From AI and robots to big data and clean energy, disruptive technologies are rapidly redefining our daily lives, our businesses, our economies. And in our interconnected world, these deepening impacts of "Industry 4.0" should compel countries to prepare for the changes. Asean countries are advised to focus in particular on the new technologies related to digital economy. However, in order to do so successfully requires overcoming a few key challenges: ensuring that necessary regulation and public infrastructure is in place, developing human resources and intensifying mutual cooperation.
Industry 4.0 promises a revolutionary new paradigm for economic production that employs cyber-physical production systems including online networks of sensors, machines, workpieces and information technology systems that span entire value chains. These sophisticated new systems boost productivity and lead to levels of efficiency that were not imaginable just a couple of years ago. But these benefits also come at a cost from potential labour market disruption.