Industry 4.0 – What are the Government Incentives and how to know are we ready?
The manufacturing sector that has played a key role in turning Malaysia into a major player in the global value chain, rapidly turning the country into an industrialised nation. In recent decades, the manufacturing sector has seen rapid evolution. From mass production through the use of intensive labour force in production lines, to the use of robotics to increase efficiency. The manufacturing industry is constantly evolving with more and more infusion of automation and today, we stand at the threshold of the next phase of evolution referred to as the Fourth Industrial Revolution or Industry 4.0.
The national policy on Industry 4.0 named ‘Industry4WRD' was officially launched by our Prime Minister in Oct last year — a tailor-made policy for Malaysia focusing specifically on small and medium enterprises (SMEs) in the manufacturing sector - a response to the fourth industrial revolution occurring worldwide. The goal is to increase the productivity level of manufacturing industry per person by 30% to RM138,641 from RM106,647 by year 2015.
Under the 2019 Budget, the government has set aside over RM5bil to help businesses embrace the Industry 4.0 development. Among the measures include an allocation of RM2bil under the Business Loan Guarantee Scheme (SJPP) to incentivise SMEs to invest in automation and modernisation, and a RM3bil Industry Digitalisation Transformation Fund with a subsidised interest rate of 2% under Bank Pembangunan Malaysia Berhad to accelerate the adoption of Smart Technology which incorporates automation, robotics and artificial intelligence.
To participate, effective from 28th January 2019, SMEs have access to the Industry4WRD Readiness Assessment Online Registration. This Readiness Assessment Program is one of the initiatives to assist Small and Medium Enterprises (SMEs) to move to Industry 4.0 technology. This is in line with the aspiration of the National Policy on Industry 4.0 or Industry4WRD to make Malaysia the prime destination for high-tech industries. A total of 500 SMEs will be identified, filtered and an onsite assessment conducted on their readiness to embark into industry 4.0. Additional incentives will be offered as grant to commission the IR 4.0 projects.
Interested but not sure about Industry 4.0 and Smart Factory? Contact us for free consultation.