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* Atleast Project Title is Required.
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Project No. |
PPSTI_108_2024A
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Project Title |
Application of Generative Artificial Intelligence to Accelerate Industry 4.0 Transformation in Micro, Small, and Medium Enterprises
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Project Status |
Project in Implementation
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Publication (if any) |
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Fund Account |
APEC Support Fund
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Sub-fund |
ASF: General Fund
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Project Year |
2024
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Project Session |
Session 1
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APEC Funding |
120,000
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Co-funding Amount |
0
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Total Project Value |
120,000
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Sponsoring Forum |
APEC Policy Partnership on Science, Technology and Innovation (PPSTI)
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Topics |
Science and Technology; Digital Economy
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Committee |
SOM Steering Committee on Economic and Technical Cooperation (SCE)
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Other Fora Involved |
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Other Non-APEC Stakeholders Involved |
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Proposing Economy(ies) |
Malaysia
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Co-Sponsoring Economies |
Chile; China; Chinese Taipei; Thailand
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Expected Start Date |
01/08/2024
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Expected Completion Date |
21/12/2025
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Project Proponent Name 1 |
Yau Kok Lim
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Job Title 1 |
Professor
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Organization 1 |
Universiti Tunku Abdul Rahman (UTAR)
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Postal Address 1 |
Not Applicable
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Telephone 1 |
60182181860
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Fax 1 |
Not Applicable
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Email 1 |
yaukl@utar.edu.my / kok.lim@hotmail.com
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Project Proponent Name 2 |
Not Applicable
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Job Title 2 |
Not Applicable
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Organization 2 |
Not Applicable
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Postal Address 2 |
Not Applicable
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Telephone 2 |
Not Applicable
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Fax 2 |
Not Applicable
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Email 2 |
Not Applicable
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Declaration |
Yau Kok Lim
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Project Summary |
Industry 4.0 integrates technologies, including artificial intelligence, into industrial operations to improve efficiency, flexibility, and productivity. Generative artificial intelligence (GAI), which uses limited real content to generate synthetic content, has recently gained significant attention. This project addresses issues of integrating GAI into Industry 4.0: a) how do micro, small, and medium enterprises (MSMEs) with limited resources adopt GAI, particularly in product design, content creation, manufacturing process optimization, and solution recommendation, and how do they benefit from it?; and b) what are the security and ethical concerns, and how can we address them? The project collaborates with other fora and hosts an on-site seminar for experts and the public to share approaches, best practices, success stories, and policies. The outcomes are policy recommendations and tools for using GAI to accelerate Industry 4.0 transformation in APEC economies.
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Relevance |
RegionIndustry 4.0 integrates advanced digital technologies, including artificial intelligence, big data, and robotics, into traditional industry operations, such as smart factories and predictive maintenance, to improve their efficiency, flexibility, and productivity. The Industry 4.0 paradigm saw a refreshed focus among the APEC economies with the Symposium and Workshop on Technology Roadmaps to Promote Industry 4.0 in Developing APEC Economies held in June 2021. Further, the publication of Industry 4.0: Enabling Technologies and Inclusive Digitization for Post-COVID-19 Economic Recovery in APEC Value Chains was made available in September 2022. Generative artificial intelligence (GAI) extracts characteristics and patterns from real content to generate synthetic content. Various initiatives have been actively promoting GAI among APEC economies, explaining the significant interest in this topic among APEC member economies, including: a) the Generative AI, The City of Firsts showcased during APEC 2023 in San Francisco, United States, held in November 2023; b) the Digital Trade Policy Dialogue on Digital Trade and the Future of Work – Generative Artificial Intelligence convened in Seattle, United States, in August 2023; and c) discussions at meetings organized by the APEC Business Advisory Council that took place in Cebu, the Philippines, in July 2023, and later in San Francisco, United States, in November 2023. While discussions on Industry 4.0 and GAI have occurred independently, there has been limited progress in integrating GAI into Industry 4.0, particularly in the four main stages of the product development lifecycle: a) manufacturing process optimization; b) product design; c) content creation; and d) solution recommendation. These interconnected stages play pivotal roles from conceptualization to market launch in the product development lifecycle. Effective coordination and integration of these stages, which built upon the others through feedback loops and iterations, are instrumental in refining and improving the final product, meeting customer expectations, and driving business success among micro, small, and medium enterprises (MSMEs). Despite the lack of clarity revolving around GAI in Industry 4.0, various APEC publications (e.g., 2023/SOM3/CTI/DIA1/005) have highlighted its immense potential. There is a pressing need for policy and tool recommendations to integrate GAI into MSMEs with limited resources seeking guidance on GAI adoption and ways to benefit from it. The tools aim to achieve specific policy objectives, encompassing various elements, such as laws and regulations (e.g., addressing security and ethical requirements, and ensuring compliance), funding and incentive mechanisms (e.g., grants, subsidies, tax incentives, loans, and rebates), educational programs (e.g., training and certification programs, awareness campaigns, and workshops), technological solutions (e.g., infrastructure development, data sharing platforms, and testbeds), and so on. Both government and industries are keen to know insights into the security and ethical concerns associated with GAI, along with novel ideas, best practices, case studies, technology leverages, and potential use cases for effectively addressing these concerns in MSMEs. Nevertheless, there are significant challenges for both governments and industries to keep pace with technological advances and come up with consistent and well-coordinated efforts in policy formulation without impeding innovation. Meanwhile, stringent policies can hinder innovation, causing economic inefficiencies and losses. Eligibility and Fund PrioritiesFirst, this project provides science, technology, and innovation (STI) policy recommendations and tools for the use of generative artificial intelligence (GAI) for improving efficiency, flexibility, and productivity. GAI is a hot topic among APEC economies, and it was discussed in Digital Trade and the Future of Work – Generative Artificial Intelligence (2023/SOM3/CTI/DIA1/005) during the Digital Trade Policy Dialogue in the United States in August 2023, and the APEC Business Advisory Council (ABAC) meeting in Cebu, the Philippines in July 2023, and later in San Francisco, United States in November 2023. Second, this project carries out activities in line with the economic driver of innovation and digitalization in the Putrajaya Vision 2040 and the Aotearoa Plan of Action. Third, this project carries out capacity-building and knowledge- sharing activities focusing on the exchange of novel ideas, best practices, case studies, technology leverages, and potential use cases, among stakeholders, including government, private sector, academia, and the public. The activities seek technological solutions for the opportunities and challenges of GAI in the Industry 4.0 context. Fourth, this project creates an STI network that strengthens connectivity and cooperation among APEC economies in using and integrating GAI into Industry 4.0 in an inclusive manner with the involvement of micro, small, and medium enterprises, while establishing and maintaining rigorous security and ethical standards. Capacity BuildingThis project serves as a knowledge-sharing and dissemination platform for using and integrating generative artificial intelligence (GAI) into Industry 4.0 in an inclusive manner. It builds APEC economies’ capacity to explore and exploit science, technology, and innovation (STI) in the development of GAI in the four main areas of focus in Industry 4.0, namely manufacturing process optimization, product design, content creation, and solution recommendation. APEC stakeholders and experts from the government, private sector, academia, and the public exchange novel concepts and ideas, best practices, case studies, technology leverages, and potential use cases to develop and adopt GAI in Industry 4.0, contributing to improved efficiency, flexibility, and productivity for a sustainable future. Upon the completion of this project, the STI network created from this project allows APEC economies to maintain their connectivity and cooperation to develop and deploy GAI in Industry 4.0 of their respective contexts. |
Objectives |
This project is aimed at proposing policies and tools that facilitate the application and integration of Generative Artificial Intelligence (GAI) into the Industry 4.0 landscape in micro, small, and medium enterprises, ensuring inclusivity while addressing security and ethical issues. One on-site seminar is held for experts and the public to share and disseminate knowledge, so it creates an STI network that strengthens connectivity among APEC economies to enhance their capability in developing and deploying GAI in Industry 4.0. This project supports the Putrajaya Vision 2040, Aotearoa Plan of Action, and PPSTI Strategic Plan for 2016-2025.
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Alignment |
APEC
This project proposes science-based recommendations on policies and tools for integrating generative artificial intelligence (GAI) into Industry 4.0. GAI is a destructive technology with a significant impact on the industry and workforce. GAI has great potential in advancing the second priority area of APEC 2024, namely innovation and digitalization to promote transition to the formal and global economy. By identifying ways to develop and integrate GAI into new and existing Industry 4.0 ecosystems to improve efficiency, flexibility, and productivity in an inclusive manner, establish and maintain rigorous security and ethical standards, this project addresses key concerns of GAI raised during the APEC Business Advisory Council (ABAC) meeting in the Philippines in July 2023, particularly ethical governance, responsible development and workforce impacts, along with potential economic and productivity gain(1) [sic]. This project also serves the Putrajaya Vision 2040 and the Aotearoa Plan of Action by supporting innovation and digitalisation. This project promotes a collaborative effort among APEC economies to accelerate the incorporation of GAI in new and existing Industry 4.0 ecosystems through technology and innovation.
Forum
Providing science-based recommendations on policies and tools for integrating generative artificial intelligence (GAI) into Industry 4.0 aligns with the PPSTI 2024 theme, namely empowering innovation and digitalization for inclusive, sustainable, and resilient economic growth, particularly as we focus on inclusivity (i.e., enabling micro, small, and medium enterprises (MSMEs) with limited resources to adopt GAI), security, and ethics. The project also aligns with the PPSTI 2024 priorities as we explore GAI, which is a disruptive and emerging technology, for the role that it plays in supporting sustainable resilience and recovery solutions by improving the efficiency, flexibility, and productivity of industrial operations, contributing to a sustainable future among APEC economies. This project also aligns with one of the pillars of the PPSTI Strategic Plan for 2016-2025, namely enhancing regional science and technology connectivity through our foci in GAI and Industry 4.0.
(1) https://www.apec.org/press/news-releases/2023/abac3_2023 |
TILF/ASF Justification |
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Beneficiaries and Outputs |
Outputs
1) Research and Background Paper
The research and background paper of at least 30 pages excluding annexes presents primary information (stakeholders' inputs) and secondary information (i.e., literature review). The information is gathered, and it includes the current status and common interests/ agendas of APEC economies regarding the use of generative artificial intelligence (GAI) and their concerns (i.e., security and ethics) among micro, small, and medium enterprises. The results of the paper provide background information for the on-site seminar, providing awareness and improving the effectiveness of discussions. The contents of the paper include novel ideas, best practices, case studies, technology leverages, potential use cases, and also opportunities, challenges, and technological solutions. The primary information is gathered through a questionnaire, which is designed and distributed among PPSTI members. The PPSTI members' inputs are gathered to explore and identify areas of common interest and agendas on this topic. The research and background paper contains the following sections:
I. Executive summary
II. Literature review
III. Analysis of questionnaire outcomes
VI. Open questions
V. Conclusions The open questions section summarizes the items for discussions during the discussion sessions of the on-site seminar. The paper will be shared during the seminar.
2) On-Site Seminar
One two-day on-site seminar will be hosted in the Klang Valley. The seminar will be from 9:00am to 5:00pm. The seminar includes talks and discussions for knowledge sharing/ dissemination. Six experts well-versed in areas related to generative artificial intelligence (GAI) and Industry 4.0 are invited to give talks and participate in discussions. Estimated number of participants is 80. All talks and discussion sessions are attended by stakeholders, including: a) the government which gathers, stores, and accesses data, and develops policy for promoting the use of GAI in industry 4.0; b) the private sector creates business models; c) academia uses data and investigates GAI and Industry 4.0 in research; and d) the public (including professional bodies such as IEEE and IET) proposes technical solutions and generates data. The discussions explore opportunities, technological solutions, and potential partnerships. Each day consists of four talks. One of the talks in each day presents key findings related to the theme of the day from the research and background paper. The first and second days consist of three and two discussion sessions, respectively. Overall, there are six (6) experts and five (5) moderators. Tentative agenda is as follows: Day 1: Generative Artificial Intelligece (GAI) for Industry 4.0 among Micro, Small, and Medium Enterprises (MSMEs) Sessions 1 to 4 (4 sessions, Morning): Findings related to this theme from the research and background paper will be presented. Three experts will be invited to talk on topics related to "Challenges of Industry 4.0 among MSMEs and How GAI can address them", focusing on novel ideas, best practices, case studies, technology leverages, potential use cases, and also opportunities, challenges, and technological solutions. Session 5 to 7 (3 sessions, Afternoon): At least two experts will be invited to each discussion sessions. Examples of topics include: a) Application of GAI for addressing challenges of process optimization, product design, content creation, and solution recommendation among MSMEs; b) Challenges of applying GAI in process optimization, product design, content creation, and solution recommendation in the local context of various economies and how to address them; and c) Novel ideas, best practices, technology leverage and solutions, and potential use cases of GAI in Industry 4.0 among MSMEs. DAY 2: Ethics and Security in the Application of GAI for Industry 4.0 among MSMEs Sessions 1 to 4 (4 sessions, Morning): Findings related to this theme from the research and background paper will be presented. Three experts will be invited to talk on topics related to the theme, focusing on novel ideas, best practices, case studies, technology leverages, potential use cases, and also opportunities, challenges, and technological solutions. Session 5 to 6 (2 sessions, Afternoon): At least three experts will be invited to each discussion sessions. Examples of topics include: a) Security issues (e.g., data privacy and intellectual property infringement) in the application of GAI for Industry 4.0 among MSMEs; and b) How to address the shortcomings of GAI, such as generating inappropriate text (e.g., racist and culturally insensitive) and images (e.g., deep-fake images). Session 7 (1 wrap-up session, Afternoon): Stakeholders share what they have gained and how they plan to apply what they have gained. Session 8 (10 minutes): Post-seminar survey will be disseminated and collected on-site. The seminar report will have a minimum of 30 pages (excluding annexes), covering the topics and themes covered during the seminar and key findings, including novel ideas, best practices, case studies, technology leverages, potential use cases, and also opportunities, challenges, and technological solutions.
3) Project Summary Report for Policy Recommendations and Tools
The project summary report, with a minimum of 30 pages (excluding annexes), will be finalized for endorsement. The report covers the background and key findings from: a) the research and background paper; b) the talks; and c) the discussion sessions. The electronic version of the report can be published on the APEC website as an APEC publication with approval from APEC secretariat. The report contains the following sections: I. Executive summary
II. Findings of research and background paper
III. Summaries of talks
IV. Findings of Discussion Sessions
V. Lessons learned and tool recommendations for APEC economies
VI. Conclusions Sections II, III and IV presents novel ideas, best practices, case studies, technology leverages, potential use cases, and also opportunities, challenges, and technological solutions. In Section V, tools aimed to achieve specific policy objectives are presented, encompassing various elements, such as laws and regulations (e.g., addressing security and ethical requirements, and ensuring compliance), funding and incentive mechanisms (e.g., grants, subsidies, tax incentives, loans, and rebates), educational programs (e.g., training and certification programs, awareness campaigns, and workshops), technological solutions (e.g., infrastructure development, data sharing platforms, and testbeds), and so on. So, the report serves as a guide for APEC economies to introduce best policies promoting the use of GAI in Industry 4.0 among MSMEs.
Outcomes
1) Improve knowledge on this topic among APEC economies through exchanges of novel ideas, best practices, case studies, technology leverages, potential use cases, and also opportunities, challenges, and technological solutions. This will be measured in the post-seminar survey.
2) Increase confidence in adopting recommended tools aimed at promoting the adoption of generative artificial intelligence (GAI) in Industry 4.0 among micro, small, and medium enterprises (MSMEs), encompassing laws and regulations, incentive mechanisms, educational programs, and technological solutions. This will be measured in the post-seminar survey.
3) Strengthen collaboration among APEC economies, enabling them to apply new knowledge in their respective economies. This will be measured in the post-seminar survey.
Beneficiaries
The program of this project is open to all APEC economies. Direct beneficiaries include the following: a) government representatives including policy makers and managers from ministries and agencies (e.g., Ministry of Science, Technology and Innovation (MOSTI), Ministry of Digital, Malaysia Digital Economy Corporation (MDEC), Malaysian Research Accelerator for Technology & Innovation (MRANTI), Malaysian Technology Development Corporation (MTDC), and SME Corporation Malaysia (SME Corp)). Government representatives can benefit from developing and implementing policies to promote the adoption of GAI within Industry 4.0. b) the MSME private sector representatives, including technical and non-technical professionals at strategic and managerial levels with at least five years of experience from non-governmental organizations and associations (e.g., SME Association of Malaysia, Small and Medium Entreprises Association (SAMENTA), National Chamber of Commerce and Industry of Malaysia, Malaysian Autonomous Intelligence & Robotics Association (MyAIRA), and Girls in Tech - Kuala Lumpur). These organizations and associations represent diverse industries, such as advanced manufacturing, healthcare, agriculture, logistic and supply chain, energy, retail, construction, automotive, financial services, food and beverage, telecommunications, and education and training. The MSME private sector can gain from recommendations, tools, and know-how related to the application of GAI in Industry 4.0 to enhance efficiency, flexibility, and productivity. c) academia and researchers from universities and R&D institutions (e.g., Malaysian Institute of Microelectronic Systems (MIMOS), Institute of Electrical and Electronics Engineers (IEEE), and Institution of Engineering and Technology (IET)) working on two main domains, including Business (e.g., research on the adoption of GAI and Industry 4.0 in MSMEs), and Computing and Engineering (e.g., research on GAI and Industry 4.0). Academics and researchers can gain from science, technology, and innovation (STI)-related research directions of this multidisciplinary topic. Academics can also enhance their curricula to better prepare students for advanced industrial operations and emerging technologies. All direct beneficiaries are individuals or entities from APEC economies. Policy Partnership on Science, Technology and Innovation (PPSTI) and other APEC fora, such as Digital Economy Steering Group (DESG), Telecommunications and Information Working Group (TELWG), and Small and Medium Enterprises Working Group (SMEWG) are invited as direct beneficiaries. It is expected that at least 50% of the direct beneficiaries will be women. Secondary beneficiaries include APEC economies that, while not directly participating in the on-site seminar, can still gain insights from the Project Summary Report to stay informed about this topic. |
Dissemination |
1. The project summary report can be shared as the APEC publication through the APEC website. 2. Experts and participants invited to the on-site seminar are encouraged to promote the findings. 3. The research and background paper and the project summary report will be shared with experts, participants, and interested parties through email. Diversified participants, including government ministries and agencies, private sectors, academia, and the public (e.g., NGO and technical societies such as IEEE and IET). |
Gender |
Please see Project Proposal in Supporting Documents folder. |
Work Plan |
Please see Project Proposal in Supporting Documents folder.
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Risks |
Please see Project Proposal in Supporting Documents folder.
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Monitoring and Evaluation |
Please see Project Proposal in Supporting Documents folder.
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Linkages |
This Policy Partnership on Science, Technology and Innovation (PPSTI) project engages with APEC fora and non-APEC economies to promote the integration and adoption of generative artificial intelligence (GAI) in Industry 4.0, ensuring accessibility for all enterprises including micro, small, and medium enterprises (MSMEs) with limited resources while considering security and ethics. This project works with the PPSTI, as well as Digital Economy Steering Group (DESG) and Telecommunications and Information Working Group (TELWG) in the areas of security and ethical standards, and Small and Medium Enterprises Working Group (SMEWG) in the adoption of GAI in MSMEs. The non-APEC economies, including the G7 digital and tech working group, contribute by leveraging their best practices, success stories, and policies to benefit MSMEs in APEC economies, while considering security and ethics. The engagements provide recommendations that advocate for tools and policies to incorporate and utilize GAI in existing Industry 4.0 ecosystems to enhance efficiency, flexibility, and productivity in an inclusive manner, establish and maintain rigorious security and ethical standards. Hence, this project contributes to sustainable development goals, namely SDG9 (Industry, Innovation and Infrastructure), SDG12 (Responsible Consumption and Production), and SDG17 (Partnership for the Goals).
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Sustainability |
1. A science, technology, and innovation (STI) network will be created, allowing APEC economies to maintain their connectivity and cooperation to develop and deploy generative artificial intelligence in Industry 4.0 of their respective contexts in home economies. 2. Project findings will be maintained and disseminated on the project website for a period of at least two years after project completion. 3. Project findings will be presented in related events. |
Project Overseers |
Yau Kok Lim received the B.Eng. degree in Electrical and Electronics (Honors) from the Universiti Teknologi Petronas, Malaysia, the M.Sc. (Electrical Engineering) from the National University of Singapore, and the Ph.D. (Network Engineering) from the Victoria University of Wellington, New Zealand in 2005, 2007 and 2010, respectively. He was awarded the 2007 Professional Engineer Board of Singapore Gold Medal for being the best graduate of the M.Sc. degree in 2006/07. He is currently a Professor with the Lee Kong Chian Faculty of Engineering and Science, Universiti Tunku Abdul Rahman, Malaysia. His research interests include applied artificial intelligence, applied generative artificial intelligence, augmented intelligence, wireless networks, and intelligent transportation systems. He serves as Technical Program Committee and Reviewer for various major international conferences including ICC, VTC, LCN, Globecom, AINA, etc. He was a Guest Editor for special issues in prestigious journals, including IEEE Computational Intelligence Magazine, IEEE Transactions on Green Communications and Networking, and IEEE Transactions on Emerging Topics in Computational Intelligence. He is a Founding Member of the IEEE Special Interest Group on Big Data with Computational Intelligence.
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Cost Efficiency |
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Drawdown Timetable |
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Direct Labour |
Please see Project Proposal in Supporting Documents folder. |
Waivers |
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Are there any supporting document attached? |
No
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Attachments
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