Industrial automation / Industry 4.0
WHAT
- Recognizing the importance of modernizing the local manufacturing sector, the government has begun incentivizing the industry to embrace automation adoption and runs a multitude of incentive programmes including funds and grants.
- A large portion of Malaysian companies have automated fewer than 50% of their processes. Only 20% among SMEs.
- The manufacturing sector's failure to modernize is linked to Malaysia's heavy dependence on foreign investment, which predominantly prioritizes low value-added production.
HOW
- The Ministry of International Trade and Industry (MITI)’s “New Industrial Master Plan” (NIMP) includes a clear objective to convert 3,000 factories into smart factories by 2030, backed by an estimated USD 45 billion (RM15 billion) investment in automation.
- The government is committed to assist more local manufacturers to adopt automation and runs a multitude of incentive programmes such as The Automation Capital Allowance (Automation CA), Industry4WRD Intervention Fund, and Automation Project Initiatives (API).
- National 4IR Policy was issued by the Economic Planning Unit & MOSTI in 2021. this policy outlines ethical use of 4IR technologies: AI, IoT, robotics, etc. and emphasizes developing human capital and innovation to support national transformation.
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CONTACT US
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