Mr Cedrik Neike, Siemens AG Managing Board Member, For Region Asia/Australia
Mr Prakash Chandran, President & CEO, Siemens Malaysia
Event partners MITI (Ministry of International Trade and Industry), MIDA (Malaysian Investment Development Authority), MiGHT (Malaysian Industry-Government Group for High Technology), and MIM (Malaysian Institute of Management),
Esteemed fellow panelists and speakers, Distinguished guests,
Ladies and gentlemen,
A very good morning to each and everyone here today.
Firstly, thank you for inviting me to be part of this very special day to deliver this keynote address for this 'Shaping Digitalization - Malaysia & Siemens: Our Journey Together' event, organized by Siemens Malaysia, in collaboration with an esteemed list of government agencies and private sector partners. On behalf of the Minister of International Trade and Industry YB Dato' Sri Mustapa Mohamed, I wish to convey his apologies and regret for not being able to make it to this significant occasion due to his travel commitments. It is an. honor to be in the presence of so many of you respected panelists and speakers here today, that I am confident your presentations and discourses will go a long way to generate meaningful conversations and contribute significantly towards the next step forward in the nation's journey to trailblazing digitalization.
I must commend the committed efforts and hard work put in by the organizer - Siemens Malaysia, for spearheading the leap with digitalization and leading the need for conversations with such a timely, important topic that is very relevant in today's age where businesses, organizations, economies and the society will all be impacted. It is refreshing to see the serious emphasis and drive for this huge topic as digitalization, given such a well-planned itinerary of diverse sharing sessions that can address burning questions among many of you as well as promote sustainable networking and greater collaborative ties after this.
Ladies and gentlemen,
Digitalization is no longer a buzzword or a future possibility, but a reality that is now embedded in every aspect of our lives, from the way we do things, the way we work, play, travel, stay informed, and make purchases. It is the key lever that will enable companies to remain competitive in the dive towards the future, and applies to both smaller enterprises and major companies with global presence and operations. Right now as we speak, we are in the middle of a revolution that we have come to witness - the Fourth Industrial Revolution or what is popularly known as Industry 4.0. For those unaware, digitalization forms the core of Industry 4.0 — this concept has already been embraced by developed countries while some are already moving towards it. Malaysia too is headed for the same direction. The changes well spurred by the face of digitalization mean that highly-skilled workers are in great demand, while boundless opportunities are available in newly-emerging jobs like data scientists and nano-engineers. But there are also concerns with how these new technologies could disrupt the labor market through job displacements, for example.
In the midst of all these unraveling of revolutionary developments and new business models, it is understandable that the journey is not expected to be smooth-sailing. There will be challenges, even roadblocks, in terms of the readiness of the infrastructure and ecosystem, the availability of funding and incentives, and the development of critical human capital. Therefore, it is imperative for us to understand where we stand, to continuously analyze our strengths and determine the best supporting policy that the government can facilitate and provide in the way forward of this paradigm shift. This is why Malaysian employers, employees and businesses need to be ready and adapt appropriately to the impacts of digitalization, which has proven to redefine productivity, reliability, safety, customer experience, customer and revenue management, while enhancing competitiveness in the global sphere.
However, the government cannot attain such goals alone; we will need to collaborate and partner closely with the private sector - Multi-National Corporations (MNCs) like Siemens can effect change when it comes to digital transformation with its ability to offer solutions and spur growth through its continuous push for skilled workforce and transfer of knowledge. I understand that Siemens advocates and offers innovative reskilling and up-skilling programs and training courses to build up capacity and enable a productivity-based culture. It is to my knowledge that Siemens in Malaysia has been present in the country for 109 years now, delivering multiple nation-building projects. Your successful transition into digitalization and expertise in this area and solutions both locally and globally will certainly be a boon to the government's gradual shift towards a high-income, knowledge-based economy.
The government has already drawn up and embarked on several initiatives towards achieving that goal that will see us on par with the rest of the other nations in near future. This includes the National Strategic Plan on the Internet of Things (loT), and the world's first Digital Free Trade Zone initiative that was established in Malaysia to drive the way forward for more organizations and SMEs to join the government's roadmap in accelerating digitalization, while capitalizing on the exponential growth of the Internet economy and infinite availability of e-commerce activities. The Ministry of International Trade and Industry (MITI) has been entrusted with the mission of driving such efforts and faciiitating industries and businesses to be part of this revolution.
From digital innovation in products, processes and business models, there are boundless opportunities to advance operations for all areas of society if properly leveraged upon. For these to happen, a major shift within an organization's internal structure and processes will need to happen, and this means that there is an urgent need to embrace technology and be sufficiently prepared with the right skills set and mindset.
On this note, I'm pleased that the government had previously announced an allocation of RM162mil for this year's 2017 Budget to execute a host of programs provided under the digital economy, which includes the Digital Free Trade Zone. In 2015, our digital economy has contributed some 17.8 % to the country's GDP, which is in fact very close to the target of 18.2% that has been set for 2020. Additionally, we have also the Malaysia Automotive Institute Design Centre (MAIDC) that was established to enhance the implementation of Industry 4.0 for the Malaysian automotive industry in areas of design engineering, simulation and prototyping. While MAIDC will shoulder 6 of the 9 identified Pillars of Industry 4.0, the rest of the undertakings will be executed by the Malaysian Automotive Institute (MAI). Other tax incentives provided for automation, robotics and ICT for Malaysian SM Es include accelerated capital allowance for plants and machinery, 100% tax exemption for 5 years for high-technology firms, and also 100% tax exemption for 10 years for production of selected machinery and equipment.
Ladies and gentlemen,
With this, I would like to congratulate Siemens Malaysia for your inaugural digitalization event today and for successfully bringing so many industry movers and shakers as well as decision-makers under this one venue in what I would as possibly the foremost and all-encompassing conference and marketplace of the year. There is without a doubt the value that Siemens brings to the table and how you have shown support towards the nation's goals when it comes to shaping digitalization with your legacy of innovations, groundbreaking ideas, and new business models. I hope you will continue to be the trusted partner of technology for Malaysia for many more years to come.
Thank you and may all of you have a fruitful participation for the rest of the day.
SOURCE : Global Creative Media Agency
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