Summary
- Malaysia aims to develop 3,000 smart factories under the New Industrial Master Plan 2030.
- Deputy Investment, Trade and Industry Minister Steven Sim said only 93 have been completed, with another 161 targeted by end-2026.
- Sim urged manufacturers to accelerate automation as Malaysia gradually reduces its reliance on foreign workers.
BAYAN LEPAS, October 4 — Malaysia must accelerate factory automation to meet its target of 3,000 smart factories by 2030, Deputy Investment, Trade and Industry Minister Steven Sim said.
Speaking at the Malaysia Smart Manufacturing Awards 2027 roadshow, Sim said 93 government-supported smart factories had been completed, with another 161 expected by December.
He said adoption remained particularly low among smaller manufacturers and warned businesses to prepare as Malaysia reduces its foreign-worker ceiling from 13% of the workforce in 2026 to 10% by 2030.
Sim said automation could improve productivity, reduce dependence on manual labour and help Malaysian manufacturers compete in higher-value global supply chains.
