‘RM2B AMOUNT A BOOST FOR INDUSTRY 4.0’
SMEs can overcome financing hurdles, says Pemandu Associates
THE RM2 billion proposed allocation for the Business Loan Guarantee Scheme (SJPP) to modernise and automate small and medium enterprises (SMEs) can help accelerate the adoption of the Fourth Industrial Revolution (Industry 4.0) technology.
Pemandu Associates Sdn Bhd executive vice-president Yong Yoon Kit said the scheme, which would provide up to 70 per cent guarantee, could help SMEs overcome insufficient financing when embracing Industry 4.0 technology.
“That is why for SMEs, if the production is working and producing good enough returns in terms of margin, why do we need to re-engineer the production lines because they (SMEs) are concerned on how much should be spent (to adopt Industry 4.0),” he said at the Stratum Focus Series VII forum, here, yesterday.
During the 2019 Budget announcement, Finance Minister Lim Guan Eng said RM2 billion would be allocated under the SJPP to incentivise SMEs to invest in automation and modernisation.
Yong said another challenge faced by SMEs in adopting Industry 4.0 technology was the awareness of available technology.
“Whether the technology is available out there that can solve their problems or other means that are more productive.”
Organised by Bursa Malaysia Bhd and Hong Leong Investment Bank with the theme “Industry 4.0: Humanising Machines, Disrupting Economies”, the half-day forum brought together industry experts and financial market players to discuss the outlook and investment opportunities of Industry 4.0.