corporate

AI keeps driving Malaysian manufacturing sector's revolution

KUALA LUMPUR: Malaysia's manufacturing sector is undergoing a significant transformation as generative artificial intelligence (AI) emerges as a "game changer", offering solutions to pressing industry challenges such as cost pressures, supply chain disruptions and the push for sustainability.

According to IBM Malaysia managing director Dickson Woo, AI continues to enhance efficiency, sustainability and productivity for local manufacturers.

"As Malaysia's manufacturing gross domestic product (GDP) is projected to grow by 61 per cent to touch RM587.5 billion by 2030 according to the Malaysian Investment Development Authority, the integration of AI, automation and robotics becomes increasingly crucial for manufacturers," said Woo in a statement.

"Embracing AI is essential for survival and success in within today's industrial landscape," he added.

However, unlocking AI's potential requires more than just technological investment.

"It demands a shift in mindset, a reimagining of traditional processes and a commitment to continuous learning," said Woo.

He added that the government's commitment to environmental sustainability is also accelerating this shift. 

Natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad recently urged the private sector to lead in sustainability transitions. 

Woo cited Smart Modular Technologies Sdn Bhd as a manufacturer that has successfully leveraged AI at its Penang facility. 

At its Penang facility, Smart Modular utilises AI-powered high-speed precision industrial robots to identify and isolate manufacturing defects based on the IBM Maximo Visual Inspection solution.

"This integration enhances efficiency, predictability and quality standards, embodying the essence of smart Malaysian manufacturing," said Woo.

Similarly, KVC Industrial Supplies Sdn Bhd, a business-to-business distributor of electrical products and subsidiary of US-based Sonepar Group, leverages IBM robotic process automation to optimise its finance department's procure-to-pay process.

"The automation reduces errors, lowers costs and accelerates workflows by automating tasks like invoice extraction and payment processing," said Woo.

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