Scarcity of Labour Compels Investments in Automation for SMEs

The SME Association of Malaysia has called for federal government assistance to support small and medium-sized enterprises embarking on automation as such schemes require huge capital outlays beyond the means of the average SME.

According to SME Malaysia National President Ding Hong Sing, the number of foreign workers applied earlier by employers had fallen short and more SMEs were now compelled to automate production lines to meet business orders, given the uncertainty of labour supply.

“We foresee 2023 to be a challenging year for businesses and the adoption of automation is no longer an option when push comes to shove,” he said.

Ding said SMEs did not have the resources to fork out huge sums right away despite being supportive of the Industrial Revolution 4.0 concept and hence required federal assistance to facilitate these new investments.

He was speaking at the association’s Platinum Business Awards (PBA) 2022 Presentation and

Gala Dinner held in Selangor recently to celebrate the achievements and contributions of SMEs and individuals in their respective elds. Some 92 recipients received trophies for 21 award categories.

Guest-of-honour at the event was National Chamber of Commerce and Industry of Malaysia President Tan Sri Dato’ Soh Thian Lai. Other special invitees included Associated Chinese Chambers of Commerce and Industry of Malaysia President Tan Sri Low Kian Chuan, Sunway Group Exco member Puan Sri (Dr) Susan Cheah Seok Cheng, Malaysian Investment Development Authority CEO Datuk Wira Arham Abdul Rahman, Malaysia External Trade Development Corporation CEO Datuk Mohd Mustafa Abdul Aziz, SME Corporation Malaysia CEO Encik Rizal Nainy and Deputy Director-General of Malaysia Productivity Corporation Encik Zahid Ismail.

Dato’ Choi Wei Yee and Dato’ Low Boon An received the Platinum Entrepreneur Award while Ancubic Capital Sdn Bhd, Wilstech Sdn Bhd and Jocom Mshopping Sdn Bhd obtained the Outstanding Achievers Award.

The Hong Leong Bank SME Best

Overall Award went to Agrostar Automation Sdn Bhd, Armada Cekap Sdn Bhd, CSH Bakery & Confectionery Sdn Bhd, HMN Nadhir Sdn Bhd, Proguard Technologies (M) Sdn Bhd and Schmaco Auto Parts Industries Sdn Bhd.

Four new award categories –SME Environmental, Social and Governance Adoption Award, SME IR 4.0 Adoption Award, SME Business Resilience Award and SME Sustainable Development Goals Excellence Award – were introduced to highlight the relevance of ESG and IR 4.0 to local businesses.

Established in 2002, the PBA is a premium awards platform recognised for its rigorous selection of award recipients involving an internal audit committee, independent auditor and a Selection Board comprising industry leaders.

Major event sponsors are Hong Leong Bank, Maxis Broadband, Axiata Digital Ecode, RHB Bank, Jobstreet, Malaysia Industrial Development Finance, RMA, Hong Kong Economic and Trade O ce and Paragon Pinnacle while ADV Fusionex is the technology partner and SFAI Malaysia is the independent auditor.