KUALA LUMPUR: About RM150mil in smart technology and automation investments has been approved under the Industry4WRD fund as part of Malaysia’s push to accelerate industrial transformation, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz (pic).
He said the funding, channelled through the Malaysian Investment Development Authority (Mida), forms a key component of the government’s strategy to help local firms – particularly micro, small and medium enterprises (MSMEs) – adopt high-value, high-efficiency technologies.
"Since the rollout of national industrial policies such as the National Industrial Master Plan and Industry 4.0, around 1,200 companies have participated in the readiness assessment programmes.
"Through the Industry4WRD fund alone, investments worth roughly RM150mil have been approved," he said in the Dewan Rakyat on Wednesday (Nov 26).
Tengku Zafrul added that the Smart Automation Grant, aimed at supporting automation upgrades, has benefitted about 120 companies, with nearly RM100mil disbursed so far.
"The ministry also provides support through other agencies such as Sirim, Matrade and MIDF, including soft-financing schemes for automation and modernisation.
"These efforts, God willing, will continue to help strengthen our local companies," he told Yuneswaran Ramaraj (PH-Segamat), who asked how many companies had adopted smart technology, AI and automation in manufacturing since late 2023.
On a separate question from Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) regarding geopolitical risks and access to AI hardware, Tengku Zafrul said Malaysia maintains a neutral and inclusive approach, allowing companies to choose between US-made Nvidia chips and China’s Huawei chips.
"Access to these chips is sensitive because both the United States and China have their own ecosystems.
"Our position is to give companies the option. If they prefer US chips, they may use them; if they prefer Chinese chips, they may opt for those.
"In essence, we want two kitchen setups so that all players have access," he said.
He stressed that while Malaysia excels in assembly, testing and some design capabilities, it still lacks the high-end technology required to manufacture advanced chips, which remain dominated by the United States, China, South Korea, Japan and Taiwan.
He said the National Semiconductor Strategy aims to push Malaysia higher up the value chain by promoting integrated circuit (IC) design and advanced packaging, alongside greater support for research and development.
"The challenge now is talent. We have engineers, but not enough specialists.
"Companies have told us the shortage is real, and this is a global issue due to rising AI demand," he said.
He added that the ministry is expanding university-industry collaborations and exploring incentives for firms that provide high-level technical training.
Discussions are also ongoing with the Higher Education Ministry and Home Ministry to allow foreign engineering students in Malaysia to work locally after graduating, he said.
