Asean-S. Korea partnership to grow
Seoul’s industrial success can provide invaluable lessons to the regional grouping in its aspirations to become a digital economy.
SINCE the term “Industry 4.0” made its debut in 2011, it has quickly gained attention across the globe.
We have seen several transitions in the manufacturing process through the previous industrial revolutions, which gave birth to mass production and automation.
Today, we are entering the Industry 4.0 era that represents another phase of automation, where computers and machines are equipped with artificial intelligence and can understand and control sudden problems in the production line with little or no input from human operators.
The manufacturing landscape has changed rapidly, with mechanisation and digitalisation from previous industrial revolutions, but Industry 4.0 will bring a paradigm shift in the global production system at an unprecedented pace through the convergence of computers and automation.
South Korea has been at the forefront of industrial revolutions. Its economy experienced rapid transformation from an agriculture-based industry to a high value-added manufacturing powerhouse.
Recognising the worldwide trends going towards a digital economy, the new government under President Moon Jae-in has brought forward the “fourth industrial revolution” as a key agenda.
Amid South Korea’s slowing industrial growth since 2010, Moon sees the fourth industrial revolution as a new growth engine which can bring about positive impact, bolstering productivity and employment.
Given its high level of technology, well-structured information and communication technology infrastructure and innovative society, South Korea’s economy has vast opportunities in the era of digital revolution.
During his presidential campaign, Moon stressed that the new government would implement policies that support the fourth industrial revolution, going so far as to double the budget for science research by 2020.
The new government is expecting significant change under a digitalised economy, in which the country’s industrial competitiveness will be strengthened through more efficient production and lower cost.
Industry 4.0 is not confined to advanced economies. Asean is a regional bloc of 10 countries that are all in different stages of economic development.
Asean has emerged as a new manufacturing base, partly due to rising labour costs in China.
The transition towards a digital economy will be a springboard for further regional integration and inclusive economic development.
Its manufacturing sector has been further strengthened by its remarkable market potential and high economic growth.
It has been cited that Asean needs to quickly address Industry 4.0 and prepare its workforce so that it can meet the unprecedented demand from the changing production system.
Otherwise, the opportunities may be relocated back to China. To this end, the Asean leaders underlined at the 30th Asean Summit that Asean should steer towards “a more dynamic, creative and innovative region in an interconnected and interoperable digital economy by utilising ICT”.
The concerted efforts to propel Asean towards a digitally enabled economy have been further emphasised through the Asean Economic Community 2025 vision, which highlights acceleration of technology and innovation to capitalise on global mega trends.
The AEC 2025 vision is supported by the Asean ICT Masterplan 2020 that envisions Asean equipped with the “latest infrastructure, technology, digital skill sets, information, applications and services”. Building on these cohesive efforts, Asean needs to embrace “creative destruction” and upskill its workforces to become a digital economic bloc.
The transition towards a digital economy will be a springboard for further regional integration and inclusive economic development.
In this regard, Asean and South Korea could be the best partners. In just 50 years, South Korea successfully transformed itself from a wartorn, poor country to a world-class, high-tech economy.
Its industrial success can provide invaluable lessons to Asean in its aspirations to become a digital economy.
The complementary partnership between Asean and South Korea will bring about mutual benefits and achieve win-win outcomes in the era of Industry 4.0.
Reflecting the potential benefits of industrial upgrading through digitalisation and automation, the Asean-Korea Centre has implemented a number of trade and investment programmes on the industrial segments related to Industry 4.0, such as e-commerce in Brunei, service robots in Singapore, a smart city in Indonesia, smart manufacturing in Malaysia, software and IT in Thailand, and an investment promotion seminar on ICT in Seoul.
Other events that will take place include a trade facilitation workshop on the Internet of Things in Thailand; a capacity-building workshop for the Greater Mekong subregion; and a cross-border e-commerce and investment mission to Vietnam in the sector of industrial robots.
Asean member states have shown significant interest in these demand-driven and needs-based programmes, which aim to share South Korea’s expertise and knowhow in digitalising its economy.
By keeping up with the rapid changes taking place on a daily basis in the era of Industry 4.0, Asean and South Korea can turn opportunities into reality through a closer partnership. — Korea Herald/ Asia News Network