Kuala lumpur: Over RM1.8 billion in investments has been recorded under the Automation Capital Allowance (Automation CA) by companies implementing automation operations as of May 31 this year. The Ministry of Investment, Trade and Industry (MITI) highlighted this achievement in a written reply to the Dewan Rakyat, stating that the amount encompasses the purchase of automation machinery and equipment.

According to BERNAMA News Agency, the Automation Capital Allowance incentive, introduced under Budget 2015, allows companies to claim up to 200 percent on automation expenditure, capped at RM10 million, and has been extended until 2027. A total of 609 projects have been approved under the incentive, resulting in a reduction of reliance on low-skilled foreign workers by 6,295 individuals. Moreover, these companies have reported a 379 percent increase in output, a 124 percent improvement in product quality, and a 110 percent reduction in working hours.

The ministry’s response came in reply to a query from Datuk A
hmad Amzad Mohamed@Hashim (PN-Kuala Terengganu) concerning the effectiveness of the incentive in attracting foreign direct investment to Malaysia amidst the impact of tariffs.

Furthermore, MITI disclosed that as of September 30, 2025, a total of 22 projects have been approved under the enhanced Automation Capital Allowance incentive. These projects have exhibited significant progress, including a reduction of 200 low-skilled foreign workers, a 131 percent increase in output, and a 52 percent reduction in working hours.

MITI also noted that an additional investment of RM56.7 million has been generated for the acquisition of high-technology machinery and systems incorporating Industry 4.0 elements.