Kuala lumpur: The Federation of Malaysian Manufacturers (FMM) has called for stronger innovation capabilities among small and medium enterprises (SMEs) and Tier-1 and Tier-2 suppliers to support upgrading, localisation and participation in global value chains.
According to BERNAMA News Agency, FMM president Jacob Lee Chor Kok stated that the federation had proposed that the Ministry of Science, Technology and Innovation (MOSTI) introduce more accessible, SME-friendly incentives and dedicated outcome-driven funding under Budget 2027. The proposals include structured industry-academia collaboration and a broader, more flexible interpretation of research and development (R and D) to better recognise SME-led activities.
'These activities include process innovation and incremental improvements, simplified tax and grant mechanisms, enhanced commercialisation, common-user facilities and matching grants to crowd in private-sector investment,' said Lee following FMM's recent meeting with MOSTI Minister Chang Lih Kang. Lee also emphasized the importance of strengthening resilient domestic supply chains by scaling up the FMM-Malaysian Investment Development Authority (MIDA) Industrial Linkage Programme.
This initiative involves embedding innovation, advanced technologies and environmental, social and governance (ESG) practices into supplier upgrading, promoting cluster-based ecosystems and a National Vendor Programme, and accelerating localisation, import substitution and anchor-led technology transfer in high-value and strategic sectors. Lee noted that a coordinated one-stop advisory ecosystem is needed, alongside structured readiness assessments and digital roadmaps, simplified incentives and micro-grants, shared smart infrastructure, collaborative digitalisation models, and stronger talent development in smart manufacturing, data, cybersecurity and automation.
He highlighted that these efforts would be supported by initiatives such as FMM's collaboration with SIRIM Bhd to onboard 3,000 companies under the New Industrial Master Plan 2030. FMM also emphasized the need for sustained, ecosystem-wide efforts to address perception challenges surrounding science, technology, engineering and mathematics (STEM) and technical and vocational education and training (TVET) and to deepen industry involvement in career awareness through pilot initiatives aimed at fostering early interest in science and technology.
Lee concluded by stating that closer and more structured collaboration between manufacturers, universities and research institutions, particularly in applied research, commercialisation and problem-driven innovation, would be critical to accelerating Malaysia's shift towards more complex, higher value-added and technology-intensive products.