1.

0 INTRODUCTION

The wave of the Industrial Revolution 4.0 is rapidly changing differently in all aspects
of our lives which help easier our daily transactions, communication, monitoring, fulfil human
and business requirements and along with self-diagnosis and new levels of analysis to provide
a truly productive future. Along with this report, it will conclude the definition, relevance,
issues, latest trend and applications of IR 4.0 today in Malaysia context.

Firstly, the history of the advancement of this revolution began with Industrial
Revolution 1.0 which described as a transition to new manufacturing processes by German. It
was first coined in the 1760s and the transitions in the first IR included going from hand
production methods to machines, the increasing use of steam power, the development of
machine tools and the rise of the factory system that marked the new era of modernization
((MARI), 2018).

As time progressed, the new era produced which is Industrial Revolution 2.0 which also
known as the Technological Revolution, began exactly in the 1870s, taking mankind to the age
of electricity. The revolution in IR 2.0 included the development of methods for manufacturing
interchangeable parts and widespread adoption of pre-existing technological systems such as
telegraph and railroad networks ((MARI), 2018). This adoption allowed the limitless
movement of people and ideas, new technological systems were introduced such as electrical
power and telephones.

The third age of the Industrial Revolution known as the Digital Revolution which began
decades after World War II somewhere in the late 1950s. This epoch welcoming the advent of
computers and the initial stages of automation. The core factor to this revolution is the mass
production and widespread use of digital logic circuits and its derived technologies such as the
computer, handphones and the Internet ((MARI), 2018). It also subtly substituting manpower
in assembly lines with robots and machinery as it is enabling people to communicate with
another without the need of being physically present (Kasmuri & Arif, September 2017).

Today, we are in the era of Industry 4.0 where there are little to zilch human operations
and are instead replaced by robotics that is equipped with necessary algorithms (Kasmuri &
Arif, September 2017). Industry 4.0 also transforms how products are designed, fabricated,
used and operated as well as how they are maintained and serviced. Plus, it will also transform
the operations, processes, supply chain management and energy footprint of factories (MITI,
2018).

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2.0 THE RELEVANCE OF IR 4.0 IN TODAY CONTEXTS

2.1 The Readiness of Industry and Institute in Malaysia

In business and organizational context, the term IR 4.0 refers to a further developmental
stage in the organization and management of the entire value chain process (MITI, 2018).
Another definition is the combination of several major innovations in digital technology, all
coming to maturity right now, all poised to transform the energy and manufacturing sectors
(Ghaz, 2017). Regarding (MITI, 2018), nations are now increasing their focus on developing
advanced manufacturing capabilities by investing in high-tech infrastructure and quality
education. These are done by facilitating the transformation of the business application to the
next technology frontier and raising their economic wellbeing.

The Malaysian government has develop several method to develop the IT skills and
build awareness among citizen towards Industry 4.0. First of all, the target is the student. It is
important to create awareness among students first as they will become one of the workers who
will cooperate with Industry 4.0. Other than that, to produce a multi-task and f knowledgeable
student regarding this revolution. Two examples that shown nations are increasing the quality
education towards readiness to Industrial Revolution 4.0 are firstly, Universiti Teknikal
Malaysia Melaka (UTeM), as one of MTUN’s institutions, has developed consolidated
strategies to ensure its relevance globally by adopting the framework of a future-complying
Apps University. They plan to continue to entrench networking with industry partners through
structured programmes such as the CEO@faculty programme that sees the appointment of
CEOs from top-notch industries. These CEOs function as university-industry expert advisors,
sharing best practices and first-hand knowledge and adding value to students’ learning
experience (Shahrin Sahib & Fazidah & Khairul, 2017).

Secondly, a Focus Group Dialogue (FGD) was held at Politeknik Balik Pulau by The
Department of Polytechnic Education (DPE) and Politeknik Balik Pulau (PBU). The main
objective of the dialogue is to serve as a platform for deliberation in achieving a better
understanding of the government directions, industry expectations and institutions capacity in
meeting the challenges of the Fourth Industrial Revolution. The four speakers emphasis on the
need to change the current mindset and the urgency to embrace the change as there is no escape
from this revolution. They also said that the 4th Industrial Revolution brings about changes and
the developments which will disrupt people’s social and work such as the Internet of Things

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(IoT). Thus, up-skilling and reskilling are necessary to ensure skills are relevant to the industry
and the workforce in general (Khalil, 2017).

Other than that, government is now in planning to e-commerce growth through the
formation of the National e-commerce Council (NeCC) and the formulation of the National e-
commerce Strategic Roadmap (NeSR) by the NeCC. For example, POS Malaysia is assisting
SMEs in the adoption of e-commerce by providing regional coaching activities through its
SME Enabler Programme and also the trade facilitation and guidance on e-commerce solutions
via its e-Business Centre. Plus, the GoGlobal Malaysia (#MYGoGlobal) is helping SMEs in
Malaysia to explore new markets by digitalizing and equipping them with the right knowledge
and tools (Hashim, 2017).

The most exciting initiative to utilize the growth of Malaysian SMEs through e-
commerce is the establishment of the world’s first Digital Free Trade Zone (DFTZ) which is a
strategic collaboration between Malaysia and world-renowned internet and e-commerce
companies such as Catcha Group and Alibaba Group. The DFTZ will provide physical and
virtual zones to facilitate SMEs to capitalize on the convergence of exponential growth of the
internet economy and cross-border e-commerce activities. Thus, these method undeniably help
SMEs to grow faster in Industrial Revolution 4.0 (Hashim, 2017).

2.2 The Challenges Faced by Malaysian SMEs

2.2.1 Inadequate Awareness among SMEs

IR 4.0 has been growth in many of industry in Malaysia such as manufacturing,

construction, education, transportation, textiles, wearing apparel and leather products, food and
beverage and so on. However, there are still few of SMEs organization seem to be stuck in old-
traditional ways despite knowing consumers nowadays are more educated and more attracted
to the online system. According to (Tat, 2016), SMEs awareness towards ICT is still low which
shown in one of the sources by FMM ICT Adoption Study, 2016 which represents five results
which are, only 20 per cent of SMEs use ICT application actively, only 16 per cent of SMEs
embarked on e-commerce activities, 55 per cent do not know how to use the Internet, 40 per
cent say that they do not need the Internet and low SMEs investment in automation as
technology upgrading viewed as a cost rather than investment.

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 2.2.2 Workforce Training

To chase the growth of Industrial Revolution 4.0, the workers will need to acquire
different or an all-new set of skills as has been said by Klaus Schwab, Founder and Executive
Chairman of the World Economic Forum in his book ‘The Fourth Industrial Revolution’, this
evolution will fundamentally alter the way we live, work and relate to one another. To SMEs,
in order to stay competitive, they have no choice but to embrace intelligent production and
include more Industry 4.0 elements into their operations. One of the biggest changes needed to
prepare their workforce for the industry is that of mind-set. SMEs have to ensure that their
workers have the necessary skills and competencies to advance the country’s economic
transformation agenda in embracing Industry 4.0 (Ghaz, 2017). For example, in 2016, Foxconn
Technology Malaysia Sdn Bhd, reportedly replaced around 60,000 factory workers with robots,
and assigned those workers to tackle higher value-added elements in the manufacturing process
(Mottan, 2019).

2.2.3 Financing Implication

Industry 4.0 requires existing installations to be adapted and it may require entirely new
set-up of IT infrastructures such as paying the cost to hire robots, paying utility of Internet and
others. This is because, the development and introduction of Industry 4.0 technologies may
require substantial investment. The most vital is the cost implication because it acts as a key
factor to all SMEs, when making decision as to whether to improve existing IT infrastructure
or to design and develop new systems. These costs may be barriers for SMEs, especially micro
and small firms as they having lack of financial resources (Ghaz, 2017).

2.2.4 Effective Change Management

Next, another challenge faced by the manufacturing and services companies in

integrating digitalisation is ensuring that their people are aligned with this vision. It is vital for
SMEs who are different in nature compared to large corporations to realise that their venture
into Industry 4.0 adoption requires leadership and change management. To compete in an ever-
changing environment, Malaysian SMEs must find new relevance for themselves, or risk losing
touch with their customers. If harnessed properly, digitisation allows SMEs and start-ups to
punch above their weight and compete globally (Ghaz, 2017).

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 2.3 The Advantages Gained from IR 4.0

2.3.1 Efficiency

By utilizing data and information collected through Internet of Things (IoT), Industry
4.0 will open an advanced analytics possibilities in manufacturing and services sector. Then,
the advanced analytics will directly improve demand capacity management by allowing real-
time insights and eventually lowering the operating costs and improving efficiency. For
example, predictive maintenance on key assets using predictive algorithms to optimise repair
and maintenance schedules and improve asset uptime. Thus, SMEs will save maintenance time
and increase the efficiency in their production process and services to consumers (Ghaz, 2017).

2.3.2 Cost Effectiveness

With the help of Big Data, Industry 4.0’s ability to provide a smooth supply chain
operations to SMEs with shareable data on supply levels, inventory readings and transportation
simulations. It is not only avoid bottlenecks and troubleshooting but it could also help the
industry players and government officials and the ministry expected to formulate the National
Industry 4.0 Blueprint by the end of the year. Another example, the vertical integration, as well
as track-and-trace of products for better inventory performance and reduce logistics will lower
the cost incurred by organizations (Ghaz, 2017).

2.3.3 Customization

Industry 4.0 can create a flexible market that is customer-oriented which help SMEs to
meet the consumers' needs and demands with speed and efficiency. It will also remove the gap
between the manufacturer and the customer by using the way of communication will take place
between the two parties directly. Manufacturers would not have to communicate internally (in
companies and factories) and externally (to customers). This will fastens the production and
delivery processes (Ghaz, 2017).

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3.0 THE LATEST TREND OF IR 4.0

The term Industry 4.0 was said to have been used in Germany as early as 2011. However,
it only started to gain attention when it was announced during the 2016 World Economic Forum
when Klaus Schwab said that the world was at the threshold of the fourth industrial revolution.
Other than that, a senior lecturer at Universiti Kebangsaan Malaysia (UKM)’s Department of
Electrical, Electronic and Systems Engineering, Associate Prof Dr Sawal Hamid Md Ali said
that the key to the industrial revolution started in the 18th century with the advent of steam-
powered engines. Plus, he added the Industry 4.0 is about cyber-physical systems and systems
that can connect the digital world with biological systems like humans through the internet
(Bernama, 2018).

Next, Industry 4.0 also relate to a new domain encompassing interconnection between
the IoT and cyber-physical system (CPS) in a way where the mix of sensors, software,
processors and communication technology plays a massive role in creating "things" to have the
potential of providing information and ultimately adds value to manufacturing practices
(Effendi, November 2018). These changes includes automation and data exchange in
manufacturing technologies including additive manufacturing, artificial intelligence (AI), big
data and analytics, advanced materials, cyber-physical security systems, simulation, cloud
computing, augmented reality, Internet of Things (IoT) and autonomous robots.

According to (MITI, 2018), at the heart of Industry 4.0 is a set of rapidly evolving and
converging technologies. These are pushing the boundaries of what can be manufactured
through additive manufacturing and advanced materials. All of these technologies are enabling
richer insights through big data analytics which they are blurring the lines between physical
and digital realms through rich simulations and augmented reality. They are also enhancing
human capacity through artificial intelligence and autonomous robots. Nowadays, people are
also seeing a shift in the way information technology is being used through cloud computing,
system integration and the Internet of Things (IoT). Lastly, cyber-security plays an important
role in ensuring information systems and manufacturing lines are protected from cybercrime
threats.

3.1 Simulation, Augmented Reality and Virtual Reality

Regarding (Dolderseweg, 2016), simulation is the imitation of the operation of a real-

world process or system over time. The act of simulating something first requires that a model
be developed and this model represents the key characteristics or behaviors of the selected

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physical or abstract system or process. The model will represents the system itself, whereas the
simulation represents the operation of the system over time. Nowadays, the economy requires
a fast and flexible reaction to the market as customer demands become more dynamic and
unpredictable. It is hard to tell how logistics system of companies reacts to future changes the
firm faces difficult situation such as they must predict with static calculations as systems have
a lot of dependences and are not static.

The only tool and technology that can analyze and improve these complex and dynamic
systems is simulation. Moreover, many engineers are already familiar with simulations in the
field of product design plus with the advent of augmented reality, AI and big data, these
technologies are expected to bring simulations to the next level. It will be possible to simulate
manufacturing processes using different production settings to find the optimal way to
manufacture a product (MITI, 2018). Besides, simulations can also be used to test product
usage under different operating environment using different types of materials.

Augmented reality (AR) refers to a type of interactive, reality-based display

environment that takes the capabilities of computer generated display, sound, text and effects
to enhance the user's real-world experience. Augmented reality combines real and computer-
based scenes and images to deliver a unified but enhanced view of the world (Technopedia,
2017). It has many different implementation models and applications, however its primary
objective is to provide a rich audiovisual experience. It works by employing computerized
simulation and techniques for instance image and speech recognition, animation, head-
mounted and hand-held devices and powered display environments to add a virtual display on
top of real images and surroundings.

Virtual reality is a special type of simulation which designed to convince user to the
greatest extent possible that they are actually within the computer generated simulation
environment. The environment can be a simulation of the real world and most current virtual
reality environments are primarily visual experiences, displayed either on a computer screen
or through special or stereoscopic displays, but some simulations include additional sensory
information such as sound through speakers or headphones. VR requires hardware and software
that furnish a sense of immersion, navigation, and manipulation (Dayana & Dr Safarin, 2009)
Furthermore, this world can be a CAD model, a scientific simulation, or a view into a database.
The user then can interact with the world and directly manipulate objects within the world.

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Some worlds are animated by other processes such as physical simulations, or simple animation
scripts.

3.2 Internet of Things

Internet of Things (IoT) envisions that everything in the physical world is connected
seamlessly and is securely integrated through Internet infrastructure. This is happen because
when things react to the environment or a stimulus, data will be captured and transformed into
valuable insights, which then can be utilized in various application domains, ranging from
automated home appliances to smart grids, smart homes and smart manufacturing (MIMOS,
2014). Industry 3.0 brought in an era of computing and interconnectedness but it often relied
on humans to make even the most trivial decisions but Industry 4.0 technologies embody an
unprecedented proliferation of sensors and connectedness among these sensors. It combined
with other technologies such as AI and big data, it is now possible to envisage entirely
autonomous systems that revolutionize manufacturing (MITI, 2018).

3.3 Horizontal and Vertical System Integration

Interaction between implemented systems based on highly specialized software and

specialized user interface which are integrated in digital networks will create an entire new
world of the systems functionality for the horizontal and vertical integration. Horizontal
integration refers to the integration of the network IT technologies and manufacturing systems
an exchange of data and information must be established between the firms and the
geographically remote sites across the value chain. Therefore firms that being applied by
horizontal integration will benefits the flow with an integration of various information
technology systems in the production and automated equipment for various stages of the
production and planning process is understood.

While for vertical integration, it describes the “internet of things” and services grant
immediate access to IT and production systems. It will assemble vertical integration of data
and information directly from the workplace by controlling and operating on a production and
corporate level. The data is processed and as a result, adequate information about the
management is returned. Thus, vertical integration can be understood as the integration of
information technologies in IT systems in various hierarchy levels in production and
automation equipment. For instance, sensors, level of management and level of production
management. The vertical and horizontal cooperation between machine and Internet, machine

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and person and machine to machine on the chain of value, in real time, is the basis of the
production cyber system (K.Chukalov, 2017).

3.4 Cyber Security

The cyber security refer to protection through Internet as it must defence from complex
challenge for all companies committing to Industry 4.0 paradigm. On the other hand, the
characterization of cyber security concept within Industry 4.0 contexts proved to be an
emerging and relevant topic in the recent literature. The global development industry is in the
midst of a transformation to meet today’s more complex and highly competitive industry
demands. This is because, with the rapid advances in technology, a new phenomenon has
emerged in the current era, Industry 4.0.

Nowadays, the integration of information technology and operational technology brings

newer challenges especially cyber security. The occurrence of the Internet of Things (IoT), has
also dramatically altered the appearance of cyber threat. Security threats and vulnerabilities of
IoT and industrial challenges are the main reasons of cyber-attacks. That is why, cyber security
is being required and some cyber security measures or methods are discussed with a global
perspective involving both the public and private sector in the IoT context (Ervural, 2018).

3.5 Additive Manufacturing

Additive manufacturing (AM) is the process of making 3D objects from computer

model data by joining materials layer by layer under computer control using a 3D printer. This
technology will use new materials, opening completely new possibilities. AM also known as
3D printing or rapid prototyping. Other than that, the limited volume of custom-made products
can be manufactured by deploying additive production approaches that provide development
benefits such as intricate and lightweight designs (Effendi, November 2018). Optimal
performance together with additive production systems that are decentralized will help reduce
transportation distances and available stock. It also delivers a perfect trifecta of improved
performance, complex geometries and simplified fabrication. For example, 3D printing of
organic tissues has created opportunities for growing live organs. It is revolutionizing
traditional production, aided by a recent surge in metal additive printing (MITI, 2018).

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 3.6 Cloud Computing

The “cloud” is actually a metaphor for the Internet and in fact, cloud symbols are often
used to portray the Internet on diagrams. The Internet is like a cloud which is the users can
share information by way of satellite networks as a virtual space that will connect users from
all over the globe. Cloud computing refers to sharing resources, software, and information via
a network which means the Internet (Bohrer, 2011). The information is stored on physical
servers maintained and controlled by a cloud computing provider such as Apple known as
iCloud. A user can access their stored information on the cloud via the Internet. Other than
that, by using cloud storage also easier the users’ needs when they do not have to store the
information on their own hard drive and they can access it from any location and download it
onto any device of their choice including laptops, tablets, or smartphones.

Besides, the users can also edit files that they want such as Word documents,
PowerPoint presentations, Excel documents, simultaneously with other users and making it
easier to work away from the office. Plus, there are different types of cloud computing services
available to suit different needs. There is for individual needs and also for organizations.
Individual users may want to store photos, documents, and videos, but others are destined for
companies that need extensive platforms such as to develop IT applications. Cloud computing
also depending on users’ needs as the prices will vary. For an individual user, he or she can get
an initial amount of storage for free, such as 5GB with iCloud. However, if users need another
additional storage, they have to pay a fee and the fees are usually set at monthly or yearly rates.

3.7 Autonomous Robots

An autonomous robot is a robot that is designed and engineered to deal with its
environment on its own, and work for extended periods of time without human intervention.
They often have sophisticated features that can help them to understand their physical
environment and automate parts of their maintenance and direction that used to be done by
human hands (Technopedia, Autonomous Robots, 2015). They can different significantly in
size, functionality, mobility, dexterity, intelligence, and cost started from robotic process
automation to flying vehicles with artificial intelligence.

Autonomous robots will become more omnipresent with advancements that make them
operate with more human-like abilities. For instance, improvements in haptic sensors, which
are those relating to the sense of touch, will allow robots to grasp objects ranging from fragile
eggshells to multi-surfaced metal assembly parts without changes in programming or robotic

10
components. Furthermore, as artificial intelligence continues to advance, problem solving and
learning analytics will enable these autonomous robots to be responsive with minimal human
feedback. Another example is facial recognition software which making leaps in detecting
movements in eyebrows, eyelids, and lips through these sensors then combined with audio
recognition software that recognizes changes in tone, pitch, and volume, autonomous robots
can detect frustration, urgency, or approval, and in turn, adjust actions to modify behaviour
based on live interactions.

3.8 Big Data Analytics

Big data analytics is a complex process of examining large and varied data sets or big
data, to uncover information such as hidden patterns, unknown correlations, market trends and
customer preferences. It can help organizations make informed business decisions by providing
a means to analyze data sets and draw conclusions about them. Nowadays, big data techniques
are being applied in manufacturing and services industry to improve customer experience and
product quality, realize energy efficiency and conduct predictive maintenance. It is now
possible to collect masses of data from several different sources such as from social media,
review products and so on to direct decisions that anticipate product or equipment failure (MITI,
2018).

3.9 Advanced Materials

Advanced materials is a term that refers to materials that are utilized in high-technology
applications. Actually, these advanced materials are typically traditional materials whose
properties have been enhanced and newly developed, high-performance materials. Moreover,
they are normally expensive and it includes all material types such as metals, ceramics,
polymers, semiconductors, biomaterials, smart materials and nano-engineered materials. For
example, advanced materials has been used in lasers, integrated circuits, magnetic information
storage, liquid crystal displays (LCDs), and fiber optics (Subhashih, 2018).

Companies in the advanced materials sector gain a unique combination of sustained

high technological and high market risk because of two reasons which are first, their upstream
position in the value chains of their target markets and second, because of the difficulty of
appropriating much of the value generated by their generic radical technology (Jaffrey, 2014).
Therefore, new materials and nano-structures are being developed to allow the beneficial
material properties, such as shape retention and thermoelectric efficiency. When companies
combine advanced materials together with additive manufacturing technologies as state above,

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it will allow for massive customization and development of products that were not possible
until now (MITI, 2018).

3.10 Artificial Intelligence

AI is a concept that is made up of numerous subfields such as machine learning, which

focuses on the development of programs that can teach themselves to learn, understand, reason,
plan and act when exposed to new data in the right quantities. According to (In, 2018), it started
less than a decade after breaking the Nazi encryption machine Enigma and helping the Allied
Forces win World War II. A mathematician named Alan Turing changed history a second time
with a simple question: "Can machines think?" Then, Turing's paper "Computing Machinery
and Intelligence" (1950) and it is subsequent Turing Test, had been established for the
fundamental goal and vision of artificial intelligence.

Moreover, AI technology will supplement the smart factory towards networked factory
where the data from supply chains, design teams, production lines and quality control are linked
to form a highly integrated and intelligent engines (MITI, 2018). Artificial intelligence
generally divided under two broad categories which are narrow AI and Artificial General
Intelligence (AGI). Narrow AI is also known as "Weak AI," this AI operates within a limited
context and is a simulation of human intelligence. It is often focused on performing a single
task extremely well. However, although these machines may seem intelligent, they are actually
operating under far more constraints and limitations than even the most basic human
intelligence.

Second category is Artificial General Intelligence (AGI). AGI sometimes referred as

"Strong AI," which is the kind of artificial intelligence that people see in the movies such as
the robots from Westworld or Data from Star Trek: The Next Generation. AGI is a machine
with general intelligence and much like a human being where it can apply that intelligence to
solve any problem.

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4.0 THE APPLICATION OF IR 4.0 IN MALAYSIAN SMEs

4.1 Big Data Analytics

According to MDeC chief executive officer, Yasmin Mahmood when launched the
National Big Data Analytics (BDA) Innovation Network 2015, Malaysia’s adoption of big data
analytics is still very much at the infancy stage. Thus, the first collaboration between MDeC
with the National BDA Innovation Network to set up of a network of big data innovation
Centres of Excellence (COEs) (Eu, 2015). Then, it has showed an improvement when in 2017,
Malaysian politicians use big data to profile the voters.

Nowadays, according to Asean Data Analytics Exchange (Adax) Chief Executive

Officer, Sharala Axyrd said there had been encouraging response from the SME segment with
20 percent of its 2,378 data professionals being SME business owners (Adila, 2017). Big data
is impelled by specialized analytics systems, software and high-powered computing systems.
Thus, it can offers various benefits to SMEs such as new revenue opportunities, more effective
marketing, better customer service, improved operational efficiency and competitive
advantages over rivals.

4.2 Cyber Security

In first few years of this millennium, cyber-security was more about protecting people
and organizations from traditional threats such as malware, social engineering attacks, website
defacing and hacktivism (Rishi, 2017). However, for the last few years, SMEs have witnessed
increased sophistication and intensity in cyber-attacks such as financial crime, industrial
espionage and hackers also brave to target governments and critical infrastructure from time to
time. For example, the CIMB bank which frequently being attack by the hackers and also
scammers who pretend to be a policeman or bankers to fraud the consumers.

What SMEs should know is, in era of Industry 4.0, the organizations are hyper
connected with their smart devices and smart networks. The industrial communication is
expanding and strongly connected and because of that, digital security becomes a critical aspect
that must not be overlooked in the industrial environment. It has now become more complex
as it consists of connected devices and environments that cannot be protected by traditional
cyber-security approaches (MITI, 2018). This condition will be a lucrative target for the cyber
criminals who find many more easy and insecure entry points into networks and devices. For
example, botnets have become the weapons of choice to carry out DDoS and crypto-jacking

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attacks. These attacks do not only cause disruption in the normal functioning of societies but
have crippling effect on the morale and psyche of the victim countries.

For examples, five software suites created by MIMOS are included in Mi-Secure for
developers to build secured applications which are firstly, Encryption Application Security
(EAS) Suite which can encrypts data as it travels between applications. Secondly, Application
Identity Access Suite (AIDA) Suite which authenticates users with multiple methods of tokens
such as smartcard, pin and SMS. Thirdly, Data Audit Application Security (DAAS) Suite
which manages logs to identify security events and write-controlled incidents. Fourthly,
Encryption Data Security-Windows (EDSW) Suite which help in self-encrypts files, folders
and disk-level for Windows environment and lastly, Encryption Data Security-Linux (EDSL)
Suite which help in self-encrypts files, folders and disk-level for Linux environment (MIMOS,
MIMOS Technologies Handbook: Take advantage of homegrown innovation!, 2017).

4.3 Simulation, Augmented Reality and Virtual Reality

Simulation has being implemented in a bank queuing system which written by Najmeh
Madadi from Universiti Teknologi Malaysia. She said in her journal that in any organization
based service, managers are mostly concerned about the time that customers are required to
wait for receiving their service. Banks, in particular pay special attention to service quality as
the most significant core competence. The two significant factors which play important roles
in customer perception about the quality of service in banks are the queue length and waiting
time.

Therefore, banks' managers are concerned about providing the optimal service
configuration that can satisfy both customers and service providers. Among different
approaches which are useful to evaluate different alternatives, simulation has proven its high
capability in modeling and evaluating such situations. Therefore, the essence of this study
attempts to investigate and suggest the best possible configuration for a bank in Malaysia
through constructing computer–based simulation models. As the result, the final suggested
configuration shows improvement in terms of average utilization rate of counters and average
waiting time that customers have to spend in the queue (Madadi, 2013).

In Malaysia, augmented reality has been used in real estate property industry as this
technology is widely in used to show case their property show room from the drawing sketches
or brochures. Real objects can be rendered in front of them when using a mobile application to

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snap on a particular marketing brochures. Customers can also snap or took a picture on the
actual showroom and get information about a particular area.

Besides, AR also popular in entertainment. Many of hotels and shopping mall has
placed the examples of augmented reality. Users can choose any kind of situation that they
want such as escaping from horror places, riding the roller-coaster or having a tour in dinosaur’s
habitat which it’s virtualized as exactly the real situation. Lastly, even the initial augmented
reality technologies are still in nascent stages, they are actually advancing at a rapid pace. Some
of the first applications can be found in the delivery of information and training such as
augmented reality can be used to deliver part replacement instructions to maintenance staff in
the field (MITI, 2018).

Application of virtual reality in Malaysia is by the establishment of the Multimedia

Super Corridor and Cyberjaya, vary degree programs related to Arts and Science in software
development, game development, computer science, and plethora of startups. Plus, SMEs also
are focusing on VR and AR which has embraced the Information Age and has the ingredients
to become a leading hub for the VR and AR industry. VRARA Malaysia Chapter aims to lead
and assist our local ecosystem of companies, developers, content creators, producers,
educational institutions, academics and students in collaborating knowledge, enhancing
innovation and accelerating growth of XR including augmented reality, virtual reality and
mixed reality in Malaysia, while simultaneously bridging the collaborative gap with the rest of
the world (Association, 2015).

Another example is last year, 2018, the largest VR theme park in Malaysia had open
which is located at the Level Two of the MyTown Shopping Centre in Jalan Cochrane, the
theme park-VAR LIVE Malaysia, spanning across 929sq m large as set to change the gaming
world. It brings out the players’ greatest joy through somatosensory fee-back such as vibration
platform, guns, wind power system and real scene infrared localization technology. It is also
complete with ultimate audio-visual feast with immersive interaction. With the theme of
“Dream With Your Eyes Open”, it promises 13 VR attractions and 14 game rooms from
shooting games and haunting rooms to a virtual world finding historical remains and ancient
treasures.

Currently, it is offering seven games for a start-variations in shooting for Zombie Jail 1
and 2, City Hero, Wildling War and Over Kill as well as promoting teamwork and interactive
experience in a haunted cabin (The Others) and enjoying the fascinating car racing (Crazy

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Rush). Regarding VAR LIVE Global Limited chief executive officer Steve Ngu, they have
invested RM6 million to build the VR theme park and they are also planning to have a VR
outlet in Singapore in June next year. The best achievement is they have 14 VR outlets offering
similar games such as in Japan, Taiwan, Philippines, China and Pakistan which embarked
Malaysia also catch-up with Industry 4.0 (Mageswari, 2018).

4.4 Cloud Computing

MIMOS Malaysia has established Mi-IaaS; Cloud Infrastructure which it allows users
of cloud services to build their data in a simple and flexible way minus capital expenditure and
leverage on existing operational expenditure. This solution consists of the Infrastructure as a
Service (IaaS) platform and it allows complimentary infrastructure to be offered to end users
such as rental of computing space and power on the Internet. This platform is non-dependent
on any specific cloud hardware or software. Therefore, companies can use Mi-IaaS and pair it
with software, storage and servers from other various suppliers in the market. SMEs can apply
Mi-IaaS in their hardware such as servers, storage, web hosting, load balancing and even
disaster recovery as their solution because it is all available on the Internet cloud and ready for
subscription on a as needed basis by clients for a minimal utility fee.

4.5 Internet of Things

In Malaysia context, government has utilized the information system in the food
industry through IoT. In the current scenario, advanced technologies strengthen food safety
aspects which in turn strengthen the role of food in human health, especially with inactive
lifestyle becoming very common nowadays. Via IoT, the combination of food manufacturers
and suppliers working together decreases maintenance costs, influences productivity, uncovers
opportunities, and enhances the supply chain. Other than that, the industry can use IoT to attain
quality standards, with the same product having the same superior quality anywhere and
anytime (Rao, 2017). Another examples are internet clickstream data, web server logs, social
media content, text from customer emails and survey responses, mobile phone records, and
machine data captured by sensors connected to the internet of things (IoT).

4.6 Autonomous Robots

Nowadays in Malaysia, machinery and robots are transformed towards their next
generation which robots can do more on their own, including learning on the job and teaming
up with other robots and humans. This technology allows systems to think, act and react

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autonomously as well as conduct remote decision making. This can help contribute to a SMEs’
competitiveness, productivity and profitability (MITI, 2018).

Application of autonomous robots that can be looked is ADAM, Malaysia's first

humanoid robot. ADAM, with a head visor on the face, stands for the acronym for Advanced
Development Autonomous Machine, was developed by a local robotics company based in
Cyberjaya known as Robopreneur Sdn Bhd (BERNAMA, 2019). The company’s founder and
CEO, Dr Hanafiah Yussof said that ADAM was first activated in March after a year of research
and development and prototyping work. After it has been activated, it is claiming as the first
Malaysian humanoid robot created. ADAM’s weight is 44kg, has a seamless full body
movement with 22 degrees of freedom of upper body joints, including fingers, and natural
interaction capabilities with humans using voice detection and recognition empowered by
Artificial Intelligence (AI).

Next, she also said that the idea of developing humanoid robots is actually one of the
initiatives in contributing to Malaysia’s vision of IR 4.0. Developing it actually involves
developing the technology itself such as robotic design, advanced computing, sensing fusion
and AI. She recalled, ADAM was to be completed in three phases, with the second phase
focusing on total body development while the third phase would lead towards the machine-
learning algorithm, so that the robot will have the capability of a more natural speech, visual
recognition and detection of emotions (BERNAMA, 2019).

With the development of autonomous robots such as ADAM, these robots will assist
SMEs in launching and streamline the processing system in an organization. Other than that,
SMEs can also make it as product and sell them to customers as they will easier the human
activities.

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5.0 CONCLUSION AND RECOMMENDATION

Thus, with all input above, SMEs should encourage themselves to be one of
contributor to the advancement of Industrial Revolution 4.0 as The Ministry of International
Trade and Industry (MITI) is hoping the government will allocate more funds for small and
medium enterprises (SMEs) in Budget 2020 to help them adopt the Industrial Revolution (IR
4.0). This kind of opportunity should be cater by all SMEs to up-skilling and reskilling their
existing and future labor pool to be at the heart of Malaysia’s transformation. Other than that,
the past industrial revolutions required significant capital as a ticket for entry. With cloud
computing for example, many of the Industry 4.0 technologies can be made available to even
smaller SME as a utility with minimal upfront capital investment. SMEs can leverage cloud-
based product design, simulation, AI and big data solutions to improve their production
processes and build products better suited for their customers.

Moreover, Malaysia’s government continuously provide a lot of funding, seminars,

programme and others such as Ministry deputy secretary-general (trade) Datuk Seri Norazman
Ayob said the ministry had earlier extended to 3,000 mid-tier and SME companies its online
Industry4WRD Readiness Assessment which was set up to help them assess their capabilities
to adopt Industry 4.0 and to recommend the best strategies. He also said the ministry had
targeted to assist 500 SMEs to undergo the assessment by the end of the year and support 60
of them by providing a 70:30 in ratio, matching grant of up to RM500, 000 for each firm.

This revolution also being supported by Prime Minister of Malaysia, YAB Tun Dr
Mahathir Bin Mohamad at The International Conference on Industry 4.0: A Global Revolution
Towards Business, Technology And Productivity (MYINDUSTRIES 2019). He said Industry
4.0 will transform the labor market into a skill-centric work environment with respect to the
consolidation of Operation Technology and Information Technology (IT), data analytics,
process understanding, and the ability to work with disruptive technologies. Technologies such
as the Internet of Things, Advanced Robotics, Artificial Intelligence and Additive
Manufacturing are contributing factors to generate an increase in net productivity.

He also added, digital transformation is expected to accelerate a sustainable future for

Malaysia as the GDP per capita is also expected to rise, a result of increased productivity and
employment opportunities due to Industry 4.0. This year, Malaysia Industry4WRD policy aims
at increasing productivity in the manufacturing sector per person in Malaysia by 30% from
RM106, 647. This would elevate the absolute contribution of the manufacturing sector to

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Malaysia economy by 54% from RM254 billion to RM392 billion (Tun Dr Mahathir, October,
2014).

Malaysian SMEs should include virtual reality for retail and shopping purpose and it is
more appropriate to click and mortar or pure virtual firm such as Perodua and Lazada or Shopee
repectively. Through virtual reality, users can imagine what it feels like to ride luxurious cars
or go sailing in the red sea in the middle of the day or all from the comfort of their own homes.
This would greatly improve brand experiences which were never there before. In other
countries such as US, the IKEA visualization application allows the user to imagine how the
furniture would look like in their house, hence, increasing the user interaction with the brand
(Choon & Ramasamy, 2018). Alibaba, its virtual reality store allows customers to give a
gesture for a head-nod to put items in cart. Virtual reality is a great new marketing tool to
experience things from sellers’ product or service.

Other than that, SMEs should build a business simulation training for their workers
which provide an interactive learning experience that requires participants to apply what they
have learned in a business training event in a robust, risk-free environment. Therefore, it wi;;
develop workers’ relevant skills, improve conceptual knowledge, and gain a better appreciation
of business strategy and the systems of business management in order to build skills and
improve performance. Besides, simulations also serve as the bridge between learning and real-
life experience. It provides workers with the opportunity to make relevant decisions in a
competitive marketplace in functions associated with roles in company.

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