THE International Trade and Industry Ministry has sought an increase in in the budgetary allocation for small and medium enterprises (SMEs) to help them deal with the fourth industrial revolution (Industry 4.0) and e-commerce.

Its deputy minister, Ahmad Maslan, said this was one of the proposals the ministry made when they took part in two dialogues on the 2018 Budget wish list chaired by its minister, Mustapa Mohamed.

“Once finalised by early next month, we will submit the proposals, including the amount needed to empower about 907,000 SMEs, to the Finance Ministry,” he said after the Bumiputera SME Readiness Towards Megatrend and Industry 4.0 Dialogue in Kuala Lumpur today. 

Ahmad described the level of awareness on Industry 4.0 and e-commerce among SMEs as moderate, and he hoped with increased allocation, they would become more competitive, innovative and resilient.

He said Industry 4.0 adoption in SME business activities would help increase productivity and production of high-quality products at much lower cost through a more flexible and efficient process.

Meanwhile, SME Corp chairman Mohamed Al Amin Abdul Majid said megatrends, such as Industry 4.0 and big data analytics, were global economic developments that have a varying impact on the economy, industry, businesses and society.

“With Industry 4.0, the rise of the new digital technology industry symbolises a paradigm shift in revolutionising manufacturing and production,” he said.

He called on SMEs to adapt their production processes with technological advancement and improve workforce efficiency.

Under Budget 2017, RM5.87 billion was allocated for SME development.

Of the amount, RM239.7 million was set aside to boost and increase innovation and technology, especially among Bumiputera SMEs, through the implementation of 29 programmes, encompassing innovation enhancement, technology adoption, information and communication technology, research and development, and commercialisation. – Bernama, September 27, 2017.