MALAYSIAN manufacturers must accelerate their adoption of automation and digital technologies to remain competitive in an increasingly demanding global market, says Investment, Trade and Industry Deputy Minister Sim Tze Tzin.
Sim, who is also Bayan Baru MP, said the country’s manufacturing sector still had considerable room for improvement, with many factories continuing to rely heavily on manual labour despite rapid technological advancements elsewhere.
“We just can’t run away from technology. Embracing technology enables manufacturers to boost productivity, improve operational efficiency and adapt to shifting market needs,” he said.
He was speaking before launching the Malaysia Smart Manufacturing Awards (MSMA) 2027 at AC Hotel Penang in Bayan Lepas today.
Sharing his observations from visits to various factories, Sim said he was concerned that many Malaysian manufacturers were still lagging behind their international counterparts, particularly those in China, in adopting automation.
“When I visit a lot of our factories nowadays, a lot of our processes are still carried out manually, such as delivering, pushing carts and sorting things.
“We are more than 10 years behind China, to be honest. That is scary because we are still relying on very manual processes,” he said.
He added that even some advanced manufacturing companies he had visited had yet to fully embrace automation, highlighting the need for substantial improvements across the industry.
The situation was even more challenging for small and medium enterprises (SMEs), many of which were still struggling to adopt basic digital solutions, including proper accounting systems and business record management.
Sim stressed that automation was no longer a luxury but a necessity for businesses seeking to remain viable in the long run.
“Now is the time for you to move your industry and manufacturing to the next level, and the solution is automation.
“Without automation, your business will not be competitive. Some will not survive,” he said.
He said the Federal Government was making concerted efforts to help businesses accelerate their transformation through various grants, financial assistance and technical support.
Sim urged manufacturers in Penang and across the country to take advantage of the available assistance and systematically streamline their operations through greater automation and digitalisation.
“There is no way but to automate. There is no way but to systematically streamline your processes with more and more automation and digitalisation,” he said.
On MSMA 2027, Sim described the awards as an important platform for recognising visionary Malaysian manufacturers and industry enablers that were taking concrete steps towards smart manufacturing.
He said the award recipients and participating companies were pioneers in transforming factory operations and demonstrating how Malaysian industries could compete on the global stage through innovation, efficiency and resilience.
He emphasised that companies should not be discouraged by their current level of technological readiness, noting that every step towards digital transformation was important.
“Whether a company is at the start of its digital journey or already refining advanced automation systems, every step counts,” he said.
He called on manufacturers at all stages of readiness to adopt a more structured approach towards automation, digital integration, real-time data utilisation and comprehensive workforce upskilling.
Sim said MSMA could serve as both a guide and catalyst for the national smart manufacturing agenda, helping companies assess their current capabilities and identify opportunities for further improvement.
He also highlighted the growing demands of the global trade landscape, where foreign investors and multinational corporations were increasingly expecting greater visibility, transparency and consistency from their supply chain partners.
“To secure high-value contracts and maintain their positions in international markets, Malaysian manufacturers must demonstrate consistently high standards.
“Through digital solutions, manufacturers can strengthen process control, improve end-to-end traceability, maintain consistent product quality and ensure reliable delivery schedules,” Sim said.
These capabilities, he stressed, were no longer merely competitive advantages but had become essential requirements for companies seeking to participate in global value chains.
Sim said the adoption of smart manufacturing would enable local suppliers to meet these increasingly stringent requirements while strengthening Malaysia’s standing as a trusted hub for high-value manufacturing.
He expressed hope that more Malaysian companies would take decisive steps towards embracing technology, ensuring the country’s manufacturing sector remained resilient and prepared for the challenges and opportunities ahead.
Also present during the event were Penang Trade and National Unity Committee chairman Goh Choon Aik, Malaysian Industrial Development Finance Bhd (MIDF) chief executive officer Azizi Mustafa and Bizsphere Sdn Bhd founder and chief business strategists Yap Keng Teck.
Story by Riadz Akmal
Pix by Siti Nuratikah Rahmat