RM2 billion allocated for SJPP can accelerate Industry 4.0 adoption

KUALA LUMPUR: 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 Fourth Industrial Revolution ( Industry 4.0) technology.

Pemandu Associates Sdn Bhd executivevice-presidentYongYoon Kit said the scheme, which would provide up to 70 per cent guarantee, could help SMEs overcome the challenge of 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 (the SMEs) are concerned on how much should be spent (to adopt Industry 4.0),”

Yong Yoon Kit, Pemandu Associates Sdn Bhd executive vice-president

he told reporters at the Stratum Focus Series VII forum here yesterday.

During the announcement of the 2019 Budget, 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 facedbySMEsinadoptingIndustry 4.0 technology was the awareness of available technology.

“Whether the technology is already available out there that can solve their problems or other means that are more productive,” he said.

Organised by Bursa Malaysia and Hong Leong Investment Bank with the theme ‘Industry 4.0: Humanising Machines, Disrupting Economies’, the halfdayforumbringstogetherindustry experts and financial market players to discuss the outlook and investment opportunities from Industry 4.0. — Bernama