KUALA LUMPUR (July 16): There is a need for the manufacturing sector to embrace digitalisation to attract young talent, said programme director of the philosophy, politics and economics programme at Taylor's University Professor Dr Ong Kian Ming.

Automation and artificial intelligence are key drivers for attracting young talent as they go beyond traditional factory jobs and offer exciting opportunities for engineers and specialists, said Ong, who is also a board member of the Malaysian Investment Development Authority (Mida).

“You may not necessarily bring people directly into the manufacturing process by getting them to work for manufacturing companies. You could bring them into other channels, for example, as consultants who specialise in digitalisation and integrating processes within the value metric ecosystem, right?” he said at the Asean Manufacturing Youth Conference 2024 on Tuesday.

“We need more of these kinds of specialists entering the [manufacturing] ecosystem, including system integrator specialists with expertise in different digital processes within the manufacturing supply chain, such as Internet of Things devices, customisable software solutions and digital supply chain optimisation,” he said.

Ong highlighted that there is a lack of startups focusing on solutions within the manufacturing ecosystem and supply chain and this is seen as a missed opportunity as startups can bring innovation and agility.

The manufacturing sector has served as the main catalyst for economic growth, particularly in Malaysia, where the sector contributed over 23% of the country's gross domestic product in 2023.

In a keynote address earlier, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said his ministry is working closely with the Human Resources, Education and Higher Education ministries to ensure a robust talent pool for the country’s manufacturing industry.

He said some of the initiatives undertaken include encouraging youth to pursue Technical and Vocational Education and Training and launching upskilling and reskilling programmes, particularly those that combine workplace training with institutional learning.

“We are also developing innovation hubs and green technology parks to foster R&D (research and development) and entrepreneurial activities, as well as encourage green investments into Malaysia. Last month, Prime Minister Datuk Seri Anwar Ibrahim also launched the Malaysia Madani National Training Programme with the aim of equipping Malaysian youth for today's evolving challenges, such as digital advancements, new energy and artificial intelligence,” the minister added.

Meanwhile, the Asean Digital Economy Framework Agreement (Defa), which aims to accelerate Asean's transformation into a leading digital economy, is expected to be finalised during Malaysia’s chairmanship in 2025, said Tengku Zafrul.

By equipping young people with the necessary skills for a digitised manufacturing landscape, Defa can help unlock the region's full potential in this sector, he said. 

“With over 213 million youths aged 15-34 in the region, projected to reach a peak of 220 million by 2038, these young demographics provide Asean with an edge to move higher in the global value chain. 

"At its current trajectory, the Asean digital economy is expected to grow three times to reach US$1 trillion by 2030. With Defa, the value can easily be doubled, reaching US$2 trillion. Youths can leverage Defa to foster greater digital cooperation and pave the way for regional digital integration and inclusive growth and development,” he added. 

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