Technology aid for businesses to upgrade
By Dhesegaan Bala Krishnan - April 25, 2021 @ 9:00am
KUALA LUMPUR: THE automation and digitalisation incentives offered under the Strategic Programme to Empower the People and the Economy (Pemerkasa) can persuade more small and medium enterprises (SMEs) and mid-tier companies (MTCs) to become future-ready industries.
Muhammad Wafiq Khairul Anuar's eight-year-old furniture company is an excellent example of how automation serves as a boon for young and thriving businesses.
The Ruang Idea Kreatif Sdn Bhd founder said the company had started making profits and saved almost RM80,000 on production costs after it adopted lean manufacturing practices three years ago.
This is why Wafiq had vouched for the digital aids given to SMEs by the Perikatan Nasional government under Pemerkasa last month. "Industries must always be one step ahead of users because users are growing smarter daily.
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"So we must adapt to changes in technology almost on a daily basis."Automation and digitalisation are relatively new in Malaysia, as opposed to the United States, which is advancing in aerospace with these concepts.
"So the incentives have been announced at a very opportune time to encourage businesses to adopt these changes," he told the New Sunday Times.
Muhammad Wafiq Khairul Anuar
Several digital aids, he said, had attracted his attention as a growing figure in the furniture industry.
"I feel the RM200 million allocation under Malaysian Industrial Development Finance (MIDF) to provide financial aid to companies wanting to upgrade themselves is a timely move.
"The use of green technology is a key component for companies to apply and receive the funding. This is crucial because sustainability is a vital element for future-ready industries. "The lowering of the interest rate from five to three per cent for 12 months will also ease recipients' cash flow prior to making repayments," he said.
Prime Minister Tan Sri Muhyiddin Yassin also announced an additional allocation of RM50 million for the Smart Automation Grant under Malaysian Investment Development Authority (MIDA) to enable SMEs and MTCs to enhance their operational and manufacturing efficiencies through high-tech processes.
Currently, 84 applications for this grant, from labour-intensive sectors such as plastic, textiles, and the furniture industry, are being processed Some 900 companies are also undergoing readiness assessment programmes to qualify for grants from Industry4WRD: Intervention Fund initiative under the International Trade and Industry Ministry (MITI).
The government also increased the funds under Automation and Digitalisation Facility under Bank Negara to RM1 billion after allocating an additional RM700 million through Pemerkasa.