Are we ready for the fourth industrial revolution?

In the 1990's it was common to hear the comment that "Malaysia has missed the industrialisation boat". Based on the World Economic Forum (WEF) definition, that 'industrialisation boat' is referring to the third industrial revolution where digital technologies, semiconductors, computers and the internet prevails.

4IR

The fourth industrial revolution or 4IR is here and currently being promoted by WEF, supported by the book written by its chairman, Professor Klaus Schwab aptly titled "The Fourth Industrial Revolution", as the next wave of industrial transformation. 4IR will see the application of ubiquitous mobile internet, sensors, artificial intelligence and machine learning proliferate and accelerate. Is it another buzzword that will get Governments or non-state players scrambling to respond to its expectation and to quickly find out that its just a 'mirage', or would it provide the level-playing field for all where developing economies can compete equally with its stronger brethren? 

"Always in Beta"

One of the interesting features of 4IR is "always in beta". If we take the analogy of the software industry, software developers will put their software in beta for the (selected) public to test it and give their feedbacks over and over again. Up to a point when the software developers are sufficiently satisfied that they have incorporated the common specifications from the users, then only will they release the software for sale to the masses. Even then, they will continuously upgrade the software for any glitches and / or customer's suggestions. What does this mean to Governments as policy makers?  The policymakers too need to put their policies, blueprints and roadmaps in 'beta' and adapt them to the changing environment.

Blurring sectoral boundary

The inter-play between technologies from different disciplines will pose new challenges to how policymakers approach the industrial segmentation. The traditional approach is to segment the industry based on sectors. As players like Google starts producing autonomous vehicles, with almost half of the vehicle content being the ICT-based inputs, do we consider the product under ICT or automotive? The emergence of the "sharing economy" through platforms like UBER or MyTeksi poses the question who would be the appropriate regulator for these services, in the case of Malaysia, is it SPAD or MCMC? The blurring of the sectoral boundary calls for a different policymaking approach as well as the implementation including enforcement of the newly created platforms, products and services.

Knowledge and Action

Human capacity building is central in 4IR. Without the knowledge and innovative capacity, it is unlikely that the nation will prosper within the new industrial landscape. This reinforce the push for STEM education (Science, Technology, Engineering, and Mathematics) and creating the pool of STEM-minded graduates for the current and future market. Another central element that should not be overlooked is the environment. The proliferation of new industries must meet the environmental and green requirements. It should also supports the preservation of our biodiversity and ecosystem services. 

Science to Action

The Malaysian Industry-Government Group for High Technology (MIGHT) have been a strong proponent for the development of indigenous platform technologies that will produce the desired outcomes for the nation and its players. At MIGHT, we have been promoting the results of our Foresight exercises for the past 5 years that points to a future where mobility, modularity, greenery and security are KEY that will shape future industries and societies. We hope to put more of the relevant strategies into implementable actions.

We need to embrace the fourth industrial revolution and not missed the boat again.