Kuala Lumpur, 3 July 2024 – The Productivity Model Companies for Small and Medium Enterprises (SMEs) program by the Malaysia Productivity Corporation (MPC) is served as a new approach to enhance SMEs’ productivity and competitiveness through Modern Management and Technology. This initiative aligns with the Mid-Term Review (KSP) 12MP, which anticipates a 4.3% growth rate by 2025, marking a recovery from the -2.1% decline in 2023, and the New Industrial Master Plan (NIMP) 2030, which aims to develop 3,000 smart factories. These objectives underscore the government's commitment to revitalizing and modernising the manufacturing sector by integrating cutting-edge digital tools and innovative management practices.

This pilot program targets 10 SMEs, specifically focusing on Tier 3 and lower-level companies within the manufacturing sector. The primary goals are to establish industry leaders in productivity by setting benchmarks for best practices with a digital-first approach, enhance existing production processes to boost overall industry productivity and competitiveness, and transform existing SMEs into mid-tier companies through the application of modern management and technology.

MPC Director General, Zahid Ismail highlighted the critical role of digital in driving national productivity. “This program encompasses several key areas essential for productivity enhancement, such as automation, IoT, and data analytics, providing SMEs with a clear framework for optimizing manufacturing processes. By adopting automation and IoT solutions, a participating SME could significantly reduce operational inefficiencies and production downtime, leading to increased output and high-skilled job opportunities within the community”, Zahid stated.

Government initiatives to support the digital transformation journey at the enterprise level are crucial to drive business innovation. Data on GDP per person employed in industry (PPP) indicates significant productivity increases in Taiwan and South Korea, with Taiwan showing pronounced growth post-2020, whereas Malaysia exhibits more modest, yet steady, growth. This underscores a substantial productivity gap between Malaysia and its East Asian counterparts.

"This pilot program focuses on modern management and technological integration aims to bridge this gap. It equips participating SMEs with the tools, knowledge, and ongoing support needed to achieve significant improvements in output and contribute to national economic growth”, said Zahid.  

MPC invites all stakeholders to join hands in this transformative journey towards higher productivity and global competitiveness for Malaysian SMEs.

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About Malaysia Productivity Corporation (MPC)

MPC is a statutory body under the Ministry of Investment, Trade and Industry (MITI). It drives national productivity holistically at the national, sectoral, and enterprise levels through three main thrusts: developing future talent, driving digitization and innovation, and building a robust ecosystem. It collaborates strategically with the private and public sectors by emphasising productivity as a key agenda to boost productivity growth and national competitiveness, ultimately leading to shared well-being and prosperity.

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