Malaysia is increasing support for Smart Manufacturing by offering stronger government co-investment to help local businesses adopt automation, artificial intelligence and other advanced technologies.
Under a new scheme introduced by the Ministry of Investment, Trade and Industry (MITI) and the Securities Commission Malaysia (SC), the government will contribute RM2 for every RM1 raised from private investors.
The 2:1 co-investment ratio will remain available until 2030 for eligible small and medium enterprises (SMEs) and mid-tier companies (MTCs) undertaking Smart Manufacturing projects.
The initiative is part of the New Industrial Master Plan 2030 Strategic Co-Investment Fund, also known as NIMP CoSIF.
How The Smart Manufacturing Funding Works
The scheme supports businesses investing in automation, Industry 4.0 technology, digitalisation, artificial intelligence, robotics, data analytics and integrated digital solutions.
For example, if an eligible company raises RM1 million from private investors, the government could contribute another RM2 million. This would bring the combined investment to RM3 million, subject to the relevant requirements and conditions.
Private investment must be raised through regulated equity crowdfunding or peer-to-peer financing platforms.
This means the funding is not a direct government grant. Companies must first attract private investors and demonstrate the potential of their proposed Smart Manufacturing transformation.
Helping SMEs Adopt Advanced Technology
The cost of technology remains a major barrier preventing smaller companies from modernising their operations.
Automated machinery, robotics and digital infrastructure can require significant upfront investment. While larger businesses may have enough financial resources, SMEs can find it more difficult to secure the necessary capital.
The enhanced funding could make Smart Manufacturing more accessible, allowing businesses to modernise production lines, reduce manual processes and improve efficiency.
It could also help Malaysian manufacturers increase productivity, reduce waste and remain competitive amid rising costs and global competition.
Who Can Benefit?
The scheme is targeted at eligible SMEs and MTCs undertaking genuine Smart Manufacturing projects.
These may include installing automated equipment, introducing robotics, using AI to improve production decisions or connecting factory operations through integrated digital systems.
However, businesses will still need to raise capital from private investors and fulfil the relevant eligibility requirements. Government funding is intended to complement private investment, rather than replace it.
MITI and the SC also announced a temporary enhancement for businesses under NIMP CoSIF’s “Other Sectors” category.
Previously, the government contributed RM1 for every RM2 raised privately. Under the revised arrangement, the ratio will increase from 1:2 to 1:1 until the end of 2027.
This means the government will match private investment ringgit-for-ringgit.
The revised ratio brings funding for “Other Sectors” in line with the support available to companies operating in NIMP 2030’s Priority Sectors and New Growth Sectors.
The temporary enhancement is intended to provide greater financing support amid continued economic and market uncertainties.
Smart Manufacturing Supports NIMP 2030
NIMP CoSIF channels government funding alongside private capital into companies operating across 25 sectors identified under NIMP 2030.
It uses equity crowdfunding and peer-to-peer platforms to offer alternative financing for Malaysian businesses.
As of the end of June 2026, the programme had facilitated RM185 million in public-private fundraising for 40 Malaysian companies.
With the new 2:1 ratio, Smart Manufacturing businesses will receive stronger support to adopt advanced technology and expand their operations.
For eligible SMEs and MTCs, the scheme could provide an important financing pathway to begin or accelerate their Smart Manufacturing transformation.
Sources: 1| 2| 3
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