1.

0 INTRODUCTION

The fourth industrial revolution (4IR) is the fourth major industrial age since the start of the 18th
century Industrial Revolution. It is characterized by a technology fusion that blurred the lines
between the physical, digital and biological spheres and collectively called cyber-physical systems. It
is a transition that can be considered as an infinite opportunity to have billions of people connected
linked via mobile device and access to knowledge. New technology breakthroughs such as artificial
intelligences, robotics, 3D printing, nanotechnology and biotechnology were produced by fourth
industrial revolution. Changing Third Industry Revolution to Fourth Industry Revolution is not an easy
thing to do, a lot of things had to be considered, including the risk or impact that could cause the
industry problems. The impact of changing the industrial revolution can increase the average of
unemployment due to the displacements of employees by machines. Besides, workers will
experience a pervasive sense of dissatisfaction and unfairness of the economist not handling the
economy wisely. However, fourth industrial revolution also gives some impact to financial
institutions where their suppliers will have to invest far more in digital transformation which is
expensive as they have to increase their expenses in training their workers, as well as increased
utility expenses as they use more electricity to handle the machine. Financial institutions face
digitalization challenges such as expertise, technology, staff, and governance. Through shifting their
mindset, banks support open banking in the face of fintech competition.
2.0 LITERATURE REVIEW

The fourth industrial revolution is very different from the third Industrial revolution where during
the third revolution, the industry used electronics and information technology to automate
production. Now, in this 21stCentury the fourth industrial revolution takes the automation of
manufacturing processes to a new level by introducing customized and flexible mass production
technologies. The Artificial Intelligence such as Apple Siri and Google Brain is now developing faster
than we thought. From a survey that has been done, it shows that the implementation of 4IR is the
best platform to increase economic and profit of country widely. Government Initiatives to support
growth of Innovative SMEs by Existing Innovation Programmes for SMEs such as Commercialisation
Financing and Venture Capital Investment is the reason why the percentage GDP increase by year to
year. The industrial revolution 4.0 was a change driven by three components of main technologies
which are physical, digital and biological. Industry change is due to the discovery of new
technologies that driving force for change world. At present, the financial market and institutions is
still energy depend on humans. Therefore, to achieve Malaysia's readiness for the industrial
revolution 4.0, the financial industry needs to take some special steps. It's to ensure that the
financial industry in Malaysia is still competitive. However, in the face of the industrial revolution
4.0, it is certainly the financial construction will face the challenges. Therefore, it’s very important for
the financial industry to identify the challenges in Malaysia leading to industry revolution 4.0 and
figure out what steps should be taken. Financial markets and institutions industry is concerned about
requires knowledge and certain skills, requiring fast and efficient internet access and cost high
technical equipment. Furthermore, among the steps that can be taken by the financial industry in
Malaysia in defining industry revolution 4.0 provides skills training in handling new technologies,
mind-set among staff members on changes in skills and usage technology as well as gaining
government support in providing funds to employers in promoting the implementation of IR4.0.
Among other steps that can be taken by the financial industry on implementing the industrial
revolution 4.0 in economic terms is received government support. Government should providing
scheme such as grants to upgrade new technology facilities in financial institutions. This is because,
with the provision of grants it can provide support and encouragement to the financial industry in
carrying out the revolution industry 4.0. This fourth Industry Revolution shown us Fintech has
potentially enormous macroeconomic advantages through enhancing financial inclusion and crossing
over the financing gap, especially in developing markets.