The rapid technological advancement has a vast impact on the industry contributed by the Industrial Revolution (IR) 4.0 with many developed countries either are in the midst or have applied IR 4.0. IR 4.0 is deemed as a method to simplify industrial control with various countries in the ASEAN region are exploring and penetrating the IR 4.0 or in other words known as 'Smart Factory'. A relative example is Indonesia and Malaysia. Indonesia and Malaysia have their comparative advantages and strategies to enter the smart factory. Statistics of the World Bank in 2018 shows that the economic added value from industrial activities in Indonesia contributed at 40.77% of the total value of GDP, while industrial activities in Malaysia accounted for 38.33% of the total value of GDP. This study will compare the readiness strategies between Indonesia and Malaysia to enter the Smart Factory in the aspects of human resources, technology, infrastructure, law, and government.

Keywords : Rapid Technology, Smart Factory, Comparative Advantages, Strategy