Deloitte helps Malaysian companies bridge opportunities, strategies and risks faced in the Fourth Industrial Revolution
More than 150 executives from the manufacturing and service sectors came together at the ‘Opportunities and Risks of Digitalisation in the Fourth Industrial Revolution seminar’. Jointly organised by Deloitte Malaysia, the Malaysia Digital Economy Corporation (MDEC) and the Malaysian Investment Development Authority (MIDA), the seminar brought pragmatic insights on issues, advantages and challenges associated with digital transformation in the era of the Fourth Industrial Revolution to its participants.
The Fourth Industrial Revolution (4IR) has become a new buzz word – characterised by a fusion of technologies that blurs the lines between the physical, digital, and biological spheres, there has been a lot of talk in the marketplace on the various 4IR technologies available and why it is critical for companies to embrace 4IR.
“With the advent of technology, the world is changing at a speed that we’ve never seen before. Many industries are already facing the threats that are brought by digital disruptions. Organisations are urged to take immediate actions to transform their business to avoid being wiped out by this digital wave,” said Sim Kwang Gek, Country Tax Leader of Deloitte Malaysia. She adds, “In driving the country towards building a digital economy, it is crucial for businesses to understand what’s being offered by the government and how to leverage on them.” She also shared Deloitte’s second annual survey on how leaders are navigating Industry 4.0. The survey highlighted that some of the key challenges facing businesses are lack of a clear strategy on how to embark on Industry 4.0 and talent pool.
In sharing his views on digital transformation, Dato’ Azman Mahmud, Chief Executive Officer of Malaysian Investment Development Authority (MIDA) said, “Malaysia has embarked on an ambitious agenda on digital and industrial revolution to transform the manufacturing and services sectors in multiple ways. MIDA alone provides various forms of facilitation that local industry players can leverage on, to upgrade their technologies as well as human capital. Among the facilities are the Domestic Investment Strategic Fund (DISF) and the High Impact Fund (HIF). These funds aim to support Malaysian-owned companies as well as foreign companies in targeted industries to achieve high technology, high value-added and knowledge-intensive operations. The Automation Capital Allowance (Automation CA) which was introduced in the 2015 Budget, for instance, acts as an onboarding program towards digitalisation. As of May 2019, MIDA has approved a total of 167 Automation CA incentive applications. As a result of this incentive, overall production volumes have increased by approximately 140% on average, with quality improvement of 62%on average. Furthermore, more than 900 reductions of unskilled workers have also been achieved with a 53% reduction in working hours on average.”
“Although the country has made good progress, we have to continue to adapt to an environment of disruptive technologies and innovation. While the Government assumes its role as the enabler for this transformation, the private industry players are the ultimate drivers moving the country forward,” added Dato’ Azman.
Dato’ Ng Wan Peng, Chief Operations Officer, Malaysia Digital Economy Corporation (MDEC), said, “Dynamic changes are taking place as Malaysia journeys into the Fourth Industrial Revolution. Digital disruption is increasing momentum and eventually every business needs to embrace digital to stay relevant or even exist. Malaysia remains committed to create a conducive digital economy ecosystem that aims to encourage its adoption among public and private organisations and industry players.” Dato’ Wan Peng added, “In building a sustainable digital adoption ecosystem through catalytic initiatives, MDEC is collaborating and linking various partners; digital experts, associations, government agencies and regulatory bodies.”
Deloitte is a Digital Transformation Labs partner in the Digital Transformation Acceleration Programme (DTAP), launched in 2018 by MDEC working with MIDA to provide companies a structured approach to digitalisation.
The seminar featured a line-up of distinguished speakers, including Deloitte subject matter experts Ranga Jaganathan, Director of Deloitte Consulting and Thin Siew Chi, Executive Director of Deloitte Tax Services Malaysia, who discussed salient points on the challenges of digitalisation and ways to avoid the pitfalls, tax considerations in relation to digital strategies, and case studies of Malaysian companies currently embarking on their digital transformation journey.
Distinguished guest speakers at the seminar included Callum Chen, Chairman and CEO of LH Plus Sdn Bhd; Jacob Lee Chor Kok, Chairman, Industry 4.0 Committee of Federation of Malaysian Manufacturers (FMM); Noor Suziyanti Saad, Senior Deputy Director, Advanced Technology and R&D Division of MIDA and Rajen Dorairaj, Head of Corporate Engagement, Digital Adoption Ecosystem of MDEC.