KUALA LUMPUR: The government welcomes suggestions concerning tax incentives on how best to facilitate more manufacturers to automate and embrace the fourth industrial revolution, said Second Minister of International Trade and Industry Datuk Seri Ong Ka Chuan.
“In our recent dialogue with the Federation of Manufacturers of Malaysia (FMM), we gathered that most manufacturers are aware of the Industry 4.0 concept, but only 30 per cent have started to invest and leverage on modern technology,” he said.
He was speaking to reporters after officiating at the 17th Malaysian International Food & Beverage Trade Fair 2016 held here today.
Malaysia's food processing industry, which posted RM18 billion in revenue last year, is expected to achieve the RM20 billion mark, this year.
“The government encourages value adding, and processed foods and beverage show good growth potential. We should surpass RM20 billion this year,” he said.
Ong said Industry 4.0 or the fourth industrial revolution, has the potential to transform Malaysia’s manufacturing scene by helping reduce reliance on manual labour and keep exports competitive.
A knowledge-based economy is in the making as more manufacturers move up the value chain. The first three industrial revolutions involve steam power, the assembly line and automation. Today, the fourth is essentially about “smart factories”.
He said that as robotics, data captured via sophisticated sensors, predictive analytics and Internet of Things become increasingly integrated, manufacturers would be able to reap cost savings in real-time quality control and maintenance.
The Industry 4.0 way of doing business is a game-changer because it elevates inter-operability, decentralisation of decision-making and real-time capabilities.
“We acknowledge that only big manufacturers can afford to embark on high investments and technological know-how acquisition. The government is listening and we are committed to helping the industry,” the minister said.
“We want direct feedback on how best we can give support, training and tax incentive packages. We want to facilitate a conducive ecosystem for more of our high tech manufacturers to embrace Industry 4.0,” he said.
“We are receiving suggestions from FMM and we invite other trade associations to give their feedback. We will compile them and hopefully these will be considered for incorporation in the 2017 Budget to be tabled in Parliament on October 21,” he added.
In facilitating Industry 4.0, Ong acknowledged that the government must consistently enforce data protection so as to create a trustworthy ecosystem within which manufacturers, their suppliers and clients feel comfortable to share confidential and proprietary information.