MIDF to continue supporting SMEs on journey towards Industry 4.0
SEBERANG JAYA: Malaysian Industrial Development Finance Bhd ( MIDF) will continue supporting local small and medium enterprises ( SMEs) on their journey towards the Industry 4.0 in approving RM2.1 billion under the Soft Loan Scheme for Automation and Modernation (SLSAM).
Deputy Minister of International Trade and Industry, Datuk Chua Tee Yong said the federal government had allocated RM1.1 billion for SLSAM as of today and another RM450 million is to be given between 2018 to 2020.
“To date, total approvals by MIDF under SLSAM stands at RM2.1 billion which has benefited 569 companies throughout Malaysia,” he added, after officiating the Seminar on Automation Incentives Under Budget 2018 here yesterday.
He said MIDF would continue supporting local companies to withstand stiff competition with various offerings of financial assistance packages and towards this end, was currently managing soft loan schemes totalling RM2.4 billion.
“The loans will also help them be more innovative and cost efficient in production activity and services delivery in line with the Industry Revolution 4.0,” he added.
He said that the government had tasked MIDF to focus on encouraging and assisting more local companies, particularly SMEs, to embrace automation as well as be prepared to move towards Industry 4.0 to be relevant in the next five to 10 years’ time as the global economy is changing very rapidly.
“The Malaysian domestic market has become too small for local companies to trade and export readiness is very crucial for them. Therefore, I would strongly urge local companies to be proactive in increasing productivity via automation adoption and to explore export markets aggressively,” Chua said.
He also said the recent Budget 2018 announcement is indeed vital to business communities as it provides support to all sectors, particularly SMEs, with total allocation to this segment at RM22.2 billion.
He said globally, a few sectors are aggressively shaping up towards the Industry 4.0, such as Electrical & Electronics, Automotive, Industrial Manufacturing, Chemicals, Logistics and Engineering and Construction with estimated investments up to US$ 907 billion until 2020.
“Efforts are being made by the government to provide various incentives to propel local industries, including SMEs, to achieve a level Industry 4.0 and be ready for more competitive global markets,” Chua added.
MIDF, the country’s premier development finance institution, and has assisted 10,624 local companies with total loans approved at RM13.9 billion since its establishment in 1960. — Bernama