Distinct from mere technological change, industrial revolutions have revolutionized value generation and transformed societies and the system of power. Such revolutions represent a series of events that successively build on each other. New Technologies that affect industries and the infrastructure equipment used in production, the movement of goods, and the transmission of information drive industrial revolutions. As new technologies are applied, the output of goods and services is altered, and so is the organization and utilization of labor in factories.
Source: GSMA Industry 4.0 survey, GSMA Association
Coined in 2016, the concept of the “fourth industrial revolution” (4IR) has captured and represented the movement toward smart industry and manufacturing goals. ASEAN countries, including Thailand, are experiencing industrial transformation on an unprecedented scale with automation, hyper-connectivity, cloud technologies, virtual and augmented reality, artificial intelligence, machine learning, the internet of things, and emerging technologies.
Framing industrial revolutions
Source: “Seizing opportunities: ASEAN country cluster readiness in light of the fourth industrial revolution” in Asia and the Global Economy, 2(1) by P Enzmann, M Moesli
The Association of Southeast Asian Nations (ASEAN) collectively represents the fifth-largest global economy, with a GDP of USD 3.2 trillion. The region is home to more than 630 million people and has been one of the most dynamic in terms of economic, cultural, and political environment. Among the members, countries face their 4IR vision and implementation challenges. For instance, Singapore’s key strategies include transforming facilities and operations, research and development partnerships to develop new talent, and collaborating with manufacturing communities. Malaysia’s industry 4.0 policy framework focus on labor productivity growth, manufacturing contribution to the economy, innovation capacity, and high-skilled jobs. “Making Indonesia 4.0” prioritizes SME empowerment, innovation ecosystem, technology investment, and regulatory re-optimization. Vietnam’s industry 4.0 vision aims to facilitate economic growth, the digital economy, human resources development, the quality of life, national defense, and the environment.
The government AI readiness index by Oxford Insights has recently been one of the assessment tools for 4IR development. According to Oxford Insights, the Government AI Readiness Index assesses particular conditions to help governments better prepare for adopting their AI services. The pillars considered are the government, the technology sector, and the data and infrastructure. Globally, governments are turning to AI to improve their public services and gain strategic economic advantages. However, positioning themselves to make the most of this AI-powered transformation requires governments to have the right tools and operating environment. In Government AI Readiness Index 2021 report, East Asian Countries, for the first time, make up one-quarter of the top 20 ranked countries. The top-scoring countries in the region are boosted by skilled workforces and advanced research and technological infrastructures.
The pillars and dimensions of the Government AI Readiness Index
Source: Government AI Readiness Index 2021, Oxford Insights
Singapore is the only readiest country for taking a ride on 4IR, while most ASEAN members are moderately prepared for it. The size of the ASEAN digital economy has the opportunity to be ranked as one of the world’s top five in 2025, led by Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The government’s capacity to exploit AI’s innovative potential in ASEAN is better than the world average and the Asia Pacific. Indonesia, Thailand, Singapore, and Malaysia are the top that applies AI technology in ASEAN at the rate of 24.7%, 17.1%, 99.9%, and 8.1%, respectively. Meanwhile, the 4IR readiness disparity among the ASEAN member countries is still.
THE DEVELOPMENT IN THAILAND
Considering the development in Thailand, GSMA has released the sixth annual digital society report for the Asia Pacific, which focuses on the critical aspects of a digital society. The information allows governments to address challenges and opportunities more efficiently toward their digital society and industry 4.0 development. According to the report, Thailand has continuously progressed on the digital society score since the population has increasingly adopted a digital lifestyle. For example, in September 2021, the Thai E-Sports Federation endorsed and recognized e-sports as a professional sport in Thailand. This digital movement will bring opportunities and capabilities for the region’s digital society, including industry 4.0 initiatives.
Moreover, the Electronic Transactions Development Agency (ETDA) is working on legislation replacing physical ID cards with digital IDs. This entails moving toward a digital identity management system. Blockchain technology is employed for verification mechanisms that are fast, secure, and robust. The digital identity management system will give Thai individuals complete control over their data privacy since they are the only persons who can respond to any personal information request.
Source: GSMA Intelligence
Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D. & MEGA Tech