Sabah should address logistics on top of automation to develop industrialisation in state
12 Oct 2023
Sabah has to emphasise logistics issues as well as the transition towards Fourth Industrial Revolution (IR 4.0).
Malaysian Industrial Development Finance Berhad (MIDF) group chairman Tan Sri Abdul Rahman Mamat said that with the limited availability and expensive foreign labour, the state has no choice but to use automation, robotics and other technologies.
However, without proper logistics, he added that it would still hamper industrial development despite having high-level technologies.
“You (Sabah) have a captive market of over four or five million people, that is good enough. We have no choice but to go for export as it is a sustainable policy direction for Sabah.
“But perhaps logistics (issue) have to be addressed so that they (industrialists) can export right away to other markets,” he said in a press conference after the closing of the Sabah edition of its Automation & Digital Forum Series at a hotel here.
Earlier during his speech, Abdul Rahman said it was imperative to enhance the capabilities of both low and semi-skilled workers to ensure a smooth and successful transition into IR 4.0.
“The capacity to adapt to market fluctuations and technological advancements is crucial to sustaining competitiveness.
“IR 4.0 redefines tasks and job descriptions, necessitating training for low skilled and semi-skilled workers to adjust to evolving roles.
“Tackling these challenges is imperative for maintaining a lead over competitors and elevating Malaysia’s position in the global value chain, ultimately fostering sustainable economic growth. “
Meanwhile Abdul Rahman said as one of the agencies under the Investment, Trade and Industry ministry, MIDF supports local companies in their automation and digitalisation efforts through various funding schemes.
Two of these schemes are the Soft Financing Scheme for Automation and Modernisation (SFSAM) and the Soft Financing Scheme for Digital & Technology (SFDT).
“We understand that time is crucial when it comes to the adoption of automation and digitalisation.
“This is why MIDF recently launched the Fast Track Approval system, where qualified SMEs can apply for working capital financing of up to RM150,000 at a financing rate of four per cent with conditional approval within three working days.”
Present was Sabah Industrial Development and Entrepreneurship minister Datuk Phoong Jin Zhe.