SINCE 2010, the number of Malaysian companies focusing on factory automation has doubled, with the top 10 firms now boasting a combined valuation exceeding RM25.8 billion, according to Malaysian Investment Development Authority.
Automation has proven to be a game-changer, reshaping how industries approach operation scalability, production optimisation, engineering efficiency, and sustainability. It is especially important for Malaysia’s manufacturing sector, which is projected to grow by 4.5% next year, according to the recent Economic Outlook 2025 report from the Finance Ministry.
With the rise of Industry 4.0 or Smart Factory technologies, manufacturers around the world are also increasingly adopting Internet of Things (IoT), artificial intelligence (AI), and robotics to create more interconnected and intelligent systems that optimise resource management and enhance decision-making processes. To support local manufacturer’s growth, the Malaysian government has set a target to convert 3,000 factories into smart factories by 2030 under the New Industrial Master Plan 2030.
However, the manufacturing sector faces unique hurdles in embracing digital transformation. According to industry experts, one of the challenge lies with IT. Many legacy systems may include outdated or unnecessary software licenses that are no longer relevant in today’s digital landscape. The drive towards sustainability adds another layer of complexity.
With environmental concerns at the forefront and regulations in place, manufacturers are compelled to weave sustainable practices into the very fabric of their operations. This shift is not merely about compliance; it’s about securing a competitive edge and ensuring viability in a market that increasingly values environmentally conscious practices.
Enter universal automation — a transformative approach that revolutionises the integration of digital technologies in manufacturing. This strategy employs a modular, plug-and-produce software ecosystem, reminiscent of an app store for industrial applications, which significantly simplifies the adoption of the best available solutions. This not only enhances operational flexibility but also reduces overhead costs, positioning universal automation as a key enabler in the digital transformation of manufacturing.
Universal automation simplifies the integration of new technologies into existing systems, offering a seamless approach that allows manufacturers to enhance their operational frameworks without the need for a full-scale overhaul. This streamlined integration preserves existing investments while accelerating the adoption of innovative practices.
By embracing this software-defined approach, the industrial sector can overcome the limitations of traditional, closed automation systems. This shift fosters greater adaptability, allowing companies to innovate and evolve more rapidly in an increasingly interconnected and dynamic global environment.
Universal automation also directly addresses the prevalent skills gap in the industry. By introducing user-friendly interfaces and streamlined processes, these systems reduce the reliance on highly specialised training, allowing existing employees to upskill and adapt to new technologies more effectively.
Driving sustainability through universal automation is one of its standout benefits, particularly its potential to significantly enhance energy efficiency. By optimising the operational dynamics of machines and systems, universal automation ensures that energy consumption is minimised, reducing the environmental footprint associated with manufacturing processes.
Universal automation is not about replacing the human workforce but enhancing it, fostering an environment where technology and human ingenuity coexist to propel the manufacturing sector towards a more efficient, sustainable, and innovative future.
This article is contributed by Schneider Electric Malaysia industrial & process automation business vice-president Ng Wei Jie.
