The Ministry of Investment, Trade, and Industry (MITI) has announced its goal to establish at least 3,000 smart factories by 2030 as part of Malaysia’s industrial transformation under the New Industrial Master Plan 2030 (NIMP 2030).
This ambitious initiative reflects the government’s commitment to leveraging advanced technologies to enhance productivity and competitiveness across various sectors, ultimately contributing to Malaysia’s economic growth.
Deputy Secretary-General (Industry) Datuk Hanafi Sakri stated that this initiative aims not only to embrace digital transformation but also to create high-skilled jobs, enhance industrial resilience, and position Malaysia as a leader in advanced manufacturing.
“To date, nearly 500 companies have benefited from the Intervention Fund managed by the Malaysian Investment Development Authority (MIDA). We hope to achieve a minimum target of 2,500 more by 2030,” he said during a press conference after officiating the MIDF 2025 Roadshow, themed “Embracing Global Competitiveness: Future Ready and Halal Businesses”.
The Intervention Fund provides financial assistance to small and medium enterprises (SMEs) for adopting Industry 4.0 technologies and ultimately transforming into smart factories. NIMP 2030 serves as Malaysia’s national strategy to drive Industry 4.0 adoption among manufacturing and manufacturing-related services companies. It aims to help businesses transition into smart manufacturing through automation, digitalisation, and advanced technologies like artificial intelligence, the Internet of Things, and robotics.
At the launch of the roadshow, the Malaysian Industrial Development Finance Bhd (MIDF) introduced two key initiatives: the Future Ready Financing (FRF) and the Halal Accreditation Technology Improvement (HATI) programmes. The FRF helps SMEs adopt Industry 4.0 technologies and automation for enhanced competitiveness, while HATI supports SMEs in upgrading their technology to meet halal certification standards.
Deputy Secretary-General Hanafi praised the support from MIDF, highlighting the substantial funds needed to achieve the smart manufacturing target outlined in NIMP 2030.
“Establishing 3,000 smart factories, with an estimated RM5 million (approximately US$ 1.1 million) per company, amounts to a total requirement of RM15 billion (about US$ 3.3 billion). Given this significant amount, which the government cannot solely provide through grants or soft loans, participation from commercial banks is crucial in supporting the aspirations of NIMP 2030,” he said, emphasising that the halal industry also requires financial backing to grow.
He further noted that the involvement of financial institutions, such as MBSB Bhd, is essential to meet the financing needs of the industry. In his keynote speech, Hanafi highlighted the FRF and HATI as pivotal in empowering SMEs to integrate new technologies, enabling them to compete effectively on the global stage.
“I firmly believe that through strong collaboration between the government, industry players, and SMEs, we can drive Malaysia’s industrial transformation forward, ensuring our businesses remain relevant, competitive, and future-ready,” he added.
He also stressed the importance of fostering a culture of innovation and continuous improvement within the industry to sustain long-term growth and adapt to emerging market trends.
As OpenGov Asia reported, Malaysia is actively pursuing technology and digital transformation initiatives to enhance various sectors, including logistics, by adopting smart solutions. This strategic approach aims to increase efficiency, improve operational effectiveness, and drive innovation across the economy.
Transport Minister Anthony Loke highlighted the need for Malaysia’s logistics sector to leverage government incentives, such as income tax exemptions for smart logistics complexes, to enhance operations and accelerate the adoption of Industry 4.0 technologies.
He stressed that integrating automation, data analytics, and IoT technologies is essential for optimising supply chain performance and maintaining competitiveness in a changing global market.
Minster Loke urged businesses, particularly small and medium enterprises (SMEs), to capitalise on available incentives to modernise their operations, expand market reach, and adopt sustainable practices that align with Malaysia’s commitment to environmental responsibility.
Reference : https://opengovasia.com/2025/02/22/malaysias-industrial-transformation-3000-smart-factories-by-2030/