MIDA And Perodua Partnership To Play Key Role In Local Vendor Growth

MIDA And Perodua Partnership To Play Key Role In Local Vendor Growth

The Malaysian Investment Development Authority (MIDA) and Perodua are in a strategic partnership to strengthen the local vendor ecosystem and encourage growth. The introduction of the MIDA-Perodua Digital Transformation Ecosystem Programme aims to upgrade the local automotive suppliers through the application of up-to-date technologies and machinery as well as digitalised manufacturing processes.

Malaysian Investment Development Authority_MIDA_CEO_Y Bhg Datuk Arham Abdul Rahman“Local companies play a major role in building the nation’s industry ecosystem–geared to support large companies and MNCs. 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 Datuk Arham Abdul Rahman, Chief Executive Officer of MIDA.

“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,” added Datuk Arham.

Going forward, MIDA will continue its initiatives through domestic investment seminars, engagement with national associations and chambers of commerce, industry linkage / supply chain programmes and domestic investment coordination platform commitments. MIDA will also seek to coordinate business matching sessions between anchor companies and potential local suppliers / providers within specific industries, working on networking arrangements for companies and potential funders and technology providers. As of 30 June 2022, 238 Malaysian-owned companies have been approved with business grants valued at RM138.5 million. The recipients were mainly SMEs from labour-intensive industries such as plastics, wood, furniture and textiles, while the rest were from services-related industries.

Perodua_President & CEO_Y Bhg Dato' Sri Zainal Abidin Ahmad“The MIDA-Perodua Digital Transformation Ecosystem Programme is aligned with the Government’s efforts to enhance local technology ecosystem development activities in terms of supply and value chains, research and development activities, and innovation and commercialisation,” commented Dato’ Sri Zainal Abidin Ahmad, Perodua President and Chief Executive Officer.

“The programme has shown a promising sign as the first group of participants had implemented their proposed projects. This event is to showcase the first group’s progress as well as to welcome the second group into the project as they too have presented feasible Industry 4.0 ideas to be implemented within their operations,” he said.

Perodua Ativa AV_Rear RightHe added “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”.

The first phase of the MIDA-Perodua strategic partnership has brought forth 3 potential Perodua-friendly partners i.e. LSF Technology Sdn Bhd, J.K. Wire Harness Sdn Bhd and Autoliv Hirotako Safety Sdn Bhd. These companies have also 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.

Under this similar programme, MIDA and Perodua have identified 5 new vendors that show potential and growth opportunities. These are Armstrong Auto Parts Sdn Bhd, Ingress Aoi Technologies Sdn Bhd, Namicoh Suria Sdn Bhd, P.D. Kawamura Kako Manufacturing Sdn Bhd and Kumpulan Jebco (M) Sdn Bhd.

As the principal agency playing the pivotal role of promoting Malaysia as an investment destination for manufacturing and services, MIDA 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, these automotive players will be able to increase their business offerings and expertise to innovate its products and services and climb the supply chain ecosystems.


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