Manufactureres, which are manpower-intensive industries were slow to invest in digitalisation prior to COVID-19, especially the SMEs.

COVID-19 onset with a series of containment measures and SOPs have definitely spurred the urgency to fast track the technology transformation to future-proof any business model for sustainability.

37% of SMEs and 32% of large and listed companies are taking active measures to expand or upgrade their technology capabilities in response to the pandemic (https://www.theedgemarkets.com/article/4th-industrial-revolution-urgency-fast-track-4ir).

Contrary to the mindset of cost-intensive in adopting IR 4.0, the digitisation and automation of manufacturing processes help to save operational cost by streamlining overall business operations, security and safety efficiencies to minimise wastage or storage as well as enhancing supervisory processes and maintenance of machinery – hence eventually achieve higher productivity and output flexibility.

Adding to this, Malaysia has rolled out various funding availability and accessibility in terms of grants, loans or guarantee under Industry4WRD.

(https://www.miti.gov.my/miti/resources/STA%20Folder/PDF%20file/Industry4WRD_-_National_Policy_on_Industry_4.0_.pdf)

Hence, IR 4.0 will continue to gain more traction in the coming years for manufacturing sector which represents the backbone of economy for Malaysia (24.8% of GDP contributor as of 4Q21; projected to grow from RM254 bil in 2016 to RM392 bil in 2025).

Here are the names of technology equipment stocks listed on Bursa Malaysia with the market cap between RM100-500 million: