The Future Of Manufacturing: Technology Trends For 2025 And Beyond

1. The manufacturing sector is undergoing a technological and sustainable revolution. Industry 4.0 technologies like AI, IoT, and digital twins are enhancing efficiency, resource optimization, and eco-friendly practices. 

2. By 2025, software innovations will focus on carbon neutrality, energy efficiency, and cloud solutions, significantly reducing environmental impacts. AI drives smart production, while IoT transforms production lines into intelligent systems. 

3. Decentralized manufacturing and microfactories increase supply chain agility, despite challenges. The electrification of vehicle fleets and the integration of digital ecosystems in cars highlight mobility sector trends. However, manufacturers must address cybersecurity and balance cost-efficiency with innovation to adapt to global challenges

4. Here are FORBES and Forrester’s prediction for manufacturing in 2025 

UAE Sees 33% Surge in Greenfield FDI Capital Inflows in 2023 and takes second place globally in new FDI projects at 1,323

1. The UAE ranked second globally in greenfield FDI projects in 2023, with 1,323 project announcements, showing a 33% rise compared to 2022, according to the UNCTAD 2024 World Investment Report.

2. FDI inflows into the UAE reached $30.688 billion in 2023, marking a 35% year-on-year increase, while FDI outflows decreased to $22.328 billion.

3. Key sectors driving the growth of greenfield investments included business services, software, and IT, contributing to a 7.5% rise in jobs and a 37% increase in capital inflows, according to UAE Ministry of Investment officials.

Sino-EU cooperation

1. The European Union's competitiveness report released by Mario Draghi, a former European Central Bank chief.

2. The report, in a way, is an acknowledgement of China's phenomenal transformation over the past decade toward a more sustainable and innovation-driven economy. The sheer fact that China is mentioned many times in the report and that the EU now sees a huge gap not just with the United States but also with China is telling, especially because many Europeans still see China as a country providing cheap labor — although that is no longer true, according to the Draghi report.

3. A decade ago, when China announced its strategic shift, from investment-driven quantitative economic growth to innovation-led high-quality development, not many people took it seriously. Today, China has become a global leader in research and development, renewable energy including solar and wind energy, and electric vehicles (EVs).

4. China is catching up fast with the industrialized world, partly by learning from the EU and other developed economies, but more importantly through massive investments in R&D. Who would have thought just a decade ago that China's robot density would rank fifth in the world, trailing South Korea, Singapore, Germany and Japan but ahead of the US and the average EU member state?

Southeast Asia to outpace China's GDP growth and foreign investment

1. Southeast Asia is likely to outpace China’s economic growth and inflow of foreign direct investments over the next ten years, a new study led by a Singapore-based think tank showed, as the region benefits from growing demographics and a global supply chain shift.

2. The Southeast Asia Outlook 2024–2034 report, which was released on August 1 by Angsana Council, US consultancy Bain & Company, and Singapore’s DBS Bank, projected the gross domestic product of six regional economies: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

3. According to the study, GDP for the six key economies is expected to increase by an average of 5.1% annually until 2034, outpacing China’s projected growth of 3.5–4.5%.

4. By country, Vietnam is expected to lead with 6.6%, followed by the Philippines with 6.1%, while Singapore—the slowest among the six—is expected to manage 2.5%.

Fastest-growing countries in Southeast Asia and FDIs Embracing Innovative Technologies

1. A report titled "Navigating high winds: Southeast Asia Outlook 2024-34" was released on August 1, compiled by the Development Bank of Singapore, consulting firm Bain & Company, and Angsana Council.

2. The report forecasts the expected growth of the six largest Southeast Asian economies of Vietnam, Singapore, Malaysia, the Philippines, Indonesia, and Thailand.

3. According to the report, over the next decade, Southeast Asia will likely grow faster than the previous decade, with higher GDP growth and higher total foreign direct investment (FDI) than China. Southeast Asia’s growth will be driven by stronger domestic economies and a resurgence in investment catalysed by China + 1 supply chain shifts.

4. Specifically, Southeast Asia is predicted to grow GDP by 5.1 per cent, on average, in the next decade. Vietnam and the Philippines are expected to be the faster-growing countries, with Vietnam remaining in front.

5. "Vietnam is forecast to maintain a GDP growth rate of 6.6 per cent in the 2024-2034 period and its export-oriented economy is well-positioned to capture China + 1 opportunities," the report said. "The country also boasts a highly diverse source of FDI, productive interprovincial competition, and high-quality workforce and education levels."

6. To grow faster than the forecasts, Southeast Asia should invest in new growth sectors, foster tech-enabled disruptors, expand capital markets’ breadth and depth, and accelerate the green transition, the report added. The region should also commit to growth-friendly multilateral initiatives, including the Regional Comprehensive Economic Partnership, the Belt and Road Initiative, and a transnational electricity grid.

Malaysia's industrial output up 5pct in June

1. Industrial output rose 5.0% compared to the same month of the previous year in June, which followed May’s 2.4% increase. The notable pickup was partly driven by faster growth in manufacturing output. In addition, mining and quarrying output rebounded.

2. As a result, the trend improved sizably, with the annual average growth of industrial production coming in at 2.0%, up from May’s 1.4% reading.

3. On a monthly basis, industrial output increased 0.7% in seasonally adjusted terms in June, which was below May’s 1.7% expansion.

Malaysia's industrial output grows faster-than-expected in March, May 2024 official data shows

 1. Malaysia’s industrial output rose at a faster-than-expected pace in March from a year earlier with the manufacturing sector leading broad gains, the Department of Statistics Malaysia (DOSM) said.

2. The industrial production index — which measures output from factories, mines, and power plants — climbed 2.4% in March compared to the same month in 2023. That was better than the median 1.9% increase predicted in a Bloomberg survey but slower than February’s 3.1% year-on-year growth.

3. On a month-on-month basis, the index rebounded 7.5% in March from February’s decline of 6.3%.

4. The latest reading dovetails with modest improvement in factory output in major exporters China, South Korea, Vietnam and Taiwan over the same month. However, industrial production fell in Singapore while that of the US, Japan, and Thailand declined further in March.

3 common barriers to AI adoption and how to overcome them

 1. There’s a growing consensus about the need for businesses to embrace AI. McKinsey estimated that generative AI could add between $2.6 to $4.4 trillion in value annually, and Deloitte’s “State of AI in the Enterprise” report found that 94% of surveyed executives “agree that AI will transform their industry over the next five years.” The technology is here, it’s powerful, and innovators are finding new use cases for it every day. 

2. But despite its strategic importance, many companies are struggling to make progress on their AI agendas. Indeed, in that same report, Deloitte estimated that 74% of companies weren’t capturing sufficient value from their AI initiatives.

3. Nevertheless, companies sitting on the sidelines can’t afford to wait any longer. As reported by Bain & Company, a “larger wedge” is being driven “between those organizations that have a plan [for AI] and those that don’t—amplifying advantage and placing early adopters into stronger positions.”

4. So, what’s holding companies back from capturing AI’s value? While there are plenty of barriers to AI adoption, from our experience, three tend to be the most common causes for concern. Here’s what those barriers entail, and why leveraging automation as the ‘muscle’ that allows you to operationalize the ‘brain’ of AI is the most effective approach to realize value from the technology.

Georgia FDI drops by 24% in 2023; Foreign investors losing interest

1. Foreign direct investment (FDI) in Georgia reached $1.59bn (La4.22bn) in 2023, dropping by 24% following a year in which the country recorded more than $2bn in inflows.

2. FDI in Georgia reached $1.59bn in 2023, data gathered by the National Statistics Office of Georgia shows.

3. The number is 24% lower than the previous year when the country recorded slightly more than $2bn in total inflows.

Thailand releases draft Top-up Tax Act to implement the global minimum tax rules under BEPS 2.0 Pillar Two

1. On 1 March 2024, the Thai Revenue Department released a draft legislation for an adoption of the Global Anti-Base Erosion Rules (GloBE rules) in Thailand, aligning with the Organisation for Economic Co-operation and Development's (OECD) Base Erosion and Profit Shifting (BEPS) 2.0 Pillar Two project. The draft legislation was open for a public consultation from 1 March 2024 to 15 March 2024.

2. This draft legislation is a response to the Cabinet's resolution on 7 March 2023 to collect the Top-up Tax in Thailand for in-scope multinational enterprises (MNEs). The Cabinet assigned the Thai Revenue Department with drafting the associated regulations and guidelines. (For background, see EY Global Tax Alert, Thailand plans to implement global minimum tax rules under OECD BEPS 2.0 Pillar Two, 10 March 2023.)

Manufacturing Trends and Predictions in 2024

Below are manufacturing predictions and trends from Opentext, Oracle and, Advanced Technology Services (ATS) for 2024.

Future of SME Business: Smart Technology and Industry 4.0

1. It may seem at first that industry 4.0 is something that only benefits enterprises and large companies that have facilities scattered throughout geographic regions, dozens of departments, and generally large and complex operations. However, this is not the case.

2. Even tiny businesses can benefit from what industry 4.0 has to offer. By using the cloud to process and store information more efficiently or by using various other new technologies to improve the way they design, build and deliver their products and services, they boost their efficiency and become more relevant.

3. Just like with previous industrial revolutions, it may take some time before the benefits reach every corner of the business sphere. But even in the present moment, small businesses are experiencing the benefits of industry 4.0.

4. They can now compete with large enterprises in ways that would have never been thought possible a few decades ago.

Opportunities and Challenges of Global Minimum Tax Implementation

1. The emerging idea of global minimum tax is inseparable from the challenges faced by tax jurisdictions in the digital economy. In the era of digitalization, MNEs can conduct business activities anywhere and anytime without being limited by country barriers. Unfortunately, it is difficult for taxation authorities to prevent harmful tax avoidance through profit shifting on cross-border transactions. Thus, MNEs freely try to shift their profits in low-tariff countries. Therefore, in order to prevent profit shifting, the OECD published the BEPS Action Plan in 2013 which was later reduced to pillar two of the Global Anti Base Erosion (OECD, 2021).

2. In addition, one of the objectives of implementing a global minimum tax is to prevent tax incentive wars to attract investment. It must be recognized that fiscal incentives have a significant role in attracting FDI (Foreign Direct Investment). Various studies show that tax incentives in the form of tax holidays and tax allowances have a significant influence in attracting FDI in Indonesia. Sari et al (2015), for example, found that tax holidays have an impact on increasing investment activity in Indonesia. On the other hand, Pratiwi and Khoinurrofik (2023) argue that the effective tax rate has a significant impact on fixed asset investment. That is, the lower the effective tax rate, the higher the level of investment in fixed assets. However, unhealthy competition between jurisdictions in providing fiscal incentives makes MNEs easily shift their profits (race to the bottom).

Investment Promotion Agency Qatar (Invest Qatar)'s Strategies

1. Significant investments in transport infrastructure projects, such as Hamad International Airport, Hamad Port and Doha Metro, form a crucial part of Qatar's strategy. The emphasis on human capital development through initiatives like Education City and strategic partnerships with international universities highlights the nation's commitment to nurturing talent. Additionally, regulatory reforms, including the liberalisation of foreign ownership laws and progressive visa policies, contribute to making Qatar an attractive destination for skilled professionals.

2. Public-Private Partnerships (PPPs) are identified as a cornerstone of Qatar's economic diversification efforts, fostering a business ecosystem that prioritises productivity, competitiveness and private sector-led growth. The May 2020 PPP law is underscored as a significant milestone, providing investors with confidence and predictability. Diverse sectors, including education, health care, real estate, tourism and energy, present promising opportunities for collaboration.

3. Collaborations with global tech giants, such as Microsoft and Google, showcase the country's favourable investment climate and growth potential. Ongoing partnerships to develop innovation centres reinforce Qatar's dedication to advancing key sectors like energy, health care and transport.

Storing hydrogen from renewable energy and solving the problem through reticular chemistry

1. Few chemicals carry as much hope and aspiration as hydrogen. Over the last few years, the first element in the periodic table has gone from a global buzzword to one of the most promising routes to decarbonizing industry, power generation and transport.

2. As production of the gas using low-carbon resources ramps up around the globe, the vision of a green hydrogen-powered economy faces a number of challenges. Alongside scaling production and lowering costs, one of the biggest challenges is hydrogen storage.

WHY IS HYDROGEN ENERGY STORAGE VITAL?

1. Hydrogen has the potential to address two major challenges in the global drive to achieve net zero emissions by 2050. First, it can help tackle the perennial issue of the intermittency of renewable energy sources such as wind and solar. By converting excess power generated on windy or sunny days into hydrogen, the gas can store renewable energy that can then be dispatched at times of peak demand as a clean fuel source for power generation. Second, hydrogen can replace fossil fuels to decarbonize sectors where electrification alone won’t suffice, such as domestic heating, industry, shipping and aviation.

2. The hitch is that, while an excellent medium for renewable energy storage, hydrogen itself is hard to store.

3. This is because it has a low volumetric energy density compared to other gases — such as natural gas — meaning it takes up significantly more space. Also, hydrogen has a boiling point close to absolute zero and requires cryogenic storage. And while it does not typically corrode storage containers, it can cause cracks in metals under certain conditions.

4. Here are four hydrogen storage solutions that could help address these challenges, as mapped out by Hydrogen Europe.

3 Cybersecurity Issues Manufacturers Can Solve with AI

1. AI has led to some massive changes in many different industries. The manufacturing industry is among those most affected by the changes it has created.

2. Manufacturers are projected to spend $2.3 billion on AI technology this year. While this figure might not seem significant, it is growing at a rate of 47.9% a year through 2027.

3. One of the biggest reasons that the manufacturing sector is investing more heavily in AI is to take advantage of the cybersecurity benefits it offers.

4. Manufacturers are among the biggest targets of cybercriminals. In 2021, over 40% of manufacturers experienced a cyberattack. That figure is likely to increase in the coming years, so they must use all resources at their disposal to combat them.

5. Therefore, using AI-driven cybersecurity strategies will be more important than ever.

6. Technological advancements and innovation have helped manufacturing industries to grow exponentially in the past few years. Companies are no longer limited to using old and offline trends. They are now making significant shifts to online activities. Unfortunately, this has also led to increasing incidences of cyber-attacks.

7. Manufacturers should be aware of the different cybersecurity threats the industry faces today. They must also develop effective solutions to address these threats and minimize risks, which includes using AI to its full potential.

8. Here are three cyber security issues in manufacture you should know, which can be addressed with AI technology.

Encouraging Local Businesses to Embrace Technology

1. Encouraging local businesses to adopt your technology can be a challenging task. However, by understanding their pain points, offering personalized support, and highlighting the benefits of your solution, you can increase the chances of successful adoption. 

2. Start by identifying the specific challenges faced by local businesses in your industry and tailor your approach to address their unique needs. Provide personalized support through various channels, such as phone, email, or in-person meetings, to help them overcome any obstacles they may face. 

3. Additionally, emphasize the benefits of your technology, such as increased efficiency, cost savings, and improved customer relationships, to demonstrate its value to their business.

Thai manufacturing sector shrinks for 5th month amid ASEAN slowdown

1. The purchasing managers' Index (PMI) for the ASEAN region fell for the third straight month in December, dropping 0.3 points from November to 49.7.

2. The fall reflected a rapid decline in new orders, to the lowest level in 28 months. This led to a decrease in new export orders and weakened overall output, marking the slowest growth in the manufacturing sector in 27 months.

How can Small Businesses Benefit from Industry 4.0

1. You might think that Industry 4.0 only applies to large-scale industries, but many benefits also apply to SMEs, including increased efficiency and productivity, giving you greater business flexibility. This leads to enhanced profitability and better customer satisfaction. 

2. Industry 4.0 technologies provide you with more and better information to improve decision-making in your business. You'll find out how to optimise your organisational processes so that you'll save time and resources. In doing so, you'll deliver more services or products quickly and cost-effectively. It's a win-win situation.

RAMI 4.0 Reference Architectural Model for Industrie 4.0

1. The RAMI 4.0, Reference Architecture Model Industrie 4.0 (Industry 4.0), was developed by the German Electrical and Electronic Manufacturers' Association (ZVEI) to support Industry 4.0 initiatives, which are gaining broad acceptance throughout the world. 

2. Industry 4.0 (also termed Industrie 4.0) is a holistic view of manufacturing enterprises, started in Germany, with many worldwide cooperative efforts including China, Japan, and India. Industry 4.0 concepts, structure, and methods are being adopted worldwide to modernize manufacturing.