The China Productivity Center (CPC) with support from the Asian Productivity Organization (APO) Secretariat organized an individual-country observational study mission (IOSM) on Smart Factory Transformation, 13–15 June in Taichung. The face-to-face IOSM aimed to accelerate Malaysia’s smart factory transformation by learning from the ROC’s successful policies and best practices in digital transformation and smart manufacturing. The IOSM was attended by 37 participants, including representatives from the Malaysia Productivity Corporation (MPC) and manufacturing and service enterprises. The study mission facilitated knowledge exchange and networking opportunities between the two APO members.

The launch of Malaysia’s Industry4WRD national policy in 2018 was a significant step toward positioning the country as a hub for high-tech industries in the Asia-Pacific region. However, according to the IMD World Digital Competitiveness Ranking 2021, Malaysia’s digital technology adoption lagged behind that of the ROC, with the country ranking 27th while the ROC secured the 8th position. To bridge this gap, the IOSM provided a platform for Malaysia to observe and understand the ROC’s smart factory transformation policies and strategies. The knowledge-sharing and experiential approach of the IOSM also demonstrated a promising pathway for Malaysia to make significant strides in its Industry 4.0 journey.

During the IOSM, participants visited prominent organizations in Taichung, such as the CPC, Digiwin Software Co., Ltd. at Taichung Software Park, Rui Chen Limited Company., Shin-Yain Industrial Co., Ltd., and Pacific Cycles. Discussions centered around digital transformation and smart manufacturing policies, and productive business and networking sessions were conducted between mission participants and site visit hosts. By gaining insights and learning from successful ROC enterprises, Malaysia aims to enhance its capacity and productivity, ultimately fostering collaborative networks and business opportunities within its own manufacturing sector.