MIDA, Perodua announces partnership to help digitalise Malaysian automotive suppliers

Photo: LSF Technology


The Malaysian Investment Development Authority (MIDA) and Perodua have announced a new partnership, which will see the introduction of the MIDA-Perodua Digital Transformation Ecosystem Programme, aimed at upgrading the local automotive suppliers with cutting-edge technologies and machinery, and to digitalise their manufacturing processes through adoption of Industry 4.0.

At an event held at MIDA’s headquarters in KL Sentral yesterday, the parties welcomed five more new companies to the programme to bolster the three-company strong line-up, the latter also showcased their progress in their respective projects.

“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. Under MIDA’s initiative to facilitate these companies to adopt digitalisation and Industry 4.0, we have been successful to contributing immense growth in Perodua’s manufacturing volume, through the empowerment of its industry partners and service providers.” said MIDA Chief Executive Officer, Datuk Arham Abdul Rahman.

“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,” he added.

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Perodua President and CEO Dato’ Sri Zainal Abidin Ahmad added that the Digital Transformation Ecosystem Programme is aligned with the government’s efforts to enhance local technology ecosystem development activities, particularly in the supply and value chains, research and development activities, as well as innovation and commercialisation.

“The programme has shown a promising sign as the first group of participants had implemented their proposed projects. […] 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 said.

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The first phase of MIDA-Perodua strategic partnership saw participation from three “Perodua friendly partners”, including LSF Technology, J.K. Wire Harness, and Autoliv Hirotako Safety. These automotive suppliers have been granted Domestic Investment Strategic Fund (DISF) as part of the Government’s initiative to assist the local companies to embark into the global supply chain.

Moving forward, MIDA and Perodua have identified five more new additional vendors to join the programme, including Armstrong Auto Parts, Ingress Aoi Technologies, Namicoh Suria, P.D. Kawamura Kako Manufacturing, and Kumpulan Jebco. These companies have been selected due to their potential and growth opportunities from digitalisation, the press release says.