Siemens: Digitalisation is no longer a choice

KUALA LUMPUR: “Many companies are realising that digitalisation is no longer an option,” says Adam Yee, President and CEO of Siemens Malaysia. “Digitalisation and automation will be determining factors that will help companies grow and stay relevant.”

Speaking on AWANI Review, the German multinational’s first local CEO in Malaysia says that firms recognise that to raise efficiency and competitiveness, they have to fully leverage on new technologies. However, there remain misconceptions and barriers that businesses face in doing so.

One of which is cost. “You do not have to spend a big sum of money to start the digitalisation journey. First, identify the main ‘topics’ to address,” says Adam, adding that digitalisation does not necessarily mean expensive equipment and total automation.

“From there, at every stage, when you receive the returns, reinvest them into the process. This is what we call a digitalisation journey. It is not a one-time project,” he says. “Industry 4.0 is a journey that can take 10 to 20 years.”

The second most common barrier local companies face in digitalisation is talent. “Most of the feedback I’ve received is the lack of talent who really understands digitalisation,” he adds.

To address the skills gap, Siemens Malaysia embarked on a first-of-its-kind industry-academic partnership in 2019 with the Malaysian Technical University Network by offering a degree programme embedded with Siemens' Total Integrated Automation modules.

“We put our programme on mechatronics and artificial intelligence in their bachelor degree syllabus.” Co-developed between Siemens Malaysia and universities in the network, the syllabus prepares graduates for the eventual world of systems integration while providing them with a professional training qualification from Siemens.

“We have enough talent in Malaysia but the challenge is finding talent with the right skills. So, this is what we are trying to do - to be the bridge between the industry and universities.”

In November 2021, Siemens Malaysia also partnered with the Selangor Technical Skills Development Centre (STDC) to develop a training ecosystem for Industry 4.0 skills as part of its ongoing initiative to tackle the talent gap in Malaysia.

While Siemens has been a long-standing industry partner for engineering and manufacturing solutions, the company has increasingly become tech focused over the years, cementing itself as a global powerhouse focusing on the areas of electrification, automation and digitalisation - long-term growth fields that Adam aims to develop in Malaysia too.

“The expectation is quite high,” Adam chuckles, when pointed out his appointment as Siemens Malaysia’s first local CEO is testament to the organisation’s success in nurturing and cultivating local talent. “We want to keep supporting nation building, up-skilling, CSR and bring our brand back to the forefront. People tend to forget that Siemens is a leading provider for cutting-edge solutions,” he says. “Most people remember Siemens as a mobile phone brand.” (Siemens AG sold its mobile phone business in 2005)

Malaysia has vast potential to be a high-value investment manufacturing and global services hub in the region. Adam urges stakeholders, from policy makers to industry players, to focus on innovation-led growth in order to join the ranks of other leading and developed economies.

“We need to increase R&D and develop more of our own products. We should look towards high-tech investments rather than compete on cost-basis. That is not going to support our nation in the long run,” he says. “We can no longer think about going cheap. We must focus on quality and being sustainable.”