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Standard Chartered forecasts Malaysia 2020 GDP growth at 4.5%

KUALA LUMPUR (Jan 15): Standard Chartered is forecasting Malaysia's gross domestic product growth at 4.5% this year, a similar pace to 2019, with private consumption to remain the main growth driver.

Speaking to reporters at a media briefing here today, its chief economist for Asean and South Asia Edward Lee said although the economy growing at a steady pace, the growth is still lacklustre.

He explained that the pace of spending may ease due to high base effect, and there are some early signs of softening in the labour market. Lee, however, noted that the labour market is still "solid".

Nevertheless, Lee pointed out that the US-China trade war de-escalation, loose global monetary conditions and pick-up in the electronics sector may be balanced by a slower pace of consumer spending and subdued sentiment domestically.

He also added that the overall investment may recover slightly in 2020 amid the US-China de-escalation and the resumption of infrastructure projects.

"There could still be some upside [catalyst to Malaysia's economic growth]. If investor confidence comes back, investments come back, we can certainly see Malaysia performing better than 4.5%," said Lee.

ARB posts record profit of RM8.6mil in 2Q19

KUALA LUMPUR: ARB Bhd posted a record net profit of RM8.61mil in the second quarter ended June 30, compared with a net loss of RM271,000 in the same quarter last year, due to stronger revenue from its IT segment.

Its revenue for the quarter jumped 153% RM11.28mil against RM4.45mil from a year ago.

In the first six months, ARB posted a net profit of RM13.68mil on revenue of RM23.7mil.

“Our record-breaking results speak for themselves, demonstrating that ARB has continued the forward momentum of a very strong FY2018.


“We are very confident that FY2019 will be another record year for ARB, driven by the continued high demand for our IT solutions in the areas of enterprise resource planning system and Internet of Things intelligent lifestyle concept,” CEO (Investment & Technology) Datuk Larry Liew Kok Leong said in a statement.

“Our profit in 2QFY2019 is generated from our recurring-income business model, which I believe has reflected in three consecutive quarters. With a market capitalisation of less than RM50mil, I strongly believe ARB is undervalued by the investing community,” Liew added.

ARB has undertaken a slew of corporate measures recently to revamp and restructure the company’s branding, operations and management, in view of ARB’s upgraded long-term business aspirations.

With effect from April 22, the company has adopted its current name of ARB, which was formerly known as ATURMAJU RESOURCES BHD to reflect its new corporate identity and greater plans for the company.

THE FUTURE WORKFORCE
Industry 4.0 has a lot to promise when it comes to revenues, investment, and technological advancements, but employment still remains one of the most mysterious aspects of the new industrial revolution. It’s even harder to quantify or estimate the potential employment rates.

What kind of new jobs will it introduce? What does a Smart Factory worker needs to have to be able to compete in an ever changing environment such as this? Will such changes lay off many workers? All of these are valid questions to the average worker.

Industry 4.0 might be the peak of technological advancement in manufacturing, but it still sounds as if machines are taking over the industry. Consequently, it is important to further analyze this approach in order to be able to draw conclusions on the demographics of labor in the future. This will help workers of today prepare for a not so far future.

Given the nature of the industry, it will introduce new jobs in big data analysis, robot experts, and a huge portion of mechanical engineers. In an attempt to determine the type of jobs that Industry 4.0 will introduce or need more labor in, BCG has published a report based on interviews with 20 of the industry’s experts to showcase how 10 of the most essential use cases for the foundation of the industry will be affected.

The following are some of the important changes that will affect the demographics of employment:

Big-Data-Driven Quality Control: In engineering terms, quality control aims at reducing the inevitable variation between products. Quality Control depends to a large extent on statistical methods to show whether a specific feature of a product (such as size or weight) is changing in a way that can be considered a pattern. Of course such a process depends largely on collecting real-time or historical data regarding the product. However, since Industry 4.0 will rely on big data for that, the need for quality control workers will decrease. On the other side, the demand for big data scientists will increase.
Robot-Assisted Production: The entire basis of the new industry relies of the smart devices being able to interact with the surrounding environment. This means that workers who assist in production (such as packaging) will be laid off and be replaced with smart devices equipped with cameras, sensors, and actuators that are able to identify the product and then deliver the necessary changes for it. Consequently, the demand for such workers will drop and will be replaced with “robot coordinators”.
Self-Driving Logistics Vehicles: One of the most important focuses of optimization is transportation. Engineers use linear programming methods (such as the Transportation Model) to utilize the use of transportation. However, with self-driven vehicles, and with the assistance of big data, so many drivers will be laid off. In addition, having self-driven vehicles allows for restriction-free working hours and higher utility.
Production Line Simulation: While the need for optimization for transportation declines, the need for industrial engineers (who typically work on optimization and simulation) to simulate productions lines will increase. Having the technology to simulate production lines before establishment will open up jobs for mechanical engineers specializing in the industrial field.
Predictive Maintenance: Having smart devices will allow manufacturers to predict failures. Smart machines will be able to also independently maintain themselves. Consequently, the number of traditional maintenance technicians will drop, and they’ll be replaced with more technically informed ones.
Machines as a Service: The new industry will also allow manufactures to sell a machine as a service. This means that instead of selling the entire machine to the client, the machine will be set-up and maintained by the manufacturer while the client takes advantage of the services it provides. This will open up jobs in maintenance and will require an expansion in sales.
FINAL THOUGHTS
Industry 4.0 is definitely a revolutionary approach to manufacturing techniques. The concept will push global manufacturers to a new level of optimization and productivity. Not only that, but customers will also enjoy a new level of personally customized products that may have never been available before. As mentioned above, the economic rewards are immense.

However, there are still many challenges that need to be tackled systematically to ensure a smooth transition. This needs to be the focus of large corporations and governments alike. Pushing research and experimentation in such fields are essential.

While speculations regarding privacy, security, and employment need more study, the overall picture is promising. Such approach to manufacturing industries is truly revolutionary.

Customization: Creating a flexible market that is customer-oriented will help meet the population’s needs fast and smoothly. It will also destroy the gap between the manufacturer and the customer. Communication will take place between both directly. Manufacturers won’t have to communicate internally (in companies and factories) and externally (to customers). This fastens the production and delivery processes.
Pushing Research: The adoption of Industry 4.0 technologies will push research in various fields such as IT security and will have its effect on the education in particular. A new industry will require a new set of skills. Consequently, education and training will take a new shape that provides such an industry will the required skilled labor.
Challenges facing Industry 4.0
Security: Perhaps the most challenging aspect of implementing Industry 4.0 techniques is the IT security risk. This online integration will give room to security breaches and data leaks. Cyber theft must also be put into consideration. In this case, the problem is not individual, but can, and probably will, cost producers money and might even hurt their reputation. Therefore, research in security is crucial.
Capital: Such transformation will require a huge investment in a new technology that doesn’t sound cheap. The decision to make such transformation will have to be on CEO level. Even then, the risks must be calculated and taken seriously. In addition, such transformation will require a huge capital, which alienates smaller businesses and might cost them their market share in the future.
Employment: While it still remains early to speculate on employment conditions with the adoption of Industry 4.0 globally, it is safe to say that workers will need to acquire different or an all-new set of skills. This may help employment rates go up but it will also alienate a big sector workers. The sector of workers whose work is perhaps repetitive will face a challenge in keeping up with the industry. Different forms of education must be introduced, but it still doesn’t solve the problem for the elder portion of workers. This is an issue that might take longer to solve and will be further analyzed later in this report.
Privacy: This not only the customer’s concern, but also the producers. In such an interconnected industry, producers need to collect and analyze data. To the customer, this might look like a threat to his privacy. This is not only exclusive to consumers. Small or large companies who haven’t shared their data in the past will have to work their way to a more transparent environment. Bridging the gap between the consumer and the producer will be a huge challenge for both parties.

The Internet of Services (IoS)
It is easy to see that in today’s world each and every electronic device is more likely to be connected to either another device, or to the internet. With the huge development and diversity in electronic and smart devices, obtaining more and more of them creates complexities and undermines the utility of each added device.

Smart phones, tablets, laptops, TVs or even watches are becoming more and more interconnected, but the more you buy, the added value of the last device becomes unrecognizable. The Internet of Services aims at creating a wrapper that simplifies all connected devices to make the most out of them by simplifying the process. It is the customer’s gateway to the manufacturer.

Smart Factory
Smart factories are a key feature of Industry 4.0. A smart factory adopts a so called Calm-system. A calm system is a system that is able to deal with both the physical world as well as the virtual. Such systems are called “background systems” and in a way operate behind the scene. A calm system is aware of the surrounding environment and the objects around it.

It also can be fed with soft information regarding the object being manufactured such as drawings and models. According to Hermann, Pentek, and Otto
INDUSTRY 4.0 DESIGN PRINCIPLES
The design principles allow manufacturers to investigate a potential transformation to Industry 4.0 technologies. Based on the components above, the following are the design principles:

Interoperability: Objects, machines and people need to be able to communicate through the Internet of Things and the Internet of People. This is the most essential principle that truly makes a factory a smart one.
Virtualization: CPSs must be able to simulate and create a virtual copy of the real world. CPSs must also be able to monitor objects existing in the surrounding environment. Simply put, there must be a virtual copy of everything.
Decentralization: The ability of CPSs to work independently. This gives room for customized products and problem solving. This also creates a more flexible environment for production. In cases of failure or having conflicting goals, the issue is delegated to a higher level. However, even with such technologies implemented, the need for quality assurance remains a necessity on the entire process
Real-Time Capability: A smart factory needs to be able to collect real time data, store or analyze it, and make decisions according to new findings. This is not only limited to market research but also to internal processes such as the failure of a machine in production line. Smart objects must be able to identify the defect and re-delegate tasks to other operating machines. This also contributes greatly to the flexibility and the optimization of production.
Service-Orientation: Production must be customer-oriented. People and smart objects/devices must be able to connect efficiently through the Internet of Services to create products based on the customer’s specifications. This is where the Internet of Services becomes essential.
Modularity: In a dynamic market, a Smart Factory’s ability to adapt to a new market is essential. In a typical case, it would probably take a week for an average company to study the market and change its production accordingly. On the other hand, smart factories must be able to adapt fast and smoothly to seasonal changes and market trends.
THE BENEFITS AND THE CHALLENGES
Industry 4.0 will truly revolutionize the way manufacturing processes work. However, it’s important to weigh the advantages and the challenges that companies may face.

Advantages of Industry 4.0
Optimization: Optimizing production is a key advantage to Industry 4.0. A Smart Factory containing hundreds or even thousands of Smart Devices that are able to self-optimize production will lead to an almost zero down time in production. This is extremely important for industries that use high end expensive manufacturing equipment such as the semi-conductors industry. Being able to utilize production constantly and consistently will profit the company. According to a study published by PwC,

““things” and “objects” can be understood as CPS. Therefore, the IoT can be defined as a network in which CPS cooperate with each other through unique addressing schemas.

THE DEFINITION OF THE FOURTH INDUSTRIAL REVOLUTION AND HOW IT IS DIFFERENT FROM THE THIRD
The fourth industrial revolution takes the automation of manufacturing processes to a new level by introducing customized and flexible mass production technologies.

This means that machines will operate independently, or cooperate with humans in creating a customer-oriented production field that constantly works on maintaining itself. The machine rather becomes an independent entity that is able to collect data, analyze it, and advise upon it.

This becomes possible by introducing self-optimization, self-cognition, and self-customization into the industry. The manufacturers will be able to communicate with computers rather than operate them.

How will machines communicate?
The rapid changes in the information and communication technologies (ICT) have broken the boundaries between virtual reality and the real world. The idea behind Industry 4.0 is to create a social network where machines can communicate with each other, called the Internet of Things (IoT) and with people, called the Internet of People (IoP).

This way, machines can communicate with each other and with the manufacturers to create what we now call a cyber-physical production system (CPPS). All of this helps industries integrate the real world into a virtual one and enable machines to collect live data, analyze them, and even make decisions based upon them.

INDUSTRY 4.0 COMPONENTS
Although “Industry 4.0” is the common term referring to the fourth industrial revolution, academics still struggle to properly define the approach. This makes it even harder to distinguish the main components of such an approach. In their Literature Review, Hermann, Pentek, and Otto take it upon themselves to find out the main components of the industry.

Given the fact that the term originated in a German-speaking area, they set out to find out the most frequently cited terms and definitions relating to the industry.

In their research, of course, the German equivalent of each term (or perhaps the English equivalent) was used. The results were as follows (Source: “Design Principles for Industrie 4.0 Principle” by Hermann, Pentek, and Otto):

Search Term (Group)

Number of Publications in Which Search Term (Group) Occured

Cyber-Physical Systems, Cyber-Physikalische Systeme, CPS
46

Internet of Things, Internet der Dinge
36

Smart Factory, intelligente Fabrik
24

Internet of Services, Internet der Dienste
19

Smart Product, intelligentes Produkt
10

M2M, Machine-to-Machine
8

Big Data
7

Cloud
5

Cyber-Physical Systems, Internet of Things, Smart Factory, and Internet of Services are the most common four terms cited in academic research publications related to the industry. Consequently, and given its initial stage, these are the four main components of the industry.

Cyber-Physical Systems
As mentioned above, a cyber-physical system aims at the integration of computation and physical processes. This means that computers and networks are able to monitor the physical process of manufacturing at a certain process. The development of such a system consists of three phases:

Identification: Unique identification is essential in manufacturing. This is the very basic language by which a machine can communicate. RFID (Radio-frequency identification) is a great example of that. RFID uses an electromagnetic field to identify a certain tag that is often attached to an object. Although such technology has been around since 1999, it still serves as a great example of how Industry 4.0 operated initially.
The Integration of Sensors and Actuator: This is essential for a machine to operate. The integration of sensors and actuators simply means that a certain machine’s movement can be controlled and that it can sense changes in the environment. However, even with the integration of sensors and actuators, their use was limited and does not allow them to communicate with each other.
The Development of Sensors and Actuators: Such development allowed machines to store and analyze data. A CPS now is equipped with multiple sensors and actuators that can be networked for the exchange of information.
The Internet of Things (IoT)
A cyber-physical system still sounds familiar to us today. Machines can exchange data and, in a lot of applications, can sense the changes in the environment around them. Fire alarms are a good example of that. The Internet of Things, however, is thought to be what truly has initiated Industry 4.0.

The Internet of Things is what enables objects and machines such as mobile phones and sensors to “communicate” with each other as well as human beings to work out solutions. The integration of such technology allows objects to work and solve problems independently. Of course, this is not entirely true as human beings are also allowed to intervene.

However, in case of conflicting goals, the case is usually raised to higher positions. According to Hermann, Pentek, and Otto, “

Industry 4.0: Definition, Design Principles, Challenges, and the Future of Employment

Industry 4.0 is a term often used to refer to the developmental process in the management of manufacturing and chain production. The term also refers to the fourth industrial revolution.

The term Industry 4.0 was first publicly introduced in 2011 as “Industrie 4.0” by a group of representatives from different fields (such as business, politics, and academia) under an initiative to enhance the German competitiveness in the manufacturing industry. The German federal government adopted the idea in its High-Tech Strategy for 2020. Subsequently, a Working Group was formed to further advise on the implementation of Industry 4.0.

In 2003, they developed and published their first set of recommendations. Their vision entailed that Industry 4.0 remains a term well-known in German-speaking areas. Consequently, this guide will aim at attempting to define the term, exploring the design principles, the advantages and the challenges facing such an approach, and try to quantify the potential lying underneath.

THE HISTORY BEHIND INDUSTRY 4.0
To be able to understand how Industry 4.0 became today’s buzzword, a look at its predecessors might give us a perspective on how this revolution in particular is different. The following diagram shows a timeline of the evolution of manufacturing and the industrial sector in general The First Industrial Revolution
The industrial revolution in Britain came in to introduce machines into production by the end of the 18th century (1760-1840). This included going from manual production to the use of steam-powered engines and water as a source of power.

This helped agriculture greatly and the term “factory” became a little popular. One of the industries that benefited a lot from such changes is the textile industry, and was the first to adopt such methods. It also constituted a huge part of the British economy at the time.

The Second Industrial Revolution
The second one dates between 1870 and 1914 (although some of its characteristics date back to the 1850) and introduced pre-existing systems such as telegraphs and railroads into industries. Perhaps the defining characteristic of that period was the introduction of mass production as a primary means to production in general.

The electrification of factories contributed hugely to production rates. The mass production of steel helped introduce railways into the system, which consequently contributed to mass production. Innovations in chemistry, such as the invention of the synthetic dye, also mark such period as chemistry was in a rather primitive state then.

However, such revolutionary approaches to industry were put to an end with the start of World War I. Mass production, of course, was not put to an end, but only developments within the same context were made and none of which can be called industrial revolutions.

The Third Industrial Revolution
Perhaps the third one is much more familiar to us than the rest as most people living today are familiar with industries leaning on digital technologies in production. However, the third industrial revolution is dated between 1950 and 1970.

It is often referred to as the Digital Revolution, and came about the change from analog and mechanical systems to digital ones.

Others call it the Information Age too. The third revolution was, and still is, a direct result of the huge development in computers and information and communication technology.

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Additive manufacturing (3D printing): This technology has improved tremendously in the last decade and has progressed from primarily being used for prototyping to actual production. Advances in the use of metal additive manufacturing have opened up a lot of possibilities for production.

Internet of Things and the cloud: A key component of Industry 4.0 is the Internet of Things that is characterized by connected devices. Not only does this help internal operations, but through the use of the cloud environment where data is stored, equipment and operations can be optimized by leveraging the insights of others using the same equipment or to allow smaller enterprises access to technology they wouldn’t be able to on their own.

While Industry 4.0 is still evolving and we might not have the complete picture until we look back 30 years from now, companies who are adopting the technologies realize Industry 4.0's potential. These same companies are also grappling with how to upskill their current workforce to take on new work responsibilities made possible by Internet 4.0 and to recruit new employees with the right skills.

Industry 4.0 applications today

While many organizations might still be in denial about how Industry 4.0 could impact their business or struggling to find the talent or knowledge to know how to best adopt it for their unique use cases, several others are implementing changes today and preparing for a future where smart machines improve their business. Here are just a few of the possible applications:Identify opportunities: Since connected machines collect a tremendous volume of data that can inform maintenance, performance and other issues, as well as analyze that data to identify patterns and insights that would be impossible for a human to do in a reasonable timeframe, Industry 4.0 offers the opportunity for manufacturers to optimize their operations quickly and efficiently by knowing what needs attention. By using the data from sensors in its equipment, an African gold mine identified a problem with the oxygen levels during leaching. Once fixed, they were able to increase their yield by 3.7%, which saved them $20 million annually.

Optimize logistics and supply chains: A connected supply chain can adjust and accommodate when new information is presented. If a weather delay ties up a shipment, a connected system can proactively adjust to that reality and modify manufacturing priorities.

Autonomous equipment and vehicles: There are shipping yards that are leveraging autonomous cranes and trucks to streamline operations as they accept shipping containers from the ships.

Robots: Once only possible for large enterprises with equally large budgets, robotics are now more affordable and available to organizations of every size. From picking products at a warehouse to getting them ready to ship, autonomous robots can quickly and safely support manufacturers. Robots move goods around Amazon warehouses and also reduce costs and allow better use of floor space for the online retailer.

What is Industry 4.0? Here's A Super Easy Explanation For Anyone

We’re in the midst of a significant transformation regarding the way we produce products thanks to the digitization of manufacturing. This transition is so compelling that it is being called Industry 4.0 to represent the fourth revolution that has occurred in manufacturing. From the first industrial revolution (mechanization through water and steam power) to the mass production and assembly lines using electricity in the second, the fourth industrial revolution will take what was started in the third with the adoption of computers and automation and enhance it with smart and autonomous systems fueled by data and machine learning.Even though some dismiss Industry 4.0 as merely a marketing buzzword, shifts are happening in manufacturing that deserves our attention.

Industry 4.0 optimizes the computerization of Industry 3.0

When computers were introduced in Industry 3.0, it was disruptive thanks to the addition of an entirely new technology. Now, and into the future as Industry 4.0 unfolds, computers are connected and communicate with one another to ultimately make decisions without human involvement. A combination of cyber-physical systems, the Internet of Things and the Internet of Systems make Industry 4.0 possible and the smart factory a reality. As a result of the support of smart machines that keep getting smarter as they get access to more data, our factories will become more efficient and productive and less wasteful. Ultimately, it's the network of these machines that are digitally connected with one another and create and share information that results in the true power of Industry 4.0.