Smart Manufacturing, The Way Forward for Malaysia

MIDA Signs MoU with Rockwell Automation

KUALA LUMPUR, 12 January 2017 – “Malaysia has already been hard at work to transition the industry players towards the adoption of automation and smart manufacturing concepts and technologies. With both the manufacturing and services sector contributing almost 80% to GDP, MITI is now taking the strategic move to lead the way in spearheading the adoption of smart manufacturing and Industry 4.0 in Malaysia. We are setting the stage to prepare the country for the new era of growth and innovation in line with the new 30-year transformation plan, the 2050 National Transformation (TN50). TN50 will lay the foundation for the next generation to inherit a country that is on-par with the world’s best,” said YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry (MITI) during the Seminar on Smart Manufacturing and Automation 2017 organised by the Malaysian Investment Development Authority (MIDA) at its HQ today.

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YB Minister highlighted that MITI together with MIDA is embarking on several measures including undertaking an industrial study titled ‘Future of Manufacturing: Industry 3+2 Sectors’. The study is a deep-dive analysis on the future of manufacturing focusing on the ‘industry 3+2’ sectors which were identified to drive the growth of the manufacturing sector. It will highlight the way forward on issues related to technological and economic aspects of investments in Malaysia.

Among the initiatives to encourage the transformation of the manufacturing sector include Automation Capital Allowance (ACA) which was introduced in the 2015 Budget. Since its inception, MIDA has approved 24 applications. The adoption of automation has enabled the companies to achieve an average increment in production volume of between 200 – 300 per cent.

One of the examples highlighted was United Sweethearts Garment, a local manufacturer of branded casual, sports and outerwear. The company was able to increase its production volume by more than 300 per cent. The new production volume through automation has the capacity to produce a much higher volume that would otherwise require at least 100 workers. By automating its operations, the company also managed to reduce the defect rate by 80-90%.

The seminar was well attended by more than 300 participants from various industries. Also present was Dato’ Azman Mahmud, Chief Executive Officer of MIDA. At the event, the Minister witnessed an exchange of Memorandum of Understanding between MIDA and Rockwell, a US-based industrial automation and smart technology provider.

“The adoption of smart manufacturing processes and related technologies is a major step to harness the potential of Malaysian companies to benefit from this opportunity. As such, the partnership between MIDA and Rockwell has been an important step towards consultation in the area of automation. The signing of this Memorandum of Understanding (MoU) will further promote the exchange of technical know-how and marketing to both foreign and local investors for the mutual benefit of all relevant stakeholders in Malaysia. With MITI in the driver seat to push the agenda of smart manufacturing and Industry 4.0, we are doubling our efforts to provide a better future for all,” YB Dato’ Sri Mustapa added.

According to Dato’ Azman, “With this MoU, not only are we exploring avenues on grooming local companies to increase their competitiveness, but we will also be organising more outreach programmes, and even the possibility of establishing a smart manufacturing demo centre right here in MIDA. I am positive that the strengthening of this collaboration will further drive Malaysia’s productivity, innovation and economic transformation agenda.”

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“MIDA, in our 5 decades of existence has been part of the transformation of Malaysia’s economic landscape. The organisation has made significant contributions in enabling industries to adapt to the ever-changing environment over the years. This year as we celebrate our 50 th anniversary, MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era,” he added.

The full day event featured presentations by smart technology providers namely Strand Aerospace Malayisia and Rockwell Automation, two panel discussions involving global players who are early adopters of smart manufacturing in Malaysia such as Pentamaster, HP and Muehlbauer, as well as government agencies and the academia. This seminar, which aims to connect all stakeholders to accelerate industrial growth through the adoption of smart technology, ends with three technical breakout sessions for the electrical & electronics, machinery & equipment, food & beverages industries and the consumer product group (medical, furniture and rubber products).



About MIDA

Malaysian Investment Development Authority (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, MIDA is the first point of contact for investors that want to take advantage of Malaysia’s vibrant economy, world-class infrastructure and business-friendly environment to set up their profit centre in Asia.

For more information, please contact:

Puan Faridah Abdullah

Director, Machinery & Metals Division, MIDA

Tel.: 03-2267 6674 | Email: [email protected]

Posted on : 12 January 2017
Last Updated : Thursday 21st May 2020