Kuala Lumpur, 21 October 2020 – The global manufacturing landscape has been in a state of flux in recent years due to existing geopolitical tension, and now, the situation is further exacerbated by the COVID-19 pandemic.
Enterprise Singapore deputy chief executive Ted Tan said the ongoing pandemic has further accelerated supply chain shifts.
“To remain resilient, companies have had to think of diversifying their manufacturing bases to de-risk global supply chains, by investing in greater localisation or regionalisation,” he said in his opening remark at the “Market and Sector Leader’s Forum — Scaling Southeast Asia Industry 4.0 Transformation” today.
He added that in this respect, investors’ attention have turned towards Southeast Asia due to its growing consumer market, productive labour force, adequate infrastructure and connectivity links.
“Investing in Industry 4.0 (IR 4.0) infrastructure and expertise will significantly strengthen Southeast Asia’s ability to capture shifting global manufacturing investments.
“Regional manufacturers can also leverage IR4.0 technologies to scale their business, accelerate growth and most importantly, future-proof their business in anticipation of continued global uncertainties,” said Tan.
He added that the use of IR4.0 technologies also increases the flexibility and capacity of manufacturing operations, which will be crucial as companies adapt to diverse, decentralised and potentially less stable supply chains.
“Companies which have benefited from the shift include Indolakto from Indonesia, Hexa Food from Malaysia, ASI Precision from Thailand and Fitek Vina from Vietnam,” he said.
He emphasised that the incorporation of IR4.0 technologies into businesses is now more crucial than ever, especially for small and medium-sized enterprises, in order to rebuild the economy post-COVID-19.
“As we strive to revitalise the economy in the new normal, it is crucial to ensure workplace safety for a sustained safe recovery.
“IR4.0 solutions such as personnel tracking and remote monitoring could greatly assist on this front,” he said.