KUALA LUMPUR, March 7 ― Finance Minister Lim Guan Eng has launched the RM3 billion Industry Digitalisation Transformation Fund (IDTF) which is managed by Bank Pembangunan Malaysia Berhad (BPMB) today.
The fund which was first announced in Budget 2019 is aimed at helping Malaysia achieve its Industry 4.0 goals by accelerating industry’s adoption of the related technologies and to propel the nation in becoming a strategic partner for smart manufacturing and related services in the Asia Pacific region.
“The policy aims to raise labour productivity growth, increase manufacturing GDP contribution, enhance innovation capacity and create more high-skilled jobs.
“There are several targets that have been set for 2025, by which time, we hope to raise the manufacturing productivity by 30 per cent from RM107,000 per person in 2016 to RM139,000 per person in 2025,” said Lim.
It also aims to increase manufacturing contribution to the economy to RM392 billion 2025 from RM254 billion in 2016 while improving the nation’s ranking in the Global Innovation Index from number 35 to the top 30 in the world.
Under the fund, borrowers will benefit from an interest subsidy of two per cent per annum, provided by the government, to companies planning on upgrading production technology.
The funding offers borrowers through BPMB’s existing products in line with the bank’s credit underwriting standards and guidelines.
It can be used to partially finance the acquisition or development of specific assets such as software, licenses and patents among others as well as finance projects or contracts relevant to digital technology.
IDTF may also be used to finance companies which construct related infrastructure for the adoption of technology.
The fund will be complemented by expertise from MDEC and MIDA.