TECHNOLOGY SECTOR

Rating: Neutral (maintained)

CHALLENGES exist in the implementation of the fourth industrial revolution (IR 4.0) but the recently launched Shared Prosperity Vision (SPV) 2030 blueprint is in line in ensuring the requirements are met.

Among key challenges are the lack of skills and resources. The usage of autonomous robots and smart manufacturing is only at 7.4%.

There are also risk management and compliance concerns such as cyber security and data protection and also challenges in finding the right technology partners and enduring executive support and leadership.

These were among the main takeaways during the recent International Conference on Industrial Revolution 4.0 (IR 4.0).

The SPV 2030 is in line with efforts to ensure requirements of IR4.0 are met, such as the upskilling of labour with the creation of higher value-added jobs in manufacturing and services through technology and automation.

Aminvestment Bank believes that equipment makers such as Pentamaster Corporation Bhd and Ace Market-listed Greatech Technology Bhd may see direct benefit from the move towards IR 4.0, given their expansion into providing factory automation solutions.

The move towards IR 4.0 would also benefit other sectors in the future.

The conference also saw the discussion on blockchain, which revolved largely around the application of Non-fungible Token (NFT).

It is a type of token that represents a unique asset hence, each token is unique and carries a different value based on the asset it represents.

Conversely, a RM10 note is fungible which means its value and acceptance is the same at a specific point of time, regardless of the year it was printed or how it was acquired.

One of the use cases of NFT that has gained huge attention is supply chain traceability.