts for which we have the intellectual
property,” he conveyed further.
Nevertheless, being a local enterprise that has
seen its fair share of ups and downs in the shipping
business, BHIC is eager to develop home grown
talents who will be able to market its own designs
sans the dependence on foreign input.
ON REGIONAL AND GLOBAL EXPANSIONS
Despite the aspiration to nurture the domestically
available human capital through strategic
partnerships with higher learning institutions
and training centres, BHIC is not discounting
the importance of foreign partners whom the
company can learn new technologies from, hence
the continued collaboration with the French and
Germans in the areas of air and seacraft endeavours.
With the international market set in sight, BHIC
has made the preparations to provide services
for the regional airline companies via its centre in
Malaysia before making further inroads to embark
on establishing a base overseas.
According to Tan Sri Dato’ Sri Ahmad Ramli, “The
ecosystem is evolving. Therefore, one of BHIC’s
aspirations is to develop the country to become a
Malaysian Technology Strategic Outlook 2017/2018
regional hub that is capable of supporting the MRO
requirements.”
Taking the cue from Singapore, Tan Sri Dato’ Sri
Ahmad Ramli further elaborates the comprehensive
service package available in the island nation
assisted by the presence of an established supply
chain, making it a competitive regional hub with
only the volumes part left to be augmented.
In this challenging time, BHIC envisions integrating
its business operations on an online platform as
a means to attract more clients and maximise the
value of its supply chain. It has ventured into the
submarine maintenance business which culture can
be adopted in other marine activities undertaken by
the company with the aerospace MRO set as the
application benchmark.
As a global market institution, the company is
going through difficult times which have gone on
for almost a decade. For it to be able to sustain
its vision and objectives, the business must be
profitable so that it can invest more in research and
development to be able to grow. However, BHIC is
being realistic about entering the western markets
as their technology is far superior to what it has
developed now.
ON THE HUMAN CAPITAL
On unlocking the full potential of Malaysian
engineers, BHIC is committed to meet the target
of providing training and industry experience for
engineers and skilled workers that will contribute to
the development of the new gross national income.
In addition, along the corporate social responsibility
program, ship designers are being groomed to
strengthen the foundation for the capabilities to
design and build vessels.
Tan Sri Dato’ Sri Ahmad Ramli shared an exciting
development taking place in the vast network of
the local heavy shipbuilding industry: “The diverse
nature of the shipbuilding environment has opened
up doors of opportunity for yet another group of
employees – the female workforce. Fighting the flow
will be taking a step backwards so what BHIC does
is to recruit any gender offered by the employment
market and we are now a proud employer of 45
female graduates working on the ships!”
It is also considering re-energising its manpower
by trimming the number of non-performers as
it prepares to launch a stronger presence at the
global stage in the next five years with a team of
formidable staff.
D | VIEWS FROM THE INDUSTRY 131
MOVING FORWARD
With the recovery of the commercial sector of the
shipping industry remains elusive, BHIC needs to
strike a balance between the different businesses
that it is operating to compensate for the weak area.
The turnaround plan calls for huge investments in
many aspects of the setup including increasing the
productivity, enhancing the people’s skills as well
as upgrading the infrastructure to face the bitter
reality of the soft economy.
Now that the global market is beckoning, BHIC
will strive to upskill the human capital to fulfil the
regional and sub-global defence demands with the
Middle East and Africa as the potential prospects.
Needless to say, the domestic market has also kept
the shop floor busy to fulfil its customer’s order with
six frigates to build at present. The organisation
nevertheless has its own formula to sustain the
business in response to the market challenges
made soft by the prolonged recession:
“We offer a competitive edge in terms of driving
the cost down while upping the ante, leaving
our competitors behind as we plot the course to
success,” Tan Sri Dato’ Sri Ahmad Ramli concluded
matter-of-factly.
132 D | VIEWS FROM THE INDUSTRY
DreamEDGE Sdn. Bhd.
IoT is all about lifestyle and in this vein, DreamEDGE has also designed People
Tracker. People Tracker is a device to help parents locate their children.
With the tagline “Innovating the Future”,
DreamEDGE Sdn. Bhd. CEO, Khairil Adri Adnan
is a man on a mission. DreamEDGE Sdn. Bhd. a
collaboration between Malaysian and Japanese
investors with some assistance from the Malaysian
Government is at the forefront of creativity and
innovation. So, where does this vibrant company
see Innovation and the application of the Internet
of Things (IoT) in Malaysia? As Khairil explains
it, DreamEDGE is looking at the application of
the IoT around lifestyle solutions. Taking from
his experience with Smart Phones when based
in Japan in the late nineties, Khairil says that the
advent of the Smart phone and its growth through
iOS, Android and now internet connectivity has
made IoT a reality. DreamEDGE also concedes
that the reduction in cost of connectivity and the
proliferation of Internet-connected devices has also
encouraged the growth of IoT.
Using MyTeksi as an example, Khairil points to the
convenience of having a clean taxi, arriving at your
doorstep to pick you up at the designated time
along with knowing that your journey is recorded,
provides both security and convenience to the
everyday consumer. This allows even those with
cars to now utilize the app to meet their travel
needs. Believing opportunities lie in the use of IoT,
Malaysian Technology Strategic Outlook 2017/2018
DreamEDGE has invested in power management
and smart home devices that could change the
way Malaysians manage their homes. Integrating
Solar Power generation, having power diverted or
stored based on daily needs, refurbishing existing
homes so that all plug points could be controlled
from an app on the mobile devices are just some of
the areas currently being explored and developed.
“Imagine leaving from work to head home. You
could switch on your bedroom and living room
air-conditioner and lights so that when you get
home, it will be cooler. Wouldn’t that be wonderful?
How about your home gate tied to your CCTV so
it recognizes your car and opens the gate for you
without you doing anything? Amazing lifestyle,
right?”
IoT is all about lifestyle and in this vein, DreamEDGE
has also designed People Tracker. People Tracker
is a device to help parents locate their children.
Created when DreamEDGE staff frequently needed
to return home early because their children had
not returned from school, People Tracker is an
innovation that can track and report location and
movement. DreamEDGE has embedded this into
school bags and now parents do not need to worry
anymore about where their children are.
Malaysian Technology Strategic Outlook 2017/2018
To Khairil, thinking outside the box and looking to
provide solutions to everyday challenges are the
keys to the success of Malaysian innovators and
entrepreneurs. “Malaysian entrepreneurs should
diversify. Start looking at how you can make
human lives easier. Today everyone is focusing
on e-commerce. Let us move away from the herd
mentality, diversify and deliver value.”
Another unique quality of DreamEDGE is it does
not believe in registering the Intellectual Property
(IP) and that the registration process is too long
Khairil Adri Adnan and not beneficial to the company as a whole. At
CEO, DreamEdge Sdn. Bhd.
DreamEDGE, a solution is thought of and is taken to
prototype, then tested and if feasible goes directly
into contract manufacturing, marketing and sales.
“If we can be first to market, then we can make high
profit quickly and while the copycats are trying to
copy us, we are already on to our next product.”
On Innovation
When asked how DreamEDGE comes up with
innovations, Khairil’s reply was “We use many
techniques including brainstorming, stress tests,
sample listings of what’s available and what’s
missing in the target environment”. DreamEDGE
comes up with innovation and innovative ideas by
looking at its strengths – solid engineering – and
then looks at what is out there. “What would help
MyTeksi? Would it be beneficial to MyTeksi if they
could know the condition of the taxi that was using
its app and carrying its brand? Would that help
the consumer decide on the type of cab and help
the society by having high quality taxis? These are
some of the questions we ask.”
Having asked the right questions and having
identified the appropriate market, Khairil says
DreamEDGE can have a product ready and out to
market in 3 months. Obviously, this depends on the
complexity but if it is an app of a single gadget then
that is their benchmark. The automotive industry is
where the opportunities are according to Khairil.
With innovation and value-added innovations, this
can be the next big driver for Malaysia. “We cannot
compete on the cost of labour, we need to build the
knowledge worker and then fully utilize this skill. Via
its internship program DreamEDGE does just that.
“We have interns from MMU who get an awakening
when they come to work for us. We make them
part of the system, give them real life projects, then
push them to innovate, think outside the box and
deliver. We make them own their successes and
failures and push them to research solutions. This is
D | VIEWS FROM THE INDUSTRY 133
how we hire staff. It is not on the CGPA, it is on the
ability to think and innovate. This is what is lacking
in Malaysia today.”
“We need to incorporate this ability to think in
schools. We need more innovators. We need to
have 3D printers and more connectivity and the
ability for students to pursue real life solutions for
real life challenges. We need to create integrators.
The world has many suppliers. Let us use this to
create new products that solve current challenges.
We need courage and speed. Drawing the example
of Cyberjaya which started the information-
based transportation trend by having DDS, which
provided transport information within its confines,
it was a great system but was not grown quickly.
It did not have the right innovators and support
systems in place. It therefore did not go far. This
approach is what DreamEDGE believes, is keeping
Malaysian innovators from succeeding. Malaysian
companies need to think big, keep up with the
times and provide value”.
Khairil’s dream would be to see a lot of development
hubs and clusters in Cyberjaya. “What we need is
implementers and executors as well as coaches.
We need to change our thought systems to ensure
134 D | VIEWS FROM THE INDUSTRY
“What we need is implementers
and executors as well as coaches.
We need to change our thought
systems to ensure that students
and graduates are willing to make
mistakes and then are shown
where they made the mistake and
how they can learn and grow.”
that students and graduates are willing to make
mistakes and then are shown where they made the
mistake and how they can learn and grow”.
“We are in Cyberjaya because we believe it is
important to be in the centre, in the right environment
even though we do not have the MSC status. Our
application was rejected because the government
did not know how to evaluate our business. They
said we are an Engineering IT company, not IT and
yet we are here. We established our company here
to be surrounded by innovators and want to create
an office that showcases our work, a place that
inspires us. When I walk into offices in Japan, each
is a showcase of what they have achieved. There is
a sense of things happening. Having something like
that here will help with improving the environment.”
DreamEDGE believes even within Cyberjaya, a lot
can be done in terms of innovation. One example
is in people movement. “Let’s have a self-driving
transportation facility that runs in a circuit around
Cyberjaya. It can be solar and electric-driven. We
need public transport in Cyberjaya. Let’s start here.
Let’s fulfil the need.”
On TPPA and Industry 4.0
“Our local SMEs are not ready for competition
from outside parties. It’s the whole environment in
Malaysia. We are not ready”. That is DreamEDGE’s
perspective.
Khairil goes on to share his views, “Typically, an
SME that is venturing out of their own country is
doing so because they have money, have a viable
product and have their own steady share of their
own local market. These SMEs will capitalise on the
benefits received in Malaysia and then be able to
improve their offerings not only to Malaysia but also
their own country, so they grow.”
“Our local SMEs are mainly focused on sales in
Malaysia, do not have the capital nor the market
support in their own country. It would be different if
our SMEs were already exploring markets in other
third world countries and already had markets
outside of Malaysia that could sustain them,” he
explains.
“I’m not sure what is stopping Malaysian SMEs
from exploring third world markets. Take Proton
for example. Proton has never reached it sales
breakeven levels. Therefore, why not go outside
Malaysia to third world countries and provide
them with our products. Look at Islamic countries,
markets where we can export to and ensure that
the products can be sold. Are our SMEs creative
enough and are we willing to take the challenge to
go out and sell their products?”
Coming back to the TPPA, Khairil believes that
there is a need to be creative and look at all the
countries in the TPPA list and see what and where
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 135
the Malaysian advantages lie. The next step would
then be to quickly explore those areas and selling “We tend to be slow in going to market. It is still not too
products into those markets. This approach would
then help sustain the business and keep local SMEs
late though. Japanese cosmetics can be made halal. The
from closing. TPPA has its opportunities and threats. We need to be
Halal Food production is an area where Khairil
believes there is competitive advantage. “Back in
smart and utilize our strengths and advantages to work
2009, I told MATRADE and MIDA that we should within the TPPA to grow,”
collaborate with the Japanese because they have
the best systems for food production. The only
thing they are lacking to enter the Middle Eastern
market is the Halal certification. That’s our strength.
We were the first to introduce halal certification and
our certification is a premium certification. If we had
the Japanese producing here and our certification
is used, then everyone benefits.”
the appropriate time in the appropriate manner. An “Universities need to create experts at best and either sends the finished item to the customer or
example of such technology in use today is the 3D competent sectorial workers. Academics may is the collection point for the end product. We can
“Nothing was done. Today, Indonesia and Thailand
Printing. say the Universities need to focus on research change the industry and help grow the Malaysian
have already started to enter this market and have
and teaching the basics, then we need a bridging small industries and rural markets at the same
got Japanese partners and technology.”
“We need to start including the use of 3D Printing agency that executes and converts graduates into time,” says Khairil excitedly.
in Schools. We need the young to experience how sector specific competent workers.” he continues.
“Today in Japan the Japanese know all about halal
to manufacture and create real world usable items. Automation and moving away from the manual
as they have to prepare for the upcoming Olympics.
Once we have this capability we can drive creation A real life industry that DreamEDGE has looked mindset will be a challenge, concedes Khairil. “We
Imagine if we had gone there and worked with
and remove the barriers of minimum orders. This at is Songkok Production. When they first started need to provide incentives for automation and stop
them to make sure all their outlets were halal. That
will change the way we create and use items,” says exploring the industry, the company they partnered the hiring of foreign labour. This will force the local
would have grown local SMEs,” quips Khairil.
Khairil. with was producing 100 units a month. With SMEs to innovate, learn, take risks and grow.”
the incorporation of an embroidery machine,
“We tend to be slow in going to market. It is still not
According to DreamEDGE, automation is the all- production increased to 500 units. DreamEDGE is
too late though. Japanese cosmetics can be made
important next step, which would allow the proper now looking at how they can further help the small
halal. The TPPA has its opportunities and threats.
management of standards and output quality. industries. Clothing production is another area
We need to be smart and utilize our strengths
being explored.
and advantages to work within the TPPA to grow,”
“We should use robots for this and don’t get me
continues Khairil.
wrong - automation is not only about robots but “Imagine having a central web ordering system
also the processes and proper use of machinery where the customer adds their dimensions and
To DreamEDGE, Industry 4.0 is just another
to increase productivity. We need this now. It must makes an order. This is then sent to a precision
definition and DreamEDGE has defined it more
be incorporated in our schools and our syllabus cutting house that cuts and readies the various
as Adaptive Manufacturing. DreamEDGE sees
needs to be more industry focused. It cannot be just parts of the clothes. The completed parts are then
Industry 4.0 more as the enabling of manufacturing
academic,” stresses Khairil. sent out to a seamstress or tailor closest to the
process’ efficiency by using existing technology at
customer who finishes the product. The tailor then
136 D | VIEWS FROM THE INDUSTRY
FAVORIOT Sdn Bhd
The Challenges of IoT Journey
in Malaysia
Essentially, the Industrial Internet can be thought
of as the Internet of Things (IoT) for industry, and
is frequently referred to as the Industrial Internet of
Things (IoT). Overall, the purpose of the Industrial
Internet is to improve the productivity, efficiency,
and reliability of industrial assets such as a single
industrial machine, a fleet of industrial machines
that operate in a factory, or an entire industrial site
Dr. Mazlan Abbas
like industrial waste management, supply chain
CEO
tracking, clean energy or plant automation.
FAVORIOT Sdn Bhd
Challenges of IoT during bad economic times
If there are budget constraints - which Department
typically gets a budget cut? Most of the times
we hear that IT will be one of the first to get their
budget slashed. No more expansion and only
critical IT infrastructure will continue to get their
renewal of annual maintenance. In the case of
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 137
hospital  or healthcare, do we reduce the stock of
medicine or stopped any IT expansion - which is
a higher priority? But prudent spending doesn’t
mean we have to stop any IT activity. In fact, IoT
Adoption of IoT in Malaysia How do we start our journey on Industrial IoT? How do we reduce the risk of being left behind?
solutions when deployed at the early stage will
help organizations to reduce costs and increase
IoT is still at its infancy stage in Malaysia. Although, The investment for an Industrial IoT deployment Just imagine when cars are mandatory to be
productivity. Remote monitoring and automation
M2M (machine-to-machine) has been deployed by can be very huge but also can easily become a equipped with sensors, connectivity, and GPS.
will reduce a lot of paperwork and travelling costs.
the mobile telcos for many years (remote telemetry, white elephant if done hastily or without proper We will suddenly see many new applications can
Predictive maintenance will greatly reduce costly
ATM banking, POS, etc.), the real IoT solutions are management. Many initiatives will not be able be created such as security, maintenance, car
downtimes. However, you can reap the benefits if
the ones that can aggregate many sources of data to sustain if the idea is not being bought by the hiring, usage-based insurance and other innovative
you deploy IoT solutions during the “good times”
from various sensors and this is seen to be a new whole organization. The best advice at this stage services. What if all factories or buildings that have
and not when everyone is trying to prioritizes and
concept for many companies. We still considered is to use the Minimum Viable Product approach a high risk of creating pollution being fitted with
justify their budget during the “bad times”. In some
the solution to be an M2M (pre-IoT days) if - Build, Measure, and Learn. Only deploy sensors environmental sensors attached and continuously
cases, IoT will not give instant benefits since it
devices are still connected using SIM cards and that measures and answers the questions of who, monitored for any violations? Imagine if companies
requires data to be collected for a period of time.
applications are built in silos. We foresee that IoT what, when, where, how and why. Learn how to who want to reduce the medical costs and
And during the “bad times,” it can be quite risky to
solutions in Malaysia will start from critical sectors understand the massive amount of data collected insurance of their staffs by providing a wearable
deploy a solution which is still considered “new”
such as manufacturing - due to the requirements from various machines. Scale when the company device that measures the number of steps, heart
that needs more time before can be fully adopted.
to remain competitive, reduce costs and increase is ready. rate and much more. By placing the necessary
productivity. policies or regulatory framework, suddenly we
will see an exponential growth of IoT devices and
applications in Malaysia!
138 D | VIEWS FROM THE INDUSTRY Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 139

Indah Water
More recently technologies are focused on
Resource Potential from Sewage Treatment
enhancing nutrient removal namely nitrogen and
phosphorus as well as in reducing the operating

Konsortium Sdn. Bhd. (IWK)

SEWAGE TREATMENT PLANT
energy requirement of systems as well as smaller
foot print. The latest being a variation of Sequencing
Batch Reactors, Moving Bed Bioreactor, Membrane

TRANSFORMING SEWAGE TREATMENT VIA GREEN TECHNOLOGY APPLICATIONS
Introduction
Historically, the first thought of sewage treatment
dates back to the end of 18th Century when septic
tanks were introduced in the West. During the
treatment process units where the major organic
and solids pollutants are removed via Biological
process (i.e. secondary treatment). The secondary
THE BY-PRODUCT
Bioreactor, Combination of Anaerobic UASB
EFFLUENT BIOSOLIDS BIOGAS
(Upflow Anaerobic Sludge Blanket) and Aerobic
systems. Although these developments produce
high quality treated effluent, the waste by-products
remain typically disposed unto the receiving
(RAS) for keeping active microbial population in the
environment.
biological reactor. This basic secondary treatment
technology produces clear effluent that can be
Resource Recovery Potential in Sewage via

second half of the nineteenth century sewage
treatment methods developed rapidly to meet
the needs of basic sanitation. Today, modern
and sophisticated treatment technologies are
continuously developed and provided further
for protection of environmental quality in a cost-
treatment process involves a reactor or tank for
biological breakdown of organic pollutant by native
sewage microbes (i.e. MLSS).
The biological process unit is followed by a
clarification unit which ensures all the MLSS can be
CURRENT FATE
discharged into the environment, whilst the waste
sludge (WAS) is typically stabilized and dewatered Green Technology Application
into semisolid form (at 15-20% dry solid content; There are there (3) waste by-products: treated
DISCHARGE DISPOSE FLARE
also, known as biosolids) for disposal to landfills. effluent, biosolids and biogas that can be converted
If the stabilization process is involved, there is for beneficial reuse whilst the potential value for
reuse is summarized in Figure 2. Treated effluent Calorific Value:
anaerobic sludge digestion and biogas is produced BOD < 50mg/l

POTENTIAL VALUES
<3,500 kcal/kg Methane: 65-70%
efficient manner. settled for wasting (WAS) and a portion returned as well. can be reused for landscaping and industrial COD < 100 mg/l N<3%; P<1%; K<0.1% CO2: <25%
SS < 100mg /l N2: <5%
applications. Local research had identified Organic Matter < 50%
this potential and shown that with additional
The key driver for this trend is the increasing Typical Sewage TreatmentFIGURE
Process
1: TYPICAL SEWAGE TREATMENT PROCESS
downstream filtration units that can range from recycle water fertilizer/renewable energy renewable energy
need for a more sustainable long term solution in
terms of both the economics and the environment. media based, to membrane and or RO types can
PRELIMINARY TREATMENT SECONDARY TREATMENT produce bioeffluent for industrial uptake.
Traditional practice in the safe disposal of end
products from sewage treatment namely, treatment Parameters Units Average WHO Std MOH Std
ANOXIC TANK AERATION TANK CLARIFIER An example of bio-effluent quality is shown in Box IWK’s Pilot Project - Effluent to Recycle Water
that produces effluent and sewage sludge for The results meet the WHO and MOH standard. Colour ??? <8 18 18

sanitation and environmental protection, will no GRIT REMOVAL 1. Treated effluent without any additional treatment Turbidity ??? <8 18 18

longer be able to meet the complex environmental GREASE TRAP was also found to be beneficial to plant growth, Advantages of Recycled Bioeffluent Aluminium mg/l <8 18 18
COARSE SCREEN
challenges of climate and water sensitive futures. potentially with chlorination such application can System Chlorida mg/l <8 18 18

For this, the sewage treatment industry needs to

TREATED be widely and applied. This potential needs to be No requirement for advance technology Copper mg/l <8 18 18
EFFLUENT
be transformed into a resource harvesting industry.
RAW INFLUENT RAS realized as it will greatly relieve water stress areas Low capital cost H20 mg/l <8 18 18

SCUM and contribute towards sustainable water resources Easy installation, operation & maintenance Iron mg/l <8 18 18
This paper describes the paradigm shift from PUMP SLUMP WAS Reliable source, quantity
traditional basic treatment to potential resource for future. Low price compare to potable water
Mango??? mg/l <8 18 18
SLUDGE Sodium mg/l <8 18 18
recovery utilizing the ‘Green Technology’. GRIT TREATMENT
screening Suffate mg/l <8 18 18
THICKENING TDS mg/l <8 18 18
Basic Sewage Treatment disposed
ANAEROBIC DIGESTION
??? mg/l <8 18 18
The typical treatment process flow for a modern Flourida mg/l <8 18 18
mechanized activated sludge plant is as depicted. DEWATERING BIOSOLIDS Hardness mg/l <8 18 18

Basically, it involves 2 main components namely: (i) ??? mg/l <8 18 18

Pre-treatment for grit and grease removal; (ii) Main

Bio-Effluent Reuse
140 D | VIEWS FROM THE INDUSTRY Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 141

The potential benefits of biosolids reuse is far concept in our business through the 3Rs (Reduce, ▶▶ Cheaper source of electricity is found. Summary and Conclusion
Biosolids Reuse reaching. R&D studies has shown there is sufficient Recycle and Reuse) initiatives. These initiatives ▶▶ Greenhouse gas emissions is minimized. There is enormous benefit to be gained from the
nutrient content in the biosolids where the typical transform sewage by-products from waste into ▶▶ Sustainable sewerage development could be application of Green Technology to harvest the
values of N:P:K average at 3% of the biosolids value-added products. Bio-solids will be reused achieved. much untapped resources in the sewerage sector.
whilst its organic matter content is typically more as a soil conditioner and fertilizer for various non- For this, a change is needed on the way and
Co-composting of Sewage Sludge than 50% and can contribute to improving soil food crops, recycled bio-effluents can be used As such, to overcome this, the following strategy manner sewage treatment is being planned and
and Municipals Solid Waste
ADVANTAGES OF BIOSOLIDS conditions and nutrient uptake for plant growth (see for industrial and non-potable purposes and and action plans need to be agreed and developed: developed in this country. It is timely that sewage
AS A FERTILIZER Box 2). The energy value contained in the dry solids capturing bio-gas (methane gas) as a source of treatment leaps frog and shift to another height,
Vermicomposting of Utilisation of Sewage
sewage sludge Sludge as Soil Amendment is also a potential to be tapped via gasification renewable energy while reducing the greenhouse ▶▶ Government to create grant or funds to vis-à-vis the objective and intent of treating of
Reduced use of chemical fertilizer
process. Analysis of typical biosolids from IWK effect. encourage 3R (Singapore had recently launched sewage to discharge environmentally acceptable
No smell, reliable source & quantity
Low capital cost, easy installation, plants in Malaysia show the calorific value ranging 3R fund) – for new waste minimization and waste material should now change to treating to
operations & maintenance from 2000 to 3500 kcal/kg. In October 2012, Majlis Teknologi Hijau dan recycling projects produce feedstock and by-products that could
BIOSOLIDS Low price compared to chemical
fertilizer
Perubahan Iklim (“MTHPI”) endorsed IWK’s paper ▶▶ Pilot Projects to demonstrate the use of Green be used to catalyse downstream processing
Premium quality where biological Another potential is the energy available within and extend the implementation to selected Local Technology for conversion and successful to produce value added materials which have
Utilisation of Sewage Sludge Biosolids as Fertilizer for Non-Food Crop: base enhances soil fertility & biogas generated from anaerobic digestion, at Authorities (“LA”) in the country on recycling of bio- utilization of sewerage waste products to be economic benefits. In the future, it is inevitable that
as Fertiliser for Various Crops Application in Rubber Plantation nutrient uptake.
65% methane composition there is a minimum solids and bio-effluent for landscaping purposes implemented. sewage treatment could be a lucrative business if
of 5000kcal/m3 of biogas being generated. The in LA areas. As of June 2016, three (3) LAs has ▶▶ Research funds shall be identified and dedicated only the stakeholders could appreciate the inherent
national Green Technology Policy was officially execute agreement with IWK to use bioeffluent for to encourage innovation in cheaper cleaner potential in this industry.
launched in July 2009 which defines green non-potable usage such as gardening and general production of treated Bioeffluent, fertilizer and
Sewage Sludge in Forest technology as “the development and application cleaning which is Majlis Perbandaran Port Dickson, renewable energy such as from Biosolids and
Rehabilitation & Regeneration
of products, equipment and systems used to Majlis Bandaraya Alor Star and Majlis Perbandaran biogas
conserve the natural environment and resources, Kangar. Beside the LA, IWK has also successfully ▶▶ Intensive and creative public awareness
which minimizes ad reduces negative impact of supply bio-effluent to private company to be used program to educate the public on recycling
Biogas Reuse as Renewable Energy human activities”. Hence technology for resource for general purposes in Klang Valley. As of June of sewerage by-products employing Green
Towards Green Technology recovery for water, nutrients for soil and vegetation 2016, we have supply a total of 22,628 m3 for non- Technology to be rolled out.
Biogas to Renewable Energy Typical Biogas Characteristics and renewable energy is very much in line with potable usage and the demand is continued to ▶▶ Guidelines for utilization of sewerage waste
our national aspirations for a green economy that grow. products into beneficial products such as
BIOGAS - Valuable source of Parameter Unit Value
untapped energy potential meets the complex demand of the impending treated Bioeffluent, fertilizer and energy source
Carbon Dioxide (CO2) % v/v 28
Sustainable option to reduce Oxygen (O2) % v/v <1
carbon neutral and sustainable future. Strategies and Way Forward to be produced.
consumption of fossil based
Methane (CH4) % v/v 65 The application of Green Technology to produce ▶▶ Community engagement to be encouraged
electricity;
Moisture Content % v/v 4 IWK has embarked and engaged in Zero Waste value added material from sewerage waste by via small medium industry entrepreneurship
Supports the Government’s target
towards increasing the use of Nitrogen (N2) % v/v 3 Management towards sustainable development and products will have the following benefits: program for Green Technology projects.
renewable energy environment in line with Malaysian Government’s ▶▶ Developer shall be encouraged to build Zero
aspiration for Green growth. IWK has endeavoured ▶▶ Environmental friendly outlet for Biosolids is Waste plants.
into creating marketable green products from created; hence disposal to landfill is avoided.
the by-products of its core services. Our current ▶▶ Better environmental quality from avoidance
R&D projects aim to achieve maximum energy of landfill disposal of Biosolids, minimize
efficiency and minimize the environment impact discharge of treated effluent into water courses,
from our operations, including the recycling of our and avoidance of open flaring of biogas.
sewage by-products. We aim to achieve the goal of ▶▶ Public satisfaction is eventually achieved
Biogas Generation Units Power Generation Unit “Sustainability through Zero Waste Management’ when the highest level environmental quality is
maintained.
142 D | VIEWS FROM THE INDUSTRY
Keretapi Tanah Melayu Bhd. (KTMB)
In 1986, KTMB started its containerisation and multimodal goods carrying
and delivery services. Thus, KTMB now has fully integrated cargo terminals
throughout the country.
The first rail line was established between Taiping
and Port Weld in 1885. Ever since then, the
railways have been transforming the country by
providing the main backbone for connectivity and
trade throughout the years. This importance has
diminished somewhat with the implementation of
the North South Highway and the development
of better road networks throughout Peninsular
Malaysia.
MIGHT talks to Y Bhg Lt Col Dato’ Hj Sarbini Tijan,
the President of Keretapi Tanah Melayu Berhad on
several things that are close to his heart especially
Innovation, IoT and Industry 4.0.
On Being Relevant and Staying Competitive
“The competitiveness of a rail service comes from
the fact that it is a very secure and efficient service
to deliver goods and people from the origin to the
final destination. Once goods are loaded, there can
be no tampering or loss of goods until the next
stop,” says Dato’ Sarbini.
In 1986, KTMB started its containerisation and
multimodal goods carrying and delivery services.
Thus, KTMB now has fully integrated cargo
terminals throughout the country.
KTMB has also embarked on a double tracking
project to ensure that there can be a quick, safe and
efficient way of transport for the citizens between
cities.
Citing how competition for intercity travel customers
today is not with the buses and the taxis but with
the airline, Dato’ Sarbini goes on to say, “Today to
fly from Penang to KL, a passenger needs to be at
the airport 2 hours before the flight. The flight time
is about an hour, another half an hour to leave the
airport and another half hour to arrive into the city.
A total of 4 hours!
By rail, I just board the train at the allocated time,
spend two and a half hours of uninterrupted travel
on the train and I am in KL. While on the train I can
work, and be productive.”
KTMB says that for now, trains that travel between
120-140 kilometres per hour would be value for
money as it would be able to provide a 3 ½ hour
service to either Penang or Johor Bahru and
competing directly with air services.
Planned for 2020 is the completion of electrification,
double tracking and East Coast Rail lines, allowing
an increase in the capabilities and services that
KTMB would be able to provide.
Malaysian Technology Strategic Outlook 2017/2018
On Contributing to National Development
KTMB is also looking at how it can provide cargo
services direct from ports and tranship across
the country. “This will help with development of
the nation,” states Dato’ Sarbini. “Development
traditionally occurs along railway lines. In line with
the 11th Malaysia Plan, KTMB being a major player
in the transportation section, can play an extremely
important role in progressing trade between our
2nd largest trading partner in ASEAN, which is
Thailand. We can export our semi-finished goods
directly into Thailand by rail and in turn get the
finished goods into Malaysia. We can also increase
tourism along the path of the railway by opening
new areas of interest and providing a safe and
comfortable method of travel,” continues Dato’
Sarbini.
On The Future
With the completion of internal restructuring,
improved strategy, newer technology coming
online, double tracking, electrification and low
energy prices, KTMB sees 2017 -2018 to be the
years in which KTMB will re-emerge to be a
power player or same changer in the Malaysian
transportation scene.
Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 143
Majlis Amanah Rakyat
(MARA)
MARA TVET INITIATIVES TOWARDS INDUSTRY IKM and KKTM have produced 151,664 graduates of
4.0 CHALLENGES technical and industrial – centric based; with focus
Institut Kemahiran MARA (IKM) has been in towards producing highly competent workforce
operation for over than five decades with a focus and competitive technopreneurs in the field of
technology.
on producing technology experts, competent and
skilled workers as well as successful technopreneurs
in line with the national requirements. The first IKM
was established in Malacca in 1968. At present,
there are 13 IKM campuses that cater students
at certificate level throughout the country, while
programs that focus on high technology is driven
by 11 campuses of Kolej Kemahiran Tinggi MARA
(KKTM) mainly based in the Peninsular Malaysia.
PROGRESSION ACROSS TIME
IKM and KKTM are now moving progressively,
aligned with the current technological change,
over the period. There are various areas of
specialization which cover 12 cluster of studies
including automotive, built environment,
biomedical engineering, biotechnology, civil,
electrical, electronic, art and design, oil and gas,
advanced material processing, manufacturing
and mechanical services under the technical
and vocational institutions of MARA. Currently,
IKM/KKTM offers 85 programs; 34 programs at
certificate level and 51 programs at diploma level.
IKM and KKTM, through its 24 campuses across
the nation, provide opportunities to over 16,281
students to further their studies at certificate (9,655)
and diploma (6,626) level besides the short and
advanced courses offered. Since its establishment,
144 D | VIEWS FROM THE INDUSTRY Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 145

CENTRE OF VOCATIONAL EXCELLENT (COVE)

CoVE Center of
Bahagian Kemahiran dan Teknikal, MARA (BKT) ensures that the learning
methodology applies at IKM and KKTM is based on Teaching Factory,
which emphasized on Industrialised Based Education (IBE). Such learning Vocational Excellence
concept helps towards producing graduates who are competent with high
confidence level, ready to venture into the ‘working world’.
MicroTik AMRIC GALMETRA PDMec
Centre of Vocational Excellence (CoVE) have been established to ensure MUII KKTM Kuantan KKTM Ledang KKTM
Kemaman

1 2 3 4
that IKM and KKTM are always ahead in embracing latest technology.
The CoVE represents programs in different field of studies and runs at
respective IKM and KKTM, which are:

▶▶ KKTM Kuantan - Addictive Manufacturing Research and Innovation

Centre (AMRIC)

▶▶ KKTM Kemaman - Plant Design and Modelling Excellent Centre IWICCIKM AMPTeCKKTM MTSIKM IBS Certified
(PDMeC)
Jasin Masjid Tanah Kuala Lumpur Center KKTM
Sri Gading

5 6 7 8
▶▶ KKTM Masjid Tanah - Advanced Materials Processing Technology
Centre (AMPTeC)

MARA Centres of Excellence aims to become a major regional referral centre in their respective areas of
▶▶ KKTM Sri Gading - IBS Certified Centre
expertise. One of its objectives include developing relationships and building new networks with major
▶▶ KKTM Ledang - Calibration Metrology (CALMETRA); Learning Dialysis Learning Certified Dr. Cool MTS MARA national and international centres such as:
MARA Excellent Centre (LedMex) ; Certified Radiology Centre Dialysis MARA Radiology IKM Petronas
Excellent Center KKTM Johor Bahru VISTA ▶▶ Petronas ▶▶ UMW Toyota

9 10 11 12
Center Ledang (control & Instrumentation)
▶▶ IKM Jasin - International Welding & Inspection Certification Centre KKTM ▶▶ Composites Technology Research Malaysia ▶▶ Construction Industry Development Board
(IWICC) Ledang Sdn. Bhd. (CTRM) Malaysia (CIDB)
▶▶ Strand Aerospace Malaysia Sdn. Bhd. ▶▶ PROPEL Berhad
▶▶ IKM Kuala Lumpur - Mobile Technical Services (MTS)
▶▶ National Instruments ▶▶ SIRIM
▶▶ IKM Johor Bahru - Dr. Cool (MTS) ▶▶ Radibems Sdn. Bhd. ▶▶ Kementerian Kesihatan Malaysia
▶▶ Advance Pact Sdn. Bhd. ▶▶ Malaysian Technical University Network
▶▶ IKM Bintulu - Petronas MARA VISTA (Control & Instrumentation) ▶▶ The Welding Institute South East Asia (TWI) (MTUN)
▶▶ CISCO
▶▶ MARA-Japan Industrial Institute - MicroTik
...and many more. These efforts are seen as imperatives in supporting MARA’s effort in developing effective
and skillful TVET human capital.
146 D | VIEWS FROM THE INDUSTRY
Malaysian Investment
Development Authority
(MIDA)
THE FUTURE OF INDUSTRIAL AUTOMATION IN MALAYSIA – INDUSTRY 4.0
Malaysia has had more than 40 years of experience
in the manufacturing sector since the establishment
of globally renowned corporations here in the early
70s. For the past 20 years, the manufacturing sector
has embarked on robotic assembly lines, precision
engineering and computer controlled processes.
Our local companies are already undertaking
R&D, engineering design, innovation and system
integration and developing proprietary machinery
and equipment for global exports.
With Malaysia’s strong manufacturing base and
comprehensive ecosystems that have been built
over the years, the country has many attractive
value propositions to become the hub for the
development of the Industry 4.0 in the region.
Industry 4.0 connects embedded system
production technologies and smart production
processes to pave the way to a new technology
age which will radically transform production value
chains and business models. Factories can become
smarter through the application of tools used for
Industry 4.0 and Internet of Thing (IoT) initiatives.
Smart factories will increase employee productivity,
improve energy management, analyse predictive
maintenance, conduct inventory checking,
investigate downtime minimisation and deploy
integrated remote operation.
Recognising the importance of staying ahead in this
industrial revolution, the Malaysian Government
has been strongly encouraging companies to adopt
smart manufacturing processes and technologies.
Under the 11th Malaysia Plan, smart manufacturing
is among the focus areas for the manufacturing
sector. To encourage the transformation of the
manufacturing sector, the Malaysian Government
has implemented several initiatives. These include:
▶▶ Incentives packages to produce robotics and
factory automation equipment and related
modules;
▶▶ Automation Capital Allowance (ACA) for
companies undertaking automation;
▶▶ Incentive schemes to grow system integrators;
▶▶ Soft Loan Scheme for Automation &
Modernisation (SLSAM), and
▶▶ Facilitation of the modernisation and upgrading
of plants.
MIDA is also embarking on a study on ‘Future
of Manufacturing in Malaysia’, a collaboration
between MIDA, the University of Malaya and the
Universiti Teknikal Malaysia Melaka. The outcome
of the study will aid MIDA’s efforts in strategizing for
the future roadmap and ecosystem for Malaysia as
a natural FDI destination, together with domestic
investments.
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 147
The sooner Malaysia embraces these changes, the better we can
leverage on them to face future challenges and shape our economic
landscape.
Malaysia. This includes warehousing operations, the oil and gas sector to meet the region’s growing The predictive analytics while in its early
freight transportation and last-mile delivery. energy needs, while managing operational and implementation has proven improvement in quality,
It is also a step in the right direction to address
Currently companies like SNT Global Logistics capital efficiency. The goal of the iCentre is to equipment uptime & delivery performance that
some of the existing challenges such as privacy
and BMW Asia Technology are already using these enhance rotating equipment availability, reliability resulted in customer satisfaction. Jabil’s investment
and security concerns for the implementation of
smart methods. and performance through Predictivity™ solutions. in its engineering talents has resulted to a viable
smart factories, lack of inter-industry collaboration
This facility is managed by local engineers in line and sustainable Smart Factory. Jabil’s expansion
due to competition, requirements for a trained and
Among the success stories of companies in with GE’s commitment to support the growth of plans for its Penang facility will be a major boost
knowledgeable workforce and cost of licensing
Malaysia that are already embracing smart Malaysian talent. to its supply chain and skills development efforts.
software or systems.
technologies and concepts in their operations
include Intel Malaysia, which uses equipment that Jabil Circuit, the world 3rd largest electronic Change is inevitable but growth is optional.
The study will later translate into recommendations
communicates with each other through sensors manufacturing service provider, has adopted smart Business and investment trends are always
and action plans such as suitable incentive
and IoT gateways with self-corrective capability manufacturing in its activities in Malaysia. The changing. Today, there is already an evident shift
packages, promotional strategies and targeted
running on big data analytics. company uses in-house developed IoT and partners from ‘mass production’ to ‘mass customisation’
industries. This study will also be used to identify
with a leading player to jointly develop predictive in the manufacturing sector, whereas ‘connected
emerging technologies to be adopted and industry
ViTrox Technologies – a home-grown analytics solutions to improve process capability, devices’ play a significant role in the industrial
areas to be enhanced as a better understanding
Malaysian company, has championed the growth manufacturing quality, delivery performance sector. The sooner Malaysia embraces these
of the requirements for enablers and regulatory
of 3D intelligent vision inspection equipment while reducing repair and line stoppages. Design changes, the better we can leverage on them to
bodies.
incorporating elements of M2M (Machine to and developed by in-house Malaysian engineers, face future challenges and shape our economic
Machine). This project will further complement these IoT devices are placed in various parts of the landscape.
With the rise of industry 4.0, business opportunities
Malaysia’s semiconductor ecosystem, primarily factory to monitor and control climatic condition
are widely available in various sectors in Malaysia.
for the inspection of complex, minute and 3D for a comfortable working environment yet energy MIDA continues to enhance its position as an
For example, the use of additive manufacturing
semiconductor packages. conscious. advocate for investment policies and strive to drive
is being encouraged particularly for automotive,
the development of policies for the manufacturing
aerospace, electronic consumer products and
GE Asia-Pacific Predictivity Centre (iCentre) in All data are processed and displayed in its and services sectors to improve the investment
medical/ dental devices. A trend of using combined
KL is one of three global centres strategically set up automated dashboard for 1 stop data visualization environment in Malaysia.
sensors in Machine to Machine (M2M) applications
in different time zones to ensure 24x7 monitoring for real-time quality reporting, planning, material,
is emerging in the manufacturing industry. As
and diagnostics services for GE’s installed fleet production and delivery status. This provides
such, opportunities are also available for investors
of turbomachinery for its customers throughout management control, collaborative problem solving
to venture into sensor technology projects in the
the world. Leveraging on big data from intelligent and lean data mining. The dashboard is being
country. For the logistics industry, new investments
machines and predictive analytics, its ‘Predictivity’ proliferated within Jabil worldwide.
in IoT will expand the entire logistics value chain for
platforms assists industry players particularly in
148 D | VIEWS FROM THE INDUSTRY
Ministry of Education
Malaysia
ROADMAP FOR STEM EDUCATION
Science, Technology, Engineering and Mathematics
(STEM) education is an interdisciplinary approach
to learning where rigorous academic concepts are
coupled with real-world lessons. Students apply
science, technology, engineering, and mathematics
in contexts that connect school, community, work,
and the industry thus enabling the development of
STEM literacy and with it, the ability to compete in
the new economy. (Tsupros, 2009)
Ministry of Education (MOE) will ensure that all
students are equipped with skills and knowledge
to face challenges in this changing world with the
application of STEM. MOE will also strengthen
STEM at the school level to ensure that there are
enough qualified STEM graduates to cater for the
need of industry and drive the economic growth of
the country.
Through the Malaysia Education Blueprint (PPPM
2013-2025), MOE has implemented various
strategies to strengthen STEM subjects in its effort
to produce more experts in the field for national
interest. Among the strategies enhancing students’
interest via new learning approaches, strengthening
the curriculum and combining the higher order
thinking skills (HOTS).
As a continuity, MOE is currently planning to
implement various strategies to ensure the success
of STEM Education. The strategies are as follows:
i. Teaching and Learning (T&L)
Implementing thematic and integrated T&L that
are related to daily life for all STEM disciplines
as well as enhancing project-based, inquiry
based, investigative, hands-on and other T&L
approaches.
ii. Assessment
Strengthening school based assessment for
STEM subjects by incorporating HOTS element
in line with the international assessment and
implementing a comprehensive assessment
that includes formative, summative and hands
on assessment.
iii. Providing professional Development for
Teachers and Staff
Specific training on STEM for school leaders
as well as increasing skills and knowledge
in the field of STEM through Professional
Development for teachers and Staff. The
method of professional development will also
be strengthened.
iv. Non-formal and informal education
Increasing parents and community participation
in instilling interest in STEM related field among
students and focusing on non-formal education
through involvement of students and teachers
in out of school activities with cooperation from
government, non-government agencies and
industry.
Malaysian Technology Strategic Outlook 2017/2018
Through the Malaysia Education
Blueprint (PPPM 2013-2025), MOE
has implemented various strategies
to strengthen STEM subjects in its
effort to produce more experts in the
field for national interest.
v. Promotion of STEM Education
Intensifying promotion of STEM education
through mass media and social media and
increasing public awareness about various
STEM related career opportunities through
campaigns to encourage more students to take
up STEM courses at the tertiary level.
The implementation of various strategies in STEM
education is important to cultivate students’
interest in STEM related field and will increase
their participation in STEM subjects at the upper
secondary level and their interest to pursue STEM
related career. This will help to create STEM
literate society and provide enough qualified STEM
graduates to meet the demand from the industry.
Malaysian Technology Strategic Outlook 2017/2018
MyBiomass Sdn. Bhd.
MYBiomass continues to explore possibilities and is constantly prospecting
for possible collaborations with technology and research organisations to
create the best outcome for palm biomass.
MYBiomass Sdn. Bhd. is a joint-venture company
between MIGHT, Felda Global Ventures and Sime
Darby, created to pioneer the creation of potential
high value green chemicals that can be derived
from oil palm biomass.
“The plantations in this country will be able to
achieve a significant added value as compared
with the current scenario where they are only
focusing on crude palm oil. We hope to make
significant progress in creating high value green
chemicals from the aggregation of biomass and
the transformation of this biomass product” says R.
Puvaneswari, CEO of MYBiomass.
“Effort to capitalise on biomass and bio-waste has
long been the norm with regards to cash crops,
especially in Europe and the United States. What
we are trying to do with palm oil biomass is a natural
progression given its importance to the region. The
effort to aggregate and transform palm oil biomass
must also be driven by the private sector as it is
in the industry’s best interest to capitalise on the
biomass product to increase profitability and hedge
against future demand variances.
Sime Darby and Felda Global Ventures are the
largest players in the industry and therefore it makes
sense for them to take the lead in this endeavour,”
she further added.
MyBiomass 360°
The MyBiomass 360° Approach is the strategy that
sees MYBiomass being the focal point of biomass-
related activities, in particular on high value green
chemicals. At the same time, MYBiomass plays a
role in leveraging other activities, such as the R&D,
policy and regulation, capacity building to market
development and technology innovation activities.
MyBiomass 360° approach involves three key
entities: feedstock players, technology players and
market players. These three elements are supported
peripherally by RIs, academia, local industry players
and Government bodies. It is an exclusive approach
that seeks to make use of available resources by
various parties to develop the industry’s value-
chain, and manage the risks involved in the
development and commercial-deployment stage;
thus, developing a viable ecosystem to support bio
refinery(ies) development in the country.
“We are enablers and we are looking to provide
the right eco-system for research and industry to
start using palm biomass to create new high value
green chemicals. The challenge is to integrate the
current science based on non-palm feedstock and
apply it to palm biomass. Whether the outcome is a
new fuel or fuel additive, a new chemical is yet to be
seen. Therefore, we at MYBiomass seek to be the
integration point to enable this change efficiently.”
“We are looking for the best output from the use
D | VIEWS FROM THE INDUSTRY 149
of palm biomass, be it energy, fuel or chemicals
although our current focus is on chemicals. The
goal is to understand what and where palm
biomass can be an effective and cost-efficient
substitute material. “
MYBiomass continues to explore possibilities and is
constantly prospecting for possible collaborations
with technology and research organisations to
create the best outcome for palm biomass with
focus on producing intermediates and higher value
products. Although the technology of extracting
value from biomass is relatively more well-known
and developed abroad, the use of palm residues as
a feedstock to the technology is generally yet to be
optimised fully.
“We need to find our niche and where the most
value that can be derived from palm biomass.
Once we do this, we can continue to put in place
the supporting infrastructure and resources to
make palm biomass the preferred choice of raw
material in this space.”
MYBiomass has two major objectives. First is to
build and operate a chemical plant that is viable.
While the second is to ensure that the collection
and aggregation of palm biomass can be done
and managed in a proper manner. Both are being
actively pursued and this leads to exciting times
ahead for the palm oil industry.
150 D | VIEWS FROM THE INDUSTRY
Petroliam Nasional Bhd
(PETRONAS)
MAKING TECHNOLOGY WORK HARDER
Oil and gas entered a new normal since 2015, after
a long stretch of low oil price continuum from the
previous year. To thrive in the new realities today
and to emerge more resilient as a leading oil and
gas multinational of choice, competition is not
the only barrier. It is the time of paradigm shift
from within - to counter the immediate impact of
the prolonged downturn as well as shifting gears
toward establishing a solid footing, well into the
future.
Therein lies the opportunity for PETRONAS to
leverage on the proven capabilities throughout
its broad spectrum of the petroleum value chain.
Technology is the key differentiator in co-creating
robust operating environments, as well as pushing
the boundaries of industry norms of yesteryears.
Maximising Resource Recovery with Cutting-
Edge Technology
The PFLNG Satu, the world’s first of its kind has
enabled liquefaction, production and offloading
processing of LNG, previously only possible at
onshore plants, to be carried out hundreds of
kilometres away from land and closer to offshore
gas sources. The floating Liquefied Natural Gas
(LNG) facility, has opened new opportunities
to monetise resources from remote marginal
and stranded gas fields which are otherwise
uneconomical to develop.
For a visionary, the pursuit of hydrocarbon search
continues even amidst the current supply glut
sentiments. Which is why PETRONAS is today
making headways in advanced algorithms, designed
to increase accuracy of seismic data readings
which reduces exploration and development risks
and as well as manage costs of placements of
wells and platforms. Collectively, these
initiatives help ensure sufficient oil
and gas supply within a changing
hydrocarbon landscape.
Malaysian Technology Strategic Outlook 2017/2018
Unlocking New Potentials Can Be Economical
PPETRONAS spearheaded a technological
breakthrough in contaminant removal, namely for
mercury which poses a multitude of health, safety
and environmental risks, besides contaminating
products. PETRONAS’s HycaPure™ Hg is
the world’s first ionic liquid mercury
absorbent that removes the full
range of elemental, inorganic
and organic mercury
species from gas
streams with
only a single
Malaysian Technology Strategic Outlook 2017/2018
treatment whilst delivering at up to four times the
adsorption capacity of conventional adsorbents.
HycaPure™ Hg was jointly developed by
PETRONAS, Queen’s University of Belfast, UK, and
Universiti Teknologi PETRONAS (UTP), Malaysia.
The revolutionary ionic liquid technology, was the
first Asian entry to clinch the prestigious Nicklin
Medal at the Institution of Chemical Engineers
(IChemE) Global 2013 Awards.
Parallel is Possible – A Holistic Approach to
Technological Development
In responding to the rapid market evolution, the
approach to technological development is done in
a holistic manner in order for technologies to be as
nimble, and evolve as fast.
The Fluid Technology Solutions™ is a fine example.
The all-encompassing approach towards offering
specialised products and technical services has
fuelled PETRONAS’ historical wins in the Formula
One, the most gruelling motorsport arena. The
approach unlocked a deeper understanding of
symbiotic interactions between engines and fluids,
as well as scientific and engineering disciplines. The
strategic endeavour enabled PETRONAS to make
efficiency and superior acceleration accessible to
everyday road drivers.
The profound resource and advanced material
knowledge gave birth to cutting-edge solutions
to handle solid deposition, emulsion treatment
and sand management. A comprehensive Flow
Assurance solutions allowed PETRONAS to
ensure the successful transportation of oil and gas
from reservoir to point-of-sale; reduce downtime
and extend the lifecycle of pipelines and other
infrastructures.
With accessibility to a rich amount of data through
our domestic and international operations,
PETRONAS recognises the importance of
data science and predictive analysis which is
concurrently developed and deployed across its
many assets.
Capabilities such as advanced analytics, artificial
intelligence, autonomous systems and Internet
D | VIEWS FROM THE INDUSTRY 151
of Things have wide-ranging potential for value
creation across our businesses. These capabilities
not only help unlock more reserves, enhance the
reliability of our assets, but also help us connect
and understand our customers and the market
better.
Whilst technology is the lever for PETRONAS’ move
into the future, skilled workforce is at the heart of
the company’s technological pursuit. Rigorous
efforts are being developed for upskilling human
capital capabilities to fully harness the wide-
ranging potential across the value chain.
PETRONAS continues to look into ways to meet
growing energy needs in a responsible and holistic
manner balancing economics, environmental and
social considerations wherever it operates. Through
technology, the company is regaining its strength
and vitality amidst the challenging environment,
whilst preparing itself to get back on track on the
growth trajectory once the industry tide turns.
152 D | VIEWS FROM THE INDUSTRY
Pharmaniaga Bhd.
The Fourth Industrial Revolution Impact on
Pharmaceutical Industry
Introduction
The Fourth Industrial Revolution (FIR) will bring a new dimension on
pharmaceutical operations. Advanced technologies such as artificial
intelligence (AI), the internet of things (IoT) and big data will drive the changes in
the pharmaceutical industry by improving the overall operations and indirectly
improve peoples’ quality of life.
The FIR has caused the fusion of technologies that blurs the boundaries
between the physical, digital and biological spheres. As a consequence, data
will become massive and more information will be derived from various sources.
The challenge for pharmaceutical operations is in data management in order
to have data that are consistent, reliable and well-linked. The ability to manage
and integrate data generated at all stages of the value chain is a fundamental
requirement to derive maximum benefit from the technology trends.
Addressing the Challenge
In addressing the challenges of the FIR in data management, one of the
possible improvements is to leverage on technology. Analytics technology
like semantic web is one of the options to be introduced in pharmaceutical
operations. Semantic web helps in managing massive data towards valuable
information automatically. Operationally, semantic web technology will enable
pharmaceutical companies to create data stores on the Web, build vocabularies
and write rules for handling the data. The information is then generated to help
find solutions and make decisions.
Advancing data management in the healthcare and pharmaceutical industries
is of paramount importance. This is because data growth is generated from
several sources, including the R&D process itself, the retailers, patients and
caregivers that need to be integrated and translated towards meaningful
information. Effectively utilising these data will help pharmaceutical companies
better identify new potential drug candidates and develop them into effective,
approved and reimbursed medicines more quickly. For example, the McKinsey
Global Institute has estimated that applying big data strategies to better
Malaysian Technology Strategic Outlook 2017/2018
informed decision-making can generate up to USD100 billion in value annually
across the United States’ healthcare system, by optimising innovation,
improving the efficiency of research and clinical trials, and building new tools
for physicians, consumers, insurers and regulators to meet the promise of more
individualised approaches.
It is important for pharmaceutical companies to continue the use of cutting-
edge tools, especially in conducting the research and development (R&D).
Applying sophisticated modelling techniques are believed to reduce the time
and the cost of conducting R&D. For instance, combining systems biology
and high-throughput data-production technologies called ‘next generation
sequencing’ has helped to minimise the cost and time of R&D, where within
18 to 24 months, the entire sequence of human genome has been conducted
at a cost of roughly USD100. The wealth of new data and improved analytical
techniques will enhance future innovation and feed the drug-development
pipeline.
Pharmaceutical Industry in Malaysia
In Malaysia, the pharmaceutical industry has grown at an annual rate of 8% to
10% over the past decade. The market growth is based on a strong domestic
generic sector and imports of branded and patented medicines. The market
has been supported well by local regulators and the surveillance framework. In
addition, it is identified that the manufacture and marketing of pharmaceutical
products in Malaysia are as heavily regulated as in most developed countries,
which help in levelling up the standard of local companies in international
markets. Malaysia is also identified as the credible halal platform in promoting
pharmaceuticals to Islamic countries.
Since the early 2000s, Malaysia is being progressive in the adoption of
information and communications technology (ICT) in health care and has
embarked on the creation of ICT-enabled facilities. The foundation for the
planning and implementation of ICT initiatives in the country has been laid
by the launch of the Telemedicine Blueprint of ‘Leading Healthcare into
Malaysian Technology Strategic Outlook 2017/2018
The Fourth Industrial Revolution (FIR) will bring a new dimension on
pharmaceutical operations. Advanced technologies such as artificial
intelligence (AI), the internet of things (IoT) and big data will drive the changes
in the pharmaceutical industry.
Information Age’. Among the building blocks that have been recognised as vital
for interoperability was the development and adoption of Health Informatics
Standards where the Ministry of Health (MOH) has played a leading role in the
development of the initiative. In collaboration with stakeholders in the public
and private sectors, several standards have been developed for adoption in
Malaysia.
Now, the FIR phenomena are believed to be bringing a massive impact on the
Malaysian pharmaceutical industry. Malaysia needs to be prepared to face the
impact through new developments and adoption of technologies to facilitate the
pharmaceutical operations. Opportunities in pharmaceutical are rising with the
growth of the emerging markets driven by an increased access to healthcare
and the economic growth. Therefore, a strategic framework in adapting the
industry towards the impact of four industrial revolutions is necessary as first
priority to accelerate the industry.
Pharmaniaga and the Challenges of the Fourth Industrial Revolution
In meeting the challenges of the FIR, Pharmaniaga makes the most out of the
cyber and information technology (IT) especially in its supply chain and logistics
business. The Pharmacy Information System (PhIS) and Clinic Pharmacy
System (CPS) are both integrated IT systems that have been designed,
developed and deployed to meet the needs of pharmacies at Government
hospitals and clinics.
The system was developed to encourage the usage of IT in the health service
system involving tender management, medicine and non-medical supply in
all the Ministry’s facilities. The system also involves online services on patient
information, as well as drug prescription and a dispensary and it will be used at
almost 1,300 MOH facilities in the country, including 137 hospitals, 802 clinics
and 141 district health offices. As an integrated approach, PhIS and CPS serve
as a foundation system that redesign pharmacy and healthcare operations
by which all primary care, specialty care, hospital services, after-care and
community-based services will be effectively coordinated.
D | VIEWS FROM THE INDUSTRY 153
The PhIS and CPS comprise twelve (12) functional modules to monitor
medicine supply activity in an integrated manner in MOH facilities, improve
efficiency and inventory management of medication and ensure turnover and
use of medicines is safe. The 12 modules covering all aspects of pharmacy are
as follows:
i. Outpatient Pharmacy
ii. Inpatient Pharmacy
iii. Order management for Outpatient Pharmacy and Inpatient Pharmacy
iv. Ward Pharmacy
v. Pharmacy Inventory
vi. Medication Therapy Adherence Clinic (MTAC)
vii. Medication Counselling
viii. Clinical Pharmacokinetic Services
ix. Drug Information Services (DIS)
x. Medication Error Reporting
xi. Manufacturing
xii. Data Mining and Decision Support
Implementing the systems have changed and improved the quality of
pharmacy delivery services as a whole. The systems have allowed a better
inventory management especially in budget and medication record monitoring.
The system also provides efficient pharmacy monitoring activities and brings
ease in sharing of information by improving the data collection mechanism,
automatic reporting and is able to perform data analytics. Hence, the systems
have improved medical security characteristics especially to avoid duplication
in medical prescriptions.
Conclusion
The Fourth Industrial Revolution will bring major challenges to the
pharmaceutical industry. Leveraging on new technologies and having a clear
strategic framework will allow industry players to equip their companies to grab
the opportunities triggered by the revolution.
154 D | VIEWS FROM THE INDUSTRY
Rolls-Royce Malaysia Sdn Bhd
INDUSTRY 4.0:
FROM POTENTIAL TO REALITY
In a manufacturing facility, not too far away, an
employee checks his phone to see what lies ahead
in his working day. He greets his colleagues who
are shifting a load of titanium blades that weigh
a tonne into position. They work without straining
themselves, thanks to the exoskeleton suits they
are wearing. Nearby another group of colleagues
use an argon gas furnace fitted with sensors that
automatically control heat, time and speed, to
inflate the blades. They then use robots to scan the
surface of the blade to spot variations. The tools
can communicate, informing workers immediately
if their tasks are being done correctly. They also
record each process, feeding the information back
to a central system for analysis. The entire facility is
informed of the quantity and type of blades needed
to be manufactured at any given time, which helps
the facility director and operations managers make
quick and accurate decisions on site or remotely.
While it sounds like a factory of the future, in reality
some parts of what’s described are already taking
place today.
These advanced tools and systems are currently
being tested or introduced across our factories,
and will soon be the norm at manufacturing sites,
ushering a major shift in industrial production
methods.
This shift has been given many names, such as
factory of the future, the smart factory, or Industry
4.0. Whatever you call it, the definition remains the
same: It is the next phase in the digitalisation of the
manufacturing sector; tapping into the astonishing
potential of the Internet of Things, and driven by the
increase in data volume, computational power and
Cloud Computing capabilities, human-machine
interfaces, and advanced robotics.
Industry 4.0 has the potential to reduce and even
remove processing errors and vulnerabilities in
manufacturing. This will improve quality, reduce
lead time, and improve predictability of delivery at a
much-reduced operational cost.
However, before Industry 4.0 can live up to its
promise, there are barriers to its adoption.
Malaysian Technology Strategic Outlook 2017/2018
Firstly, manufacturers are generally cautious. There
are many more ways to break a working process
than to improve it. Industry 4.0 is a big change,
perhaps the biggest since the invention of mass
production. As such, there is good reason why
Industry 4.0 will not be adopted wholesale, instantly.
Secondly, and perhaps more importantly, assembly
plants have historically been driven by the shop
floor, with IT acting as a support function, but as
Industry 4.0 is the digitisation of manufacturing, IT
and manufacturing will need to work side by side
all the way down to the level of process controls.
The manufacturing experts will need to be IT savvy,
and the IT experts will need to be familiar with
manufacturing techniques. This means a shift in
mindset, and lines between departments will be
blurred.
Only then can manufacturers overcome the
challenge to turn the deluge of data produced
by intelligent factories into useful and valuable
information. With new industrial automation
equipment increasingly integrating sensors and
Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 155
wireless communications capabilities, factories
are gaining the capability to gather sufficient data.
While the penetration of wireless is currently very
low, adoption will see a robust increase in the
coming years.
When this happens, manufacturers must be able
to manage and analyse huge amounts of data to
achieve actual improvements in manufacturing
efficiency and flexibility. Therefore, the biggest
challenge in implementing individualised
manufacturing systems will be on the software side.
Perhaps quickly implementing projects which
demonstrate the value of real-time visibility in
process control, even at a modest scale, may be
the best way forward. The next step would then
be to connect the projects, once they have paid for
themselves, with positive return-on-investment.
At that point, the decision to make a strategic
investment in Industry 4.0 won’t be a risk, but an
inevitability.
Industry 4.0 has the potential to reduce and even
remove processing errors and vulnerabilities in
manufacturing. This will improve quality, reduce lead
time, and improve predictability of delivery at a much-
reduced operational cost.
156 D | VIEWS FROM THE INDUSTRY
Sime Darby Plantation Sdn. Bhd.
SPEARHEADING THE PALM OIL INDUSTRY THROUGH
TECHNOLOGY AND INNOVATION
The Malaysian palm oil industry plays an important
role in the agricultural development of the country
and contributes significantly to the country’s Gross
Domestic Product (GDP), exports and creation of
employment opportunities. In 2015, the industry
was projected to contribute approximately RM38
billion or 3.3% share to total Malaysia’s GDP at
current prices (Department of Statistics, Malaysia,
2015). Malaysia’s production currently accounts for
approximately 33% of global palm oil production
and 44% of global exports (Malaysian Palm Oil
Council, n.d.). The industry also provides around
500,000 employment opportunities in Malaysia
(Hanim, 2012). Palm oil continues to account for
more than 35% of the global edible oil consumption,
in feeding the world’s 7 billion population.
While the industry has been instrumental in creating
our nation’s economic façade over recent decades,
it continues to face various strong challenges
such as the permanent shifts in extreme weather
patterns, rising cost of production, fluctuating
commodity prices, scarcity of suitable land for
expansion and increasing demands from NGOs
and stakeholders on sustainability related topics
including deforestation, climate change, land grab,
manpower shortages, occupational health and
safety concerns, and Human Rights issues.
As challenges faced are more real and urgent
now, business is no longer “As Usual” at SDP.
Transformation is inevitable to remain competitive
and relevant in the plantation business. The
Malaysian palm oil industry has an important
mandate in driving the nation’s agenda to help
the country achieve a developed-nation status by
2020, targeting GNI per capita of USD15, 000 from
the current USD10, 800. The  Palm Oil NKEA  is
targeted to raise total GNI contribution by RM125
billion to reach RM178 billion by 2020.
What are some of these innovative solutions
which can drive the national agenda and sustain
Malaysia’s position in the oil palm arena?
At SDP, we have identified / embarked on several
key innovative initiatives to drive top 2 key
Operational parameters, which are the production
of fresh fruit bunch (“FFB”) in the estates and the
palm oil extraction rate (“OER”) at mills.
Replanting with High Yielding Materials
Seven years after successfully decoding the oil
palm genome, SDP commenced its first large scale
planting of Genome Select high yielding oil palms,
a major milestone that will allow the company to
produce more oil with existing land. In 2009, Sime
Darby was the first in the world to successfully use
Malaysian Technology Strategic Outlook 2017/2018
new (2nd generation) technology to sequence,
assemble and annotate the complex sequence of
1.8 billion chemical units that make up the genetic
code of the oil palm. The selected palms have the
potential to produce at least 15% more oil than Calix
600, currently its best planting material. Under
good growth conditions, the potential yield from
the Genome Select palms can go above 11 MT oil/
ha, resulting in average yields above 6.1 MT oil/ha
across all environments in Sime Darby’s Malaysian
plantations, compared to Calix 600 yields of 5.3 MT
oil/ha. We are also accelerating our replanting and
raising the bar in quality standards, to ensure our
production is competitive in the long run.
Newly planted genome select seedling at Dusun Durian Estate, Selangor, Malaysia.
Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 157
Water Management
The plantation industry is very susceptible to the
extremes of weather conditions. In recent years,
incidences of extreme weather patterns have
become a much more permanent feature, imparting
the palm oil production cycles in ways that have
never been experienced before. The recent Super
El Nino have resulted in more than 10% decline
in the Malaysia FFB production for the period of
July - June 2016, compared to the previous year. La
Nina has seen the industry coping with one of the
worst incident of flood in 2014. In addressing these
situations, innovative water management such
Large water catchment areas: Mentakab Estate, Pahang (left) and Sua Betong Estate, Negeri Sembilan (right)
as new irrigation techniques are key to cater for
three to four months of water supply in our estates
located in drier regions.
Soil Fertility Precision Agriculture
Soil fertility plays an important role to improve FFB Today, staying ahead of the game requires
yields in our estates. At SDP, we practice the best businesses to adapt and to embrace technology.
agro-management practices coupled with analysis At SDP, ‘Precision Agriculture’ is about pushing
that leverages on the depth and breadth of the data traditional boundaries, whereby certain day-to-
provided under our SEMUA system to ensure high day Upstream activities are revolutionized and
nutrient and moisture conservation in the soil. These performed by smart tools, system or machines to
include excellent ground cover management and increase efficiency and productivity and reduce
Nephrolepis, as well as timely fertilizer applications dependency on workers.
and the use of organic fertilizers.
Almost all our estate operations in Malaysia currently
Fertilizer Application run on the Mechanically Assisted Infield Collection
system, where mechanical tractor grabbers and
One of the most important agronomic activity in
Upstream is the application of fertilizer. Effective mechanical buffalos are deployed on the ground to
fertilizer application will not only encourage the evacuate FFB. In most parts, fertilizer application
production of FFB, but also promote the quality of is carried out using the Multi Bin Silo system and
fruits. SDP is currently looking at nutrient absorption fertilizer spreaders. To enhance our mechanization
efficiency. Exploration of new applications methods in estates, we are currently exploring the usage of
such as liquid and sachet fertilizers as well as advanced harvesting machines and mechanical
sensor technologies for soil content readings are cutters to be implemented soon.
underway.
Mechanically Assisted Infield Collection: Mini tractor grabber (left) and
mechanical buffalo (right) for fresh fruit bunch collection
158 D | VIEWS FROM THE INDUSTRY
Digital Supervision
In moving towards a paperless society, our operational
workforce are provided mobile handhelds which enables live
online reporting from the Estates. This technology has allowed
for improved transparency of field harvesting supervision and
ease of reporting by the estate managers, assistants as well
as supervisors. Information which are updated online are now
quickly captured to provide timely data availability for precise
analysis of estate performances and mitigation of operational
issues.
SDP is currently the world’s largest sustainable palm oil
producer, representing 24% of global sustainable palm oil
production. SDP pioneered the Zero Burning Policy which
Multi Bin Silo System: Mechanized fertilizer application using mechanized fertilizer
spreader
Sime Darby Digital Supervision: Our workers’ using the handheld device in day to day
operations
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 159
became global industry standards. SDP is also one of the founding members of the Roundtable For non-food applications, Sime Darby Renewables
of Sustainable Palm Oil. As the leader in the Plantation sustainability space, we continue to is an innovation driven unit set up within the division
improve our supply chain to produce fully traceable sustainable palm oil products for our to look into utilizing feedstocks within the palm oil
customers all around the world. On this commitment, the Open Palm Dashboard was launched value chain as well as areas of Green Technology
in November 2015. Considering the importance of Internet of Things in today’s business, the such as biogas and composting. The unit is tasked
online dashboard allows our customers to trace our palm oil back to its origin. Not only does to invest in breakthrough technologies at the
it maintain the integrity of our supply chain, SDP is also able to venture into high premium precipice of the innovation frontier.
sustainability driven markets especially in Europe and the United States of America for future
growth opportunities. Our aspirations in this area include diversifying
earning streams and investing in high margin
The palm oil industry is a one of the oldest industry dating back to more than a hundred years. businesses, develop niche applications for
Palm oil occupies about 6% (or about 17 mil hectare) of the world oil seeds (harvested) area of downstream non-edible products, and build
278 million hectares, whilst soy continues to occupy about 120 million hectares. However, its oil strategic & tactical capabilities.
yield per ha is far more superior than other crops at 10 to 14 times higher or 6 to 8 MT/ha, making 1. MyBiomass: Palm biomass waste to produce
it, the most efficient oilseed crop in the world. The current innovation efforts in the industry will high value green chemicals.
ensure that palm remains the most efficient oilseed. 2. Verdezyne: Leveraging on the power of biology
to produce chemicals from renewable non-food
Whilst innovating activities along the value chain is important, the value we create from the same sources.
tree is even more crucial. At SDP, this is a task carried by our 3 Innovation Centres in Malaysia, 3. Biosynthetic Technologies: Producing new
Africa and Europe, and R&D to focus on differentiated and specialty food applications. class of bio-based synthetic molecules that are
made from organic fatty acids found in plant
Screenshot of the Open Palm Dashboard website interface
oils.
Currently in exploration phase, we would like to authorities and Governments in Sustainability forums, industry conferences, research collaborations
develop intelligence in all business segments of the and industry associations to name a few. Palm oil organizations, research and academic institutions and
palm oil value chain. In the long run, SDP would the Government must play a strategic and facilitating role in fostering smart partnerships, ensuring the
be able to make better business decisions by availability of infrastructure and creating new avenues to encourage producers to develop sustainable
leveraging on data, including predictions on yields, innovative and high technology solutions in transforming the industry into the era of Industry 4.0.
weather patterns, machinery life cycle and market
movements.
Oil Yield (MT/Ha) Global Oilseed Harvested Area 278
Technology and innovation in food security, (mil/Ha)
nutrition and sustainability will continue to drive the
future advancements of the industry. Therefore, the 3.62
Malaysian palm oil industry needs to put continuous 120
emphasis to continue being competitive and 81
innovative as the way forward. SDP will continue 35
0.79 25
to carry out its role to further promote and develop 0.30 17
the industry through ongoing engagement with
stakeholders such as customers, NGOs, media, Soybean Rapeseed Oil Palm Oil Palm Soybean Rapeseed Sunflower Others TOTAL
Oil Palm is able to produce up to 10 to 14 times more oil than other oilseeds, and only
Example of GPS tracking of SDP’s manpower movements accounts for 6% of total global oilseed harvested area
160 D | VIEWS FROM THE INDUSTRY
System
Consultancy
Services Sdn. Bhd.
(SCS)
System Consultancy Services Sdn Bhd is a
name long associated with providing a one-stop
solution, having carved a niche in the Malaysian
defence security system since 1993 following its
successful implementation of a large command
and control system for the Ministry of Defence
Malaysia (MINDEF). The company has evolved
over the years to become an important player in
high technology spearheaded by the vision of its
Executive Chairman, Datuk Ir. Khalilur Rahman
Ebrahim. He foresaw the potential of the industry
while responding to the call of duty for the country
providing consultancy services to MINDEF. Throw
in a splash of patriotism into the blend, the struggle
soon turned into an exceptional commitment
of a Malaysian company providing the security
systems maintenance in over 90 sites nationwide.
The Service Level Agreement (SLA) between SCS
and the military allows for a breakdown of two
hours only where repairs must be done within the
allocated downtime indicating the serious business
the company is managing.
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 161
The prominent figure in the local and international to maintain a closed-loop program that will allow local businesses to partake in the initiative. The
security systems business fraternity further the tracking of information by residents to provide a blueprint is to have a local industry that is capable
concurs that there is an increasing awareness more harmonious neighbourhood. By implementing in various sectors to fulfil the demand. Getting a
among businesses about cyber security especially the system, SCS hopes to help the town councils contract to develop infrastructure does not stop
In facing the challenges with computerised
in the financial institutions but the response so far solve a lot of maintenance hiccups that have been upon its completion but the MRO part is the most
systems, SCS offers the fact that the software
is not fast enough to protect the operations hence, plaguing the administration in their endeavours critical as the industry will need to be available for
is not static but it keeps on changing and needs
exposing the customers to online threats. While to create an efficient response mechanism for the at least the next 30 years. Therefore, it is of utmost
upgrading as time goes by due to dynamic security
commercial security systems are not quite the benefits of the local residents. importance for the Malaysian industry players to be
threats looming around the globe. “Having been
Company’s backbone for the time being, he stresses involved in the whole gamut to be able to operate
in the venture for three decades, SCS manages
the importance of being vigilant about the various Moving forward, the Company looks to expanding smoothly.
and controls the system maintenance to avoid
harmful ways the Internet is secretly collecting data the non-defence segment of its business in
disruptions by providing training for up to about
of unsuspecting individuals and organisations, all in Malaysia particularly in light rail as it has the Overall, the systems developed by SCS bear the
two thousand military personnel a year on how to
the name of business when in fact the act is more capability to not only supply the rolling stock but benefits of being latest in the market with swift
operate the systems,” Datuk Ir. Khalilur explains.
criminal than bona fide in nature. also provide the support system via Maintenance, upgrading process and MRO opportunities; the
Repair and Overhaul (MRO) activities which is edges which are placing the Company as an
Unlike commercial security, security of the military
Answering the question on the exportability of most crucial in ensuring an uninterrupted service impetus for the engineering and R&D, consultancy
has to be developed locally and carefully but it does
SCS’ services, the prolific leader shared about the operation. It is also eager to tap into the market of and superior maintenance support services in
not necessarily have to be the best in the world as
challenges of selling an entire system to potential electrical infrastructure for trains by supplying the Malaysia and the world. In his closing remarks,
you will only be exposing the country to dangers if
nations which can be equivalent to selling the control system to Tenaga Nasional Bhd (TNB). Datuk Ir. Khalilur states the significance of offshoots
you call yourself an expert in the field, but rather a
Malaysian system that in the end, may expose in the industry which are often left in limbo during
more unique system that sets Malaysia apart from
the country’s security to foreign forces. He goes Datuk Khalilur envisions a boom in the the planning stage. With the bigger national
other countries. SCS admires the spirit of the BAE
on to explain, “The thing about software is it is a transportation infrastructure in the country as he advancement agenda on the horizon, what better
Systems that serves the world with its own security
very different kind of industry,” saying further that sees there is a lot of potential for rail development partner can understand the breadth and width of
niche. However, the Company has not initiated
the Company has gone through its own trials and with the construction of the MRT2 taking place. the issue than one close to home?
any collaboration with the BAE due to differing
tribulations in adopting some technologies to meet However, he is vocal about keeping the project
aspirations in meeting the security requirements
the demand from other countries. within the confines of local industrial players
where SCS believes in having a security system
instead of awarding the job to foreign partners. He
that is uniquely Malaysian.
Being a business of security systems, SCS is stresses the importance of generating the economy
currently working closely with the town councils around national projects by making it possible for
162 D | VIEWS FROM THE INDUSTRY
Telekom Malaysia Bhd.
TM AS THE ENABLER IN INDUSTRIES’ 4.0 JOURNEY
Industry 4.0 was first introduced in 2011 at the
Hannover Messe trade fair, and was the subject
of a working group established by the German
federal government. For the past 5 years Industry
4.0 has transformed industries across the globe
as they adopt new technologies to digitalize
their business operations, and it has reached
Malaysian shores. The term Industry 4.0 refers to
the combination of several major innovations in
digital technology, including advanced robotics
and artificial intelligence; sophisticated sensors;
cloud computing; the Internet of Things etc. These
smart technologies have great potential to continue
to connect billions more people to the internet,
drastically improve the efficiency of businesses
and organizations and help regenerate the natural
environment through better asset management.
Many industries want to go 4.0, but do not
necessarily have the skills, assets and technology
to complete their digital transformation. This is
where TM comes in, we are positioning ourselves
to be the enabler / preferred partner in helping
industries on their 4.0 journey by providing them
with the necessary assets and services. We are well
positioned to do this as we have made strategic
investments, as such:
a) We have upgraded our broadband not only
through coverage expansion via HSBB2 and
SUBB, but also by introducing the new and
improved packages such as UniFi Advance and
UniFi PRO Plans.
b) TM and VADS have established purpose-built
data centre in Nusajaya Tech Park, to power
delivery of solutions via the cloud.
c) As industries and businesses move into digital,
we are also investing in smart services platforms
and building capabilities to provide B2B and
B2B2C solutions. TM’s collaboration with UEM
Sunrise and Medini Iskandar for Smart City
developments is an early example of our efforts.
d) We have been strengthening our position as
Malaysia’s Convergence Champion, with the
introduction of webe, TM’s digital pioneer, as
webe focuses on digital as a key differentiator.
In order to capture Industry 4.0’s digital
opportunities, we intend to transform ourselves via
a holistic three (3) pillar “Go Digital” Framework.
Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 163
TM is well-positioned as the enabler/preferred partner
in helping industries in their 4.0 journey
a) Customer Experience: Generate easy and
simpler ways for customers to engage with TM Industry
by digitalising our touchpoints with customers 4.0
b) Process Optimisation: Simplify and streamline Investment into
internal processes through digitalisation smart services
platforms
c) New Opportunities: Create completely new ENABLER / PREFFERED PARTNER
adjacencies / businesses enabled by digital Digital Pioneer
We acknowledge that the impact of digitalization
from Industry 4.0 will increase security risks as
human communication is mediated by machines and
is becoming more indirect, leading to possibilities
of impersonation, identity theft, hacking and cyber Broadband Investments into
threats. Thus, we have taken a comprehensive Expansion DC and Cloud
strategic approach to cybersecurity, to ensure that
services
we are in a proactive position to anticipate and
mitigate cyber threat.
We are indeed excited with the plans that have
been put in place to embrace the Industry 4.0
opportunities, and we will continue our journey
towards becoming Malaysia’s Convergence
Champion, in line with our promise of ‘Life Made
Easier’ and ‘Business Made Easier’ with TM.
164 D | VIEWS FROM THE INDUSTRY Malaysian Technology Strategic Outlook 2017/2018 Malaysian Technology Strategic Outlook 2017/2018 D | VIEWS FROM THE INDUSTRY 165

Tenaga Nasional Berhad

EMPOWERING CUSTOMERS AS A DIGITAL UTILITY
Digital and smart technology have enabled a link of new Internet-connected
services that are infiltrating the most tech-averse industries. The world is now
moving into the “Industry 4.0” era where we will see end-to-end digitisation
of physical assets and its integration into digital ecosystems across the value
In addition to the industry push towards Industry 4.0, at TNB, we are also seeing
how global trends such as urbanisation of the developing world, acceleration
of technological changes, increased pressure for capital productivity and
changing regulatory landscape are accelerating this push further. We take
a. Digital Asset Management
From the power industry perspective, these digital revolutions are already
This encompasses technology solutions that will enable real-time, remote
happening across the power industry value chain. Within the generation value control and predictive maintenance that will result in improved operating
chain, renewables and distributed generation are disrupting conventional efficiencies and extending the life cycle of existing assets. Utilities can
power plant business. Advancements such as smart grids and IoT technologies expect exponential improvement once they deploy these solutions across
cognizant of these global trends and therefore are pressing ahead with our
plans to transform ourselves into a digital utility to meet the era of Industry
4.0. Moving forward we have identified 6 themed areas that we see need to be
address as part of our digital utility transformation initiative:
d. Digital Enterprise Services
A digital enterprise is an organization that uses technology as a competitive
advantage in its internal and external operations. Deploying a digital
enterprise solution requires migrating the entire back-end enterprise
operations onto a digital platform. Doing so will result in improved

Technology will fundamentally change the way

their entire value chain. efficiencies and comprehensive data capturing across the value chain,
chain from product development to the service delivery for the end customer. will look to improve power grid efficiencies, while on-site automation together which utilities can leverage to unearth hidden values through advanced
with analytics-enabled decision making are enhancing customer satisfaction TNB’s digital asset management systems allows for real-time and remote analytics.

utilities
THE WAY operate and triggering new business models. In short, utilities are becoming digital
TECHNOLOGY WILL FUNDAMENTALLY CHANGE utilities.
managing of our power generators
We are moving our end to end enterprise systems, from procurement to customer
UTILITIES OPERATE billing onto a private cloud to ensure improved interoperability

Customer interactions are Platform to enable

Big data driven supply /
demand matching
enabling distributed
energy resources
The Future Utility
distributed energy Back office b. Digital Field Worker e. Digital Consumer Interaction
Comprehensive, Smart grid driven by insight, segmentation, automation and The focus of this themed area is to improve utilities field workers’ Customers will increasingly interact with their electricity provider through
and choice resources and
centralized asset data and smart supporting data-enabled performance and productivity by empowering them with tools and multiple channels, including Web, mobile and social. The current customer
enables risk-based pipes marketplace decision making data to facilitate better and faster decision making. This would not only interaction model will be transformed by embedding customer analytics
asset maintenance drive operational efficiencies via improve work planning and logistics within services that accelerate digital migration and improved customer
Field workers have mobile
access to maps, data, and Situational optimisation but also superior customer experience through enhanced engagement. This will allow utilities to move from supplying a commodity
work management tools awareness of customer notifications. to providing an experience, better meeting consumer needs and improving
the grid their brand.

We are equipping our workers with mobile field force tools to improve their
productivity We have launch our “myTNB” app to help our customer reach us whenever and
wherever

c. Intelligent Grid Operations f. Digital Energy Products and Services

This theme will focus at building resilience into our grid system, improving
availability and security of supply. As a result, electricity will become
not just more reliable for customers but also more affordable as value
reclaimed from avoided wastage is passed onto customers. Creating an
Enabling digital technology
Electricity utilities need to move from being ‘energy-centric’ to ‘customer-
centric’, and to do so requires using increasing volumes of customer data to
better understand behaviour. Utilities will start to play a bigger role in how
consumers optimize the home, choose tariffs, manage consumption and

intelligent grid will also allow for bi-directional flow of electricity, a crucial
Cyber-secure characteristic that will allow utilities to integrate renewables onto the grid
more seamlessly and at scale. The era of Industry 4.0 will have utilities
championing the reduction of emissions through the enabling of more
integration of renewables onto the grid.
payments, and embed self-generation. Consumers are starting to expect
choice, reliability and personalized service that extends beyond the meter.
The digital utility will need to develop innovative digitally enabled products
and services and at the same time offering these products and services via
a seamless consumer experience across channels.

We have enabled our high tension network with remote automation to improve We aim to be your preferred provider of energy products and services
grid resilience and reliability

Enterprise target state Cost- Next generation Customer-centric

architecture and competitive asset management organization We believe that this era of end-to-end digitization and the integration of the transformation journey to ensure that our customers will have the most to gain
standardization service delivery digital ecosystem will not just result in efficiency gains that will benefit the as we move into this new era. Doing so is clearly in line with our core value of
Fast adoption Real time visibility and User-friendly end customers but also the creation of new options that will further empower always putting our customers’ interest first.
IT as trusted advisor and a Flexible IT
partner to the business of new tech control of critical interfaces to drive those customers. It is because of this believe that we, at TNB, have begun our
systems usage and value
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