PETALING JAYA, October 15 — The National Tech Association of Malaysia (PIKOM) has commended the Malaysian government for its latest budget, which focuses on improving the well-being of the general populace. While acknowledging several positive aspects, PIKOM has called for further measures to ensure the tech sector is adequately prepared for the Fourth Industrial Revolution (4IR).
PIKOM welcomed the government’s commitment to digitalization, the development of Micro, Small, and Medium-sized Enterprises (MSMEs), nurturing startups, promoting local talent and skills development, advancing STEM (Science, Technology, Engineering, and Mathematics) education, implementing 5G, and strengthening cybersecurity. These are all critical areas for the growth and advancement of the tech sector. However, PIKOM expressed concern that the budget did not go far enough in equipping the nation for the future, especially with the advent of the 4IR. PIKOM offered several recommendations that could have been swiftly integrated:
- Double Tax Deduction for Skills Training: PIKOM proposed an automatic double tax deduction for companies investing in skills training for their employees. This incentive would encourage businesses, particularly MSMEs with limited HRDCorp levy, to provide their workforce with the necessary skills for success in the 4IR.
- Support for Smart Automation: While the budget introduced grants for digitalization, there was little mention of support for smart automation in manufacturing and services that often demand substantial investments. This addition could facilitate quicker adoption of digital technologies by mid-sized to larger companies.
- Increased Government Spending on Tech Transformation: PIKOM noted the lack of specific details on how public sector transformation will be technology-driven. Enhancing public sector tech adoption could serve as a significant catalyst for broader digital transformation.
- Export Funding for Tech Companies: A dedicated export funding program for tech companies was recommended to help them expand into new markets. This is particularly crucial as Malaysian tech companies aim to become regional and global leaders.
- Tech Voucher Program: PIKOM proposed a voucher program to stimulate tech retail sales among lower-income Malaysians. While there are existing tax reliefs for middle to high-income groups, vouchers for deserving individuals could make tech products more accessible and affordable.
“We appreciate the government’s support for the tech sector,” said Ong Chin Seong, Chairman of PIKOM. “However, we believe there is more that can be done to ensure that Malaysia is fully prepared for the Fourth Industrial Revolution and the challenges of the future.” PIKOM looks forward to engaging with the government to further advance these initiatives and strengthen the nation’s readiness for the 4IR.
