Get to know more about TM One 5G

Learn More
SUBSCRIBE NOW

Subscribe to Get the
Latest News And Updates. No Spam. We Promise.

TM One Teams Up with SAP to Become First Local Hyperscaler for Partner Managed Cloud

August 19, 2021
141

Of your peers have already read this article.

3:02

Minutes you'll spend on this story!

Ms Shazurawati Abd Karim, Executive Vice President of TM One: The appointment by SAP Malaysia is another milestone for TM One as we continuously expand and strengthen our Cloud α offerings.
  • This collaboration is aimed at empowering enterprise digitalisation to drive and support MyDIGITAL aspirations towards a technologically advanced economy via SAP and TM One’s Cloud infrastructure.
  • Malaysian enterprises will be able to enjoy advanced SAP business suite solutions such as SAP S/4HANA Intelligent Enterprise and SAP Business One, powered by intelligent Cloud from TM One’s α Edge.

TM One, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM) and SAP Malaysia Sdn Bhd (SAP), has signed a Memorandum of Understanding (MoU) for a strategic collaboration to accelerate the digital transformation of Malaysian enterprises and to improve their operating efficiency through digital solutions. The event also announced the appointment of TM One as the first local hyperscaler to become the Partner Managed Cloud (PMC) provider for SAP business suite solutions in Malaysia.

With this appointment, TM One’s α Edge (pronounced as Alpha Edge) will provide cloud infrastructure to empower SAP’s Enterprise Resource Planning (ERP) solutions in meeting the business needs of TM One’s enterprise customers.

Commenting on the appointment, Shazurawati Abd Karim, Executive Vice President of TM One said, “The appointment by SAP Malaysia is another milestone for TM One as we continuously expand and strengthen our Cloud α offerings. This time, we are making available to our customers the largest sovereign-Cloud to empower SAP Business One solutions targeted at SME and medium-sized enterprises.  With this solution, our customers will be able to enjoy secure, world-class Cloud-based enterprise business solutions, hosted on TM One’s intelligent Cloud – α Edge cloud infrastructure. It provides unmatched Cloud connectivity and cybersecurity as well as full data residency in Malaysia.”

“SAP is a renowned global technology powerhouse that has accelerated the digitalisation of millions of businesses through its ERP solutions. We view this appointment as timely in TM One’s continuous journey towards taking transformation forward for Malaysian enterprises. As we innovate and continue to empower our customers in the current digital economy, SAP is the right organisation to drive the digital transformation of businesses, thus elevating the country into Digital Malaysia. This befits TM Group’s unique role as the enabler of Digital Malaysia’s aspirations, committed to serving a more digital society, digital business, digital industry and digital Government,” added Shazurawati.

As SAP’s PMC provider, TM One is able to offer its customers a full subscription-based model of SAP Business One hosted on TM One’s α Edge, bundled with managed services. This arrangement enables organisations to migrate their enterprise systems to the Cloud with confidence, visibility, and predictability.

Through this approach, TM One customers will also be able to enjoy ready-to-use fully managed solutions, rapid time-to-value, lower total cost of ownership (TCO) and scalability and flexibility in deployment. In addition, TM One is in discussions with SAP to finalise its scope of offerings by expanding the PMC programme to SAP S/4HANA Intelligent Enterprise solutions to target large enterprise customers.

As part of this tie-up, TM One and SAP will also explore a co-creation and innovation partnership that entails transformation initiatives for 5G use cases, Customer Experience, Procurement & Digital Supply Chain and Human Experience Management. 

Meanwhile, Hong Kok Cheong, Managing Director, SAP Malaysia said: “True digital transformation is the fundamental rethinking of the customer experience, business models, and operations to find new ways in delivering value, generating revenue and improving efficiency. This can be done by leveraging intelligent technologies such as ERP solutions, Artificial Intelligence (AI) and the Cloud. With SAP solutions hosted on TM One’s α Edge, businesses can harness the power of their data and build a truly intelligent enterprise, while accelerating trusted outcome-driven innovation, real-time decision making, and thrive in the digital economy.”

SAP is today the world’s leading enterprise applications provider. Across the globe, SAP customers include 92% of the Forbes Global 2000 companies, 98% of the 100 most valued brands, 97% of the greenest companies (according to Newsweek), while approximately 80% of SAP’s customers are SMEs.

For more information about TM One Cloud α solutions, visit www.tmone.com.my/solutions/cloud-services and for more information on SAP, visit www.sap.com/sea/index.html.

An Introduction to Credence’s Capabilities in Analytics (I2I)

November 30, 2022
122

Of your peers have already read this article.

4:30

Minutes time you’ll spend for this story!

Analytics has been around for a while and industries are turning them into valuable insights. Whether to understand their customers better, or to gain insights to help guide decision-making, Credence is capable of providing suitable solutions and services to ease this process. Read on to learn more about this!

This article summarises the key takeaways from a presentation by Mahathir bin Said, Head of Cloud & Analytics at Credence during the 2022 TM One Leap Forward Manufacturing event, on how the Malaysian manufacturing sector can digitalise its processes for improved efficiency, quality and cost-savings.

We have heard it before and it never seems to go away – analytics is disrupting the business landscape. We have seen industry practitioners around the world who take charge of their data, gain a competitive edge, and obtain a quicker return on investments.

According to a study carried out by McKinsey and Co, an estimated $1 trillion of additional value each year is to be gained through the introduction of AI technologies in the banking industry. A separate study also carried out by McKinsey and Co shows that $402.7billion of monetary benefits can be introduced into the oil and gas sector through advanced analytics and AI, demonstrating how its introduction can effectively supercharge an entire industry.

Worldwide, companies are already sold on the benefits of data analytics, with 91% of organisations believing that the right data will put their business in a strong position to compete and succeed in the next few years (Splunk). Beyond just belief, companies are already showing that the adoption of analytics technologies is already the new norm, with 50% of companies surveyed already adopting AI into at least one business function (McKinsey).

Why is analytics becoming so indispensable?

The world of analytics has expanded vastly in the last ten years. What was once a complex exercise with limited resources has now bloomed into an industry with cutting-edge capabilities, resources, and results.

For one, the amount of data is rapidly increasing and becoming voluminous, varied, and valuable. Sensors, relational databases, social media, flat files, and logs are all repositories, generating terabytes of data each month at the disposal of their owners.

Similarly, the advancements and refinements of modern data platforms have also greatly developed over the years. Today’s data platforms have improved drastically at collecting and ingesting data, transforming data for both structured and unstructured formats, automating analytics and modelling, and finally, generating data-backed predictions on future trends while visualising data to simplify data-driven decision-making for organisations. However, arguably the most important outcome for analytics is the ability to derive actionable insights towards value creation. The power of data analytics has shown its capability in producing value across all organisational levels, by:

  1. Generating strategic insights, helping businesses make decisions over a large domain and ensuring long-term sustainability
  2. Generating tactical insights, providing specific data about a particular problem which allows businesses to make targeted decisions and solve immediate and near-term challenges
  3. Generating operational insights, ensuring sound operational processes, and maximising production and efficiency.

Taken together, effective analytics and data-driven insights now provide incredible support for value creation within all facets of business by providing information that helps grow, run, protect, and innovate.

However, the implementation of analytics and AI into Malaysian businesses is not an easy affair

Although AI adoption advances, businesses are still facing foundational challenges when it comes to getting the ball rolling. A global study conducted by McKinsey and Company found that the top three barriers faced by organisations in adopting AI were

  1. A lack of clear strategy for AI, at 43%
  2. A lack of talent with appropriate skillsets for AI work, at 42%
  3. Functional siloes constraining end-to-end AI solutions, at 30%

When looking at our home ground of Malaysia, we see similar themes emerging in terms of challenges faced. According to the Malaysia AI Blueprint 2020 by BIGIT, Malaysian industry practitioners are facing challenges in terms of

  1. A lack of talent, at 38%
  2. Budget constraints and a lack of business understanding, both at 24%
  3. Unable to scale AI into advanced use cases, at 16%.

To address said challenges, organisations should derive their AI strategy from their business strategy. Assessment from business areas where analytics’ potential value can be identified needs to be included in the derivation. To execute AI strategy, businesses need to acquire relevant enablers in terms of technology and skilled resources.

To embark on the analytics journey, organisations need to be positive, be ready to experiment, have clear execution, discipline, and agility. One of the key enablers to empowering the analytics journey is acquiring cloud capabilities. This provides businesses with the ability to focus on analytics as serverless databases allow data projects to be established easily, all while providing support for business flexibility and scalability. A seamless unified experience allows data practitioners to be more productive.

Credence enters the scene to provide the end-to-end services needed for businesses to reap the full benefits of AI and analytics

Organisations across Malaysia are eager to implement analytics into their business with some at various stages of their analytics journey where each stage brings about different challenges. To be an analytics journey partner to organisations and businesses, Credence is investing in data talents and cloud infrastructure while building delivery ecosystems with proven technology partners. This assures Credence’s position as an effective solution provider that can execute end-to-end analytics solutions and development.

Credence’s services and professional capacity portfolio were built with exactly this intention. The portfolio includes consulting, implementation services, managed services, and skills development. These services are meant to come together in creating all-encompassing solutions that cover all aspects required for successful analytics implementations.

While many may say that “data analytics is the future”, we believe that the future is already here. The capabilities of analytics in building business resilience and scaling growth have been proven across many global markets. However, in addressing local challenges, one thing is abundantly clear – our industry practitioners need a reliable analytics partner who can help untangle the thorny challenges faced within each stage of implementation.

With that as our guiding principle, Credence has designed the ideal end-to-end analytics solutions suite to address each challenge at its root. From hosting a range of tools and solutions to providing our customers with relevant talent, to helping encourage better insights and understanding, Credence is ready to accelerate the analytics journey and elevate businesses together.

For more information, get in touch with Credence at www.credence.tech

Advancing Malaysia’s Manufacturing Industry with Digitalisation – Hairol’azaha

128

Of your peers have already read this article.

1:23

Minutes time you’ll spend for this story!

There’s a lot of chatter about pushing our manufacturers towards digitalisation but what about the challenges that most businesses endure? This article sheds light on the solutions available to overcome these challenges, making it easier for smart manufacturing to come to fruition.

Hairol’azaha bin Abdul Samad, GM Smart & Innovative Services (TM One)

IR 4.0 continues to present many technological advancements and opportunities, but also brings new challenges for organisations across all industries, particularly manufacturing. Digital adoption is still relatively slow among Malaysian manufacturing companies, with only 11% reported to have transformed most of their business processes.

To secure the Malaysian manufacturing industry’s future and compete on a global scale, it is critical for companies to transform through digitalisation and smart manufacturing.

This article summarises the key takeaways from a presentation by Hairol’azaha Bin Abdul Samad, General Manager Smart & Innovative Services Product Innovations, TM One during TM One Leap Forward Manufacturing 2022 event, on how the Malaysian manufacturing sector can digitalise its processes for improved efficiency, quality and cost-savings.

Challenges driving the transition to smart manufacturing

Recent global events have illuminated vulnerabilities in our supply chains –– most notably the COVID-19 pandemic, the impact of which the world will feel for years to come. As such unexpected events have become part of our new normal, and digital technologies have become increasingly important in navigating them.

Alongside vulnerabilities, the pandemic created an ideal testing environment for the implementation of new technologies. A recent McKinsey Global Survey found that companies were able to overcome the crisis of the recent pandemic and manage their operations by turning to advanced technologies. This demonstrates these technologies’ ability in enabling new opportunities to scale efficiency and quality on the continuous journey to enhance and evolve manufacturing processes.

In a recent TM survey, we found these to be the top challenges that necessitate digitalisation in manufacturing:

  1. Improve cost savings
  2. Increase operational efficiency and production quality
  3. Increase sales and revenue
  4. Reduce supply chain disruptions
  5. Keep operations within budget

In particular, survey respondents found the second challenge to be the most urgent to address, as it has the potential to positively impact costs.


Transforming Supply Chains is Key to Enhancing Manufacturing Operations

122

Of your peers have already read this article.

6:06

Minutes time you’ll spend for this story!

Through TM Group, Credence rises as a new cloud and digital service provider. Continue reading to learn more about Credence’s capabilities and solutions in increasing the supply chain visibility in the manufacturing industry.

Sunthar Supparmaniam, Credence’s Vice President of Supplier & Application Modernisation, shares how manufacturers can gain greater visibility across their supply chains for better efficiency.

At TM One’s LEAP Forward Manufacturing 2022, enterprises that are keen to fast-track their transformation learned more about virtualised cloud-based services, how to leverage digital networks to modernise legacy processes, accelerate workflow efficiency, and improve their cybersecurity.

Sunthar Supparmaniam from Credence, TM’s cloud and digital services entity, shed some light on Credence’s supplier and distributor management solution to help manufacturers gain wider visibility across their supply chains. This article summarises the highlights from his talk.

Introducing Credence to the World

Launched in July 2022, Credence is a new cloud and digital services provider powered by TM Group. Leveraging strategic partnerships with the world’s leading service providers such as AWS, SAP, and Oracle, Credence opens up a global talent pool of domain and tech experts, delivering a new breed of digital transformation solutions for Malaysia.

Credence provides specialised market offerings within cloud, SaaS, analytics, digital upskilling, and managed services with a focus on crafting curated solutions for industries such as manufacturing, energy, healthcare, BFSI and the public sector.

Through its diversified portfolio, Credence aims to accelerate Malaysia’s digital transformation process by helping businesses understand their unique technology landscape and provide solutions to suit each business priority.

With the added value of highlighting risks and rewards through advisory and delivery services, Credence offers the right guidance coupled with targeted solutions tailored to each business challenge.

Partnering with Arteria to transform Malaysia’s manufacturing industry

In building the right solution for Malaysian manufacturers, Credence has struck a country exclusive partnership with leading supply chain management and fintech player, Arteria, enabling access to its’ extended financial supply chain platform – FinessArt. 

“FinessArt enables real-time collaboration which extends the power of Enterprise Resource Planning (ERP) to suppliers, transporters, sub-contractors, warehouses, sales teams, and multi-tier distribution networks,” Sunthar shared during his presentation.

“By digitalising business requirements from procurement to distribution, FinessArt allows full and complete visibility of supply chains and drives data-driven decision making to the next level.”

FinessArt to Enable Greater Supply Chain Visibility

Through FinessArt’s digitalisation solutions and full visibility to supply chain management, Credence is enabling the next step of modernisation in the manufacturing industry’s end-to-end processes. Built on existing SAP platforms, the expansion of an ERP solution designed to target and integrate every aspect of the supply chain journey will create more opportunities for a variety of functions available for manufacturing principals.

As noted by Sunthar, the Core ERP functions that SAP platforms currently provide covers a range of services such as Core Finance, Material Management, Financial Supply Chain, along with Sales and Distribution – tools that are essential for a principal manufacturer’s visualisation of their current supply chain. The addition of FinessArt to the SAP platform allows the integration of further management tools beyond core ERP functions, allowing them to tap into Upstream, Downstream, Banking, and Logistics management functionalities and data. The introduction of these functions of FinessArt are roughly grouped into three distinct target areas, run by the SupplierPortal, DealerConnect, and DigitalBanking branches, aimed at providing visual coverage over the entire supply chain journey concerning manufacturing principals.

Figure 1. Finessart’s ability to provide a comprehensive visual coverage of the supply chain

By identifying these target areas for principals and increasing supply chain visibility, the integration of FinessArt allows engagement with suppliers and provides data-driven analytics and data-backed evidence to continually improve supply chain efficiency.

Key Features of FinessArt’s DealerConnect and SupplierPortal Platform

What is in DealerConnect?

FinessArt’s DealerConnect allows principals to connect seamlessly with its distribution network, from primary sales with distributors to tertiary sales with retailers. After a successful onboarding with distributors, manufacturing principals will access a host of automated functions and data available at their disposal to manage and track the progress of anything related to their products.

FinessArt’s order management system has the following capabilities: 

  • Create and track electronic orders, claims and returns.
  • Management of order documents for PO, invoices and goods’ receipts.
  • Generates integrated dashboards and reports to help track overdue and incoming shipments, stock movements and order status.

These processes allow for dealers to focus on product selling through targetted planning and dealer FOS management. These functions, accompanied by streamlining financing with dealers, also allow better visibility backed by data-driven reports to better capture the efficiency and effectiveness of each process. By reducing turnaround time with faster collection and automated processing, principals can identify key target areas to boost demand. This is done through the provision of information and insights generated by the integrated reporting and order management system.

FinessArt also extends its visibility range to secondary and tertiary sales with retailers through its network management capabilities. After onboarding retailers on to the platform, the data available to principals will allow them to take control of the FOS, by enabling:

  • Geo-tagging outlets’ performance.
  • Tracking regulatory forms, permits, and inventory.
  • Expediting of route planning, invoicing and fulfilment, and secondary schemes and returns.

The ability to extend the expedition of resource flow throughout the distribution network via the use of insights and information generated from distributors’ systems can help manufacturing principals focus on building demand for customers. Information and insights generated from the full visibility gained can help them understand what is missing, how to improve their business processes, and the peak periods or trends when they should boost sales.

What is in SupplierPortal?

FinessArt’s SupplierPortal features integrate the upstream network of supplier management. These features allow manufacturing principals to:

  • Directly meet and track their sources of production.
  • Track specific data and performance of suppliers, enabling them to compare sourcing, shipment, quality, stocks, and finance, creating a reverse auction effect.
  • Increase spending management efficiency through analytics, along with a PO history and schedule to gauge reliability.
  • Create advance shipment notifications and invoice uploads paired with supplier performance and rating to expedite a faster turnaround.
  • Efficiently scale up or scale down business processes to meet demands.
  • Allow efficient tracking and options for manufacturing principals through an integrated report and dashboard viewing page, similar to DealerConnect

By synthesising the features and benefits generated from DealerConnect and SupplierPortal, FinessArt provides a one-stop platform that offers full visibility and functionality to manufacturing principals in their entire distribution network and their supplier relations.

Why This Matters to Manufacturing Principals

Integrating FinessArt on existing SAP Business Technology Platforms (BTP) allows for complete integration with SAP suppliers and dealers. This cloud-based platform is able to store and transmit data across different manufacturers, providing information and insights on the onboarded and integrated suppliers and dealers within the distribution network.

By being fully integrated on a cloud-based platform, FinessArt is able to merge the SAP UI5 as the front end with the SAP Cloud Connector to backend SAP ERP while also providing the opportunity to secure real-time calls with embedded firewalls in place. Through its operation on a role-based access system with authentication using the SAP Cloud Identity Provider, FinessArt can provide ease of access by operating remotely and on-demand. 

With Arteria’s vast network of over 400 satisfied customers across verticals spanning varying industries, Credence and FinessArt’s platform will be able to connect over a million supply chains and channel entities. This could potentially generate upwards of USD 43 billion in commerce. This offering to modernise a manufacturing principal’s supply chain from end to end by owning, manipulating, and monetising current data presents a dynamic opportunity for them to continually expand their business process efficiency and target growth through data-driven analytics. A full view of the distribution network with complete integration with SAP suppliers and dealers could continually open opportunities for manufacturers to diversify revenue streams such as financing credit loans, among others.

Credence is positioned to offer customers localised advisory capabilities and the best returns on their technology investment. It provides organisations the ability to embark on their digital journey with greater predictability, lesser concerns and disruption while choosing the best tech solutions that suit their needs and priorities, allowing them to focus on their core business.

Find out how your organisation will benefit from Credence’s localised advisory capabilities, especially in digitising your supply chain. visit www.credence.tech

Taking Malaysia’s Manufacturing Sector to The Next Level: The Next Steps – Sarojini Ganesan

123

Of your peers have already read this article.

6:03

Minutes time you’ll spend for this story!

Manufacturers and businesses are soaring high on the path of digitalisation. Find out how MIDA and the Malaysian government are acting as air traffic control to guide and directing them through their digitalisation journey.

Sarojini Ganesan, Deputy Director of Advanced Technology and R&D Division, Malaysian Investment Development Authority (MIDA)

This article features the main highlights from Sarojini Ganesan’s presentation at TM One’s Leap Forward Manufacturing 2022 event, where she talks about MIDA and the government’s role in supporting the manufacturing industry’s journey towards digitalisation. Sarojini is the Deputy Director of the Advanced Technology and Research and Development (R&D) Division of the Malaysian Investment Development Authority (MIDA).

Industry4WRD is Charting the Path for Malaysia’s Manufacturing Industry and Related Services

Working under the Ministry of International Trade and Industry (MITI), MIDA positions itself as the government’s principal agency for promoting foreign and domestic investment and development. MIDA acts as the first point of contact for businesses to invest in the Malaysian manufacturing industry and relevant service sectors, and is responsible for planning and recommending the right policies and strategies for industrial development in Malaysia to MITI.

In 2021, MIDA brought in RM306.5 billion in overall investments.  This represented an 83.1% increase when compared to investments made in 20201.

As investors roll in, MIDA partners with them step-by-step to evaluate, approve, and oversee the implementation and post-investment processes of their projects to ensure a smooth sailing business process.

Over the past few years, the Malaysian government has been encouraging the growth of a technologically smart nation. To stay aligned with this goal, Malaysia’s manufacturing industry and services sector are now guided by a framework set by the national policy – Industry4WRD.

Launched during the Fourth Industrial Revolution (4IR) in 2018, this policy aims to integrate 11 key IT services or ‘pillars’ into manufacturing operations to achieve smarter, systematic, and resilient technological advancement. These pillars include:

– Big Data Analytics– System Integration
– Cloud Computing– Additive Manufacturing
– Augmented / Virtual / Mixed Reality– Simulation
– Cybersecurity– Internet of Things (IoT)
– Artificial Intelligence– Autonomous Robots
– Advanced Materials

Tech adoption by our manufacturing industry will strengthen the industry’s growth and productivity while enhancing Malaysia’s global competitiveness. Gradually, tech integration will generate job opportunities for local labour and as a result, our industries will be able to manage greater volumes of investments in the near future.

To accelerate efforts in strengthening the industry’s growth through tech integration, MIDA works hand-in-hand with TM One in its’ Industry4WRD High Speed Broad Band (HSBB) initiative. The initiative has provided 37 industrial areas across the nation with 1GBps high-speed broadband, providing network infrastructures for businesses to adopt 4IR technologies. This reflects a shared commitment between MIDA and TM One in supporting the adoption of IR4.0 tech and making it more accessible for manufacturers, with the common goal of elevating the manufacturing industry through digitalisation and connectivity.

Further building on the Industry4WRD initiative, the Malaysian government has since developed two additional policies to further drive the digitalisation of the nation:

  • MyDIGITAL Blueprint symbolises the government’s aspirations of transforming Malaysia into a regional example of a digitally-driven and high-income nation by charting the contribution of digitalisation to the country.
  • National 4IR policy complements the MyDIGITAL blueprint with a broader approach to transforming the development of the nation’s socioeconomic sector by championing the ethical usage of advanced technologies.

MIDA fully abides by these policies, providing the means and resources to guide businesses and manufacturers on their journey to digitalise their operations aligning to these government initiatives.

Driving the Revolution of Digitalisation Through Government Initiatives

With the numerous policies set, it is clear that the Malaysian government is on the path of digitalising the nation. In accelerating this journey, several incentives have been set up to support the digitalisation of the manufacturing industry:

1. Industry4WRD Readiness Assessment (RA) Programme

A key initiative is the Industry4WRD Readiness Assessment (RA) Programme, aimed at providing manufacturers and related businesses access to trained assessors to help them understand their own readiness for digital transformation and get recommendations to kick-start their journey.

This assessment criteria focusses on three shift factors: Process, People, and Technology.

  • The ‘People’ shift takes 20% of the overall priority, focusing on the people involved in the workforce by enforcing suitable strategies, and upgrading their skills and talent.
  • The ‘Process’ shift hones in on the management system of the business (I.e., Operations, supply chain, and product lifecycle), taking up 30% of the priority. This is to create a favourable business environment and encourage frictionless public-private partnerships.
  • The ‘Technology’ shift prioritises the application of intelligent and automated tech to compete with global manufacturers, taking up the remaining 50% of focused criteria.

2. Industry4WRD Intervention Fund

Businesses can also rest easy with the establishment of the Industry4WRD Intervention Fund, a financial support facility to ensure that Malaysian Small and Medium Enterprises (SMEs) within manufacturing and related sectors are progressing along with their larger counterparts.

Applications for these funds are managed by MIDA and are important for SMEs to implement any intervention projects and improvement plans as recommended by a report from the RA mentioned previously. Eligible applications will receive an upfront grant (30%) while the remaining funds can be reimbursed along the way, all of which are approved by MIDA.

3. Biz4WRD Platform

Further supporting the digital transformation of businesses, MITI launched the Biz4WRD Platform: a collaborative platform to connect, learn, and encourage discussions among companies who are on their digitalisation journeys.

This platform also acts as a repository as it provides businesses with resources pertaining to the right tech and services for 4IR. 

4. Automation Capital Allowance (ACA)

The government also launched the Automation Capital Allowance (Automation CA) incentive while announcing the National Budget in 2015. This incentive was released through a collaboration with the Standard and Industrial Research Institute of Malaysia (SIRIM) who manages the technical verification of companies while MIDA manages the non-technical verification.

Promoted as the key to driving automation and increasing productivity in the manufacturing industry, this incentive encourages manufacturing companies to get involved in innovative, productive, and automotive initiatives, and for MIDA to assist in reducing the technological gap among industry players by providing assistance to businesses in need.

There are two categories to this initiative:

  • Category 1:  involves labour intensive industries (I.e., rubber, plastic, wood, furniture and textile products). Applicants are eligible to receive an ACA of 200% on the first RM4 million expenditure incurred within 8 years of assessment (between 2015 – 2023). Expenses incurred refers to plant and machinery that has been purchased and used for the business.
  • Category 2:  involved other industries that do not qualify under Category 1. Terms are similar to Category 1, with a lower ACA of 200% on the first RM 2 million expenditure.

Entering the Digitalisation Era for Other Relevant Sectors

Aside from formal government initiatives, MIDA is also spearheading several other facilitations related to 4IR:

Supply Chain Development: MIDA collaborates with other anchor companies to develop local suppliers and potential vendors for the adoption of 4IR technologies at scale across the supply chain.

Industry4WRD Centres of Excellence: This initiative is built in tandem with R&D centres from selected local institutes such as University of Malaya (UM), Universiti Putra Malaysia (UPM) and International Islamic University of Malaysia (IIUM), among others. This initiative provides access to professional industrial consultants and researchers in guiding businesses through technical insights and expertise.

Artificial Intelligence for SMEs (AI4S):  The coming together of MIDA, the Malaysian Productivity Corporation (MPC), and Intel Malaysia resulted in the AI4S initiative, aimed towards empowering 100 potential SMEs by providing the opportunity to learn and explore AI usage for innovation within business operations.

Achieving the Status of a High-Income and Technologically Advanced Nation with the National Investment Aspirations

With MIDA’s core purpose being to attract maximum value investments for both investors and the nation, our policies and incentives are designed to help propel Malaysia towards a high-income and technologically advanced future. To guide the direction and selection of policy and incentive implementation against five National Investment Aspirations:

  • To increase local economic complexity
  • Create high value job opportunities:
  • Extend domestic linkages
  • Develop new and existing clusters
  • Improve inclusivity

With each step taken in these aspirational directions, MIDA is committed to providing the right type of support in helping manufacturers and business practitioners alike, going hand-in-hand towards preparing Malaysia for a digitalised, economically resilient future.

Together, Let’s Create Success Stories

Help us know you better.

Which industry are you from?

One more quick question.

What solution are you looking for?

Our Experts Will Connect With You Soon.

Don't worry, we hate spam too.

If you agree to continue browsing, you accept the use of cookies on this site and have the option to disable them if you wish.

Accept & Continue