RM150mil in funding for smart tech


Tech ready: Tengku Zafrul sharing that some 1,200 companies have gained from readiness assessment programmes. — Bernama

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.

Investment, Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, who disclosed this, said the funding through Malaysian Investment Development Authority was part of the strategy to help mainly micro, small and medium enterprises adopt high-value, high-efficiency technologies.

“Since the rollout of national industrial policies such as the National Industrial Master Plan and Industry4.0, about 1,200 companies have participated in the readiness assessment programmes. 

“Through the Industry4WRD fund alone, investments worth roughly RM150mil have been approved,” he told the Dewan Rakyat yesterday.

Tengku Zafrul said the Smart Automation Grant, aimed at supporting automation upgrades, has benefited about 120 companies with nearly RM100mil disbursed so far.

“Miti also provides support through other agencies such as Sirim, Matrade and MIDF, including soft-financing schemes for automation and modernisation. 

“These efforts will hopefully continue to help strengthen our local companies,” he said in reply to Yuneswaran Ramaraj (PH-Sega­mat), who asked how many companies had adopted smart technologies, AI and automation in manufacturing since late 2023.

To a question from Datuk Dr Ku Abd Rahman Ku Ismail (PN-Ku­bang Pasu) regarding geopolitical risks and access to AI hardware, the minister said Malaysia maintained a neutral and inclusive approach, allowing companies to choose between American-made Nvidia chips and China’s Huawei chips.

“Access to these chips is sensitive because both the US and China have their own ecosystem. 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 said while Malaysia excelled in assembly, testing and certain design capabilities, it still lacked the high-end technology required to manufacture advanced chips which are dominated by the US, China, South Korea, Japan and Taiwan.

Tengku Zafrul said the National Semiconductor Strategy aimed to push Malaysia higher up the value chain by promoting integrated circuit 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 said the ministry was 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 added.

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