The Implementation of Industry Revolution 4.0 in Malaysia 1212950 & 1212909

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BIS 5012

ENGLISH FOR RESEARCH PURPOSES


2022/2023

TOPIC:
The Implementation of Industry Revolution 4.0 in Malaysia

GROUP:
BS9

PREPARED FOR:
MISS NURUL SYADZA BINTI MOHAMED HISHAM

NO NAME MATRIC NO. CONTACT NO.


MOHAMED SYAMIL BIN 1212950 0177798375
MOHAMED ISMAIL
1
FARIS WAZIF BIN YUSAINI 1212909 0134107423
2

1
TABLE OF CONTENT

1.0 INTRODUCTION...........................................................................................................3

2.0 PROBLEM STATEMENT..............................................................................................5

3.0 RESEARCH OBJECTIVES............................................................................................6

4.0 RESEARCH QUESTIONS.............................................................................................6

5.0 SIGNIFICANCE OF STUDY..........................................................................................7

6.0 DISCUSSION..................................................................................................................9

6.1 The transformation of the Industrial Revolution from the First to Fourth.......................9

6.2 The pros and cons of the Industrial Revolution in many sectors of Malaysia...............11

6.3 The relevance of Industry 4.0 towards the young generation?.......................................13

7.0 CONCLUSION.............................................................................................................15

REFERENCES...............................................................................................................17

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1.0 INTRODUCTION

Moving towards the era of modernity often passes from the lips of people in all four corners
of the world about Industry 4.0. However, the thing that often arises in people’s minds is
what exactly is Industrial Revolution 4.0 that keeps being debated worldwide. Briefly,
Industrial Revolution 4.0 is operationalizing the 21st century's rapid transformation in
technology, industry, and societal patterns and processes due to increasing interconnectedness
and intelligent automation. The Industrial Revolution is a phase that measures based on the
development of knowledge and world technology.

Today, the world has entered the measured phase of Industrial Revolution 4.0 with
developments in the field of robot automation, large databases, intelligence artificially, and
various other forms of new technological advancement. These changes are closely related to
the need for knowledge and skills that allow humans to create value in the global economic
system. However, competitive human capital and being able to deal with these changes are
still less in comparison with the world's population (Global Human Capital Report, 2017).
While this modern technology is expected to hurt humans in terms of slowing down mental
function because of their attachment to technology (Dialogues in Clinical Neuroscience,
2020).

Founder and Executive Chairman of the World Economy Forum (WEF), Klaus Schwab,
through his book The Fourth Industrial Revolution explained that Industry 4.0 is changing the
way people work and live (Klaus Schwab,2015). This adoption creates a smart manufacturing
environment by enabling the flow of information and autonomous control between various
products, machines, production modules, and devices. This new strategy will enable an
increase in productivity and efficiency, which has significant potential benefits. It will also
support several social and economic prospects for organizations adopting this Industry 4.0
paradigm. Change is driven by three technology domains which are physical, digital, and
biological across the nine pillars of Industrial Revolution 4.0, including simulation and digital
twin, vertical and horizontal system integration, the Industrial Internet of Things (IIoT), cyber
security, cloud computing, additive manufacturing, augmented reality, big data and analytics,
and autonomous robots (Ali Kidwai, 2021).

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Many countries have taken steps to ensure that they are not left behind because the concept of
this revolution will change the pattern of human life that used to be impossible but is now
able to become a reality. It will accelerate the progress of the modern world landscape and
optimize the use of technology for human needs and comfort. Today's world requires all
things to interact quickly. For example, data and information move from one place to another
in less than a second. If previously data only moved around through computers and mobile
phones, today data can also travel from one machine to another, and this term is called
Machine to Machine, M2M (Sharon Shea, 2019). However, M2M is just a part of Industry
Revolution 4.0 and this research paper will encompass a wider scope of Industry 4.0 that will
break down further in this paper.

Basically, this new revolution is less publicized and hyped among the community however
there several technologies had applied in Malaysia that is in line with the Fourth Industrial
Revolution but have not been introduced as a whole. Due to that, this research paper’s
objective will focus on how the transformation of technology from the First Industrial
Technology to the Fourth Industrial Revolution. This writing is also to determine what is the
pros and cons of the transformation of technology in the Fourth Industrial Revolution.
Besides, why the Fourth Industrial Technology is relevant to this generation also will discuss
in this research paper. More justification for the implementation of the Fourth Industrial
Revolution in Malaysia will further discuss in this research paper.

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2.0 PROBLEM STATEMENT

The term "Industry 4.0," also known as the "Industrial Internet of Things" (IoT), refers to the
extension and use of the internet of things (IoT) in industrial sectors and applications. These
latest technologies have already affected the operation of some industries and sectors of the
economy. Industry 4.0 is suited to a new generation which is gen-Z. Although the trend of
changes is obvious, this trend depends on the economy’s level of maturity, investment
prospects, and innovation culture.

Slowly the Third Industrial Revolution is advancing into Industry 4.0. Unlike the more
drastic changes from between the previous Industrial Revolutions, however, Industry 4.0
simply takes the automation and machinery from the third and makes it better. The Third
Industrial Revolution already benefits a lot from the use of computers and automation,
creating more efficiency in most industries. Industry 4.0 comes into the picture with the
introduction of connectivity between these machineries. This will allow for even more
advanced automation, to the point where factories can run well without any humans – a smart
factory, essentially.

Industry 4.0 is the implementation of Industry 4.0 has increased the advantages in
management and future jobs by creating new business models. This concept has a significant
impact on the market and industry, effectively altering every stage of the product's life cycle,
and introducing new methods of production and business operation that enable process
improvement and increased corporate competitiveness. (Ślusarczyk B., 2018). Consequently,
the IoT is assumed to increase the yield in industry-spanning opportunities. For example,
efficiency, productivity, and quality increase, as well as novel, innovative business models
(Kagermann et al., 2013).

Industry 4.0 is the risk to data security through the internet. Recently the usage of cloud data
storage growth rapidly in the information technology industry (Lisa J. Sotto, Bridget C.
Treacy, and Melinda L. McLellan, 2010). Cloud data storage can be defined as a way for
businesses and consumers to store data and files on the internet through a cloud computing

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provider that people can access whenever they want by downloading it through the internet.
Internet things, services, data, and people also allow a new route for hackers to steal data.
Cloud storage data leakage is frequently occurred recently due to malicious attacks by
hackers on the cloud storage. (Diao Zhe, Wang Qinghong, Su Naizheng, & Zhang Yuhan,
2017)

This research’s long-term objective is to study the transformation of technology from the
First Industrial Revolution to the Fourth Industrial Revolution. Besides, the researcher will
identify the pros and cons of the transformation of technology in the Fourth Industrial
Revolution. This research paper also aims to determine whether the Fourth Industrial
Revolution is relevant to the young generation.

3.0 RESEARCH OBJECTIVES

The main aim of this research is to explore the implementation of Industrial Revolution 4.0 in
Malaysia. Listed below is our long-term objective for this research:

 To study the transformation of technology from the First Industrial Revolution to the
Fourth Industrial Revolution.
 To identify the pros and cons of the transformation of technology in the Fourth
Industrial Revolution.
 To determine whether the transformation of technology is relevant to this generation.

4.0 RESEARCH QUESTIONS

Here are three research questions guiding this study:

 How did the transformation of technology from the First Industrial Technology to the
Fourth Industrial Revolution?
 What are the pros and cons of the transformation of technology in the Fourth
Industrial Revolution?
 Why the Fourth Industrial Revolution is relevant to the young generation?

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5.0 SIGNIFICANCE OF THE STUDY

The main purpose of this paper is to explore the implementation of Industrial Revolution 4.0
in Malaysia. However, this research is not directly presented to the government and industry
management but somehow this research is aimed at the teenagers and students that might
continue to succeed in this revolution in the next generation. In short, what is conveyed from
the Fourth Industrial Revolution is granted more advantages than disadvantages compared to
the past revolution.

The introduction of new technology in Malaysia that in line with the Fourth Industrial
Revolution give a big impact on the government. In this case, the application of Industry 4.0
in the scope of social and economic in Malaysia truly contribute to this country the ability to
compete with other modern countries. Looking on side of social, Industry 4.0 introduces
future education models by focusing on smarter, mobile, comprehensive, and virtual
education and skills development as well as putting up a dramatic shift away from traditional
learning towards technology-based learning. In this circumstance, the government may
introduce other new technology in education to further strengthen the learning system to
make it more efficient and productive in line with other advanced countries. From an
economic standpoint, Industry 4.0 offers several benefits that affect national economics by
attracting economists from other countries to invest in Malaysia. For instance, The National
4IR Policy is to ensure citizens in Malaysia will experience an improved quality of life by
utilizing technologies and creating a friendly business climate with investors from other
countries that encourage more technological innovation and company growth. Based on these
revolutions, the government should take action by normalizing the Fourth Industrial
Revolution in this modern era so that Malaysia is not left behind in technological updates.

The industry sector will be the first to feel the effects of Industry 4.0. With the advent of this
new industrial paradigm, manufacturing will be decentralized and digitalized, with
production elements capable of self-governing, initiating processes, and adapting the changes
in the environment. In the reality, the advanced technologies and the invention of smart

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factories will have a significant impact on production processes and operations, providing for
greater operational flexibility, and more efficient utilization of resources. Besides that,
applying advanced digitization, the Internet of Things, and Artificial Intelligence in industry
management can increase the production rate, reduce time, save human energy, and indirectly
improve the economy in Malaysia. Not only that, the good news for the industrial sector if
Industry 4.0 was applied in Malaysia as an industrial company can attract the investor from
abroad to invest in Malaysia due to confidence in investment in this country.

By looking on side of teenagers that refers to students as well, the lesson that students can
feel from this research is to get a piece of knowledge about the history of revolution from the
First Revolution until the Fourth Revolution. Due to this, students can study how the
transformation was eventuated by a past researcher until now by Klaus Schwab. Moreover,
the introduction of digital learning platforms can encourage students to a technique on how to
explore the lesson in an understanding way and more interesting. In addition, teenagers
nowadays should have the properties to be good students such as being more likely to be self-
learners, critical thinkers, digital natives, and problem solvers.

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6.0 DISCUSSION

6.1 The transformation of the Industrial Revolution from the First to Fourth

The Industrial Revolution can be defined as how the transformation of industrialization and
innovation where the change of a period from an agrarian and handicraft economy to the
domination of machine manufacturing and the Internet of Things in the industry sector.
Before existence of the Industrial Revolution, the economy was completely dependent on
agriculture and handmade product. This revolution of industry not only change the industry
and machines, but it also changed the shapes of society’s daily life. People’s lifestyles and
working environment have been changed according to the latest technological evolution.

The Industrial Revolution was a period of mass industrialization from 1750 until the present.
The First Industrial Revolution began in 1760 until 1830. At first, the revolution was
especially for Britain. Many technological and architectural innovations were origin British.
The British prohibited the export of machinery, skilled workers, and manufacturing
techniques. By the middle of the 18th century, Britain was the most prosperous country in the
world, in charge of a vast trading empire that included colonies in the Americas and the
Caribbean. This Industrial Revolution is profitable if it is introduced abroad. Not only that the
development of trading and business were among the major causes of the revolution. The
example of transition included going from handicraft to machine, new chemical
manufacturing and iron production processes, the increase in the usage of steam power and
waterpower, the development of machine tools, and the rise of the mechanized factory
system.

Next, the Second Industrial Revolution or Industry Revolution 2.0 began in the late 18 th
century. This revolution was a period of rapid industrial development in many countries like
the United Kingdom, Germany, and the United States, but also in France, the Low Countries,
Italy, and Japan. With the outbreak of World War II, the Second Industrial Revolution came
to an end. The period 1859-1873 has been characterized as one of the most fruitful and dense

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innovations in history (Mowery and Rosenberg, 1989). In this Second revolution of industry,
they are various inventions and development in existing technology. For example, the build-
out of railroads for transporting goods and traveling, large-scale iron and steel production,
widespread use of machinery in manufacturing, increased use of steam power, widespread
use of the telegraph network in communications, use of petroleum and gases, sewage system,
and the beginning of electrification. The consequence of changing production technology was
the rise of technological systems

The Third Industrial Revolution also known as the digital revolution started in the late 19 th
century. This revolution is about the shift from mechanical and analogue electronic
technology to digital electronics. This made it possible to create copies of the original that
were exact replicas. Furthermore, this revolution can easily move digital information between
media and access or share it remotely using electronic devices computers, and handphones.
According to a study "The Digital Revolution Ahead for the Audio Industry," Business
Week. New York, 16 March 1981, p. 40D. during the 1980s the digital format of optical
compact discs gradually replaced analogue formats, such as vinyl records and cassette tapes,
as the popular medium of choice.

The Fourth Industrial Revolution, well known as Industry 4.0 was introduced in the 21st
century by a group of scientists from German. Then the phrase Industry 4.0 is introduced to a
wider audience by the executive chairman of the world economic forum (WEF) Klaus
Schwab in a 2015 article published by Foreign Affairs. The Fourth Industrial Revolution was
the subject and title of Schwab’s 2016 book. The Fourth Industrial Revolution is the trend
toward automation and data sharing in manufacturing technologies and processes, including
cloud computing, cognitive computing, artificial intelligence, cyber-physical systems (CPS),
and the industrial Internet of Things (IoT). High-capacity connectivity is just one example of
the technological advancements in cyber-physical systems that make up the Fourth Industrial
Revolution (4IR). Not only that, but this is also more advanced technology like new human-
machine interaction modes such as touch interfaces and virtual reality systems, and
improvements in transferring digital instructions to the physical world including robotics and
3D printing. According to Recke, Martin June 2019 the Fourth Industrial Revolution is the
beginning of the imagination age.

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6.2 The pros and cons of the Industrial Revolution in many sectors of Malaysia

Malaysia is among one the Industrial Revolution 4.0 nations that had been involved in
globalization, and transformation in technology-driven economic growth. With the help of
connectivity through the Internet of Things (IoT), big data, virtual and augmented reality,
artificial intelligence, and other IT concepts that spark most sectors, it enhances digital
technology. There are many pros and cons of the Industrial Revolution in many sectors in our
country Malaysia.

Firstly, the pros in the education sector. The existence of Industrial Revolution 4.0 continues
to change the world, and even Malaysian education also faces the challenge of preparing
students to meet the demands of Industrial Revolution 4.0. Through the Industrial Revolution
4.0, the method of approach in teaching and learning known as Education 4.0, has changed to
a new era of the learning system. A digital learning platform and tool is a digital tool used by
students to obtain digital teaching material to carry out online or offline learning activities
through various applications in their gadgets like laptops, smartphones, or iPad. For example,
the existence of virtual learning systems in schools and universities. This virtual learning
system is a system whereby students can find the learning material through their official
school or university platform. Students that receive an Education 4.0 are more likely to be
self-learners, critical thinkers, digital natives, and problem solvers. Education 4.0 is a
revolutionary educational system that enables students to build skills and a lifelong love of
learning, according to (Rosnah Ishak, and Mahaliza Mansor 2020). It offers the idea of
innovative teaching and learning practices and incorporates ICT into its operations.
Additionally, it makes self-directed and more flexible learning possible regardless of time or
location thanks to universally available ICT platforms and tools (Hussin, A.A 2018). Because
students may learn on the go through blended and virtual learning using the BYOD (Bring
Your Own Device) method, the learning process can become more inexpensive and quicker.
As well as ICT-supported, students are also fully empowered to determine how they learn
and are independently able to improve the educational learning process based on their needs
and achievements. This digital learning platform and tool can develop learners' self-
motivation and professionalism for quality improvement.

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Malaysia is among those nations that have successfully acquired the skills of utilizing
efficient manufacturing technologies and applying advanced digitization to add value to their
products and services. This industrial revolution 4.0 can increase and stabilize the economic
growth in Malaysia. It will drive further economic development and lead to fundamental
changes in the structure and methods of production, quantity, and quality of consumption.
(Oleksandr vyshnevski, viacheslav liashenko, oleksandr amosha, 2019). The existence of
various types of advanced technology such as IIOT, Artificial Intelligence (AI), in the
manufacturing industry and other sectors will increase productivity, reduce time, and
indirectly improve the economic performance in Malaysia. The use of the high-technology
infrastructure of machines in manufacturing vehicles in Malaysia can reduce the
manufacturing and production cost of a vehicle in addition to completing a sustainable
production cycle in the automotive industry and the entire manufacturing sector in this
country. This will directly show a positive impact on the country’s economic growth. Since
Proton was established as the country's automobile manufacturer in 1983, automation and
robotics have been used in the manufacturing process in Malaysia. Malaysia's adoption of
Industry 4.0 has largely been inspired by foreign firms like KUKA Robot Automation
(KUKA) and ABB Robot Automation (ABB) (Hj. Mohamad Idrakisyah, 2020). The use of
cloud computing to run simulations for modelling new car designs has dropped from three
weeks to three days. Not only that, the use of 3D modelling to create prototypes can make
engineers work much faster and more precisely. This strategy enables auto manufacturers to
confirm the precise measurements of various pieces before the cutting process starts.
Malaysia’s Former Prime Minister Tun Dr. Mahathir Mohamed launch a National
Automotive Policy (NAP) in 2020. This (NAP) is a combination of three elements which are
Next Generation Vehicles (NxGV), Mobility as a Service (MaaS), and Industrial Revolution
4.0.

The Fourth Industrial Revolution can be described as a new chapter in human development
by creating many new job opportunities for the youth and fresh graduates. According to the
World Economic Forum, research has predicted the existence of strong jobs in rapidly
developing sectors such as artificial intelligence, robotics, and blockchain and non-
technological positions such as customer service, sales, marketing, training, and skills

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development. Now, the government is drafting a Human Resources Action Plan (NHRB) in
dealing with the challenges of Industrial Revolution 4.0 and issues related to the national
labour market. The main purpose of this action plan statistics is to analyse the changes and
opportunities created in jobs, skills, and human resource development for sustainable national
economic growth in the era of digitization. The study will also consider the impact of
transition, globalization, digitization, e-commerce, technological development, and
innovation brought by the Industrial Revolution 4.0 on the Malaysian economy as well as job
opportunities for locals, foreigners, and expatriates. In addition, the recognition of Malaysia
as a hub for installing super-drones with Artificial Intelligence (AI) in the ASEAN market in
2020 will create many job opportunities for local people in addition to the use of new, more
advanced, and sophisticated technology. Most of the human activities in the past decades
have been related to and supported by technologies. Since the COVID-19 outbreak, online
business has been expanding during the quarantines, movement control orders or known as
lockdowns, and standard operating systems (SOP)., it has been noted that businesses in
almost all industries are becoming increasingly aware of the benefits of expanding their
services beyond their four walls, practicing contactless transactions, and conducting
operations with the use of recent technology. In addition, online businesses have exploited
and should exploit technology via the Fourth Industrial Revolution to connect their business
systems directly to customers, employees, and suppliers.

The disadvantage or cons of Industrial Revolution 4.0 is easily exposed to cybercrime.


Cybercrime is a risky attack that can happen to a person or internet user or business by a
hacker. The evolution of cybercrime has bred increasingly organized groups of cyber
criminals who find an incentive in targeting various industries and accessing critical
information and intellectual property. Numerous instances exist when a cyber-attack cause a
firm or a person to suffer a significant loss because of a data hack. As the usage of increasing
getting broader and worldwide, people or internet users may face a never-ending list of spam,
scammer, phishing, identity theft, and more. Although this gives us access to data via the
cloud, it opens a route for hackers to access the network. Moreover, there is no shortage of
free public Wi-Fi in many urban areas, which is creating opportunities for hackers. Due to a
lack of security, a public Wi-Fi connection may be compromised by a hacker and allowing
them to inject your device with viruses and malware

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6.3 The relevance of Industry 4.0 towards the young generation?

In the estimated, increase of the world population in 2023 with a total of approximately 7.6
billion people, the current development of technology predicts 50 billion devices and
electronics will interact with each other. This shows the number of devices that communicate
is more than the number of humans with each human owning average of about 6.58 electronic
devices per person. From this analysis, the upcoming of this modern technology has no
obstacles in succeeding the revolution as Malaysia is in third place on the smartphone
addiction list in the world and the total average age is 28.8 years which refers to the young
generation (Dzulkifli Abd Razak,2022). To answer this research question, it is undeniable
that the implementation of Industry 4.0 in Malaysia is relevant to the young generation as
teenagers nowadays are likely on the phone rather than doing other things. Besides, the
implementation of Industry 4.0 is more to the usage of electronic devices for instance, in the
education sector nowadays, a lecturer is likely to give notes through the online platform
where students can revise easily using smartphones, laptops, and so on.

Generally, teenagers and students must explore the application of the Fourth Industrial
Revolution in Malaysia due to nowadays every single method used including in sector
education, economy or industry is related to the industry 4.0 paradigm. The answer to the
question of why students should know about this revolution is because today’s working
requirements need workers that have seven soft skills which are communication and
collaboration skills, time management skills, networking skills, empathy, being proactive,
self-awareness, and critical thinking skills (Jennifer Herrity,2018). Other than that, tough
competition in getting a good job makes it difficult for employers to choose credible
employees, and due to this case, greater opportunities for applicants that have wide
knowledge about Industry 4.0 to get a job effortlessly. In developing nations, there are about
75 million young people without jobs, and in most of these nations, youth unemployment
rates are two to four times greater than adult unemployment rates (N. Fajaryati, B. Budiyono,
M. Akhyar, & Wiranto, 2020). Furthermore, it is important to be close to the Fourth
Industrial Revolution because ahead of the 2030 transformation in Malaysia, the focus
Industry 4.0 policy of Malaysia is to affect the citizen, businesses, and government to take
advantage of enhancing economic growth and make Malaysia as the famous investment
country in coming years.

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In National Fourth Industrial Revolution Policy, there are four policy thrusts stated in the
policy which is one of that is to equip the rakyat with 4IR knowledge and skill sets. Ahead of
the 2030 transformation, the government aims for Malaysian citizens to adapt to the use of IT
(Information Technology) and reduce the illiterate of society in technology to succeed in this
revolution. As we can see now, some of the schools or institutes in Malaysia have begun the
national agenda where the syllabus of lessons at school has included the subject of learning
IT. Along with raising enthusiasm among teachers and students, it also improves teaching
efficacy and reduces cost (Mei. L.C, S.L. Wong, Ahmad Fauzi Ayub & Rosnaini Mahmud,
2017). This shows in the next coming generation, Malaysian citizens will adapt and more
skilled in the use of advanced technology while being able to execute the Fourth Industrial
Revolution in Malaysia and construct this country the same as other advanced countries in the
world. In addition, the importance of exploring the knowledge of Industry 4.0 is to improve
people’s standard of living and create more innovation in this country when society adopts
this revolution paradigm. If an organization wants to reach its full potential, it must be
digitally fluent and do this, it must match its workforce with digital tools, technology, and
training as well as with leadership and cultural support (Sarah Dugan,2021)

7.0 CONCLUSION

The Industrial Revolution 4.0 is the development of digitalization across the physical, digital
and biological domains. The presence of Industrial Revolution 4.0 which emphasizes the
creation of borderless virtual reality technology will have an impact on various aspects of
life. It can contribute to the transformation of the way people live, work and communicate in
this country as well as a rise in economic growth. From the invention of steam to the advent
of the internet and computers, the standard of living of most people around the world has
improved. Without a doubt, the development of more advanced and flexible technology in
Industry 4.0 has the potential to improve the changing aspects of society's life in a more
systematic and quality direction compared to the previous three revolutions. The development
of Industrial Revolution 4.0 is often debated among academicians, groups of educators as
well as students in the lower and upper classes, especially university students. Students need
to be aware to face the challenges of this Industrial Revolution 4.0 so that they do not leave

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behind on technology and global competition. Apart from great opportunities for the young
generation to succeed in life and for our country to grow sustainably, the Industrial
Revolution 4.0 also poses risks that need to be aware of and avoided by academicians,
society, and the government. As such, the world today needs human capital capable of
fuelling the 4.0 Industrial Revolution to be more profitable. This rapid technological change
requires a sustainable and comprehensive planning plan by all parties involved including
national policymakers so that economic development based on Industrial Revolution 4.0 can
be utilized to the best advantage.

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