Perodua teamed up with MIDA to support local suppliers’ digital transformation

KUALA LUMPUR: Perodua has always played a crucial role in developing the automotive ecosystem in Malaysia and the recent example is its association with MIDA (Malaysian Investment Development Authority) to introduce MIDA-Perodua Digital Transformation Ecosystem Programme.

This programme aims to help the local auto parts suppliers embrace digital transformation. It will help vendors to adopt cutting-edge technologies and machineries and to digitalise their workflows with the help of Industry 4.0.

The first phase of the mission has brought forward the following three Perodua partners, which has also received Domestic Investment Strategic Fund (DISF) from the government -
LSF Technology Sdn.Bhd.
J.K. Wire Harness Sdn. Bhd.
Autoliv Hirotako Safety Sdn. Bhd

For the second round, Perodua and MIDA have selected five promising vendors that are performing well. These Include - 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.

MIDA contributes to the programme with the help of the following initiatives -
Domestic investment seminars
Engagement with national associations and chambers of commerce
Industry linkage/supply chain programmes
Domestic investment coordination platform commitments

It also coordinates the business-matching sessions between anchor companies and potential local suppliers which belong to a specific industry.

As of June 30, 2022, a total of 238 SMEs have received business grants worth RM 138.5 million, which include services-related industries as well as labour-intensive industries like plastics, wood, furniture, and textiles.

“Local companies play a major role in building the nation’s industry ecosystem–geared to support large companies and MNCs. The initiation of the MIDA-PERODUA collaboration in 2020 was crucial to ensure a steady development of our local player’s capabilities in the automotive industry. Under MIDA’s initiative to facilitate these companies to adopt digitalisation and Industry 4.0, we have been successful in contributing immense growth in PERODUA’s manufacturing volume, through the empowerment of its industry partners and service providers.” said Datuk Arham Abdul Rahman, Chief Executive Officer of MIDA.

Dato’ Sri Zainal Abidin Ahmad, Perodua President and Chief Executive Officer said “The MIDA-Perodua Digital Transformation Ecosystem Programme is aligned with the Government's efforts to enhance local technology ecosystem development activities in terms of supply and value chains, research and development activities, and innovation and commercialisation.

He added that the implementation of Industry 4.0 will not only benefit the automotive suppliers but also contribute greatly to the country’s digital transformation agenda. By providing funds and guidance, it will fast track Malaysia’s small and large industries.

Also read: Sales Report: Perodua Malaysia performance in July 2022