English

|

|

This site
is mobile
responsive


Future Forward Economy

Future Forward Economy

Malaysia is ramping up efforts to nurture a future forward economy. As one of the most technologically developed countries among industrialising nations in the ASEAN region, Malaysia’s persistent drive to engage modern technologies proves to be a great advantage to investors in Malaysia. Among recent initiatives include Malaysia’s Lighthouse Project which aims to accelerate industry transition towards the future of manufacturing by deploying technology, transforming the workforce and scaling an end-to-end supply chain. Investors should strike while the iron is hot and capitalise on these growing opportunities.

Malaysia's Global Standing

Take a look at how Malaysia stacks up against the global competition.

Our efforts in attracting investments and driving productivity and innovation through economic and regulatory reforms have received worldwide recognition by various international institutions.

3rd

Top 3 ASEAN Countries by GDP
(The International Monetary Fund 2019)

8th

High Tech Manufacturing Exports
(World Bank 2018)

5th

Digital Readiness among Developing Asian Economies
(UNCTAD’s Business to Consumer, B2C E-Commerce Index, 2018)

8th

Most Innovative Country among Asian Economies
(Global Innovation Index 2020, World Intellectual Property Organisation, WIPO)

14th

University and Industry Research Collaboration
(World Intellectual Property Organisation, WIPO)

Nurturing Tomorrow’s Industries for the Fourth Industrial Revolution

Transforming Malaysia’s Industrial Landscape Since 1960

Malaysia has implemented the National Policy on Industry 4.0 – Industry4WRD to develop a smarter and stronger manufacturing sector driven by people, processes and technology. As a clear strategic direction for the country, Industry4WRD marks Malaysia’s shift to fully embrace Industry 4.0, with smart manufacturing and eventually leading to the introduction of smart cities, smart grids, and smart solutions.

As companies transition to Industry 4.0 to stay competitive globally, the talent pool needs to be upskilled as well. A business’s wealth is in individuals that drive it. Hence, the Government has placed emphasis on technical and vocational education and training (TVET) to reduce the gap in supply and demand for skills as well as to develop industry-ready talents.

According to the Malaysia Education Blueprint, there will be a demand for an additional 1.3 million TVET employees. As part of its talent initiative, MIDA launched an Apprenticeship programme in collaboration with the Federation of Malaysian Manufacturers (FMM) and Ministry of Education (MOE).

Framework Industry4WRD

The Vision

Malaysia’s vision for the manufacturing sector in the next 10 years

 

Strategic partner for smart manufacturing and related services in Asia Pacific

Primary destination for high-tech industry

Total solutions provider for advanced technology

The Framework Industry4WRD

The Vision

Malaysia’s vision for the
manufacturing sector in the next
10 years

 

Strategic partner for smart manufacturing & related services in Asia Pacific

 

Primary destination for high-tech industry

 

Total solutions provider for advanced technology

National Goals & Target

These goals and targets support the national vision for the transformation of the manufacturing industry. They assist Malaysia’s progression in improving performance, enhancing technology capacity and skills, driving change to a highly experienced workforce, and expanding the contribution of the sector to the national economy.

Malaysia is Gearing Towards Industry 4.0

Industry4WRD serves as the framework for manufacturing and manufacturing-related services on their Industry 4.0 journey. It lays out 13 methods for Malaysia to shift upwards over the next decade. This journey is anchored on three factors: People, Processes and Technology.

People

Given its criticality, developing, upgrading and retaining the required talent and skills are at the centre of this Policy.

Process

Improving both manufacturing and business processes is important for Malaysia’s transformation and this Policy aims to create a favourable business environment and facilitate public-private partnerships.

Technology

Technology advancement is increasingly propelling global manufacturing competitiveness and this Policy fosters a seamless and accelerated adoption of Industry 4.0 technologies, especially for SMEs.

Malaysia is Gearing Towards Industry 4.0

Industry4WRD serves as the framework for manufacturing and manufacturing-related services on their Industry 4.0 journey. It lays out 13 methods for Malaysia to shift upwards over the next decade. This journey is anchored on three factors: People, Processes and Technology.

People

Given its criticality, developing, upgrading and retaining the required talent and skills are at the centre of this Policy.

Process

Improving both manufacturing and business processes is important for Malaysia’s transformation and this Policy aims to create a favourable business environment and facilitate public-private partnerships.

Technology

Technology advancement is increasingly propelling global manufacturing competitiveness and this Policy fosters a seamless and accelerated adoption of Industry 4.0 technologies, especially for SMEs.

Malaysia Digitally Powers Your Business

MIDA is steadily making efforts to assist and familiarise local industry players in implementing Industry 4.0 into their operations. Engagements include a jointly organised MIDA-IME Industry 4.0 Showcase with the IME Group of Organisers (with the support of Dassault Systèmes and Robert Bosch) at its headquarters. The showcase demonstrated a wide range of related technologies such as simulation, additive manufacturing, system integration, digitisation, cloud computing, Internet of Things (IoT), and data analytics.

Bosch, a leading global supplier of technology plans to build a manufacturing facility in Penang focusing on semiconductor components and sensor testing. They would take advantage of the latest Industry 4.0 initiatives. Around 400 associates are expected to work at the new facility scheduled to begin in 2021.

The modern facility will sit on approximately 100,000 sqm of land and will primarily focus on the final testing of components manufactured at Bosch Automotive Electronics in Dresden, Germany.

With the long-term forecasts for growth of semiconductor component quantities, coupled with the front-end production in Bosch’s Dresden facility in Germany, capacity expansion is required for the back-end production, which is the final testing phase of semiconductors and sensors. This new site is also intended to strengthen the matured eco-system for the semiconductor industry here in Penang

– Simon Song, Managing Director, Bosch Malaysia (2020)

Driving the Future of Digital:
Malaysia’s Digital Free Trade Zone (DFTZ)

Elevated sector efficiency and accelerated development capacities are transforming Malaysia into a premier services provider for advanced technologies.

The Digital Free Trade Zone (DFTZ) is an initiative that offers both physical and digital zones to help SMEs capitalise on the exponential growth expedited by the combination of the web economy and cross-border e-commerce. DFTZ expands Malaysia’s e-commerce roadmap, which aims to increase e-commerce growth and increase its contribution to GDP to RM211 billion (approximately US$48 billion) per year.

Under the National e-Commerce Strategic Roadmap, MIDA has been mandated as the lead agency to facilitate the transformation of Malaysia into a regional e-fulfilment hub.

70

SMEs that participated

RM52.1 mil

Total sale DFTZ SME Onboarding Programme

RM18.1 mil

Total export DFTZ SME Onboarding Programme

(Source: DFTZ SME Onboarding Programme 2018, MITI)

Three components make up both physical and virtual areas:

 

e-Fulfilment Hub: To aid SMEs/ organisations in exporting their products easily.

 

Satellite Services Center: To link SMEs/ businesses with leading players who offer services like funding, last-mile fulfilment, insurance and also other solutions in cross-border trade.

 

e-Services System: To effectively manage cargo clearance and various other processes needed for cross-border profession.

DFTZ aims to:

Help SMEs to export their products globally with ease.

Enable global marketplaces to source from Malaysian manufacturers/sellers.

Make Malaysia the regional e-fulfilment hub for global brands to reach ASEAN buyers.

Nurture an ecosystem to drive innovation in e-commerce and internet economy.

With the DFTZ, small businesses can use the digital way to sell and buy things. They can also buy global and sell global. The Malaysian Government has taken away all barriers to make this happen.

-Jack Ma, Alibaba Group Founder
(Source: DFTZ ‘Go Live’ Ceremony, 2017)

Digital Connectivity for All: National Fiber
Optic and Connectivity Plan (NFCP)

To foster the growth of the digital economy and adoption of future technology, the Malaysian Government has allocated RM1 billion to establish the country’s broadband infrastructure under the National Fiber Optic Connectivity Plan (NFCP). The five-year plan (2019-2023) provides 30 Mbps broadband solutions in rural areas to provide Malaysia with a first-class framework at an affordable cost. Malaysia has also started a “Cloud First” approach to speed up the digital economy.

The NFCP provides strategic direction for the implementation of policies while creating a supportive environment for the fostering of future modern technologies – catering to the needs of the nation moving forward while taking advantage of the possibilities offered by these new technologies.

Malaysia received a top score of 10 for its high smartphone and mobile broadband penetration. It is also impressive that Malaysia has improved the affordability of mobile broadband, which is relatively good compared to other adopters and also achieved a two-point jump in 4G coverage over last year. Besides the more affordable mobile broadband, several other GCI indicators relating to the user experience also show improvement, namely e-Government, customer services, Internet use, and download speeds.

— Global Connectivity Index 2019

5G in Malaysia: Enabling Business Growth

Malaysia’s plans for the commercialisation of 5G elevates the country as one of the pioneers in the ASEAN region to implement 5G. It would not only increase speed and connectivity; it is an economic imperative that holistically influences the quality of life, and business, including SMEs.

The Government is encouraging the development of a reliable 5G ecosystem and stimulate the adoption of 5G use by industries and the public sector across areas such as automotive, manufacturing, education, agriculture, tourism and media.

wpChatIcon
X