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PETALING JAYA: Malaysia’s push towards smart manufacturing is accelerating as industrial policy and digital transformation converge to strengthen the country’s competitive edge in Southeast Asia.
Rockwell Automation Singapore, Malaysia and Brunei country manager Mariya Prempeh said Malaysia’s manufacturing sector is entering a new phase of technology-driven growth, underpinned by national frameworks such as the New Industrial Master Plan 2030.
“Malaysia’s smart manufacturing market, valued at over US$5 billion (RM19.6 billion), is expanding rapidly as initiatives like Industry4WRD and the New Industrial Master Plan 2030 enable manufacturers to adopt artificial intelligence (AI), Internet of Things, robotics and advanced automation,” she told SunBiz in an exclusive interview.
The convergence of policy and technology is particularly visible in high-value sectors such as electronics, automotive and precision engineering, where companies are moving beyond pilot projects to enterprise-wide strategies.
Prempeh cited the company’s 2025 State of Smart Manufacturing Report, which found that 94% of Asia-Pacific manufacturers are investing in AI and machine learning to improve agility, address labour shortages and enhance product quality. In Malaysia, she said, more firms are embedding predictive maintenance, connected production systems and real-time analytics into daily operations.
“This shift positions Malaysia as a competitive, technology-driven hub within the region’s industrial ecosystem,” she added.
Energy efficiency is also emerging as a central pillar of digital transformation, in line with Malaysia’s National Energy Transition Roadmap, which calls for lower-carbon industrial growth.
Prempeh said automation and data analytics are enabling manufacturers to make energy management measurable and actionable. Solutions such as FactoryTalk Energy Manager and FactoryTalk Analytics allow companies to monitor energy consumption across facilities, detect inefficiencies and implement corrective measures.
She pointed to Rockwell’s own manufacturing facility in Singapore, where a smart energy framework delivered 15% to 30% energy savings and up to 40% reductions in Scope 1 and 2 emissions, as proof that automation can align productivity and sustainability goals.
“Automation and analytics help manufacturers balance cost efficiency with long-term environmental targets,” she said.
Beyond technology, Prempeh stressed that leadership plays a decisive role in successful digital transformation, particularly in traditional or legacy sectors.
“Transformation must start with clear business outcomes, not technology for its own sake,” she said. “Leaders who define specific operational challenges first and then deploy digital tools tend to see faster, measurable results.”
Workforce readiness remains equally critical. According to the 2025 report, 42% of Asia-Pacific manufacturers are redesigning roles to make technology more engaging, while 46% believe AI can help address labour shortages.
In Malaysia, Prempeh noted, organisations which prioritise upskilling, open communication and cultural alignment are better positioned to overcome resistance to change.
At Rockwell, building a resilient workplace culture is seen as foundational to innovation. The company was certified as a “Great Place To Work” across 14 Asia-Pacific markets last year, including Malaysia, with 80% of employees describing it as such.
“We focus on trust, inclusivity and continuous learning. These values empower employees to experiment and build digital capabilities that strengthen organisational resilience,” Prempeh said.
Despite strong momentum, Malaysian companies still face hurdles in adopting AI and automation at scale. Common challenges include skills gaps, legacy infrastructure and fragmented data systems across facilities.
“While most manufacturers are investing in AI and automation, only a fraction realise full value due to integration and talent barriers,” Prempeh said.
She advised companies to begin with high-impact, measurable use cases such as predictive maintenance or energy optimisation before scaling across operations. Combining upskilling initiatives, local partnerships and user-friendly platforms can help bridge the gap between ambition and execution.
On the ground, measurable improvements are already emerging. Prempeh highlighted Rockwell’s partnership with Exyte Group on a RM150 million facility monitoring and control system project for a multinational technology manufacturer in Penang. As lead automation contractor, Rockwell implemented advanced lifecycle management and real-time data monitoring to enhance equipment uptime and process visibility across a complex, multi-vendor environment.
Industry collaborations and forums such as ROKLive have also provided Malaysian manufacturers with exposure to best practices in sustainability, workforce readiness and smart manufacturing.
Looking at the next three to five years, Prempeh believes Malaysia’s biggest opportunity lies in integration rather than mere adoption.
“Connecting production, supply chain and sustainability data into a unified ecosystem will unlock greater decision agility and operational visibility,” she concluded.
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The Sun Malaysia
