SELAMAT PETANG DAN SALAM MALAYSIA MADANI.
Salutations
1. Yang Berusaha Encik Ma Sivanesan,
Deputy Secretary General (Strategic Policy) Ministry Of Digital
2. Yang Berbahagia Datuk Ahmad Zaki Zahid,
Chief Strategy Officer, Digital Nasional Berhad
3. Yang Berbahagia Tan Sri Dato' Soh Thian Lai,
FMM President
4. Yang Berbahagia Dato’ Seri Lee Teong Li,
FMM Penang Branch Chairman
5. Ts. Ng Kwang Ming
CEO of Digital Penang
6. Ms. Elaine Cheah
Head of Communication & Business Intelligence, Invest Penang Leaders and representatives from FMM Penang, Invest Penang, Digital Penang; Members of the media; Distinguished Guests; Ladies & gentlemen,
1. I would like to start by expressing my gratitude to Digital Nasional Berhad (DNB) for inviting me to officiate this ‘Connected Industries Day’ workshop. I am always happy to be back here in Penang, and equally excited to be part of this important effort to transform the manufacturing sector through digitalisation, automation, AI and 5G technology.
2. I would also like to thank the Penang State Government, as well as the Federation of Malaysian Manufacturers (FMM), for lending your support to this worthwhile endeavour.
3. With the theme of ‘Transforming Manufacturing with 5G and AI’, this programme is geared to provide exposure and opportunities to the manufacturing industry in the northern region to level up their operations and businesses, via advanced 5G connectivity and digital solutions.
4. Today’s workshop certainly aligns with the Federal Government’s journey to transform Malaysia into a Digital Nation, where every facet of life – how we live, work, play and do business with each other – is exponentially enhanced through the adoption of digital applications.
5. The Government formed the Digital Ministry in mid- December, about four and a half months ago, to lead its digital efforts and to spearhead digital transformation and adoption across government agencies and the industries. Our mission is clear – to ensure that our vision of Digital Government, Digital Economy and Digital Society, becomes a reality, through Whole-of-Government and Whole-of-Nation approaches.
NIMP 2030 AND MANUFACTURING
6. Within the scope of Digital Economy, the Government seeks to reform industries and achieve broad-based growth – which means inclusive, holistic, and widespread economic progress that benefit all rakyat.
7. As spelled out in the New Industrial Master Plan (NIMP) 2030 announced in September last year, the Government has placed significant emphasis on smart manufacturing, integrating physical and digital processes to optimise operations and enhance efficiency.
8. Technologies such as the Internet of Things (IoT), big data analytics, artificial intelligence (AI), robotics, cloud computing and cyber security are pivotal in this transformation, facilitating informed decision-making and streamlined production processes.
9. Projections under the NIMP 2030 anticipate significant growth in Malaysia’s manufacturing sector, with manufacturing GDP expected to surge by 61% from the 2022 baseline of RM364.9 billion, to RM587.5 billion in 2030.
10. This future projection is indeed encouraging; however, a lot needs to be done today – and fast – to create that digital lift for the manufacturing sector.
ADOPTION OF 5G AND AI IN MANUFACTURING
Ladies & Gentlemen,
11. DNB has successfully built the 5G infrastructure backbone across the country with 80.5% coverage of populated areas (COPA) as at end March 2024, with now more than 11.2 million subscribers as at end February 2024. In addition to this, DNB together with mobile operators have overseen the deployment of several 5G private networks, including in the oil and gas sector as an early adopter in 2022, such as the Petronas’s RGTSU and MRCSB platform in Melaka, MLNG Complex in Bintulu and KIPC Complex in Kerteh.
12. Currently, proof-of-concept private networks are deployed in Transocean logistic facilities in Kuala Lumpur, and Clarion manufacturing facilities in Penang since September 2023. 5G private network demonstrates secure and reliable, ultra- fast and low-latency connectivity that enable disruptive and cutting-edge applications. These 5G capabilities will stand to benefit the manufacturing sector.
13. Today, the manufacturing sector stands at the precipice of a new era, one that is defined by unprecedented innovation and efficiency, complemented by artificial intelligence. With the integration of AI, manufacturers can unlock a world of possibilities, such as predictive maintenance and autonomous production lines. Indeed, AI is revolutionizing every aspect of the manufacturing process worldwide.
14. A case example of this deployment is Midea Group's smart washing machine plant in Jingzhou, China. The plant incorporates various AI, industrial IoTs and 5G cloud applications to optimise productivity and reduce operational costs. Compared with a traditional washing machine factory in the Midea Group, the production rate has been doubled, the inventory has been reduced by 50%, and the production cost per product has been cut by 30%.
15. Another example of a successful deployment of 5G-based smart manufacturing is Mercedes-Benz “Factory 56” in Sindelfingen, Germany. Traditional assembly lines are replaced with driverless transport systems and all the production equipment are connected and integrated with the main production processes and IT systems, which significantly increased production efficiency by 25%.
16. US-based Grand View Research estimates that 50% of manufacturers will implement Industrial IoT by 2025 and 5G will play a crucial role in this development. 5G connectivity enables the application of advanced AI algorithms that allows robotics applications and automation to take place with precision and speed.
17. Globally, manufacturers are clamouring to adopt the latest technologies to drive productivity, efficiency, and quality. The Association for Advancing Automation estimates that the global market for industrial robots is to expand at a compound annual growth rate of 10.5% between 2023 and 2030.
18. Our manufacturing sector must quickly invest in adopting 5G and cutting-edge technologies such as industrial robots and automation in our operations, if we are to stay competitive and relevant.
19. In line with this, the Government aims to transform 3,000 factories into smart factories by 2030 under the NIMP 2030, nurturing high-value and innovation-driven sectors such as Electrical & Electronics (especially integrated circuit design and wafer fabrication activities), Specialty Chemicals, Aerospace, Pharmaceutical, and Medical Devices.
20. To ensure this transformation takes place, the Government is committed to enhance the digital ecosystem, including more robust, widespread and quality connectivity, financing, talent development, investor landscape, cybersecurity and governance framework, creating an environment that supports digital growth. These enablers are key to Malaysia realising its digital vision.
Ladies & Gentlemen,
21. Advocacy efforts such as this workshop and the My5G Portal experience centre mentioned by Datuk Zaki earlier, certainly help to expose industry players such as yourselves to the 5G world of possibilities. The use cases and the people behind them will help you to imagine how your future smart factory can look like.
22. The ball is in your court – as captains and decision-makers of the manufacturing industry. I am confident that the discussions, demonstrations, and collaborations that will unfold over the course of today’s event will pave the way for a new era of innovation and prosperity in the sector.
23. There’s no two ways about it. We must continue to evolve by embracing new digital initiatives, improving accessibility, increasing adoption, educating the people and very importantly, gaining the trust and the confidence of the Rakyat.
Conclusion
24. Last but not least, I invite and urge you all to embrace this 5G-driven future, and with that, I hereby officiate the ‘Connected Industries Day: Transforming Manufacturing with 5G and AI’.
Thank you.
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