Strategies for Preparing Manufacturing SMEs for Industry 4.0: A Case of Malaysia

Abstract

The Industry 4.0 offers both opportunities and threats to Malaysian Small and Medium-sized Enterprises (SMEs) and its key effects have begun to prevail. It is apparent that the transformation within SMEs is crucial as Industry 4.0 is at the center of attention by industry leaders, digital service and technology providers, academic researchers, and policy makers. Industry 4.0 poses significant challenges to Malaysian SMEs from the aspects of technological, organizational and operational. Despite its possible benefits Industry 4.0 could offer, there are still many unresolved questions, uncertainties, and challenges to be faced along the journey of this digital transformation as implementation process of Industry 4.0 demands resources, expertise and commitments of SMEs to a great extent. Malaysia is also raising the bar to meet the competitive environment and global waves in Industry 4.0 realization. Therefore, there is a pressing need for more information on how SMEs embrace and oriented themselves to a new way of doing business in moving towards Industry 4.0. The implication and strategies are presented to prepare SMEs in facing the Industry 4.0.