By Danial Dzulkifly
SELANGOR is boldly cementing its position as a digital innovation leader, with a sharp focus on adopting Industry 4.0 solutions.
The state is embarking on an ambitious journey to drive digital transformation across various sectors as it aims to revolutionise its economic landscape. By integrating cutting-edge technologies, Selangor is positioning itself at the forefront of technological advancement in the region.
Central to this initiative is the emphasis on smart manufacturing techniques, robotics and artificial intelligence (AI), which are not only expected to enhance productivity and efficiency, but inadvertently inject vigour into the local economy.
In an exclusive interview with Selangor Journal, state executive councillor for Islam and innovation Dr Fahmi Ngah said by harnessing the power of Industry 4.0, Selangor is setting a new benchmark for economic growth and technological progress, solidifying its role as a digital pioneer.
He said the Selangor Human Resource Development Centre is leading the initiative, having introduced an innovative “factory in a box” solution.
This approach allows local manufacturers to scale up production with modern techniques and best practices based on technological advancements in robotics, data analytics and AI, said Fahmi.
“Any company intending to upgrade its manufacturing facility can do so based on sensors and data, where they essentially bring this box to the facility, replicate the process, and from that box, they will see the increment in productivity.
“After they have digitalised the whole process — I think usually that’s the route that they undertake — once they see the benefits, they will scale up the whole factory,” he said.
This collaboration with the private sector helps digitise manual manufacturing lines into more automated and robotics-based systems.
Fahmi explained that this strategy aims to address a significant challenge in the manufacturing sector, including the reluctance of many local manufacturers to move away from manual processes, which they perceive as more cost-effective.
The “factory in a box” concept provides tangible evidence of the benefits of automation, with Fahmi noting that 80 to 90 per cent of participants would typically not revert to old methods once they experience the improvements.
For companies that have already embraced digital transformation, the state is promoting AI integration to further optimise operations.
However, recognising the high costs associated with automation and AI implementation, especially for small and medium enterprises (SMEs), Fahmi said the state government offers targeted support.
“We plan to help SMEs by digitalising operational aspects like receipts and payment vouchers using OCR (optical character recognition) and AI,” he said, acknowledging that though this process requires more hands-on assistance, it is crucial for the sector’s development.
The focus on manufacturing is not without reason, Fahmi said, as the sector contributes a significant 30 per cent to Selangor’s gross domestic product, and is essential to the state’s economic strategy.
The halal agenda
This year, the state will integrate its Selangor International Halal Conference (Selhac) into its larger Selangor International Business Summit (SIBS), aiming to create a more comprehensive platform for halal entrepreneurs in Asean.
Fahmi explained that this move is part of Selangor’s strategy to leverage SIBS’ success to boost the halal industry.
“Previously, it was a standalone conference. I think SIBS was very successful in bringing in many participants and companies, both local and from abroad.
“Selhac was originally conceived as a window for halal entrepreneurs to enter Asean markets and vice versa. But now, with SIBS, which is Asean-focused, it makes sense to have Selhac as a sub-conference (under SIBS).”
Fahmi said that last year, Selhac recorded a total sales value of RM55.7 million, with a targeted 10 per cent increase for this year to RM61 million.
“Additionally, 150 local companies will participate in business matching, with expectations of a 60 per cent success rate, while we expect a minimum of 9 per cent of firms achieving actual transactions at SIBS,” he said.
Beyond improving visibility for local players, integrating Selhac into SIBS will enable the state government to assist local, regional and international players eager to tap into the halal market in obtaining proper halal certification from the Islamic Development Department (Jakim).
While the federal government recently enacted new guidelines to reduce the halal certification process from 51 days to 30 days, Fahmi said the state can help businesses obtain certification within 15 days.
“When it is Jakim halal-certified, it means the product is fit for the world, because it is a globally recognised certification body.
“If we can shorten the approval processes and encourage SMEs to take on proper Jakim halal certification, the Muslim community will be very thankful as they will see what is truly halal.
“Compliance is necessary to get Jakim certification. Would you eat in a restaurant that claims to have halal ingredients or is Muslim-friendly but does not have the certification? Are you truly confident about eating there? You wouldn’t be, so education has to happen, too,” he said.
Drone tech support
In the same interview, Fahmi explained that Selangor is at the forefront of drone technology, with the establishment of the Centre of Excellence for Drones in Bestari Jaya.
Fahmi said the facility helps local players test their drones, whether for land, water or air use.
He said the state is also helping local players heed federal regulations while allowing them to test the capacity and efficacy of their drones in a wide range of applications.
Drone technology evolves rapidly, making certification and testing expensive. The facility will enable the testing of drone structures, data analytics and data linkages without a high initial investment.
“This is especially beneficial for SMEs that may not have the financial resources to set up such infrastructure to test their drones. The state is helping these players comply with local laws and regulations, as well as seek proper certification through the appropriate government bodies,” he said.
A smarter future
Fahmi said the state administration is ramping up efforts to enhance the efficient and meaningful delivery of government services with digital tools.
Citing the Smart Selangor Parking, iClean and SELangkah apps as successful examples, he however acknowledged the need to better utilise transactional data from such services to improve user experience and urban planning.
He said this includes exploring the use of spatial data from satellites to better manage issues like deforestation and pollution and promote proactive governance.
“We are not just implementing digital solutions; we are looking at how to use the data generated to make more informed decisions.
“This approach ensures quicker responses and reduces our reliance on citizen complaints. We can identify and address problems before they escalate,” said Fahmi.
**This article first appeared in the Selangor Journal July 2024 Special Edition, published on July 21, 2024.
