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Malaysia Supports MSMEs with Automation, AI, and Smart Technology

Automation

Business Honor
26 November, 2025

The government supports local businesses to adopt smart technology and automation in order to improve productivity, competitiveness, and digital transformation.

The Malaysian government supports local businesses, especially micro, small, and medium-sized businesses (MSMEs), to adopt smart technology and automation quickly in order to improve productivity, competition, and manufacturing. Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Investment, Trade, and Industry (MITI), informed the Dewan Rakyat that about 1,200 businesses were involved in the program according to the New Industrial Master Plan (NIMP) and the Industry4WRD initiative.

The growing number of participants shows that the digital and automated industries are gaining strength. He stated that the Industry4WRD fund has already approved around RM150 million in investments through the Malaysian Investment Development Authority (MIDA). The Smart Automation Grant additionally helped over 120 businesses by providing close to RM100 million to help them improve and upgrade their processes.

The government is increasing support through organizations like SIRIM Bhd, the Malaysia External Trade Development Corporation (MATRADE), and Malaysian Industrial Development Finance Bhd (MIDF). They offer financing programs to help businesses in automating, updating and setting up new digital systems.

The government is also aiming to improve the country's data center ability, efficient network infrastructure, and R&D capacity, especially with regard to integrated circuit design. Malaysian manufacturers are now able to access ARM's intellectual property because of the strategic agreement with ARM Ltd., speeding up the development of local AI chips. As these projects develop further, the government sees smart production, improved automation, and AI chips as the main foundation of national growth.