MIDA and CETIM Inks MOU to Strengthen Malaysia's Manufacturing Sector Towards Advance Engineering and Technology in line with Malaysia's Investment Aspirations - MIDA | Malaysian Investment Development Authority
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MIDA and CETIM Inks MOU to Strengthen Malaysia’s Manufacturing Sector Towards Advance Engineering and Technology in line with Malaysia’s Investment Aspirations

MIDA and CETIM Inks MOU to Strengthen Malaysia’s Manufacturing Sector Towards Advance Engineering and Technology in line with Malaysia’s Investment Aspirations

Kuala Lumpur, 22 February 2021 – The Malaysian Investment Development Authority (MIDA) is partnering with CETIM (the French leading Technical Centre for Mechanical Industry), through a Memorandum of Understanding (MOU) to encourage, promote and facilitate cooperation in the niche engineering and manufacturing technology including in emerging fields such as Smart Manufacturing, Industry 4.0 and Circular Economy.

The MOU highlights the collaboration between MIDA and CETIM to further strengthen Malaysia’s technological ecosystem by attracting quality investments. Both parties will undertake joint initiatives such as applied research activities, training and attachment programmes; exchange technical information and expertise in the research and development of industrial technology; as well as facilitate collaboration with local higher learning institutes and research organisations in the field of industrial development.

In welcoming CETIM to consider setting up its Asia Pacific office here in Malaysia as their Regional Centre, Dato’ Azman Mahmud, Chief Executive Officer (CEO) of MIDA, iterated that this MOU is a direct reflection of the MIDA’s on-going initiative to enhance Malaysia’s technological landscape in line with the national Industry 4.0 agenda.
“MIDA has always been a conduit between entities such as CETIM, industry players and academia to create effective new collaborations in line with Malaysia’s investment aspiration agenda to develop high value-added, capital- and knowledge-intensive industries. Especially now, given how the pandemic has changed the way we live and do business, there are unprecedented vacuum and emerging opportunities within the technological sphere for our stakeholders to tap upon. We are optimistic that this initiative with CETIM will increase technology capabilities of our industries, and lead to further investments in new and emerging fields. Innovation through strategic collaborations in R&D activities and Center of Excellence are now more crucial than ever for businesses to adapt to the new norm, while remain resilient and competitive,” said Dato’ Azman.

Mr. Daniel Richet, CEO of CETIM, is very pleased to initiate this new cooperation to support MIDA and Malaysia in its ambitious technological development programme and eager to launch, through joint industrial and R&D collaborative projects, concrete actions on 4.0 cooperation, talent development and knowledge sharing.
“As MIDA has always been looking for international cooperation with major industrial countries, and therefore looking for a prominent French technology partner, it became logic to see CETIM and MIDA being in contact since 2013, and then further explore the best ways to handle the issues and challenges in implementing Industry 4.0 in the Malaysian industrial landscape. CETIM has a long history and experience in supporting R&D, innovation and development of all companies, including SMEs in the mechanical industry, in France first, through national programmes for robotics, additive manufacturing; and then internationally. We are proud to be associated with MIDA, as Malaysia is now embarking on important priorities such as industrial automation and digitalisation,” mentioned Daniel Richet.

As the leading French player in the fields of mechanical engineering innovation and R&D, MIDA is optimistic of CETIM’s reputation and capabilities to provide comprehensive services to Malaysia’s industry and to improve companies’ competitiveness through mechanical engineering, transfer of innovations and advanced manufacturing solutions.
This will ultimately contribute to the country’s shift towards advance manufacturing, knowledge-driven, higher value-added and industry-driven research activities. It will also promote a circular economy, whereby waste and leakages are systematically phased out through careful product design and management, coupled with efficient business models. It is hoped that this will lead to a more sustainable and productive business model in line with the greater agenda of the United Nation’s Sustainable Development Goals.

As the principal investment promotion and development authority in the country, MIDA has been consistently promoting investments in R&D, including undertakings within the Industry 4.0 drivers. The agency continues to step up its efforts to drive stronger R&D linkages between the industry and, tertiary and research institutions. As to date, MIDA has approved 195 R&D projects with total investments of RM3.0 billion. These comprise of approved companies of 46 In-House R&D facility, 79 Contract R&D Companies, 30 R&D Companies, 24 R&D Status Companies as well as 16 national strategic R&D projects. These R&D have spurred innovative technologies within the industries in Malaysia through enhancing of knowledge workers as well as the transfer of technologies.The Government continues to support the R&D framework in the country through various incentives and financial assistance. MIDA, in particular, offers tax incentives to manufacturers with in-house R&D facilities or research service providers. Investment Tax Allowance (ITA) incentive is offered to entities that are approved as R&D Company,

Contract R&D Company, or In-house R&D facility; where else Contract R&D companies may also opt for Pioneer Status incentives.
To further invigorate R&D activities, the firms that receive services from R&D status companies are eligible to claim for double deductions on eligible incurred expenditure to the Inland Board Revenue (IRB). This is an effective way to promote R&D services and pitch into the R&D ecosystem as a whole. MIDA hopes for more companies to leverage upon this support to build their long-term competitiveness and sustainability.


MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA 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, Facebook, LinkedIn and YouTube channel.

Since 1965, CETIM, the French Technical Centre for Mechanical Industry, has been supporting innovation and competitiveness of companies thanks to its multidisciplinary skills, digital expertise and unique R&D capacity. With its international subsidiaries, its 8,000 customers in more than 50 countries, CETIM has become a world leading player to overcome environmental and Industry 4.0 main challenges with innovative solutions and services. In addition, CETIM is part of the Carnot Institute Network, under the aegis of the French government to enlarge the scope of R&D and promote partnership research with SMEs. For more information, please visit www.cetim.fr and follow us on Twitter, Facebook, LinkedIn and YouTube channel.

For media inquiries, please contact:

Ms. Manjit Kaur
E-mail: [email protected] | Phone: +603-2267 3509

Mr. Jean-Francois Atgé
E-mail : [email protected] | Phone: 012 285 7088