KUALA LUMPUR: Government-linked companies (GLCs) must act as facilitators and collaborate with private companies, especially small and medium enterprises (SMEs) to foster innovation in labour-intensive industries.
SME Association of Malaysia secretary-general Chin Chee Seong said public-private partnerships must play a more dynamic role in driving the adoption of advanced technologies.
Chin highlighted SMEs' struggle to access capital, noting GLCs as crucial partners due to their ability to navigate bureaucratic hurdles more efficiently than direct government engagement.
"GLCs could also provide financial backing, enabling SMEs to invest in automation technologies and enhance their competitiveness in the market," he said in an interview on NST's Beyond the Headlines.
"By encouraging synergy between these entities, access to the resources and expertise necessary to drive technological innovation and enhance productivity is achievable," he added.
Chin also said knowledge-sharing and skill development can be more robust within these partnerships.
This can ultimately reduce the reliance on foreign labour.
Between 2022 and March last year, the Human Resources Ministry approved a quota for the recruitment of 1,136,022 foreign workers.
Of the total, 469,106 were for the manufacturing sector, followed by the construction sector (359,899); services (171,490); plantation (85,678); agriculture (49,473) and mining and quarrying (376).
Employers and manufacturer groups say Malaysia still relies heavily on foreign workers and they cannot be totally removed until Malaysians are trained well enough to take over these jobs.
However, some economists have also expressed that Malaysia is no longer competitive in labour intensive industries due to labour shortages and higher wage costs, leaving the country with a weight of attracting high value, skilled, and technology-intensive manufacturing activities.
GLCs, Chin said, has the capacity to contribute in building expertise in various sectors, thereby empowering SMEs to adopt innovative solutions and optimise their operations.
He said if the collaboration is fostered progressively, it is only then that SMEs can overcome barriers to technological adoption and emerge as key contributors to the nation's economic growth.
This stance, he said, aligns with ongoing efforts to promote technological advancement and enhance the competitiveness of Malaysia's SMEs, reflecting a strategic vision for sustainable economic development in the digital age.
"Private partnerships are important and the handholding is important. They put our capital, we work on our skill."