New Industrial Master Plan NIMP 2030 – Tech Up for for Digitally Vibrant Nation
Mission based NIMP 2030 was launched by YAB Prime Minister Datuk Seri Anwar Ibrahim on 1st Sept.
There are 4 Missions, 4 Enablers, 21 Strategies, 62 Action Plans, Covers 21 Sectors, Addressing 12 key challenges, capitalising on 3 key trends to drive high impact growth.
The target is to increase value-added GDP from RM 364.1 bil to RM 567.5 bil, Employ 3.3 mil persons from 2.7 mil and achieve median salary increase from RM 1,976 to RM 4,510
The 4 Missions are :
1) Advance Economic Complexity
2) Tech up for a digitally vibrant nation
3) Push for Net Zero
4) Safeguard Economic security and inclusivity
In the recent Technology and Innovation Report 2023, by UNCTAD39, which assessed the global readiness for frontier technologies, Malaysia is ranked 32nd among 166 countries and fifth in Asia. This is contributed by the industry’s adoption and adaptation of frontier technologies and access to finance the technologies.
The Industry4WRD policy was introduced in 2018 to accelerate Malaysia’s manufacturing sector’s digitalisation journey. The aim was to transform the manufacturing sector and MRS to adopt Industry 4.0 technologies in order to increase the level of labour productivity, elevate contribution of manufacturing to the economy, strengthen innovation capacity and capability and increase the number of highskilled workers in the manufacturing sector. Despite the efforts undertaken, the performance of the manufacturing sector has not shown significant improvement.
The growth rate of Malaysia’s labour productivity has slowed down in the last three decades and this decline was further exacerbated by the COVID-19 pandemic. This is attributed to prolonged use of low-skilled labours, relatively low innovation and low technology adoption in the manufacturing industry.
It is imperative for companies to adopt digitalisation and shift away from low-skilled labour. This is to increase labour productivity and create more high-skilled jobs for the industry. With the changing global landscape, it is no longer sufficient to merely go digital; the future growth of Malaysia hinges on the organisations’ ability to embrace a digital mindset and fully embody digital capabilities across all aspects of the manufacturing processes.
Key Highlights related to Industry 4.0
1. Enhancement of Industrty4wrd
a. To equip industry with fundamentals to embrace digitalisation
b. Enhancing the scope of Readiness Assessment and Intervention Fund programmes to include follow-through technology implementation
c. Collaborate with capital market and Financial Institutions to fund technology adoption
2. Target to create 3,000 smart factories
3. Average broadband speed to be targeted at 116.03mbps and access to fibre connectivity to 7.74 million premises under Jendela initiatives
4. Introduce multi-tiered levy mechanism for low-skilled labour to accelerate automation example higher levy charges on foreign low-skilled workers ; tailored levy rates based on sector yet will be implemented gradually.
5. Introduce automation condition in new manufacturing license. It will be done is a phased approached but SMEs are advised to be prepared and ready for it.
6. Nurture local technology solution providers to support technology adoption programme. Solutions Providers will be introduced , promoted and connected especially to the SMEs via Industry4wrd programmes
Yap Keng Teck
Head of Smart4wrd