06 Oct A Dynamic Economy Begins with Good Economic Knowledge
By Dr. A. Sanmugam, Senior Lecturer, School of Business
The educational system is constantly evolving as it prepares the students to be informed citizens as well as preparing them to be productive in the global workforce. The education system accommodates multiple goals in providing resources so that students can continue to improvise until they revolutionize learning and teaching. The Industrial Revolution 4.0 (IR4.0) can be used to transform pedagogical and human infrastructures. Society needs to improve dramatically in order to support the complex working environment with exceptional capabilities and adaptability especially with the emergence of new technology. IR 4.0 can be a multiple provider of different learning practices and mechanisms in providing innovative skills such as innovation and creativity.
IR4.0 integrates industry through smart manufacturing and industrial internet that can affect entire industries through the transformation of goods, design, manufacturing, distribution and methods of payments. Business models can be significantly influenced by IR4.0 and economic knowledge can further explore the formation of innovative business models and in establishing product-oriented innovations and customer-driven products. Increased automated tasks will be introduced in IR4.0, and therefore, organisations and employees have to be prepared to perform innovative tasks.
Economic education trains and cultivates an in-depth knowledge regarding how legislators can have a powerful effect on the economy. Economic education is essential in understanding and evaluating the future shape of the country’s economy. This will enable students to construct practical ideas in helping them to build a sound financial future.
The importance of financial success needs to be emphasized so that students can achieve their financial aspirations. Financial security can provide a feeling of security as the financial resources can enable them to fulfil their needs and wants. With economic knowledge, students can understand the importance of debt, savings for the short and long term, building their future, investing in their goals, and insuring their future. Therefore, this can empower them with the necessary knowledge and tools that can be used successfully to improve their economic wellbeing. This optimism can strengthen the nation’s economy in the future.
Economists recognize the importance of basic economic and financial knowledge so that an informed citizen is able to make personal economic decisions. When consumers are able to create wealth, they will be able to build more economically stable communities. Knowledge is considered as power in accommodating the present competitive financial marketplaces. People are living in the era of communication revolution and it has overwhelmed them with additional information. The marketplace is now very complex. Therefore, having additional information can provide the necessary tools for people in responding to market fluctuations.
Some of the learning will be on creating an innovative workforce by focusing on economic perspectives, questions concerning government policies, global, regional, and investments in technology as well as innovative approaches in managing operations and processes. The current business environment has become increasingly complicated. Therefore, knowledge needs to be expanded and the education platform is crucial for students in serving different environments. Technological solutions need to be emphasized and with the incorporation of economic knowledge, skills of workers that are related to the concepts of digitalization and smart production can be realised.
The concepts of labour and capital substitution are processes that take place in all industries in reducing costs, and as such, economic theories are important in the implementation of innovative technology in enhancing productivity in order to facilitate customer solutions. Economic knowledge discusses the business and economic implications such as transformation in business processes, environment, digitalization, working ecosystem, skills development, intelligent engineering, policy changes, sustainability and economic growth.
Economy implications are crucial for businesses. Therefore, there is a need to analyse the impact to the relevant stakeholders so that they can prepare themselves to transform according to market needs. With IR4.0 in place, businesses need to engage in current trends of digitization and automation in order to be successful.
Every single human being in this world is a participant in the global economy, and today’s younger generation will face a plethora of possibilities in the future. It is our duty to provide the younger generation with the tools that they will need to ensure the achievement of their goals. As such, economic knowledge can provide the essential tools for them to make the best choices among the endless possibilities.