MIDA Urges Domestic Companies to Adopt Digitalisation and Innovation in Their Business Models to Stay Competitive

MIDA Urges Domestic Companies to Adopt Digitalisation and Innovation in Their Business Models to Stay Competitive

Kuala Lumpur, 25 February 2021 – The Malaysian Investment Development Authority (MIDA) organised a virtual Domestic Investment Webinar to urge domestic stakeholders to implement digitalisation values and adopt innovation in their business to remain resilient. The session themed “Innovation and Transition to New Business Models” was supported by the Department of Polytechnic and Community College Education (DPCCE) of the Ministry of Higher Education (MOHE), Malaysia Productivity Cooperation (MPC), SIRIM Berhad and AmBank.

Mr. Ahmad Khairuddin bin Abdul Rahim, Deputy Chief Executive Officer II, MIDA, in his opening address, highlighted that “In order to drive business growth and staying relevant in current norms, business leaders, especially the small and medium-sized enterprises/businesses (SMEs) must be able to think creatively and embrace innovation into their business models. A willingness to innovate should also go along with a solid understanding on how to cultivate the innovation into life. The focus will be on assisting Malaysian businesses to shift from old conventional growth models to build new growth through adoption of the digital system.”

He added, “Malaysia’s Industry4WRD policy is an excellent guide. The incentives of Industry4WRD Readiness Assessment and its subsequent Intervention Fund offered by the Government enable domestic companies to assess their capabilities and readiness to adopt Industry4.0 processes, understand their present capabilities and gaps, as well as prepare feasible plans to move towards effective adoption of Industry 4.0. This represents the first step for companies in Malaysia to align with the rapidly changing technological landscape while developing new growth areas by prioritising operational efficiency and resilience through digital and automation technologies.”

“The Automation Capital Allowance (Automation CA), introduced in the 2015 Budget is also a major initiative to motivate domestic companies to undertake automation and machine upgrading. Another critical enablers are the skilled talent and up skilling programmes to drive and sustain Malaysia’s economic growth. The availability of a skilled workforce will support the transition of all economic sectors towards knowledge-intensive activities. The Smart Automation Grant (SAG) under the RM100 million allocation approved within the National Economic Recovery Plan or PENJANA , is another initiative awarded to eligible Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) on a matching basis or 50 per cent of total eligible expenditures, up to a maximum grant cap of RM1 million per company. SAG will not only improve Malaysia’s industrial competitiveness and capabilities but also reduce our reliance on low-skilled foreign workers while creating new job opportunities in high value-added sectors.” added Mr. Ahmad Khairuddin.

In his remarks, Mr. Ahmad Khairuddin also highlighted on the ‘Lighthouse Project’ an initiative undertaken by MIDA to enable MNCs and local corporations that have successfully gained from Industry 4.0 transformation to guide and support Malaysia’s local manufacturing industries to also implement the Fourth Industrial Revolution processes in gaining business traction. “As Malaysia aims to reposition among the top Global Manufacturing Nations, MIDA continues to identify and attract foreign and local companies that have successfully adopted the Industry 4.0 key pillars to invest here” he stressed.

The webinar has successfully attracted more than 300 participants, including manufacturers, service providers and other potential investors. The session featured presentations by experts from MIDA, Ambank, DPCCE and SIRIM.

Companies interested in seizing to leverage on the various initiatives offered by MIDA, including Automation Capital Allowance (ACA), Industry4WRD Intervention Fund and Smart Automation Grant (SAG), may refer to the official website, www.mida.gov.my.

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About MIDA

MIDA is the Government’s principal promotion agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Starting operations in 1967 with a relatively small set up of 37 staff, MIDA has grown to become an active and dynamic organisation of over 700 employees. Headquartered in Kuala Lumpur Sentral, MIDA today has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on Twitter, Instagram and Facebook.

Media contacts:

MIDA

Manjit Kaur Balkar Singh (Ms)

Email: [email protected] | Tel.: +603 2267 3509