SALUTATIONS
1. Mr Joseph Giam
Managing Director, Glocomp Systems
2. Encik Wan Murdani Wan Mohamad
Vice President and Head of Digital Industry Acceleration, MDEC
3. Mr Laurence Si
Managing Director, Microsoft Malaysia
4. Mr Alex Liew
Executive Director, Glocomp Systems
5. Mr Jacob Lee Chor Kok
Vice President, Federation of Malaysian Manufacturers (FMM)
Members of the Media,
Distinguished Guests,
Ladies and Gentlemen.
Salam Perpaduan, Salam Malaysia MADANI, and a very good Morning.
1. It is wonderful to see so many familiar faces in the ballroom this morning, gathered for what I believe is a significant milestone for Malaysia’s manufacturing sector.
2. Two key concepts come to mind when I think of today’s event: Public-Private Partnerships (PPP) and Environmental, Social, and Governance (ESG) principles.
3. Firstly, let me express my heartfelt appreciation to Glocomp Systems, Microsoft Malaysia and my hardworking team from MDEC for spearheading this important initiative in collaboration with the Federation of Malaysian Manufacturers (FMM) and the Malaysia Investment Development Authority (MIDA).
4. This collective effort exemplifies the true power of a PPP which harnesses the strengths of Malaysia’s public and private sectors to drive digital transformation and industrial innovation.
5. By bringing together government agencies, industry leaders and technology providers, this initiative is set to accelerate the adoption of cutting-edge digital solutions while also strengthening Malaysia’s position as a competitive and forward-thinking hub for investment and manufacturing.
6. The public sector plays a crucial role in facilitating and guiding industry-wide efforts, but real success requires active participation 3 from the private sector.
7. My ministry – which oversees government bodies such as MDEC, MyDIGITAL, CyberSecurity Malaysia and the new National AI Office – is responsible for formulating policies, fostering partnerships and driving initiatives that enhance Malaysia’s digital capabilities.
8. On the ESG front, MDEC, through our Sustainability Team, is actively working with industries to address the intersection of ESG and digital — connecting technology providers and businesses to drive data-driven sustainability practices that align with evolving global standards and emerging ESG regulations.
9. Through these efforts, we aim to create a robust, sustainable and globally competitive digital economy that benefits businesses and the rakyat alike. Our role, in essence, is to serve as a catalyst for innovation, enabling businesses to adopt cutting-edge technologies that drive growth, sustainability and resilience in an increasingly digital world.
10. Another good example is our National AI office – its aim is to serve as a ‘centre of excellence’ for the nation. This is because we know that many complex challenges can be solved with technology. We put in place the structure to bring it all together – to leverage the power of AI and create the ecosystem needed to develop AI capabilities. It’s a clear path toward our future.
11. During my first tenure as minister back in 2018, I ruffled a few feathers when I demanded that telecommunications companies reduce their broadband charges to make the internet more affordable for businesses and the rakyat.
12. This was because connectivity is the foundation of a thriving digital economy – one that supports innovation, drives productivity and paves the way for sustainable growth.
13. It was about laying the pathway to the future – encouraging more businesses to adopt technology, embrace digital tools and ultimately position Malaysia as a competitive, future-ready nation in the global digital landscape.
14. Technology is crystallising our shared vision, enabling a more connected, innovative and digitally empowered Malaysia.
15. The foundation we built back then has allowed businesses, industries, and communities to fully harness the potential of 5G, AI and other emerging technologies. This progress reaffirms our commitment to ensuring that digitalisation serves as a tangible force for driving economic growth, inclusivity and national competitiveness on the global stage.
Ladies and Gentlemen,
16. Let me now turn to say a few more words about ESG – and why its adoption is not just necessary, but critical, for Malaysian manufacturers. There are three good reasons for this:
a. Future-Proofing Businesses for Long-Term Growth: Embracing ESG practices helps future-proof businesses. By adopting sustainable practices, companies can better manage risks, optimise resources and build resilience against environmental and social challenges. ESG thus goes beyond being just a compliance exercise and instead serves as a strategy for long-term business sustainability.
b. Operational Efficiency and Innovation: The integration of ESG principles encourages innovation and operational efficiency. By leveraging AI and advanced digital tools – such as those offered through the Microsoft Cloud for Sustainability Pilot – manufacturers can automate ESG reporting, track emissions in real time and optimise energy usage. This results in cost savings, process improvements and greater operational transparency.
c. Gaining a Competitive Edge in Global Markets: Many of Malaysia’s key trading partners have implemented stringent ESG regulations. Manufacturers that embrace ESG principles will find it easier to access and expand into these markets, as compliance with international sustainability standards becomes a key competitive differentiator. ESG-aligned operations open doors to global supply chains that prioritise responsible and transparent practices.
17. From a sectoral perspective, manufacturing remains a cornerstone of Malaysia's economy, contributing approximately 23% to our nation's Gross Domestic Product (GDP). This 6 makes it one of the largest contributors to the Malaysian economy, with key sub-sectors including Chemicals, Automotive and Electrical and Electronics with Selangor, Johor, Penang and Sarawak being key contributors to the manufacturing sector.
18. Another of our nation’s growth engines is the digital economy which is projected to contribute to some 25.5% of GDP by year end – A testament to the growing importance of technology across all sectors, including manufacturing.
19. When combined, technology and manufacturing form a powerful combination that elevates Malaysia’s competitiveness on the global stage. By integrating advanced digital tools with industry best practices, we are laying the foundation for a resilient, sustainable and prosperous ‘Smart Manufacturing’ sector that will drive Malaysia's growth well into the future.
20. Taking both these sectors into account, the ESG factor becomes even more critical. ESG principles ensure that, as Smart Manufacturing advances even further, they do so with a balanced consideration of environmental impact, social responsibility and governance standards.
Ladies and Gentlemen,
21. As Malaysia moves forward, the integration of ESG into the manufacturing and digital sectors would further secure our standing as a reliable, forward-thinking partner in the global economy.
22. This strategic public-private partnership is the result of extensive collaboration and commitment from all parties involved. They have all worked tirelessly to realise this PPP that Malaysia is most proud of, bringing together the right expertise, technology and industry support to drive meaningful change.
23. Toward this end, I am told that the Microsoft Cloud for Sustainability Pilot serves as an enabler that would provide manufacturers – particularly members of FMM – with access to AI-driven analytics and real-time emissions tracking capabilities. This technology will both simplify ESG reporting and support data-driven decision-making for more effective sustainability strategies.
24. In addition, the MIDA Domestic Investment Accelerator Fund (‘DIAF’) launched last year serves to help reduce subscription costs for FMM members, making the pilot more accessible to manufacturers.
[DIAF is a matching grant initiative introduced to support Malaysian-owned Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) in the manufacturing and selected services sectors.]
25. It is another Malaysia Madani initiative to help manufacturers modernise and stay competitive in an evolving global market.
26. I encourage manufacturers to take full advantage of the opportunities, especially as global regulations around ESG and sustainability reporting become more stringent.
27. As I had emphasised earlier, compliance is no longer optional but can be elevated to empower our local manufacturers with competitive advantages. In this light, let us seize this moment to reinforce Malaysia’s reputation as a regional leader in responsible manufacturing.
28. That said, I look forward to the collective progress we can achieve for the greater good of our beloved nation. Thank you, and have a great day ahead.
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