Introducing the MIDA-Perodua Digital Transformation Ecosystem Programme

Enhancing local auto suppliers to embrace digitalisation through this strategic partnership

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The Malaysian Investment Development Authority (MIDA) and PERODUA are gearing up through a strategic partnership to introduce the MIDA-Perodua Digital Transformation Ecosystem Programme. The programme aims to upgrade local automotive suppliers to the next level by using cutting-edge technologies and machinery and digitalising their manufacturing processes through the adoption of Industry 4.0.

“Local companies play a major role in building the nation’s industry ecosystem, geared to support large companies and MNCs. The initiation of the MIDA-PERODUA collaboration in 2020 was crucial to ensure the steady development of our local player’s capabilities in the automotive industry. Under MIDA’s initiative to facilitate these companies to adopt digitalisation and Industry 4.0, we have been successful in contributing immense growth in PERODUA’s manufacturing volume, through the empowerment of its industry partners and service providers,” said Datuk Arham Abdul Rahman, Chief Executive Officer of MIDA.

“The Government has undertaken concerted efforts to review existing policies and recalibrate investment strategies to ensure that the Malaysian business environment remains conducive to global investors. The Government has also been persistently undertaking 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,” added Datuk Arham.

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. MIDA will endure coordinate business-matching sessions between anchor companies and potential local suppliers/providers within specific industries, from networking arrangements for companies and potential funders and technology providers.

As of 30th June 2022, 238 Malaysian-owned companies were approved with business grants valued at RM138.5 million. The recipients were SMEs from labour-intensive industries such as plastics, wood, furniture and textiles, while the rest were from services-related industries.

Meanwhile, Dato’ Sri Zainal Abidin Ahmad, PERODUA President and Chief Executive Officer said “The MIDA-PERODUA Digital Transformation Ecosystem Programme is aligned with the Government’s efforts to enhance local technology ecosystem development activities in terms of supply and value chains, research and development activities, and innovation and commercialisation.

The programme has shown promising signs as the first group of participants implemented their proposed projects. This event is to showcase the first group’s progress as well as to welcome the second group into the project as they too have presented feasible Industry 4.0 ideas to be implemented within their operations.”

He added “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. The programme can also fast-track Malaysia’s industries, from small to large, as it provides both funds and guidance. PERODUA’s role has always been to develop the automotive ecosystem and this programme is another example of our commitment towards this objective.”

The first phase of the MIDA-PERODUA strategic partnership has brought forth three (3) potential PERODUA-friendly partners, including LSF Technology Sdn.Bhd., J.K. Wire Harness Sdn. Bhd. and Autoliv Hirotako Safety Sdn. Bhd. These companies have also been granted Domestic Investment Strategic Fund (DISF) as part of the Government’s initiative to assist the local companies to embark on the global supply chain.

Under this similar programme, MIDA and PERODUA have identified five (5) new vendors that have shown much potential and growth opportunities. This includes Armstrong Auto Parts Sdn. Bhd., Ingress Aoi Technologies Sdn. Bhd., Namicoh Suria Sdn. Bhd., P.D. Kawamura Kako Manufacturing Sdn. Bhd. and Kumpulan Jebco (M) Sdn. Bhd.

MIDA, being the pivotal principal promotional agency of Malaysia, will be extending their support services to help more companies obtain growth in terms of productivity, talent and bridging financial and technology gaps. The agency is 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 ecosystems.