MITI introduces industry-forward initiative to spur growth
KUCHING: The Ministry of International Trade and Industry (MITI) is introducing an ‘industry forward’ initiative that aims to increase automation and modernisation in the manufacturing and related services industry.
Minister Darell Leiking said that the initiative has just been approved by the federal government and will be launched within a month.
“The cabinet has recently approved our (MITI) proposal on the industry forward initiative but because we are currently the first ones to initiate such an initiative, it is currently only for the manufacturing and related services industries.
“But I hope in the future we will have a national industry revolution policy, whereby each ministry must have their own policy on how to drive modernisation in the industries under them. For agriculture it will be the ministry of agriculture, for construction it will be under the works ministry, likewise other related services will be under their relevant ministries.
“We want to help cushion whatever effects our SMEs may face in the future of our uncertain economy by making them more competitive,” he said during a press conference yesterday.
MITI’s industry forward initiative will be supported by the Malaysian Investment Development Authority (MIDA), Malaysia External Trade Development Corporation (Matrade), SME Corp Malaysia (SME Corp), and Malaysian Industrial Development Finance Bhd (MIDF).
MIDF Group will be offering soft loan schemes for SMEs, automation and modernisation, the services sector, bumiputera automotive entrepreneurs, services capacity development, emergency fund, and services exports. These loans boast attractive financing rates and easy approvals.
Speaking on the soft loan schemes, MID F managing director Datuk Charon Wardini Mokhzani hoped that more companies in Sarawak and Sabah will embark on automation and modernisation efforts as the way forward.
“By having this (industry forward initiative and soft loan schemes), it will help the SMEs to produce better products that can compete in the international markets,” he added.
“Hopefully with that, the local SMEs won’t just confine their businesses to just Sarawak and Sabah, and instead are able to expand outside of Borneo Island.
“That is one of the intentions, but we also hope to help reduce their dependency on foreign labour. This is why we are keen on offering our assistance and funding to SMEs, we want then to be able to take any opportunities that they have.”
Besides MIDF’s soft loan schemes, Darell guided that his ministry would be looking into other avenues of financing that will help convert the manufacturing and services industries current production lines into being more efficient and cost saving.
For the remainder of the press conference, the minister continued discussions of the implications of the forward initiative with representatives from the commerce and industry associations in Sarawak.
The overall sentiment for the initiative was positive but Joseph Salang, who is the president of the Dayak Chamber of Commerce, said he was hopeful that the industry forward initiative and financing solutions would be quickly emulated in other industries where Sarawak has a comparative advantage in.
Additionally, Datuk Abdul Karim Tun Openg who was representing the Chamber of Commerce and Industry as well as Sarawak Business Federation announced that they would be submitting a proposal on cross border trading to Darrel for review in hopes that MITI would be able to help resolve some of the issues Sarawak currently faces in cross border trading.