INDUSTRY 4.0 REVOLUTION AND TRANSFORMATION IN THAILAND: ACCORDING TO ASEAN

Industry 4.0 technologies and systems—such as advanced robotics, 3D printing, augmented reality, and real-time digital factory simulation—not only will enable manufacturers to significantly improve speed and productivity but will also enable companies to reimagine their current approaches to global manufacturing and sourcing. Soon enough, the Association of Southeast Asian Nations (ASEAN) has instantaneously recognized the opportunity to move up the manufacturing value chain. This issue offers brief development and updates on Industry 4.0 initiatives of Thailand’s and the neighbors.’  

As the fourth industrial revolution (4IR) is economically reshaping the globe, ASEAN members have collaborated on the Consolidated Strategy to build the ASEAN digital community where relevant policies and guidance are learned and shared. On April 29, 2017, the 4IR was recognized at the 30th ASEAN Summit in Manila, and the consolidated 4IR strategic framework for Digital ASEAN Community was proposed.

To begin, Singapore’s Smart Nation Roadmap has been a benchmark of the region. The government has focused its funding on strengthening workforce capabilities to accelerate adoption. The Hanoi government is promoting ICT development through tax and financial incentives, and upskilling the workforce to focus on sciences and technologies.

Answering the consolidated 4IR strategic framework for Digital ASEAN Community, Malaysia’s Industry 4.0 initiatives focus on creating the right ecosystem with talent supply and skill levels, collaboration platform, digital infrastructure, funding support, and data availability and sharing. However, Indonesia’s IR4.0 roadmap focuses on priority sectors: food and beverage, textile and apparel, automotive, electronics, and chemicals, according to the Economic Development Board of Singapore.

In accordance with the consolidated 4IR strategic framework for Digital ASEAN Community, Thailand’s government has launched the USD 5 billion budget in July 2017. This very first 4IR aims to (a) foster local technology SMEs and startups, (b) give birth to the Digital Economy Promotion Agency (DEPA) and National Digital Economy Committee (NDEC), and (c) increase R&D expenditures.

Perhaps, the most visionary, prominent national policy in Thailand is “Thailand 4.0.” Inspired by Industry 4.0, Thailand 4.0 is a broad economic model that promotes the role of technology, innovation, and creativity in unleashing a new stage of development. The policy is the successor of prior visions: Thailand 1.0 focused on agriculture; Thailand 2.0 focused on light industry; and Thailand 3.0 focused on advanced industry.

The implementations of the policies for decades resulted in Thailand’s rapid industrialization and, therefore, remarkedly lifted the living standards. The GDP, for example, has more than tripled since 2000, according to the World Bank. But to avoid the so-call middle-income trap and achieve developed nation status within 20 years, the Thai government in 2015 re-invented the economy under ambitious vision of Thailand 4.0.

Although Thailand 4.0 targets have set a formidably high bar and the Thai Government is highly ambitious, it has already achieved notable success, with R&D spending doubling to 1 of GDP in the five years to 2017, according to the Office of the National Higher Education, Science, Research, and Innovation Policy Council.

Article by: ASST.PROF. SUWAN JUNTIWASARAKIJ, PH.D.