The United Nations
Development Programme says in its report, dubbed, “Adaptation and Adoption of
Industry 4.0 (the so-called 4th industrial revolution) in Cambodia.” that
Cambodia aims to become an upper-middle-income country by 2030 and a
high-income country by 2050. This vision can only be achieved if new
technologies are leveraged to increase industrial added-value, diversify
exports and strengthen small and medium enterprises (SMEs). However, the level
of Industry 4.0 adoption in Cambodia is still low, as is the case in many
developing and developed countries. But Cambodia has the opportunity to build
on a number of conditions to support the adaption and adoption of new
technologies, including Industry 4.0. Khmer Times’ Sok Chan, spoke to Hay Phirum, country head of Robert
Bosch in Cambodia and Myanmar, on what is the government’s response and
readiness to Industry 4.0 at present and in the future and how the private
sector can contribute to the adaptation and adoption of Industry 4.0 in
Cambodia. KT: What are the business
operations and markets of Robert Bosch in Cambodia?
Phirum: Bosch Cambodia offers a broad range
of products and services to various industries, including automotive, building
and construction, hydropower, mining, and manufacturing. The company provides
spare parts for passenger and off-highway vehicles as well as services and
equipment for workshops. Moreover, Bosch delivers solutions to drive and
control the moving parts of industrial machinery.
In addition to its operations in the country,
Bosch has also contributed to further develop the skill sets of the local
workforce by providing training and support with tools and equipment to raise
educational standards at vocational schools and nonprofit organisations in the
country.
KT: How
has the pandemic affected your company operations and on what does the company
focus?
Phirum: Like the rest of the company, we have
also been affected by the COVID-19 situation. When demand decreases, it also
affects our supplies. However, we are coping well with this hit from our
financial standpoint. Our associate’s health and conditions are our priority.
Bosch put forward a strategic focus to offer solutions for Industry 4.0 with a
strong focus on research and development. Industry 4.0 lies within the business
of the industrial segment of Bosch business. Bosch is not the only supplier of
this technology but we are also a user ourselves. We have deployed industry 4.0
technology in our 270 manufacturing plants globally.
KT: How
have you observed the readiness of the Cambodia government in terms of adapting
to Industry 4.0?
Phirum: Thus far, there are many forums and
roundtable discussions among the government, private sector and development
partners, who are talking about Industry 4.0. However, there is no concrete
policy or direction that has emerged. Industry 4.0 has advanced and developed
fast and slow, dependibg on the government. If the government releases a policy
and direction to push the private sector to advance Industry 4.0, it would
proceed faster. When the implementation of Industry 4.0 begins, it will affect
some traditional workforces especially the repetitive jobs that the government
has to think about. If we deploy Industry 4.0, some workforces will become
redundant, but not all Industry 4.0 is bad. It has eliminated some jobs but it
has also created a lot of jobs. Therefore, we have to prepare for now and adapt
human resources to start thinking, understanding and studying from now on
matters such as software engineering and mechanics. If we do not start now, it
will be slow. If we look at the graduate students from mechanical and
electronics, computer and software engineering skills are low compared with
neighbouring countries. Cambodia must strengthen and encourage students to
study this subject. Currently, a lot of students graduate in banking,
accounting, and finance. However, from the technology and engineering and
industry perspective, there are fewer graduate students. The government should
have a policy and tax incentive for those who adopt this.
KT: What will be the effect if Cambodia does not adapt faster to Industry 4.0
now?
Phirum: We have to be careful about industry
4.0. There are some companies applying Industry 4.0. The adoption of Industry
4.0 is not only on the supply side but also it is on the order or buyer side.
Some buyers start demanding production to apply industry 4.0. It could be
countries using the same technology which they both know about regarding the
process and how production matches Therefore, they start demanding what they
need. They need production efficiency, time-saving, high productivity. They
want the supplier to ensure they do not miss production deadlines. This demand
is starting step-by-step, which is a risk for Cambodia if we do not adopt and
adapt quickly and be prepared for it. When the buyer asks about applying
Industry 4.0, we will meet the issue. The skill set is important. We have to
have more expertise. We cannot hire expats to do it. We must have local core
skills.
KT: What
is the private sector trying to contribute to Industry 4.0? What should
industry and manufacturers do to adopt Industry 4.0?
Phirum: Most people think that industry 4.0
is an advanced technology, it is expensive and it needs special skills.
Therefore, they are scared of it. For the adoption of industry 4.0, there are
two types. The adoption of big solutions and single or individual solutions.
Normally, the adoption of big solutions of industry 4.0 costs a lot of money
and needs more expertise and high demand. In Cambodia, if there is no big
investment to inject money to do it, it is difficult. However, they can adopt
single or individual solutions. Industry 4.0 does not need to adopt the
complete set of the whole solution. The important thing is that if we have the
commitment to start and learn from industry 4.0 with its own solutions in the
future, we can then adopt the solution on a bigger scale. So we start doing it
from now by adopting single solutions.
KT: How
important is Industry 4.0?
Phirum: The potential of Industry 4.0 is big. The most important element to
implement Industry 4.0 is the policymakers and how each stakeholder plays a
role in pushing Industry 4.0 to go forward. The government side has to develop
a new Industry 4.0 balance between policy now and impact on the future workforce.
The development agencies must research and give policy recommendations to the
government, support and fund early-stage development especially to get a
concrete project started to collaborate with the private sector, especially
expert companies with knowledge and solutions.
Solutions providers have to show a strategic
focus on their market, make investments to introduce solutions with expert
knowledge support from the government and development agencies. They should
decide policy development and solutions and support the development of local
skill sets.
The adopter has to think about Industry 4.0
strategy now and for the future, change mindsets from management to execution
staff level, think of Industry 4.0 as a problem solver or improvement genie instead
of skill and cost devil. Industry 4.0 is the new technology to improve matters.
Associations and business group must play an
important role to bring together expert companies to create a pool of solutions
providers and an eco-system, advocate members as users, advocate and connect to
relevant government bodies and members who are solutions providers and users.
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