Digitalisation

MIDA urges domestic companies to adopt digitalisation and innovation in their business models to stay competitive

KUALA LUMPUR – The Malaysian Investment Development Authority (MIDA) organised a virtual Domestic Investment Webinar to urge domestic stakeholders to implement digitalisation values and adopt innovation in their business to remain resilient.

The session themed “Innovation and Transition to New Business Models” was supported by the Department of Polytechnic and Community College Education (DPCCE) of the Ministry of Higher Education (MOHE), Malaysia Productivity Cooperation (MPC), SIRIM Berhad and AmBank.

Mr. Ahmad Khairuddin bin Abdul Rahim, Deputy Chief Executive Officer II, MIDA, in his opening address highlighted that “In order to drive business growth and staying relevant in current norms, business leaders, especially the small and medium-sized enterprises/businesses (SMEs) must be able to think creatively and embrace innovation into their business models.”

“A willingness to innovate should also go along with a solid understanding of how to cultivate the innovation into life. The focus will be on assisting Malaysian businesses to shift from old conventional growth models to build new growth through adoption of the digital system,” he said.

He added, “Malaysia’s Industry4WRD policy is an excellent guide. The incentives of Industry4WRD Readiness Assessment and its subsequent Intervention Fund offered by the Government enable domestic companies to assess their capabilities and readiness to adopt Industry 4.0 processes, understand their present capabilities and gaps, as well as prepare feasible plans to move towards effective adoption of Industry 4.0.”

“This represents the first step for companies in Malaysia to align with the rapidly changing technological landscape while developing new growth areas by prioritising operational efficiency and resilience through digital and automation technologies,” he said.

“The Automation Capital Allowance (Automation CA), introduced in the 2015 Budget is also a major initiative to motivate domestic companies to undertake automation and machine upgrading. Other critical enablers are the skilled talent and up-skilling programmes to drive and sustain Malaysia’s economic growth.”

“The availability of a skilled workforce will support the transition of all economic sectors towards knowledge-intensive activities. The Smart Automation Grant (SAG) under the RM100 million allocation approved within the National Economic Recovery Plan or PENJANA, is another initiative awarded to eligible Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) on a matching basis or 50% of the total eligible expenditures, up to a maximum grant cap of RM1 million per company.”

“SAG will not only improve Malaysia’s industrial competitiveness and capabilities but also reduce our reliance on low-skilled foreign workers while creating new job opportunities in high value-added sectors.” added Mr. Ahmad Khairuddin.

In his remarks, Mr. Ahmad Khairuddin also highlighted the ‘Lighthouse Project’ an initiative undertaken by MIDA to enable MNCs and local corporations that have successfully gained from Industry 4.0 transformation to guide and support Malaysia’s local manufacturing industries to also implement the Fourth Industrial Revolution processes in gaining business traction.

“As Malaysia aims to reposition among the top Global Manufacturing Nations, MIDA continues to identify and attract foreign and local companies that have successfully adopted the Industry 4.0 key pillars to invest here,” he stressed.

Read more: Malaysia: January CPI decline narrows, signals return of inflation

He added, “Malaysia’s Industry4WRD policy is an excellent guide. The incentives of Industry4WRD Readiness Assessment and its subsequent Intervention Fund offered by the Government enable domestic companies to assess their capabilities and readiness to adopt Industry 4.0 processes, understand their present capabilities and gaps, as well as prepare feasible plans to move towards effective adoption of Industry 4.0.”

Source: https://moneycompass.com.my/2021/02/26/mida-urges-domestic-companies-to-adopt-digitalisation-and-innovation-in-their-business-models-to-stay-competitive/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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