Tech giants welcome Budget 2020 digitisation plans

KUALA LUMPUR, The government has continued to emphasise the importance of the Industrial Revolution 4.0 (IR 4.0) as 2020 Budget lays out measures to capture IR 4.0’s full potential.

Cisco Malaysia managing director Albert Chai said the government continued to support measures such as smart automation with a matching grant of up to RM2 million for local manufacturers and services companies to embrace digitalisation.

This, coupled with tax incentives provided for the electrical and electronics industry to facilitate investment in next-generation technologies, will definitely spur the pace of technological adoption, especially among manufacturers, he said in a statement today.

Chai said digitising the manufacturing sector was a key driver to Malaysia’s sustainable economic growth in the longer term, and added that a study by Cisco and A.T. Kearney revealed that the country’s manufacturing sector could experience an incremental growth of US$30 billion over the next decade from IR 4.0.

This growth will be largely driven by productivity gains � increasing between US$20 billion to US$25 billion and driven by the creation of additional revenue streams through new products and quality improvements, as manufacturers adopt IR 4.0 technologies, he added.

Meanwhile, multinational cybersecurity and defence company Trend Micro lauded the government continued focus on driving Malaysia’s digital economy

Its managing director Goh Chee Hoh said the allocations under the budget would significantly enhance the country’s economic competitiveness by bridging the digital gap, as well as improving the adoption of IR 4.0.

We are supportive of the current direction that our country is taking, and the new economic opportunities being realised from initiatives such as the National Fiberisation and Connectivity Plan (NFCP), he said.

Under 2020 Budget, the government will adopt a public-private partnership approach involving a total investment of RM21.6 billion

The government, through Malaysian Communications and Multimedia Commission, will finance at least half of the required investment with corresponding investments by the private sector telecommunications players via a matching grant mechanism.

The government also introduces a 5G Ecosystem Development Grant worth RM50 million to bridge the digital gap and improve IR 4.0 uptake among businesses.

Source: BERNAMA (News Agency)