The MIDA-MPMA conference on Government Assistance at MIDA’s headquarters aimed to provide insights to participants on various government policies, facilitations and assistance for the manufacturing sector specifically the plastics industry. As the plastics industry continues to grow, it is important that companies, particularly SMEs, focus on innovation and raise productivity to compete and capture new opportunities.
The initiative was co-organised by the Malaysian Investment Development Authority (MIDA) and the Malaysian Plastics Manufacturers Association (MPMA). MIDA’s Chief Executive Officer, in his keynote address, highlighted that the agency has proactively taken the initiative to ensure investors have the necessary access to the right infrastructure, proper facilities and skilled talent to cater to the requirements of businesses.
Among the initiatives and assistance provided by MIDA to manufacturers of plastics products include the Smart Automation Grant Industry4WRD Intervention Fund, Automation Capital Allowance (ACA) and Domestic Investment Coordination Platform (DICP). Besides innovation, companies have also adopted automation by leveraging on ACA to increase productivity and address challenges in a tight labour market, he said.
Malaysia is committed to achieving net zero carbon by 2050. For this, MIDA and MPMA are working closely together to drive industry collaboration and understand the demand and supply of recycled plastics resources.
Speaking at the opening of the Conference, the MPMA’s Vice-President stated that the plastics industry continues to face tremendous challenges including a shortage of labour, an increase in cost arising from the increase in minimum wages and rising interest rates as well as a slump in overseas demand, particularly, from the developed countries which are experiencing an economic slowdown.
Looking ahead, plastics manufacturers shifting towards high technologies and factory efficiency to reduce their dependency on foreign workers and low-skilled labour is unavoidable. Investing in the latest technology and human skills is one of the options for companies to continue to move up the value chain. The ability of the plastics industry to produce high-quality products at competitive prices will strengthen Malaysia’s role as a supporting industry, and in turn, attract more foreign direct investments.
As investing in high technology and automation is a long-term process and given the fact that 90% of plastics companies are SMEs, continued assistance and support from the government in the form of grants, incentives and financing is crucial. This will enable more plastics companies to have sufficient resources to invest in advanced machinery and new product development for sustainable growth.
The MIDA-MPMA Conference on Government Assistance featured sessions by speakers from MIDA, Inland Revenue Board of Malaysia (IRBM), Malaysian Industrial Development Finance Berhad (MIDF), Malaysia External Trade Development Corporation (MATRADE), Ministry of Science, Technology and Innovation (MOSTI), United Overseas Bank Limited and TalentCorp Malaysia.
Malaysian plastics products exhibited resilience through the pandemic and continue a steady growth due to their properties and functionality as one versatile material despite the COVID-19 pandemic. As of June 2022, 33 projects were approved in this sub-sector with an accumulated investment of RM503.5 million.
Moving ahead, the synergies between MIDA and MPMA would continue for years to come to help in accelerating Malaysia’s advancement in the plastic industry.
