Over RM1.8 Bln In Investments Recorded Under Automation Capital Allowance - MITI

KUALA LUMPUR, Oct 27 (Bernama) -- The Automation Capital Allowance (Automation CA) has recorded additional investments worth over RM1.8 billion by companies implementing automation operations as of May 31 this year. 

The Ministry of Investment, Trade and Industry (MITI) stated in a written reply to the Dewan Rakyat today that the amount covers the purchase of automation machinery and equipment. 

The Automation Capital Allowance incentive was introduced under Budget 2015 to allow companies to claim up to 200 per cent on automation expenditure, capped at RM10 million, and has been extended until 2027.

“A total of 609 projects have been approved under the Automation CA incentive, which has reduced reliance on low-skilled foreign workers by 6,295 persons.

“In addition, these companies recorded a 379 per cent increase in output, a 124 per cent improvement in product quality, and a 110 per cent reduction in working hours,” said MITI. 

The ministry was responding to a question from Datuk Ahmad Amzad Mohamed@Hashim (PN-Kuala Terengganu) regarding the effectiveness of the incentive in attracting foreign direct investment to Malaysia following the impact of tariffs. 

Meanwhile, MITI also informed that as of Sept 30, 2025, a total of 22 projects have been approved under the enhanced Automation Capital Allowance incentive.

These projects have shown significant improvements, including a reduction of 200 low-skilled foreign workers, a 131 per cent increase in output, and a 52 per cent reduction in working hours.

“An additional investment of RM56.7 million has also been generated for the purchase of high-technology machinery and systems incorporating Industry 4.0 elements,” said MITI.

-- BERNAMA