Arham (left) and Zainal Abidin.
KUALA LUMPUR: The Malaysian government wants to upgrade the local automotive supply chain and is working with Perodua to get the ball rolling.
The government, through the Malaysian Investment Development Authority, and the automaker today revealed the Mida-Perodua Digital Transformation Ecosystem Programme at Mida’s headquarters.
The programme aims to upgrade local automotive suppliers to the next level by using cutting-edge technologies and machinery and to digitalise their manufacturing processes through adoption of Industry 4.0.
The first phase of Mida-Perodua strategic partnership has led to the emergence of three potential Perodua-friendly partners namely LSF Technology Sdn Bhd, J.K. Wire Harness Sdn Bhd and Autoliv Hirotako Safety Sdn Bhd.
These companies have also been granted Domestic Investment Strategic Fund as part of government efforts to help local companies tap into the global supply chain.
Mida and Perodua have also identified five promising vendors that have shown much growth opportunities. They are Armstrong Auto Parts Sdn Bhd, Ingress Aoi Technologies Sdn Bhd, Namicoh Suria Sdn Bhd, P.D. Kawamura Kako Manufacturing Sdn Bhd and Kumpulan Jebco (M) Sdn Bhd.
As the main promotional agency of Malaysia, Mida said it would use its clout and resources to help more companies grow.
The Mida-Perodua collaboration began in 2020.
Mida CEO Datuk Arham Abdul Rahman said the joint programme would help Malaysia attract more foreign investors.
The government is also helping local companies to scale up and accelerate their adoption of smart manufacturing and Industry 4.0 technology through various incentives and facilities, he added.
As of June 30, 238 Malaysian-owned companies were approved with business grants valued at RM138.5 million. The recipients were SMEs from labour-intensive industries such as plastics, wood, furniture and textiles, while the rest were from services-related industries.
Perodua president and CEO Datuk Seri Zainal Abidin Ahmad said the programme could fast track Malaysia’s industries, from small to large, as it provides both funds and guidance.
"Perodua's role has always been to develop the automotive ecosystem and this programme is another example of our commitment towards this objective.”
