Mida, Perodua launch partnership to facilitate digitalisation of local automotive suppliers

MIDA chief executive officer Datuk Arham Abdul Rahman

KUALA LUMPUR: The Malaysian Investment Development Authority (MIDA) and local carmaker Perodua have today officially launched a strategic partnership, MIDA-Perodua Digital Transformation Ecosystem Programme, aimed at upgrading local automotive suppliers through the adoption of Industry 4.0.

MIDA chief executive officer (CEO) Datuk Arham Abdul Rahman said the agency’s initiative to facilitate local companies to adopt digitalisation and Industry 4.0 has successfully contributed to the immense growth in Perodua’s manufacturing volume.

He said the first phase of the programme has identified three potential Perodua partners, and moving towards phase two, another five local companies have been identified to participate in the programme that have shown much potential and growth opportunities.

"The initiation of the MIDA-Perodua collaboration back in 2020 was crucial to ensure a steady development of our local player’s capabilities in the automotive industry.

"These companies have been granted Domestic Investment Strategic Fund (DISF) of up to RM10 million as part of the government’s initiative to assist local companies to embark into the global supply chain,” he said during the launch today.

According to Arham, apart from funding assistance, the government via MIDA will be extending its support services to help these companies obtain growth in terms of productivity, talent and bridging financial and technology gaps.

"We are confident that through such facilities and empowerment measures, these automotive players will be able to increase their business offerings and expertise to innovate its products and services and climb the supply chain ecosystem,” he added.

Meanwhile, Perodua president and CEO Datuk Seri Zainal Abidin Ahmad said the company is fully committed to achieve the objective of the programme to facilitate its supplier in adopting digitalisation and Industry 4.0 in a guided manner.

"The implementation of Industry 4.0 is not only for the automotive supplier’s benefit, but the impact of this programme will contribute greatly to the nation's digital transformation agenda,” he said.

Zainal Abidin noted that the support given by MIDA is crucial as this programme will nullify any need for financing costs that will be passed to the customer.

"For the rest of 2022, Perodua has decided to absorb any price increase of our manufacturing materials and continue to help our vendors to survive in their businesses,” he added. - Bernam a

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MIDA , Perodua , Digitalisation , Industry 4.0 , DISF , Automotive


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