Cisco Systems to increase investments in Malaysia
KUALA LUMPUR: Cisco Systems, a US-based technology company will be increasing investments at its Malaysian plant, said country manager Albert Chai.
He said that this was due to higher demand for technology as well as digitisation adaptation.
“Our plant in Penang is one of the five manufacturing hubs which contribute a substantial amount to the total manufacturing output from Cisco’s multi-billion global market share,” he told a media briefing on Malaysia’s small medium enterprises edging towards the next stage of digital maturity.
Albert said from its establishment in 2005, the plant now employs directly and indirectly 5,000 employees, with 99 per cent being locals.
“Over the years, the number of employee has steadily grown. Despite the global slowdown in the manufacturing sector, we are optimistic of continuing to perform, as we produce high value products,” he added.
With the additional investments, Cisco will also increase its production lines to include many other value added services.
“Our business is growing at a robust rate and we are confident of recording double-digit growth for our financial year 2020,” Albert said.
He also said Malaysia had the right skill-sets, especially in the electrical and electronics sector, that is needed to push the industry forward.
Meanwhile, Cisco Asean regional director and general manager for small medium businesses (SMB) market and distribution, Bidhan Roy said, based on the APAC SMB Digital Manufacturing Index released by Cisco, SMBs in Malaysia are very close to reaching the next level of digital maturity, which will place them in the same league as developed countries across the Asia Pacific.
“The study revealed that SMBs in Malaysia are making initial technological investments
Our plant in Penang is one of the five manufacturing hubs which contribute a substantial amount to the total manufacturing output from Cisco’s multi-billion global market share. Albert Chai, Cisco Systems country manager
such as cloud (13.1 per cent), cybersecurity (12.9 per cent), IT hardware upgrades (11.7 per cent),” he added.
He said SMBs in Malaysia made up to 98 per cent of the total establishment, and for them to continue being a key driver for the economy, they needed to embark onto digitisation.
“It also shows that nearly half of SMBs are aware of government programmes that can support digital transformation, but are not taking advantage of it,” Roy said.
The study highlights that among the challenges faced by SMBs in digital transformation was the lack of digital skills and talent within organisations, lack of budget and commitment from management, as well as a lack of robust IT platforms that could enable successful digital transformation. — Bernama