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.

As part of the 2020 Malaysian Budget initiative, the Minitry of Finance has agreed to offer a ten year corporate IP tax relievefor companies that have filed patents and software copyrights. Find out what we can do for you to enjoy the tax exemption.

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

Have you always wanted to be in a manufacturing business? A small scale manufacturing model?

Well, help is at hand to help you model your Manufacturing Business.

Iskandar Project would like to help you create your Manufacturing Business. Just tell us what you would like to do and we will help you model your business in your area. The business is designed with you in mind. Your interest? Your capability and the viability of business in your domain will be taken into consideration when we help model your business. For a start, you can click on the button below to ask for an advisory. Please also indicate your preference and capability and also how much is your budget. We will then get back to you with our suggestion.

An Alternative to going the Industry 4.0 path.

As part of our initiative to help propel Malaysian Industries to a new level, we will help you to innovate into a new business model that will have very little competition. It is called Green Ocean Initiative, Malaysian Style! We will be the best option for you to come for help because we are first of all Innovators ourselves. As you are aware, the government is very concerned about Malaysian Businesses not adopting Industry 4.0 elements. The idea is to urge Malaysian Businesses to up their technology to be more inline with the bigger boys who had embraced Industry 4.0 elements in their production capacities. However, it must be said that even if you have adopted Industry 4.0 methodologies, it does not mean that you will be able to compete with others because at some future time, you will fall into the same level of playing field as those who had also adopted the new technologies! So, instead of spending much money on Industry 4.0 adoption, why not go at a different path and still save you money. If you are a Malaysian own(at least 60% equity), then you are also entitled to apply for Pioneer Status (with 7 years of tax free corporate tax) and perhaps a Government Matching Grant!

Yes, we are talking about diversisification; invest in new products and services that have very little competitions! We are also talking about innovation because you will need it to propel you into the front and at the same time face very little competition. How then can we help you to do that you might ask? Well, if you want to know more, go ahead just drop us a thinker at and we will get back to you for your new journey (not the industry 4wrd way!).

You might want to look at our offer of low cost Low Cost Smart Manufacturing Services

Advisory (non free email account will be appreciated) at

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