Malaysia 4wrd Industry 4.0 Readiness Assessment Application  msc status


The Malaysia Industry 4.0 Blueprint or Malaysia Industry4WRD assessment guidelines to assess manufacturing companies' readiness for Industry 4.0 has been finalised.

It shall be implemented in the screening of 500 small and medium enterprises (SMEs) second quarter 2019.

The Industry 4.0 readiness assessment shall provide a better understanding of the current state of SMEs, in terms of technology adoption and skillsets.

It is good to gauge the level of industrial revolution of manufacturing companies in Malaysia.

The readiness assessment, which will be conducted by Malaysian Productivity Corp, is part of the Budget 2019 measures to accelerate the adoption of Industry 4.0.

A sum of RM210mil has been allocated from 2019 to 2021 to support this programme.


According to Pemandu Associates report, Malaysian manufacturing companies that have adopted Industry 4.0 practices were found to perform 26% better than their peers that did not have a digital strategy.

"However, Malaysia's manufacturing sector is still averaging at Industry 2.5 (big problem!), which lies between the utilisation of electricity and automation in mass production," said Mr.Yong of Permandu Associates

Industry 4.0 entails the convergence of physical systems and cyber, assisted with dynamic data processing and analytics.

Under Budget 2019, the government has allocated some RM5bil to help businesses adopt Industry 4.0 practices.

This entails an allocation of RM2bil under the Business Loan Guarantee Scheme (SJPP) as well as a RM3bil Industry Digitalisation Transformation Fund.

The government also provides guarantees of up to 70% under the SJPP to incentivise SMEs to invest in automation and modernisation.

As for the Industry Digitalisation Transformation Fund, there is a subsidised interest rate of 2% under Bank Pembangunan Malaysia Bhd to accelerate the adoption of smart technology such as automation, robotics and artificial intelligence.


In summary

Who is eligible?

1) Manufacturing and it's related services sector

2) Valid registration and business licenses

3) Company has at least 60% local equity

4) In operation for more than 3 years


Benefits at a glance:

1) To identify areas of improvements in terms of technology , people and processes

2) Receive comprehensive readiness for Industry 4.0 report

3) Be entitled for financial incentives


Incentives :

* 500 SMEs will be selected for free assessment (valued at RM500,000)

* Others who are not selected will get tax exemption up to RM25,000 (Readiness Assessment Fees paid)


Also on the cards:

*Soft-loan scheme for Automation & Modernisation (SLSAM)-4.0% interest rate per annum for SMEs

* Industry Digitalisation Transformation Fund (IDTF)-government provide 2% subsidy on loan interest - targets AI, Robotics & Automation.


Coming soon:

1. Intervention Fund- 70:30 matching grant up to RM 500,000.

2. Industry 4WRD DISF -60:40 Matching Grant


Also on the cards:

Domestic Investment Strategic Fund (DISF) - 50:50 matching grant (for selected industries)


Also on the cards:

Digital Transformation Acceleration Program (DTAP) - 1:1 matching grant (target large and mid-tier corp withDigital Transformation Labs)


Also on the cards:

Automation Capital Allowance (Automation CA) for:

Labour Intensive Industries

Automation CA of 200%

On first RM4 million Expenditure incurred within 5 years


Other Industries

Automation CA of 200%

on the first RM2 expenditure incurred within 5 years


Also available - Ministry of Energy, Science, Technology, Environment Grant

Available too - Malaysia Technology Development Corporation Grant



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