Digital Twin, Smart Manufacturing Key To Strengthening Malaysia’s Industrial Ecosystem
KUALA LUMPUR, May 8 (Bernama) -- Digital twin technology and smart manufacturing are becoming increasingly important in strengthening Malaysia’s industrial ecosystem, according to the Malaysian Investment Development Authority (MIDA).
This becomes more apparent as global semiconductor and mobility supply chains become increasingly interconnected and technology-driven.
MIDA executive director of manufacturing development (non-resource), Ts Norhizam Ibrahim, said smart manufacturing has become an “entry ticket” for companies seeking to remain competitive in the global supply chain ecosystem.
He said this when speaking at the ‘Digital Twin & Smart Manufacturing: Future-Proofing Small and Medium Enterprises (SMEs) in Semiconductor & Mobility Supply Chains’ forum held on May 6, in conjunction with SEMICON Southeast Asia 2026.
Norhizam said customer requirements have evolved beyond conventional metrics such as ISO certification and on-time delivery, with manufacturers now expected to provide live machine data, real-time traceability, predictive defect alerts and secure factory networks capable of integrating directly with customer systems.
He added that increasing pressure from customers and financiers is accelerating the adoption of digital technologies across manufacturing operations, as companies with verified operational and sustainability data are increasingly viewed as lower-risk and more investment-ready.
“At the same time, competitive pressures are intensifying. The entry of high-quality, lower-cost manufacturers is challenging traditional operating models.
“To remain relevant, companies must move beyond low-complexity assembly into higher-value activities such as design, research and development, and innovation-led manufacturing, supported by a step change in productivity and efficiency through automation and smart manufacturing,” he said.
Norhizam noted that the relationship between the semiconductor and automotive sectors is becoming increasingly foundational as vehicles evolve into software-defined “computers on wheels”, driving higher demand for semiconductors, sensors, power management systems and advanced driver assistance systems.
As such, Malaysia’s focus must now shift beyond incentives and move towards building a complete and execution-ready ecosystem, supported by talent development, cybersecurity capabilities, system integrators and Industry 4.0 adoption.
Meanwhile, MIDA’s transport technology division director, Noor Suziyanti Saad said deeper integration between the semiconductor and automotive industries is increasingly important as chips now account for a growing share of modern vehicle costs, particularly with the transition towards electric vehicles (EVs).
She noted that Malaysia already has strong foundations in both the semiconductor and automotive sectors, and leveraging the strengths of both industries could help the country strengthen its competitiveness within the regional EV ecosystem.
“Local vendors with decades of experience supplying components to original equipment manufacturers are well-positioned to upgrade capabilities and participate in next-generation EV supply chains.
“Smart manufacturing technologies, including advanced sensors, semiconductor integration and intelligent systems, would play a key role in enabling safer, more energy-efficient and connected vehicles,” she said.
Noor Suziyanti added that the government is also working closely with universities, industry players and technical agencies to address talent gaps involving embedded software engineering, system architecture and automotive electronics to support long-term industry development.
-- BERNAMA