KUALA LUMPUR: Malaysia has the strategic advantage to become Southeast Asia’s supply chain hub as the global supply chain paradigm is shifting and expanding from China to other countries in the region.
The chief executive officer of US-based Synergies Intelligent Systems Inc (SIS), Dr Michael Chang, said Malaysia, with its robust logistics, stands out as a strategic hub due to its strong ties with China’s supply chain.
He said while countries such as Vietnam and Thailand are often considered alternatives, Malaysia’s unique multilingual advantage – proficiency in English and Mandarin – positions it as the better choice for international business.
“Malaysia provides an accessible environment for engineers and supply chain specialists from China to collaborate effectively, enhancing local capabilities in computer numerical control machining, technology, and supply chain improvements.
“Malaysia’s strengths extend beyond logistics. It boasts rich resources, skilled talent, and advanced technological processes. However, the nation lacks a robust platform to showcase its full potential to the world.
“Collaborative ventures, such as partnerships between local firms and global players like Zhong Yang Technology Co Ltd (ZYT) and Synergy, are key to demonstrating Malaysia’s capabilities and positioning it as a formidable player in the global supply chain landscape,” Chang told reporters at a strategic alliance signing ceremony involving SIS, FSBM Holdings Bhd and ZYT today.
Chang said the global supply chains are undergoing a significant paradigm shift, moving away from a reliance on China. However, China’s supply chain remains one of the most efficient and capable in the world.
He said the key question for businesses is how to benefit from this world-class efficiency while simultaneously diversifying beyond China’s supply network.
Chang noted that the solution lies in learning from China’s model and integrating those lessons elsewhere.
Under the partnership deal, FSBM Holdings, through wholly owned subsidiary FSBM I-Centre Sdn Bhd, SIS and ZYT, will deploy the HMLV.ai, a customer-to-manufacturer platform powered by advanced AI algorithms, to enhance traditional supply chains in the fabricated metal industry across Southeast Asia.
HMLV.ai is designed to address key procurement challenges, such as speed and cost. It leverages artificial intelligence algorithms to deliver instant quotes for high-mix, low-volume (HMLV) products. This innovation promises improved efficiency and performance, empowering businesses to remain competitive in an ever-changing market.
The initial focus will be on the fabricated metal industry, with plans to expand into plastic and different key manufacturing segments.
Malaysia offers significant market potential for HMLV.ai.
According to the Department of Statistics Malaysia, the gross domestic product for fabricated metal products reached around RM18 billion in 2023.
It is estimated that 1% of this sector requires HMLV parts for research and development, new product introduction, and engineering studies. This represents a market potential of RM180 million in Malaysia, highlighting the vast opportunities within this niche segment.
HMLV.ai is perfectly positioned to seize the growth potential.
FSBM Holdings managing director Pang Kiew Kun said the collaboration showcases the company’s commitment to empowering businesses with advanced technologies.
“By integrating AI solutions to HMLV.ai, we aim to redefine the entire supply chain in the fabricated metal manufacturing industry from upstream to downstream by optimising the part design, procurement, quality and pricing.
“With Malaysia as our hub, we are strategically positioned to support the Southeast Asia market, and this underscores our dedication to driving smart manufacturing and digital transformation as a regional leader,“ he said.
Pang said Malaysia’s potential as a competitive global player is often overlooked due to a lack of platforms to showcase its expertise, professionalism, and advanced capabilities. However, partnerships with major international companies like SIS and ZYT are helping to change this perception.
He said learning from established global industry leaders allows Malaysian firms to elevate their skills and stay competitive on a global scale.
“The government has been proactive in driving technological transformation with initiatives like the New Industrial Master Plan 2030 and the recently launched National AI Office. These efforts aim to move the nation beyond low-end subcontracting and into advanced technology manufacturing.
“Without continuous innovation and adaptation, Malaysia risks falling behind as neighbouring Southeast Asian countries rapidly progress.
“Learning from technology leaders in China, Taiwan, and global giants like Foxconn enables Malaysian businesses to refine their strategies and align with best practices. This commitment to innovation and global awareness benefits individual businesses and contributes to national economic resilience and shareholder value,“ Pang said.
