Perodua, MIDA Brings Malaysia’s Auto Suppliers Into The Digital Age

Perodua has been making moves to dramatically upgrade their numerous supply chain manufacturing vendor partners through digitalisation, automation, and the adoption of Industry 4.0 (IR 4.0) standards.

This process has been underway since 2020 by way of a partnership with the Malaysian Investment Development Authority (MIDA), and at their headquarters in KL Sentral, showed the fruits of their effort from 3 companies that have participated in the pilot ‘1st round’ of the programme.

Perodua, MIDA and IR 4.0

There, a further selection of 5 ‘2nd round’ vendor partners were also introduced into the fold and presented their plans toward digitalisation and its revolutionary implications to efficiency, output, and future-preparedness they expect to achieve from their participation in the programme.

Going forward, the MIDA-Perodua Digital Transformation Ecosystem will be expanding to include many more of Perodua’s vendor partners and hopes to include industries outside the automotive sphere to collectively bridge the technological gaps in the country’s manufacturing industry to be competitive on the world stage.

MIDA-Perodua Digital Transformation Ecosystem

Datuk Arham Abdul Rahman, Chief Executive Officer of MIDA, said: “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 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.”

Meanwhile, Dato’ Sri Zainal Abidin Ahmad, Perodua’s President and CEO said “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,”

The implementation of Industry 4.0 is not only for the automotive supplier’s benefit but the impact of this programme will contribute greatly to the nation’s digital transformation agenda. The programme also can fast-track Malaysia’s industries, from small to large, as it provides both funds and guidance. PERODUA’s role has always been to develop the automotive ecosystem and this programme is another example of our commitment towards this objective,” he added.

No statements were made about exactly how this has or will contribute to Perodua’s climbing annual production targets, but with the local automaker collecting over 200,000 bookings by the end of June 2022, they’ll likely need every productivity advantage they can get in delivering those vehicles promptly.