LANGKAWI: Sirim Bhd has been entrusted with the critical mandate of driving the adoption of smart manufacturing among more than 1,200 SMEs, aiming to accelerate their transition from Industry 1.5 to Industry 4.0.
According to Sirim president and group CEO Datuk Dr Ahmad Sabirin Arshad, one of the most pressing challenges lies in transforming traditionally labour-intensive industries into modern, automated operations – an ambitious shift that also presents significant opportunities for productivity, efficiency and long-term competitiveness.
“We hope that by 2030, Malaysia can become independent of foreign labour and achieve full automation, leading to improved productivity and higher average incomes across the country.
“However, transitioning SMEs to smart manufacturing involves significant costs. That is why the government, through the Smart Take-Up Programme, is providing subsidies to support the adoption of these technologies and we are offering technological interventions to assist industries along the way,” he told SunBiz at the 17th Langkawi International Maritime and Aerospace Exhibition (Lima 2025) yesterday.
He said to support the transformation of local SMEs into smart manufacturing, the government is providing funding assistance, while Sirim collaborates with agencies such as MIDF, under the supervision of Bank Negara Malaysia, to ensure these businesses can access financing at the lowest possible interest rates.
“And we are also collaborating with several multinational companies that are willing to share their automation systems with Malaysia, enabling a smoother transition from our current state to our desired future. Our primary focus is on the manufacturing sector, particularly in electrical and electronics, even though many interested companies are in the food and beverage space.
“This focus is crucial to ensure that Malaysia maintains its position as one of the world’s leading semiconductor producers,” Ahmad Sabirin said.
To strengthen Malaysia’s manufacturing ecosystem, he added, there is a need to cultivate a second and third tier of SMEs that can effectively support multinational corporations operating in the country.
While financial assistance remains important, industry stakeholders have expressed that what they value most is clear insight into the future direction of global technology – highlighting the need for stronger guidance, foresight, and strategic alignment from the government to facilitate their transition into advanced manufacturing, Ahmad Sabirin noted.
“To ensure local industries are not left behind, Sirim is working closely with agencies like Malaysia External Trade Development Corporation and Ministry of Investment, Trade and Industry to build a cohesive ecosystem that supports the global export of high-value products.
“By aligning efforts, the goal is to position Malaysia as a competitive exporter in high-growth, high-value sectors. With overseas operations already under way, Sirim aims to strengthen its leadership role both nationally and across Asean over the next three to five years.
“We are planning to establish more offices globally, and through these efforts, our goal is not only to elevate Sirim’s international presence but also to help bring Malaysian SMEs onto the global stage. That, I believe, is the most important objective,” Ahmad Sabirin said.
