Ministry of International Trade and Industry

The COVID-19 pandemic has affected Malaysian industries in many ways, particularly in maintaining their business cash flow, capacity and employment. In mitigating these impacts, the Government has decided to allow all economic sectors to operate to ensure the sustainability of the country’s economic growth and income as well as safeguarding employment for the rakyat. Currently, Small and Medium Enterprises (SMEs) account for more than 66% of the workforce in Malaysia.

With the opening of the economic sectors, the Government also hopes that the business community, particularly SMEs, will be able to revive their business operations, strengthen their cash flow, rebuild the supply chain and mitigate the risks of losing export markets or reshoring. 

As the economic sectors adapt to the new normal, Malaysian enterprises found themselves transforming, so they can operate with minimal disruption while dealing with the pandemic. One of these transformations includes the move towards digitalisation. 

With the 2021 budget, the Government has allocated RM1 billion for technology and high-tech, value-added investments. It serves to protect high-skilled jobs, maintain the health of the supply chain ecosystem, and support R&D in the aerospace and electronic clusters. Further, the High Technology Fund (RM500 million) will serve to bolster innovation for companies within the high-tech industry.

Now is not the time to dilly-dally. Digital transformation is the way forward and it will mean the difference between life and death of businesses. Development in IR4.0 promises a greater potential to resuscitate our economy, improve the quality of life of the people and safeguard our livelihood. With digitalisation, companies will be able to maintain or increase their capacity while minimising human contact, and at the same time can re-skill or upskill their workers to manage these new technologies.

MITI, as the key Ministry overlooking the economic progress of this country, will continue to promote and accelerate the adoption of digitalisation and innovative technologies among industry players. In this era, it is important to keep in mind the cohesiveness of technologies as a dynamic contributor to value. 

Remember, the core of IR4.0 is to challenge the assumptions of your operating teams, understand your dynamic environment and continuously innovate! 

This monthly publication, Recollective, is the Ministry’s initiative to keep track of its progress and encourage a more positive outlook as we progress towards a better future.

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MITI Recollective Editorial Team