Apart from the electrical and electronics (E&E) industry, the government should also focus on local automation, robotics, and Internet of Things (IoT) companies as they bring the benefits of the Fourth Industrial Revolution (IR4.0) to the world.
According to ViTrox Corp Bhd CEO and president Chu Jenn Weng, local automated testing equipment (ATE) companies have grown more than 13,000% on a percentage basis.
"If you look at the stock market, the market capitalization of ATE companies in the last 10 years was less than RM200 million. But today, ATEs account for nearly RM30 billion in the local stock market and the companies are growing. And why? Because of the introduction of IR4.0.
"Many companies, not only in the E&E industry but also in other industries, are adopting this IR4.0. But what is our government's stand on this issue? How can the government focus specifically on local companies to drive this IR4.0 strategy?" he said during the RMK12 webinar titled "Boosting E&E Industry in Moving up the Value Chain".
He added that most of the country's ATE companies also export their products around the world.
"I really hope that besides the E&E industry, we also give the same attention and priorities to the local automation, robotics, and IoT companies, because these are the companies that will bring the benefits of IR4.0 adoption to the whole world," he said.
Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said earlier that the E&E industry plays a critical role in the country's industrial development.
Under the 12th Malaysia Plan (12MP), the E&E industry is targeted to contribute RM120 billion to gross domestic product (GDP) and generate RM495 billion in export earnings by 2025.
Furthermore, ViTrox’s Chu said the government should provide incentives like tax rebate allowance for companies that buy and develop products made in Malaysia, including automation equipment, robotics, IoT and software, and et cetera.
“So, this will encourage more multinational companies (MNCs) to buy products manufactured in Malaysia,” he added.