Automation: The Catalyst for Manufacturing Digitalization in Malaysia

Since 2010, Malaysia has seen a sharp increase in factory automation adoption. The number of companies in this field has doubled, with the top 10 firms now valued at over RM25.8 billion, according to the Malaysian Investment Development Authority (MIDA). Automation has reshaped the manufacturing sector, driving scalability, optimizing production, improving efficiency, and enhancing sustainability.

This article is contributed by Schneider Electric Malaysia Industrial & Process Automation business vice-president Ng Wei Jie.

For Malaysia’s manufacturing sector, which is projected to grow by 4.5% in 2025, automation plays a crucial role. With Industry 4.0 technologies—like IoT, AI, and robotics—manufacturers are creating interconnected, intelligent systems. These systems optimize resource management and boost decision-making. To support this growth, Malaysia’s government aims to convert 3,000 factories into smart factories by 2030 under the New Industrial Master Plan (NIMP).

Despite the progress, digital transformation faces significant challenges. Many manufacturers struggle with outdated IT systems, including unnecessary software licenses that are no longer useful. Additionally, the push for sustainability adds another layer of complexity.

The Role of Automation in Overcoming Challenges

Universal automation has emerged as a game-changer, providing a more efficient way to integrate digital technologies into manufacturing. Unlike traditional systems, universal automation decouples software from hardware, creating a modular, plug-and-play ecosystem. This approach simplifies technology adoption and enhances operational flexibility, allowing manufacturers to integrate new technologies without a full-scale overhaul.

The IEC 61499 standard, a key element of universal automation, enables the integration of diverse equipment from various vendors. This open, event-driven architecture fosters seamless control across systems, breaking down the barriers of vendor-specific automation tools.

Schneider Electric’s EcoStruxure Automation Expert, built on this standard, is a prime example. It enables manufacturers to digitalize their operations while minimizing costs and disruptions. The software-defined approach enhances adaptability, allowing manufacturers to innovate faster and stay competitive in an interconnected global market.

Driving Sustainability and Efficiency

Universal automation offers significant sustainability benefits. Manufacturers face increasing pressure to integrate eco-friendly practices into their operations. Automation helps reduce energy consumption and waste. By optimizing machine operations, manufacturers can lower their environmental impact.

Moreover, universal automation improves resource management. It provides precise control over material usage, helping manufacturers minimize waste and cut costs. This efficiency creates both environmental and financial advantages.

Data-Driven Insights for Smarter Decision-Making

Universal automation generates vast amounts of data from daily operations. This data gives manufacturers deep insights into their processes, enabling them to optimize energy use, material consumption, and waste management. Analyzing this data helps companies make informed decisions that further enhance operational performance.

Addressing the Skills Gap

Universal automation also addresses the skills gap in the industry. Traditional automation systems require highly specialized skills, which makes training costly and time-consuming. However, universal automation’s user-friendly interfaces make it easier for workers to learn new systems. This reduces the need for expert training and allows employees to upskill quickly, improving workforce agility.

A More Efficient, Sustainable, and Innovative Future

As Malaysia progresses toward digital transformation, universal automation will be vital. It will not only help businesses meet industry standards but also prepare them for long-term success in a competitive global marketplace. The integration of smart technologies and a focus on sustainability will drive efficiency, innovation, and adaptability in the manufacturing sector.

Universal automation is not about replacing workers but empowering them. It fosters a partnership between human ingenuity and technology, creating a more efficient and sustainable manufacturing environment. As manufacturers continue to integrate these technologies, Malaysia’s industrial sector will reach new heights of excellence.