Kota Kinabalu: Embracing innovation and forging smart partnerships will propel industry growth, said State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
He stressed that automation, digitalisation and Industry 4.0 are drivers of forward thinking and progress in building a competitive, resilient and dynamic nation.
“But we must be prepared for the challenges they bring. Overcoming these challenges is essential to stay ahead of competitors and move up the global value chain, leading to long-term economic growth for Malaysia.
“Competitiveness lies in the ability to adapt to market shifts and technological trends.
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He said in his keynote address during the Malaysian Industrial Development Finance Berhad (MIDF) Automation and Digital Forum (Sabah Edition) at Le Meridien Kota Kinabalu, here, Thursday.
Phoong said to address some of the challenges, the Government through MIDF has made available various scheme funds that can assist businesses to adopt automation and digitalisation in their operations.
“With ample funds and Government assistance, Malaysian companies should utilise these resources and prioritise future-oriented strategies,” he said.
Meanwhile, MIDF Group Chairman Tan Sri Abdul Rahman Mamat said when it comes to adopting IR4.0 technology, it is important to enhance the capabilities of both low skilled and semi-skilled workers to ensure a smooth and successful transition.
“Mere investments in machinery and novel solutions prove insufficient, as a shortage of skilled labour can potentially impede productivity gains,” he said.
On financing, Abdul Rahman said the MIDF has made available various schemes to support local companies in their automation and digitalisation efforts.
“Two of these schemes are the Soft Financing Scheme for Automation and Modernisation (SFSAM) and the Soft Financing Scheme for Digital & Technology (SFDT).
“These schemes provide financing of up to RM 20 million for asset expenditures (Capex) such as commercial buildings, machinery and equipment, and working capital, with a fixed financing rate as low as four per cent per annum,” he said.
Recognising that time is crucial in automation, he said the MIDF recently launched the Fast Track Approval system where eligible SMEs can obtain working capital financing up to RM150,000 at a rate of four percent with conditional approval within three working days.
Meanwhile, with logistics in regards to the cabotage policy being an issue in Sabah, Abdul Rahman suggested for industry players and SMEs to participate in import substitution industries.
“There is a captive market of about four million people in Sabah, that is good enough for import substitution.
“They (industry players) have to go for export orientation, (this way logistics issues) could be addressed, so they can export right away from Sabah to other markets.
This could be a sustainable policy direction for the State,” he said.
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