30 Industry4wrd : National Policy on Industry 4.0 Addressing Malaysia’s Issues & Challenges Lack of awareness on the impact of, and need for, Industry 4.0 technologies, both in terms of opportunities and business model disruption, especially among SMEs Lack of a centralised and easily accessible information platform to understand best practices and relevant use cases Few visible success stories of applying Industry 4.0 technologies and processes by local companies Evolving customer expectations and demand for customisation of products and faster delivery Awareness Best Practices Innovation Ownership of Intellectual Properties due to inter-connectivity and information sharing along the supply chain DEMAND Higher cost of adoption and longer payback period for Industry 4.0 technologies and processes Digital Readiness & Connectivity High Cost of Investment Inadequate understanding of costs vs benefits and ability to conduct Industry 4.0 business case analysis Limited understanding of manufacturing firms of required future skills and expertise, and own readiness to embark on Industry 4.0 transformation Skill Enhancement Low digital adoption especially among SMEs (~20%) and limited use of automation by manufacturing firms (majority of firms use less than 50% of automation) Lack of integrated and digital approach to data gathering along manufacturing and supply chains Significant shortage of required talents, skills and knowledge for Industry 4.0, particularly in the areas of IoT, robotics and AI Exposure to cyberthreats with increased connectivity and new technologies, especially IoT