Are we ready for IR4.0?
In one of its final acts in 2017, President Obama’s administration published two comprehensive reports on preparing the United States for the economic and social transformation that would be brought about by the advances in Artificial Intelligence (AI) and Automation. Closer to home, Singapore’s Committee on the Future Economy (CFE), a 30-member high-level group led by the Finance Minister Heng Swee Keat, outlined the strategic directions for Singapore’s long-term economic development in an era of rapid technological change. Government plays a key role in promoting comprehensive strategy in preparing the nation for the Industry 4.0 (IR4.0). The aim should be to develop a diverse and sophisticated knowledge base in the labour force, and effective technological and organizational routines in domestic enterprises. The more sophisticated and diversified the knowledge base, and the “smarter†the enterprise routines, the more dynamic an economy can be to adopt more complex technologies, diversify into a wider range of products, and to leapfrog into cutting-edge technologies, thereby accelerating the speed of jobs creation.
One option is investment in targeted skills training and Vocational Education & Training (VET) amongst youth. The International Labour Organisation’s recent systematic review of youth labour market programs found that well targeted education and training were essential to successful transitions. The government also needs to address Malaysia’s “brain drainâ€- where skilled workers or professionals move overseas to find work. Young scientific and technical professionals in Malaysia need opportunities to work and prosper. High skill centres of Germany, Norway, Japan and Korea further benefit thanks to the economic “spin-off†of jobs that research creates; namely, high tech manufacturing jobs. This would achieve the twin goals of harnessing our manufacturing workforce and creating more jobs for skilled individuals, both in scientific and technical services, and high-tech manufacturing.
According to the World Economic Forum’s ‘Future of Jobs’ survey, one-third of the desired core skill sets of most occupations in 2020 will be different from today’s requirements. Youth must realise that working in Industry 4.0 will shift the focus more on supervision of processes and optimisation activities, instead of manual work. These days, it is also becoming more common to see youths, particularly in the tech start-up sector, building mobile apps for example, which leads them to be job creators instead of job seekers. And while some youth may not be directly involved in the field of STEM education or workforce, it is recommended that they equip themselves with the necessary digital skills and knowledge through online courses or get experienced mentors.
From both strategic and technological perspectives, an Industry 4.0 Roadmap which visualizes every further step on the route towards an entirely digital enterprise is needed through incorporation of digital transformation across value chain verticals. Governments throughout the world are recognising and responding with great urgency to these unprecedented technological advances. Together, their impact on pre-existing economic and social structures has the potential to drastically alter economies. They can reshape global value chains, supplant entire industries, and displace many existing workers, even as they bring forth new opportunities for the future.