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Embracing IR 4.0: Market Readiness and Perceptions of Smart Manufacturing in Malaysia’s Oil Palm Industry

Year: 2025

Type: article

Abstract: The oil palm industry has long been a cornerstone of Malaysia’s economy, generating significant revenue and driving economic growth. With the advent of the Fourth Industrial Revolution (IR 4.0), the integration of smart manufacturing systems is poised to enhance efficiency and cost-effectiveness, potentially boosting industry revenues in alignment with the United Nations Sustainable Development Goals (SDGs), particularly SDG 9 (Industry, Innovation and Infrastructure) and SDG 12 (Responsible Consumption and Production). This study investigates market perceptions and readiness among key players in the oil palm sector to adopt smart sensors in decanter machines, aiming to improve manufacturing performance. Data was collected through an online survey, which, despite limitations, yielded valid responses. Statistical analysis of the results reveals a general optimism towards the benefits of smart manufacturing, including increased efficiency, sustainability, and profitability. However, the findings also indicate a prevalent lack of readiness to invest in these technologies, primarily due to insufficient awareness, information, and knowledge about their effectiveness. By aligning with SDG 8 (Decent Work and Economic Growth), this research provides valuable insights for policymakers, industry leaders, and technology developers seeking to foster innovation and drive the future growth of Malaysia’s oil palm industry.

Source: Journal of Power and Energy Engineering