29 WEF’s analysis identifies technology, human capital, global trade and networks, and institutional frameworks as key drivers of production for Industry 4.0. Malaysia’s ranking in each of these drivers emphasises priorities in technology, human capital and institutional frameworks (21st to 30th position out of 100 countries), consistent with some of the challenges highlighted previously: Technology adoption and diffusion are particularly important for SMEs and underscore the importance of creating production networks and collaborations with MNCs and large companies. Human capital focus is key to creating an accelerated shift in productivity, especially as Malaysia has been relying on low labour cost in the past, with a declining share of skilled labour. Strengthening institutional frameworks underpins the role of Government in creating the right ecosystem and facilitating collaborative platforms. On global trade and investment, Malaysia is already well-integrated into regional value chains and exhibits a very good trade infrastructure, which is reflected in its strong global ranking (7th). Source: WEF