The Malaysian Investment Development Authority (MIDA) and a Malaysian car manufacturer announced the signing of a strategic partnership to introduce their Digital Transformation Ecosystem Programme. The programme is aimed at upgrading local automotive suppliers to the next level by using cutting-edge technologies and machinery and digitalising their manufacturing processes through the adoption of Industry 4.0.
The Chief Executive Officer of MIDA stated that local companies are crucial in building the nation’s industry ecosystem – geared to support large companies and MNCs. The initiation of this new collaboration was crucial to ensure the steady development of local players’ capabilities in the automotive industry.
The CEO also said that the Government has undertaken concerted efforts to review existing policies and recalibrate investment strategies to ensure that the Malaysian business environment remains conducive to global investors. The Government has also been persistently undertaking efforts to promote and facilitate local companies to scale up and accelerate their adoption of smart manufacturing and Industry 4.0 technology through various incentives and facilities.
Under its initiative to facilitate these companies to adopt digitalisation and Industry 4.0, MIDA has successfully contributed to the growth of the partnering company’s manufacturing volume, through the empowerment of its industry partners and service providers, he added.
For 2022, MIDA continued its initiatives through domestic investment seminars, engagement with national associations and chambers of commerce, industry linkage/supply chain programmes and domestic investment coordination platform commitments.
MIDA will coordinate business-matching sessions between anchor companies and potential local suppliers/providers within specific industries, from networking arrangements for companies and potential funders and technology providers.
As of 30 June 2022, 238 Malaysian-owned companies were approved with business grants valued at RM138.5 million. The recipients were SMEs from labour-intensive industries such as plastics, wood, furniture and textiles, while the rest were from services-related industries.
Meanwhile, the President and Chief Executive Officer of the car manufacturer stated that the Digital Transformation Ecosystem Programme is aligned with the Government’s efforts to enhance local technology ecosystem development activities in terms of supply and value chains, research and development activities, and innovation and commercialisation.
He noted that the first group of participants is promising and has implemented their proposed projects. An event will be organised to showcase the first group’s progress as well as to welcome the second group into the project as they too have presented feasible Industry 4.0 ideas to be implemented within their operations. The implementation of Industry 4.0 not only benefits automotive suppliers but also contributes greatly to the country’s digital transformation agenda. The programme also can fast-track Malaysia’s industries, from small to large, as it provides both funds and guidance.
The first phase of the strategic partnership has brought forth three potential friendly partners of the company. These companies have also been granted Domestic Investment Strategic Fund (DISF) as part of the Government’s initiative to help local companies enter the global supply chain.
Under this similar programme, the two parties have identified five new vendors that have shown much potential and growth opportunities.
MIDA, being the pivotal principal promotional agency of Malaysia, will be extending their support services to help more companies obtain growth in terms of productivity, talent and bridging financial and technology gaps. The agency is confident that through such facilities and empowerment measures, these automotive players will be able to increase their business offerings and expertise to innovate their products and services and climb the supply chain ecosystems.
