The Malaysian Investment Development Authority (MIDA) and Perodua have introduced the MIDA-Perodua Digital Transformation Ecosystem Programme, which aims to push local automotive suppliers to the next level via cutting-edge technologies and machinery, and to digitalise their manufacturing processes through adoption of Industry 4.0.

Today’s event at MIDA’s KL Sentral headquarters was to showcase the progress of the first group of three vendors, as well as to welcome the second group of five companies into the project.

“The government has undertaken concerted efforts to review existing policies and recalibrate investment strategies to ensure that 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,” said MIDA CEO Datuk Arham Abdul Rahman.

“The initiation of the MIDA-Perodua collaboration in 2020 was crucial to ensure a steady development of our local player’s capabilities in the automotive industry. We have been successful to contributing immense growth in Perodua’s manufacturing volume, through the empowerment of its industry partners and service providers,” he added.

Perodua president and CEO Datuk Seri Zainal Abidin Ahmad said the programme is aligned with the government’s efforts to enhance local technology ecosystem development activities in terms of supply and value chains, R&D activities, and innovation and commercialisation.

“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 national’s digital transformation agenda. The programme also can 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,” he added.

The first phase of the MIDA-Perodua Digital Transformation Ecosystem Programme saw the participation of three auto suppliers – LSF Technology, J.K. Wire Harness and Autoliv Hirotako. These “Perodua friendly partners” (these are big local vendors that also supply to Proton and non-national makes) benefited from the Domestic Investment Strategic Fund (DISF) as part of the government’s initiative to assist local companies to enter the global supply chain.

For round two of the programme, MIDA and Perodua have identified five new vendors for transformation. The companies are Armstrong Auto Parts, Ingress Aoi Technologies, Namicoh Suria, P.D. Kawamura Kako Manufacturing and Kumpulan Jebco. Zainal said that the companies were chosen because of the willingness of their managements to upgrade and adopt digitalisation.

MIDA, being the principal promotional agency of Malaysia, will be extending its 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, the auto suppliers will be able to increase their business offerings and expertise and “climb the supply chain ecosystems”.