Mida, Perodua in supplier upskilling programme

Perusahaan Otomobil Kedua Sdn Bhd (Perodua) President and chief executive officer Datuk Sri Zainal Abidin Ahmad (left) addressing questions from the media after the launch of MIDA-PERODUA Digital Transformation Ecosystems. Together with him is MIDA chief executive officer Datuk Arham Abdul Rahman (right). — YAP CHEE HONG/The Star

KUALA LUMPUR: The Malaysian Investment Development Authority (Mida) and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) are targeting to upgrade and upskill more automotive suppliers via the Mida-Perodua Digital Transformation Ecosystem Programme.

Perodua president and chief executive officer (CEO) Datuk Seri Zainal Abidin Ahmad said the programme will be ideal for companies eager to improve and willing to learn new skills and abilities.

“In terms of criteria, the company must be willing to transform from the normal vendor operations they now have,” he said at a press conference yesterday.

Zainal Abidin said the programme will consider factors such as human capital development; the complexity of the processes the company plans to undertake, as well as the attitude of the management.

“If you don’t have the expertise or the financial capabilities, but have the eagerness to learn, you will be chosen and we will develop and teach you accordingly.

“Moving forward, we hope there will be more companies involved in this programme.”

Mida CEO Datuk Arham Abdul Rahman said the programme aimed to upgrade local automotive suppliers to “the next level” by using cutting-edge technologies and machinery, as well as to digitalise their manufacturing processes through the adoption of Industry 4.0.

“Local companies play a major role in building the nation’s industry ecosystem, which are geared to support large companies and multinational corporations.”

The Mida-Perodua strategic partnership kicked off in 2020 with three companies being selected for the programme, namely, LSF Technology Sdn Bhd, J K Wire Harness Sdn Bhd and Autoliv Hirotako Safety Sdn Bhd.

These companies were granted the Domestic Investment Strategic Fund (DISF) as part of the government’s initiative to help local firms kickstart their global supply chain.

Arham said each company can claim up to RM10mil under the DISF.

He said Mida and Perodua have identified five new vendors that have shown potential and growth opportunities.

“These companies are Armstrong Auto Parts Sdn Bhd, Ingress Aoi Technologies Sdn Bhd, Namicoh Suria Sdn Bhd, PD Kawamura Kako Manufacturing Sdn Bhd and Kumpulan Jebco (M) Sdn Bhd.”

Separately, Arham said the government has undertaken concerted efforts to review existing policies and recalibrate investment strategies to ensure Malaysia’s business environment remains conducive to global investors.

“The government has persistently undertaken efforts to promote and facilitate local companies to scale up and accelerate their adoption of smart manufacturing and Industry 4.0 technology through various incentives and facilities.

“For 2022, Mida continued its initiatives through domestic investment seminars, engagement with national associations and chambers of commerce, industry linkage/supply chain programmes and domestic investment coordination platform commitments,” he said.

He added Mida will endeavour to coordinate business-matching sessions between anchor companies and potential local suppliers/providers within specific industries, from networking arrangements for companies to potential funders and technology providers.

“As at June 30, 2022, 238 Malaysian-owned companies were approved with business grants valued at RM138.5mil.

“The recipients were small and medium-sized enterprises from labour-intensive industries such as plastics, wood, furniture and textiles, while the rest were from services- related industries,” said Arham.

Meanwhile, Perodua received 24,265 orders in July – an indication that demand for its vehicles remained strong despite the reinstatement of the sales and service tax on July 1.

The carmaker’s year-to-date sales jumped 48.7% to 145,689 units compared with 97,945 units sold in the same period last year.

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