PP 18091/05/2013(033524)

PG6 FACILITATING MALAYSIA'S economic growth

PG21 helping organisations to GROW SUSTAINABLY Volume 1 20 PG26 GLOBAL EXPERTISE 20 for local excellence BEST PARTNER FOR INNOVATION

ISTIC A SYNERG

ON E NATI OW TH TO GR

SIRIM BERHAD

towards a NEW NORM foreword The Covid-19 pandemic has not only brought about In this issue, we highlight the programmes we serious health implications but also created a highly have on offer that can facilitate this. We urge challenging economic climate across the world. Here organisations, especially small and medium in Malaysia, we at SIRIM are doing our part in this on- enterprises (SMEs), to take advantage of what we going war against the pandemic. With our expertise in have for you. Let us work together to get back on technological innovations and our role as a facilitator track and embrace the upcoming 12th Malaysia of the nation’s economic growth, we are in a unique Plan while moving closer to achieving the position to contribute, both in terms of supplying the Sustainable Development Goals (SDGs) for the necessary equipment for Covid-19 frontliners and benefit of all. patients, and in helping industries weather this storm.

ADVISOR Prof. Ir. Dr. Ahmad Fadzil Mohamad Hani CHAIRPERSON Abdul Aziz Long MEMBERS Co-chairman - Raja Yahya Raja Ariffin Ahmad Yani Ahmad Ridzuan Cher Dong Theng Hasmafatiha Harun Irene Safinaz Hassan Nor Azlan Mohd Ramli SIRIMLink is an official publication of SIRIM Berhad. Nurazlina Ismail The bulletin is distributed free to our clients and Nur Sakinah Mohd Khir Johari associates, business and research establishments.

Romzee Ismail SIRIM LINK

Rosniza Abd Wab Copyright © SIRIM Berhad. VOL 1 Ruhil Amani Zainal Abidin Salmah Mohd Nordin For further information on the articles Wan Mazlina Wan Hussein featured in this magazine, please contact: Zalinda Baharum Corporate Affairs Section Zanariyah Ali SIRIM Berhad

PUBLISHED AND PRINTED BY Tel: 03-5544 6772 SIRIM Berhad Fax: 03-5544 6745 1, Persiaran Dato’ Menteri Section 2, 40700 Shah Alam, Selangor Email: [email protected] ADVANCING OUR ECONOMY

FACILITATING MALAYSIA'S ECONOMIC GROWTH

Prof. Ir. Dr. Ahmad Fadzil Mohamad Hani, President and Group Chief Executive of SIRIM 6

COLLABORATING WITH INDUSTRY TO GROW THE NATION

Dr. Mohd Shahrul Azmi Mohamad Yusoff, Director of the Industrial Centre of Innovation (ICI) in Smart Manufacturing at SIRIM 9

EMBRACING THE DIGITAL AGE FOR THE PROSPERITY OF THE NATION

Tengku Intan Narqiah Tengku Othman, Chief Digital and Information Officer of SIRIM VOL 1 VOL SIRIM LINK 12 SIRIM BERHAD

PROGRESSING WITH PRODUCTIVITY

TABLE OF CONTENTS Dato’ Abdul Latif Hj Abu Seman, Director General of Malaysia Productivity Corporation (MPC) 16 advancing ourECONOMY

HELPING ORGANISATIONS TO GROW SUSTAINABLY

Dr. Mohd Azman Idris, CERTIFICATION Senior General Manager of the Training and Consultancy & TRAINING Department at SIRIM STS Sdn Bhd Rosniza Abdul Wab, Head of Marketing and Customer Experience Section at SIRIM QAS International Sdn Bhd 21

GLOBAL EXPERTISE FOR LOCAL EXCELLENCE digitisation Industry 4.0 SIRIM LINK VOL 1

Nor Azlan Mohd Ramli, Principal Consultant of Industrial Research Management Centre at SIRIM

26 talent development 6 SIRIM LINK VOL 1 ADVANCING OURECONOMY Executive of SIRIM President andGroup Chief Mohamad Hani, Prof. Ir. Dr. AhmadFadzil (SDGs). DEVELOPMENT GOALS NATIONS’ SUSTAINABLE ACHIEVINGUNITED THE CONSEQUENTLY, TOWARDS MALAYSIA AND, PLAN CLOSER12TH TO THE PROGRESS AS WE MOVE COUNTRY’S ECONOMIC WHILESAFEGUARDING THE CONTAINTO THE VIRUS AND SOCIETY INOURFIGHT FRONTLINERS, PATIENTS TIRELESSLYHELP TO BEEN WORKING HAS OUR DAILY LIVES.SIRIM WREAKED HAVOC IN CORONAVIRUS HAS THE COVID-19 facilitating and upgrading. in themanufacturing sector viatechnology penetration programme isaimedat increasing theproductivity of SMEs SIRIM-Fraunhofer programme. Rolledoutin2015, the initiatives tofacilitate fastereconomicrecovery, like the For one,SIRIMhasawealthof programmes and Hani, President andGroup ChiefExecutive of SIRIM. and automation,” saidProf. Ir. Dr. AhmadFadzil Mohamad them toaccelerate theadoptionof digitaltechnology and recover from theCovid-19crisis.SIRIMwillassist build amore resilient andagilebusinessinorder tosurvive review theirbusinessmodelandsupplychainnetworkto “It istimely that smallandmediumenterprises(SMEs) processes, iskey. is where digitalisation, particularlyof themanufacturing 4.0 technologiesandensure theirbusinesscontinuity. This industry playerstobeablereap thebenefits of Industry it hasbecomemore crucialthaneverfor Malaysia’s With theoperational stress brought aboutbythepandemic, not beenspared. pandemic castingitsshadowontheworld.Malaysiahas The year2020hadarocky start, with theCovid-19 GROWTH ECONOMIC MALAYSIA'S

SIRIM LINK VOL 1 7 SIRIM BERHAD SIRIM Moving into the 12th Malaysia Plan Malaysia 12th the into Moving Sustainable Development to the Malaysia’s According the Review 2017 report, National Goals, Voluntary to specific United respect with country’s achievements namely (SDGs), Goals Development Sustainable Nations Consumption and Production), SDG12 (Responsible and SDG17 on Land) Action), SDG15 (Life SDG13 (Climate government include green the Goals) (Partnership for RM429 million since a total value of at procurements our economy intensity of the carbon of reduction 2013, our of 52.5% of by 33% since 2009 and the preservation cover. forest these achievements, SIRIM has had a hand in facilitating its standards through or indirectly, whether directly assessment and industrial development, conformity 65 eco-standards publishing Besides activities. research and 2020, between 2016 procurement green supporting tap the methane it established a demo plant in Sabah to palm oil mill waste, in addition to gas emitted from gas bio-natural for Standard Industry an developing (BioNG). forest in ensuring that SIRIM also plays an integral role to adhere companies plantation and oil palm-based Certification set by the Malaysian Timber standards and Malaysian Palm Oil Certification Council (MTCC) and wildlife particularly in resource Council (MPOCC), management. with the United SIRIM is collaborating Additionally, (UNIDO) Organization Industrial Development Nations Solar Thermal as another in exploring the potentials of costs in energy to reduce option clean energy manufacturing facilities. y g n. o o l i o t a ordable and suitable and ordable n ff h m c o e t t u a al

t d i g n i It is timely that small and medium It is timely that a them to accelerate the adoption of them to accelerate model and supply chain network to the Covid-19 crisis. SIRIM will assist the Covid-19 in order to survive and recover from in order to survive and recover d enterprises (SMEs) review their business (SMEs) review enterprises build a more resilient and agile business and agile resilient build a more SIRIM is aware that IT platforms and infrastructure are are and infrastructure IT platforms that is aware SIRIM to reluctant SMEs are However, digitalisation. critical for of the benefits of invest due to high costs and uncertainty this, SIRIM is collaborating address their investments. "To Hitachi, companies like with well-known international a in identifying Huawei and Bosch “In our commitment to building capabilities and capacities our commitment to building capabilities “In we achieving higher productivity, in the industry towards emerging with date to up are that solutions strategic offer enterprises. modern needs of to the and tailored trends with business- innovations SIRIM combines technological and services to deliver quality products oriented disciplines Ahmad Dr. shared marketplace,” the to relevant are that Fadzil. among most Malaysian “There attitude is a ‘wait-and-see’ – be they SIRIM’s want our people companies. We or management secretaries scientists, engineers, standards and become agents of system auditors – to be proactive and change in sharing new ideas, concepts, standards Dr. explained ground,” on the they are when technologies Ahmad Fadzil. SIRIM also plans to introduce new digital modalities to modalities digital new introduce to plans also SIRIM the new for large at and industry manufacturers prepare normal. SIRIM is able to introduce industry, to With its close links Economy, Circular new ideas and concepts, such as and (DfE), Environment and Design for Eco-innovation (MFCA) to the local players, Flow Cost Accounting Material especially SMEs. IT-related solutions for Malaysian SMEs. The “Experience Malaysian SMEs. The “Experience solutions for IT-related will Jalil, Bukit SIRIM, in up set to plan we which Centre”, potential platforms enable SMEs to assess and understand Fadzil. Ahmad or technologies to be used," added Dr. 8 SIRIM LINK VOL 1 ADVANCING OURECONOMY 1 training andconsultation. commercialisation, accredited testing, certifications, industrial research and product innovation, technology Services willincludebiomodelling andprototyping, requirements,” elaborated Dr. AhmadFadzil. quality, performance andreliability; andmeetregulatory grown products; ensure local products meet product products toreplace importedgoods;develophome- MDICwillhelpMalaysiancompanies tolocalise "The manufacturers inthecountry. product innovation capabilities of medical device local medicaldeviceproducts aswellgrowing the capabilities toaddress themarket accessgapsof the its competitiveness. MDIC will assist in building the nation’s medicaldeviceindustryandenhance Innovation Centre (MDIC)whichaimstodevelop SIRIM isalsolookingintoestablishingaMedicalDevice relevant. enable ittodevelopprogrammes andservicesthat are to identifytheirneeds,challengesandaspirations to shipbuilding, SIRIMhasbeenengagingwithindustries areas, such asaerospace, rail,medical devices and Industry’s (MITI)initiatives innewpotentialgrowth In line with the Ministry of International Trade and ForwardGoing added. are imbedded intheactivitiesthat wecarryout,”he under the12thMalaysiaPlanleadingtowards theSDGs supporting the government’s efforts. “Our initiatives Concurrently, SIRIMiswell-poisedtocontinue have tobealignedwiththeSDGs.” that allactivitiesplannedunderthe12thMalaysiaPlan the right direction. The government has set a policy According toDr. AhmadFadzil, “Malaysia isheadedin to moveMalaysiaevencloserachievingtheSDGs. The upcoming12thMalaysiaPlan(2021-2025)isset direction. Thegovernment hasset have tobealignedwiththeSDGs. 2 a policythat allactivitiesplanned Malaysia isheadedintheright th

M a under the l a y s i a

P l a n with SDG3(Goodhealthandwellbeing). and accesstoqualityessentialhealthcare servicesinline medical deviceswillallowfor more affordable products for our medicaldevices.Meanwhile,locallymanufactured as wellcreating more jobsandaccesstonewmarkets access. Inthelongterm,thiswillleadtoeconomicgrowth, development tocommercialisation –tofacilitate market extensive rangeof capabilities–from research and Industry playerswilltherefore beabletotapintoSIRIM’s imported goods;develophome- Malaysia’s at aGlance MedicalDeviceIndustry performance andreliability; and products meetproduct quality, meet regulatory requirements. to localiseproducts toreplace grown products; ensure local RUBBER GLOVES RM c & CATHETERS PROJECTED ANNUAL GROWTH M MARKET VALUEIN The MDICwillhelp o 16.1 BIGGESTEXPORTS TO a m 1.4 GLOBAL MARKET l a p y a s n i BIL % i 2018/2019 a e n s

SIRIM LINK VOL 1 9 ns o SIRIM BERHAD SIRIM i ut l o s of s te available. In fact, we offer available. In fact, we offer one of the most complete one of i if not throughout the region. throughout if not MALAYSIA HAS BEEN MALAYSIA MAKING HEADWAY STEADILY THE FOURTH IN EMBRACING REVOLUTION. INDUSTRIAL MULTINATIONAL THUS FAR, s) (MNC CORPORATIONS SEEM TO BE THE MAIN THE NEW OF BENEFACTORS HAVE THAT TECHNOLOGIES CAN HOW FORTH. SPRUNG MNCs THIS GAP BETWEEN AND MEDIUM AND SMALL ENTERPRISES (SMEs) BE CLOSED? of technology-oriented solutions technology-oriented of u under one roof within the nation, within the nation, under one roof At SIRIM, we have a wide spectrum SIRIM, At s Cloud Simulation Computing

Reality Big Data Big Data Analytics Internet of of Internet Things (IoT) Augmented Augmented

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THE NATION collaborating 10 SIRIM LINK VOL 1 SIRIM-Fraunhofer ADVANCING OURECONOMY innovation disparities that occur as a result of differing gapbetweenindustryplayersislargely becauseof “The the initiatives beingconductedtofacilitate this. industries. TheSIRIM-Fraunhofer programme isoneof and ensure thecontinuousgrowth of Malaysia’s productivity, reduce dependencyonforeign solutions SIRIM’s mainobjectivesinthisrespect are toincrease best quality. industry toensure that thesolutionsitoffers are of the helix partnershipwiththegovernment,academiaand As a bonus, SIRIM is able to capitalise on its unique triple- SIRIM. Centre of Innovation (ICI)inSmartManufacturingat Shahrul AzmiMohamadYusoff, Director of theIndustrial the nation, if notthroughout the region,” stated Dr. Mohd most completesuitesof solutionsunderoneroof within oriented solutionsavailable. Infact,weoffer one of the “At SIRIM, we have a wide spectrum of technology- help smallandmediumenterprises(SMEs)progress. Industrial Research division,SIRIMiswell-equipped to innovation through research anddevelopmentviaits players. This is where SIRIM comes in. In promoting there is a significant gap between thebigger and smaller technology-based industriesintheregion. Nevertheless, Malaysia issaidtoalready have oneof themostadvanced on Industry4.0. identified inthecountry’sIndustry4WRD: National Policy particular through the11key technologypillarsthat were catalyse thegrowth of themanufacturingsectorin On Malaysianshores, thephenomenonisexpectedto technological advancements and new possibilities. The arrivalof Industry4.0 hasbrought aboutmanyrapid transformation transformation strategy strategy innovations. as awholetowards abetterfuture viatechnological developed amethodologytoassessandguideindustry in multipletechnologicalaspects;consequently, ithas SIRIM alsopossessesimmenseexperienceandexpertise With itsvastpoolof researchers, engineersandanalysts, elaborated. to address theindividualissuesof eachorganisation,” he unique competencydevelopmentprogramme that isable among industry players, which will allow us to design a step towards understandingthetruelevelof awareness SIRIM’s isthefirst industrialresearch capabilities.“That to ensure that it is able to reap optimal benefits from measure thecompetencylevelof theorganisation first According to Dr. MohdShahrul, it is important to move forward. enable themtocomeupwiththenecessarystrategies to organisations toadoptIndustry4.0 technologies.Thiswill the capabilities,gapsand,subsequently, readiness of this comprehensive programme aimstounderstand Assessment. Adoptingapredetermined setof criteria, assessment bodyfor theIndustry4WRDReadiness International Trade andIndustry(MITI)tobean SIRIM hasalsobeenappointedbytheMinistryof strategy,” saidDr. MohdShahrul. efforts, whichwillthenbe followed byatransformation among thetoolsusedfor ouron-goingbenchmarking assessments conducted underSIRIM-Fraunhofer are funding capabilities.Thetechnologyauditsandreadiness Technology Centres whichsupportthecountry’s (TCs), Among others,SIRIM’s offerings includesixICIsandthree The Centre ofProgress assessments conductedunderSIRIM- The technologyauditsandreadiness t Fraunhofer are amongthetools benchmarking efforts,which r will thenbefollowedbya a used forouron-going n s s t r f o at r eg m a y. t i o n SIRIM LINK

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ENVIRO CENTRE SIRIM Industrial Research encompasses: SIRIM Industrial Research Gearing Up for the Future the Gearing Up for it when for improvement room is definitely There smart adoption of the level of comes to increasing SMEs. This is a manufacturing technologies among developing and growing continue to wish we if necessity the country’s industry as a whole. that industry players to welcoming forward SIRIM looks with us; we will might need a helping hand. “Engage becoming towards the transformation walk you through and vast experience with our years of Industry 4.0-ready Dr. declared expertise along the technology spectrum,” Mohd Shahrul.

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MACHI TECHN Dr. Mohd Shahrul Azmi Mohamad Yusoff, Mohd Shahrul Azmi Mohamad Yusoff, Dr. (ICI) Innovation of the Industrial Centre of Director SIRIM in Smart Manufacturing at The projected leap in technology for the manufacturing leap in technology for The projected the introduction the way for sector is envisioned to pave players will industry whereby mass customisation, of much faster to individual demands be able to respond of Centre its solutions. Through bespoke and provide SIRIM is leading the Smart Manufacturing, for Excellence the foundation industries and laying way in transforming in initiatives 4.0 Industry for frameworks regulatory of include training that with various offerings the country, technology assessments, strategic services, readiness and public contract research. planning, as well as private “The ICIs are a dynamic research setup with aggressive “The setup with aggressive a dynamic research ICIs are value chain, focusing engagement along the horizontal on applied technology to be adopted by industries more on the other hand, concentrate along the value chain. TCs, within a technology of on the verticals – the advancement Shahrul. Mohd particular discipline,” explained Dr. industrial innovation ecosystem through research and research ecosystem through industrial innovation that innovations development and new technology develop and sustain businesses and industries. 12 SIRIM LINK VOL 1 ADVANCING OURECONOMY OF THENATION PROSPERITY for the digital age and growth; anditisexpected embracing the entrepreneurship, innovation d is changingoureconomies and societies–driving i g to keep expanding. i

t al i s a t i o n

REAP ITSBENEFITS? HOW READY ISMALAYSIA TO HEELS OFMANY INDUSTRIES, ALREADY SNAPPINGAT THE DIGITAL DISRUPTORS BEFORE.NEVER WITH TRANSFORMATION LIKE EXPERIENCING ADIGITAL THE WORLDIS to beready toadaptandtransform accordingly. competitive and relevant in today’s economy need of anation. Assuch,organisations that wishtostay ingredient inuppingtheproductivity andefficiency development, digitalisation becomes a central As a key accelerator of socioeconomic expected tokeep expanding. entrepreneurship, innovation andgrowth; anditis changing oureconomiesandsocieties–driving for theprosperity of anation. Digitalisation is more evidenthowessentialdigitalisation is to gaintractiontheworldover, ithasbecome As the fourth industrial revolution continues SIRIM LINK

VOL 1 13 n SIRIM BERHAD SIRIM o i t a s i al t i g before you digitalise. you digitalise. before i digitisation refers to the refers digitisation is the integration of digital of is the integration d and business activities, while and business conversion of manual paper- manual conversion of Defining the Digital Economy According to the Malaysia Digital Economy “The (MDEC), Corporation digital economy the private by both taken actions to the refers and public sectors to adopt and utilise digital with people, technologies to communicate deliver goods and services, and meet other revenue functions to raise productivity, core and incomes.” is a collective words, digital economy In other focusing on to an economy refers term that digital technologies. It covers all activities digital supported by the web and other technologies and, as such, is communication Economy. or Internet also known as the Web the digital economy has an estimated Today, USD3 trillion value. technologies into everydayinto technologies life processes. You need to digitise You processes. based processes into digital-based into based processes Naysayers have spoken out about their fear of job loss. job of fear their about out spoken have Naysayers could also spell While this might be inevitable, digitalisation may reduce new opportunities. “While the digitalisation the technological the advancement of labour workers, model economic in a new also result could ecosystem new the way for paving being born – the digital economy, in digital services across job opportunities to be created industries,” she explained. “At a very high level, digitalisation catalyses the economy catalyses digitalisation a very high level, “At and goods quality higher of production the by increasing costs, which can, in turn, gain in per reduced services at (GDP),” added Tengku Domestic Product capita Gross Intan. Digitalisation is also seen to empower employees, giving giving employees, empower to seen also is Digitalisation to develop new skills and future-proof them a platform with themselves in addition to equipping the organisation the in-house knowledge and skills necessary to sustain its and competitiveness. growth The increase in an organisation’s capabilities can be can capabilities organisation’s an in increase The in its adaptability expected to bring about an increase This could and better innovations. as well as more products to current subsequently lead to improvements new and in resulting new products, of and the creation streams. revenue larger As a significant harbinger of a nation’s health and of a nation’s As a significant harbinger digitalisation that development, it comes as no surprise benefits. For one, it has brought brings with it an array of engaging customers, ways for about new and exciting It is and easier. faster experience customer the making seamless a more in facilitating also playing an integral role and systems, business processes optimising workflow by easier data and allowing for applications, key consolidating collaboration, and smoother inter-departmental retrieval to name a few. “Digitalisation is the integration of digital technologies of is the integration “Digitalisation business activities, while digitisation and into everyday life processes manual paper-based to the conversion of refers need to digitise before You into digital-based processes. Tengku Intan Narqiah you digitalise,” explained Tengku of SIRIM. Officer Othman, Chief Digital and Information Many people tend to confuse “digitalisation” with “digitalisation” to confuse Many people tend between distinction clear a is there however, “digitisation”; the both. Digitalisation is a broad term that refers to a holistic refers term that is a broad Digitalisation digital using diverse areas across transformation and/or streamline manner to technologies in a strategic one’s operations. accelerate Optimising Progress 14 SIRIM LINK VOL 1 ADVANCING OURECONOMY goods andservices c which can,inturn, level, digitalisation gain inpercapita at reduced costs, the economyby new jobopportunities tobecreated indigital Gross Domestic result inaneweconomicmodelbeingborn Product (GDP). a increasing the of thetechnological ecosystemcouldalso production of higher quality At a very high At avery – thedigitaleconomy, paving thewayfor t While thedigitalisation mayreduce a l

a y services across industries. d s labour workers, the e v s a n n n n n n overcome. Theseinclude: has notbeenallsmooth-sailing.There are numerous barriersthat theyneedto Despite that, gettingorganisations tojumponthedigitaltransformation bandwagon Overcoming Barriers already beendisrupted.” hindrance aswhentheydochangetheirmind,often enough theirbusinesseshave and stableorganisations, whichare initiallyunwillingtochange.Thisisamajor digitalisation intheirbusinesses.Thelate adoptionnormallystemsfrom mature case. “My personalviewisthat buddingSMEsdonothave anyissuesinembracing often highinvestmentcostsof doingso,Tengku Intanfeels that thisisnotalwaysthe the hardest hitbyaninabilitytosmoothlyadoptdigitaltechnologiesduethe While apopularconsensusisthat smallandmediumenterprises(SMEs) wouldbe ce

Lack of interoperability of standards Financial constraints Shortage of properly skilledmanpower/know-how Lack of trustindigitaltechnologies Inadequate infrastructure m e n t among industryplayers. encourage theadoptionof digitalisation to establish an industry-driven platform to innovation studies.SIRIMisalsoplanning personnel andinformation, andstrategic and technicalservices,exchange of Tengku Intan. These include joint research terms of technological solutions,” said to helpSMEsbemore competitivein SIRIM, we have thenecessarycapabilities technologies, particularlyamongSMEs.“At accelerating theadoptionof digital SIRIM playsanimportantrole in Accelerating Digitalisation SIRIM LINK

VOL 1 15 SIRIM BERHAD SIRIM Officer of SIRIM Officer Tengku Othman, Tengku Tengku Intan Narqiah Intan Tengku In essence, the prosperity of a nation is dependent on its is dependent a nation of In essence, the prosperity is dependent on global competitiveness which, in turn, able to embrace how optimally its industry players are competitiveness, digital technologies. With improved more produce the country would logically be able to consequently and services, and products better and fail to do countries that Conversely, its GDP. increase so may find their GDP declining. is not about technology; it is a transformation “Digital mused Tengku human and mindset transformation,” Intan. Malaysia’s industry for imperative It is therefore is necessary to do what the initiative players to take able to adapt and adopt digital they are that to ensure and will enable them to innovate technologies that further. progress In championing digitalisation within the nation, SIRIM SIRIM the nation, within digitalisation In championing and innovation in particular: on two areas is focused programme, adoption. “Via the SIRIM-Fraunhofer industry-driven is able to gather example, SIRIM for will be This digitalisation. of in the area requirements and research conduct to SIRIM for input pertinent to with our vision in line and innovation development she explained. Innovation,” for be the Best Partner SIRIM will continue that Intan reveals Tengku Internally, digitalisation and digitisation to adopt and embrace and employee improve to is mission “Our initiatives. our by simplifying and innovating customer experience technologies using unprecedented business processes to the efficient services faster and more to provide public.” closer towards By doing so, SIRIM will move a step becoming a trusted partner to its mission of realising and progress the the industries and doing its part for the country. development of Competitiveness Enhancing Global Chief Digital and Information Chief Digital and Information n o i s Our s i m SIRIM Training Services provides various Services provides SIRIM Training training programmes digitalisation-related offers Research SIRIM Industrial in digitalisation technological solutions areas programme The SIRIM-Fraunhofer SMEs in the of enhances the productivity its core through sector manufacturing Innovation activities, namely Implement Technology Increase Management, and SMEs of Growth Nurture Uptake, Programmes Cross-cutting SIRIM pursues smart partnerships with technology partners numerous

Collective Capabilities facilities an array of SIRIM provides Collectively, digitalisation promote to and programmes among our industry players. Among others: * * * *

efficient services to the public. services efficient

is to improve employee and customer employee and is to improve technologies to provide faster and more and more faster technologies to provide experience by simplifying and innovating our business processes using unprecedented unprecedented using our business processes 16 SIRIM LINK VOL 1 ADVANCING OURECONOMY PRODUCTIVITY progressing Productivity Corporation (MPC) General of Malaysia Hj AbuSeman,theDirector Dato’ AbdulLatif PROGRESS. THE NATION’S CONTINUED IS CRUCIAL TO ENSURE SHARES WHYPRODUCTIVITY CORPORATION (MPC) MALAYSIA PRODUCTIVITY THE NEXT YEAR, COMMENCE MALAYSIATHAT PLAN WILL GEARS UPFOR THE 12TH PLAN. AS THE COUNTRY END OF THE 11THMALAYSIA THE YEAR 2020 MARKS THE DATO' ABDULLATIF with

economic growth. transition istherefore necessarytoachievesustainable decrease inGDPgrowth compared tointhepast.This of inputinjected into theeconomy, thus resulting ina becoming more expensivetoaccommodate everyunit driven growth. Thisisbecausewiththeformer, itis the economyfrom input-drivengrowth toproductivity- The Malaysiangovernmentisendeavouring totransform efficient. input, thusrendering inputmore productively grows whenoutputgrows more rapidlythan levels of output.Inother words,productivity are optimallyutilisedtoachievegreater rise wheninputsintheproduction process production process is.Thismeansthat itwill Productivity measures howefficient a A MeasureofEfficiency quality output,allowingthe local market butalsointhe competitive not onlyinthe p organisation tobemore levels willleadtohigher international market. r o h d i u gh ct e i r v i t y SIRIM LINK

VOL 1 17 96,000 94,000 92,000 90,000 88,000 86,000 84,000 82,000 80,000 78,000 SIRIM BERHAD SIRIM 1 3 2 2. 4. 2. 2019 7 5 2 4. 2. 2. 2018 h Labour Productivity Growth 7 9 5. 1. GDP Growt 2017 1 4 3 3. 1. 4. 2016 Propelling Productivity Malaysia Productivity Established in 1962, to (MPC) was given a mandate Corporation performance of monitor the productivity innovation and after before organisations strategic through programmes intervention by implemented partnership programmes agencies. With the various ministries and Blueprint the Malaysia Productivity launch of has expanded to role MPC’s (MPB) in 2017, productivity also include the monitoring of sectorial level. at implemented initiatives the to spearhead MPC continues Today, and efforts in boosting productivity nation’s competitiveness via various productivity including the initiatives, improvement Regulatory Impact Analysis (RIA) and Reducing Unnecessary Regulatory Burden (RURB) under and Lean Modernising Business Regulations, under Excellence Business and Management of Development Quality and Excellence Enterprises. and Employment Growth, 2015-2019 Growth, and Employment Labour Productivity Level Employment Growth 1 5 5 Labour Productivity (LP), which measures the growth growth the (LP), which measures Labour Productivity labour used. unit of output per in value-added

5. 1. 3.

2015 LP growth is affected by several factors, namely MFP and is affected LP growth While MFP encourages technological capital intensity. of to the utilisation dynamism, capital intensity refers capital within the workforce. higher reflect not will alone in capital “Investments by efficient but should be complemented productivity n Malaysia’s Labour Productivity Level and Growth, GDP Growth GDP Growth and Growth, Level Labour Productivity Malaysia’s 0 0 0 0 0 0 0 % 1. 5. 3. 2. 6. 4. Multifactor Productivity (MFP), which measures measures which (MFP), Productivity Multifactor the amount of compares that economic performance (output) to the amount of goods and services produced goods and the said combined inputs used to produce services.

n At MPC, the two common productivity measures used are: used measures the two common productivity MPC, At Economic prosperity and a higher quality of life are not are life and a higher quality of prosperity Economic in persistence overnight achievements. They require up to par are levels productivity the nation’s ensuring that in the long run. Measuring Success When it comes to the manufacturing sector in particular, sector in particular, When it comes to the manufacturing gain is important to allow the industry to productivity resources for compete with other economic sectors competitiveness. Similarly, and maintain international can allow the firm level, productivity organisational at higher of the provision competitive through to remain investments. or funds for to shareholders wages, returns “A sector with high productivity growth gives the industry growth productivity sector with high “A sector a competitive advantage in and businesses in the labour machinery, such as materials, to resources relation levels will productivity higher and capital. Consequently, to output, allowing the organisation lead to higher quality also but market the local in not only competitive more be Hj Latif Abdul Dato’ explained market,” international the in Productivity Malaysia General of Abu Seman, the Director (MPC). Corporation Productivity is a key determinant of living standards. It standards. living of determinant key is a Productivity by a nation economic health of ascertains the overall utilises existing how an economy optimally illustrating economic growth. to enable sustainable resources 18 SIRIM LINK VOL 1 ADVANCING OURECONOMY n n n n n following objectiveswillhave tobemet: transformation continue.To facilitate this,the market position and the success of its long-term essential to ensure theevolutionof theeconomy’s To improve thecountry’sproductivity levels,itis economy,” commentedDato’ AbdulLatif. the international competitivenessof ournational renaissance, whichcanbeavitaladvantagetoboost “Malaysia iswithinreach of aproductivity Indonesia andthePhilippines. with othersintheregion, suchasThailand,China, The country is at the forefront when compared 2019 compared toRM91,972 intheprevious year. levels, withitsLPgrowing by2.2%toRM93,909 in Malaysia fares relatively well in terms of productivity Promising Position of energy (E),materials (M)andservices(S). factors of production; as well as intermediate inputs that refers tocapital(K)andlabour(L),theprimary MFP usingtheKLEMSmethod.isanacronym Planning Unit(EPU)todevelopastandard measure of Subsequently, MPCisworkingwiththeEconomic of labourandcapitalinput.” capital intensitywillmeasure thequalitative aspects labour,” elaborated Dato’ AbdulLatif. “Both MFP and advanced machineryandtechnology, andskilled managerial practices and work procedures, productivity level. initiatives that are significant in enhancing the nation’s MPC playsakey role inimplementingnumerous

highly capablepublicinstitutions advanced physicalinfrastructure efficient market mechanisms a conduciveclimate for innovation a well-educated labourforce practices willfacilitate this. on skilllevel,andProductivity-linked Wage System (PLWS) The National Wage Index,whichsetsabenchmarkbased capital whilereducing dependenceonlow-skilledworkers. imperative toincrease theproportion of high-skilledhuman workers to meet the nation’s current and future needs, it is In order tobuildacompetentpoolof knowledgeable enterprises,” explainedDato’ AbdulLatif. the implementation of productivity solutionstoempower government anduniversitiessharingexpertisetosupport enterprise productivity and innovation, and involves industry, out. Thisisanindustry-drivenplatform that aimstoboost levels. “WiththeMPB, the Productivity Nexuswasrolled productivity initiatives at national, sectorial and enterprise was launchedin2017todrivetheimplementation of Among them,theMalaysiaProductivity Blueprint(MPB) 40 50 20 80 60 30 70 10 Labour Productivity of MalaysiavsSelected AsianCountries, 2019 USD , , , , , , , , 000 000 000 000 000 000 000 000 Mala 69 3.0 ,288 ysia Productivity Lev Thailand 35 3.2 ,979 el China 34,863 6.6 Indonesia 29 Productivity Gro 3.6 ,0 35 Philippine 24,0 3.9 wth 53 s 1. 5. 2. 3. 6. 8. 0. 4. 7. % 0 0 0 0 0 0 0 0 0 SIRIM LINK

VOL 1 19 y SIRIM BERHAD SIRIM t i v i s. u ct x u e d n o especially via the r p with MPC, can be instrumental in with MPC, can be instrumental technology capabilities. As one of technology capabilities. As one of smart manufacturing research and smart manufacturing research helping the manufacturing industry, helping the manufacturing industry, SIRIM is focused on Industry 4.0 and SIRIM is focused on Industry 4.0 the national centres of excellence on excellence of centres the national smart manufacturing, SIRIM, together smart manufacturing, SIRIM, Getting Strong Support Getting Strong the necessary in providing role SIRIM plays a prominent the of the improvement to facilitate MPC to support levels. country’s productivity centres between collaboration has been a lack of There in providing and industry associations excellence of technology latest facilitating opportunities, upskilling testing facilities, which has adoption and offering of the development in missed opportunities for resulted (SMEs). enterprises medium and small of capabilities the SIRIM can lend a helping hand. This is where sectors to improve business regulations, service delivery, service delivery, regulations, business to improve sectors launch conducting business and the proactive ease of productivity to increase new initiatives and pursuance of and competitiveness. improvement MPC conducts productivity Additionally, These include capacity intervention programmes. in becoming guide organisations that building roles and system development productive, efficient and more their to measure allows the organisations that turn, determine their performance and, in performance organisations “With these programmes, benchmarks. the quality management through can learn about and business excellence of diagnostic measurement Abdul Latif. lean management,” said Dato’ Source: Ministry of International Trade and Industry Trade Ministry International Source: of The Way 4WRD Industry4WRD to is the country’sresponse the of transformation the digital facilitate services. It manufacturing sector and its related aims to pave the way for enhanced productivity, pool in high-skilled talent and job creation to contributes manufacturing, and ultimately wellbeing, and societal prosperity economic the of while also encouraging the development capacity and capabilities to sector’s innovative own technologies, products Malaysia’s create and services. MPC is also the secretariat of the Special Task Force to Force the Special Task of MPC is also the secretariat to which was introduced Business (PEMUDAH), Facilitate and private between public collaborations closer forge “Thethe RURB methodology of value proposition unique to inside’ issues with an ‘outside it addresses is that between businesses involving collaborations approach, added to find solutions to challenges,” and regulations Abdul Latif. Dato’ Several initiatives have also been implemented to create to create also been implemented have Several initiatives is conducive. These include that a business environment Practices (GRP) and Reducing the Good Regulatory (RURB) methodology. Burdens Unnecessary Regulatory To inculcate a culture of productivity in the workplace, a productivity of a culture inculcate To organisations allows best practice partnership programme other through best practices and ideas with each to share as well as online seminars, conventions and conferences Up portal and Way include a Productivity that avenues (BOND) Online Networking Database Benchmarking system. Meanwhile, to enable industry players to adopt the adopt to players industry enable to Meanwhile, MPC is industrial revolution, fourth the technologies of under the Ministry working closely with other agencies the and Industry (MITI) to realise Trade International of Industry4WRD policy. 20 SIRIM LINK VOL 1 ADVANCING OURECONOMY development. 12th MalaysiaPlanand,consequently, our consistent aspect indeterminingthesuccessof theupcoming The enhancementof thenation’s productivity isacrucial Contributing to the Nation’s Development • • • Among theareas that SIRIMcanassistinare: Abdul Latif. especially viatheProductivity Nexus,”revealed Dato’ instrumental inhelpingthemanufacturingindustry, manufacturing, SIRIM, togetherwithMPC, canbe As oneof thenational centres of excellence onsmart manufacturing research and technology capabilities. “SIRIM isfocused onIndustry4.0 andsmart Technology adoption Competency andcapacitybuilding Standards for interoperability • • • Excellence onSmartManufacturingwill: It isexpectedthat theNational Centre of Inspiring anImpact companies productivity amonglocalmanufacturing competitiveness for higher efficiency and innovation andtechnological strengthen industrial thecountry’s and revenue growth toleadwidermarketthe industry access facilitate thestructured transformation of growthcontribute tohigherindustry accelerate technologyadoptionthat will Dato’ AbdulLatif. strategic thrustsof the12thMalaysiaPlan,”concluded achievement of recommendations underthevarious productivity-related initiatives willtherefore supportthe a betterskilledworkforce. Theimplementation of the technology andtransformation of humancapitaltowards initiatives toincrease theadoptionandutilisation of “Enhancing one’sproductivity canberelated tothe citizens/workers. initiatives across alleconomicsectorsaswellfor through theimplementation of productivity enhancement economic empowerment, may directly becontributed firstobjective of the12thMalaysiaPlan,namely “The Enhancingone’s productivity canbe therefore supporttheachievement related totheinitiatives toincrease productivity-related initiatives will of recommendations underthe technology andtransformation various strategic thrustsof the the adoptionandutilisation of of humancapitaltowardsa The implementation of the 1 better skilledworkforce. 2 th

P M l a a l n. a y s i a

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to SIRIM BERHAD SIRIM helping grow grow

SUSTAINABLY

& TRAINING &

CERTIFICATION Sustainability is not a new concept. In Malaysia, the Malaysia, In concept. new a not is Sustainability years. this for government has been championing crucial and it has become even more However, the countries around times as more in recent relevant in committing to upholding sustainability world are As Malaysia is highly dependent on their operations. the country to keep trade, it is vital for international with this global trend. abreast Malaysian exports would mean that “Sustainability for by been produced deemed to have are the products protecting for responsible more are businesses that interests, as well as prioritising the the environment involved, including stakeholders of and welfare safety customers, employees, vendors and the community Marketing Head of said Rosniza Abdul Wab, large,” at SIRIM QAS and Customer Experience Section at Sdn Bhd. International now Malaysian exporters are She cautioned that meeting to deliver assurance of faced with having standards social and governance (ESG) environmental, their the world that around to convince buyers from sustainable. and services are products ORGANISATIONS y t i l i b a n i a t s u S that are more responsible for responsible more are that that the products are deemed to are the products that including customers, employees, as prioritising the interests, safety safety as prioritising the interests, for Malaysian exports would mean have been produced by businesses have been produced protecting the environment as well the environment protecting vendors and the community at large. vendors and the community at and welfare of stakeholders involved, stakeholders of and welfare TRAINING. ON ARE CERTIFICATION AND ON ARE CERTIFICATION TWO AREAS THAT IT FOCUSES FOCUSES IT THAT AREAS TWO PROGRESS SUSTAINABLY. SUSTAINABLY. PROGRESS STORE TO ENSURE THEY CAN TO ENSURE THEY STORE SEVERAL INITIATIVES IN INITIATIVES SEVERAL INDUSTRIES, SIRIM HAS INDUSTRIES, SIRIM HAS GROWTH OF MALAYSIA’S OF MALAYSIA’S GROWTH CHAMPIONING THE WITH A KEY ROLE IN ROLE WITH A KEY 22 SIRIM LINK VOL 1 ADVANCING OURECONOMY towards more sustainableoperations. These willessentiallyprovide anoutline inguidingit have tofollow asetof predetermined requirements. In order to obtain a certification, an organisation will Assurance ofSustainability the globaleconomy,” commentedRosniza. protection of theenvironment andhelpstoenhance facilitates international trade,contributestothe “In fact, certification promotes protection of society, product. assurance onthequality, safety andlongevityof a certification istheonlymeanstheyhave toobtain Consumers, meanwhile,willfindthat inmostcases, and lowerriskof thedisruptionof theiroperations. assures them of thequalityof theirfinalproduct outsource sub-assemblies, third-party certification For corporate buyersthat purchase componentsor capable of continuouslyproducing thedesired effect. quality managementactivitiesare well-organised and will enjoywidermarket accessandassurancethat his services meetcertainbenchmarks. Forone,asupplier demonstrates that anorganisation’s products and/or Certification is a useful tool to add credibility as it Meeting Benchmarks compete globally.” continuously improve theirbusinessperformance to an organisation willsurviveduringdifficulttimesand Management), three standards that are related tohow 6 (Total QualityManagement)andSIRIM13(Lean (Business ContinuityManagementSystems), SIRIM adopted managementstandards suchasISO22301 practices revealed that veryfew organisations have last yearontheadoptionof managementandbest survey weconductedfrom OctobertoNovember Consultancy Departmentat SIRIMSTSSdnBhd,“A Idris, SeniorGeneralManagerof theTraining and still considered low. According toDr. MohdAzman with regard totheimportanceof sustainabilityis However, theawareness levelof Malaysiansingeneral Source: Investopedia.com namely profits, planetandpeople. which are alsopopularlyknownasthe3Ps, pillars: economic,environmental andsocial, The conceptof sustainabilitycomprisesthree of future generations to meet their needs. the present withoutcompromising theability Sustainability focusesonmeetingtheneedof

contributes totheprotection of the environment andhelpstoenhance promotes protection of society, facilitates international trade, regulations are inforce. for access to markets where mandatory requirements. Thismarking is often amust and approved ascomplyingwiththenecessary product orservicethat hasbeenevaluated mark that willbeappliedonaparticular There istypicallysomeformof aconformity • • • in thefollowingcategories: specific requirements. Thecertification canbe system, process ormaterial conforms to written assurancethat aproduct, service, assessment whereby athirdpartyprovides Certification isanelement of conformity Mark ofConformance c Personnel Certification Product Certification Management System Certification e the globaleconomy. r t i fi c a t i o n SIRIM LINK

VOL 1 23 ds r SIRIM BERHAD SIRIM a d n a st 7 6 ISO 14001 ISO 22301 ISO 55001 ISO 9001 ISO 39001 ISO 50000 achievement of the of achievement 4 United Nations Sustainable Sustainable United Nations Development Goals (SDGs). Development 2, consumers to contribute to the contribute consumers to for governments, industries and for governments, to be used as guides or frameworks guides or frameworks to be used as 2 To date, ISO has published a total of of published a total ISO has date, To ISO 21001 ISO 22301 ISO 28000 ISO 50001 ISO 45001 ISO 18788 ISO 21001 ISO 45001 ISO 13485 ISO 21001 ISO 37001 ISO 45001 ISO 14001 ISO 21001 ISO 29993 ISO 13485 ISO 37001 ISO 39001 ISO 45001 ISO 9001 ISO 22301 ISO 28000 ISO 45001 ISO 14001 17 GOALS TO TRANSFORM OUR WORLD TO 17 GOALS ISO 22301 ISO 28000 ISO 45001 ISO 55001 ISO 9001 ISO 14001 ISO 37001 ISO 14001 ISO 22000 ISO 37001 ISO 14001 ISO 22301 ISO 50001 ISO 55001 ISO 9001 ISO 14001 ISO 37001 ISO 14001 ISO 37001 ISO 50001 ISO 55001 She went on to cite the first SDG – No Poverty – as an She went on to cite the first SDG – Standard Management System example. “The Anti-Bribery to and governments (ISO 37001) supports businesses A integrity. business of culture a build and bribery combat gaps, which wealth will help reduce high-integrity culture poverty.” a major cause of are “To date, ISO has published a total of 22,467 standards to be standards 22,467 ISO has published a total of date, “To industries governments, for used as guides or frameworks the contribute to the achievement of and consumers to Goals (SDGs),” Sustainable Development United Nations said Rosniza. Sustainability in an organisation means that the said the means that in an organisation Sustainability financial and operations management, organisation’s responsible it is ensuring that focused on are efforts These and is ethical. and society, environment the towards central factors the three form characteristics collectively of sustainability, practice define an organisation’s that namely ESG. 24 SIRIM LINK VOL 1 ADVANCING OURECONOMY Covid-19 pandemic,”shared Dr. Mohd Azman. natural disastersand,of course,diseases like the current technology change,social change, newlegislations, erosion of market share, economic recession, pressures, whichincludethegrowth of competition, or so,organisations have beenfacedwithenormous during timesof easeorhardship. Overthelast20years will survive for a longer term and compete with others “Sustainability canalsorefer tohowanorganisation allows anorganisation toexportitspalmoilproducts. Sustainable PalmOil)targeting oilpalmindustriesthat holds specifictrainings,suchastheMS2530(Malaysian Management and SIRIM 13on Lean Management. It also including ISO22301,SIRIM6onTotal Quality programmes onstandards related tosustainability, SIRIM STShasconductednumerous training towards sustainability. Thisiswhere trainingcomesin. necessary skillstogrow theirbusinessesonthepath organisations are well-versedand equipped withthe as importanttoensure that thepeoplebehind Alongside thecertification programmes, itisjust Building SkillsandKnowledge remote audits for industries intheessentialservices. disruption of itscustomers’businessesbyenabling International continuestoassistinminimisingthe In lightof theCovid-19pandemic,SIRIMQAS • • • • • • Among itscertification programmes are: can choosefrom. programmes relating totheseSDGs,whichbusinesses numerous internationally recognised certification business. Infact,SIRIMQASInternational offers can championwhicheverare more relevant totheir There isatotalof 17SDGslistedandorganisations sector (IBS) toimprove productivity intheconstruction the implementation of IndustrialBuildingSystems Modular Coordination Verification –ascheme for reliability andsafety of photovoltaicmodules Photovoltaic Module Certification – ascertains the communicates theproduct’s environmental benefits SIRIM Eco-Labelling –ahome-grown schemethat emissions in reducing theirenergy consumptionandGHG which provides verification of organisations’ efforts ISO 50001–anEnergy ManagementSystem, entire life cycleof itsproducts greenhouse gas(GHG)from eachprocess duringthe organisations to quantify the total emission of ISO 14067 –aProduct CarbonFootprintthat allows ISO 14001 –anEnvironmental ManagementSystem programmes are stillbeingaddedon. System andDigitalMarketing. Meanwhile,more training 41001, ISO/IEC 17025, ISO22000, Integrated Management System, ISO45001,37001,9001,14001, ISO covering topicslike theBusinessContinuityManagement SIRIM STSoffered 10livetrainingprogrammes inApril, recorded and livetraininghasbeengainingmomentum. With the Covid-19 situation, the demand for both pre- said Dr. MohdAzman. April thisyear. Thiswillallowmore peopletoparticipate,” training at theendof lastyearandliveonlinetrainingin moving forward. “We started offering pre-recorded the deliveryof onlinetrainingviaane-learningplatform to take advantage of the digitalisation era and focus on Spurred by thecurrent Covid-19pandemic,SIRIMplans of thecourse. e-certificate of attendance will be issued upon completion They willalsoberequired tosubmitassignments,andan quiet settingintheirhomestoensure minimalinterruption. speaker and microphone. Participants are advised to find a as wellacomputer, laptoportabletwithawebcam, offered liveonline,and requires goodinternetconnection The Business Continuity ManagementSystem training is action plan,”explainedDr. MohdAzman. a BusinessImpactAnalysisandidentifytheappropriate addresses thisissue.“Participants learnhowtoconduct SIRIM’s BusinessContinuityManagementSystem training operations, eveniftheyare beingconductedremotely. Continuity Planinplaceisessentialtoensure smooth activities. Incircumstances like this,having aBusiness had significantimpactsonmost of thenation’s business (MCO) toalleviate thespread of theCovid-19virushas The impositionof theMovementRestrictionOrder good resource, asourclients willbe able toobtainupdates onthelatest group briefings,industrialvisitsand e-mail blasts.Ourwebsiteisalsoa social responsibility programmes Other avenuesincludedialogues with industry players, corporate with industry seminars andworkshops, focus as SIRIM Industry Engagement as SIRIMIndustry through variousavenuessuch programmes andoffers there. o u and socialmedia. r We promote s e rv i c e s SIRIM LINK

VOL 1 25 SIRIM BERHAD SIRIM Pre-recorded Training Dr. Mohd Azman Idris, Mohd Azman Dr. Senior General Manager of and Consultancy the Training SIRIM STS at Department Sdn Bhd Cheapest alternative any at attend can Participants time and venue • • “Other avenues include dialogues with industry players, industry with dialogues include avenues “Other and social programmes social responsibility corporate media,” added Rosniza. it is no economic climate, With today’s ever-evolving and price to compete based on quality longer feasible their fingers on the to have have alone. Organisations to be future- in order trends market current pulse of needs to become a sustainability This is where proof. and allow them relevant will keep that value proposition them to contribute positively to the economy. Rosniza Abdul Wab, Rosniza Abdul Wab, International Sdn Bhd International Virtual Live Training Cheaper than normal classroom classroom Cheaper than normal method to ask able Participants are questions, comment and get immediately feedback • • Experience Section at SIRIM QAS Experience Section at Head of Marketing and Customer Marketing Head of Normal Classroom Training Normal Classroom No need for internet connection internet No need for gadgets electronic and relevant contact Participants get direct time and face-to-face with trainers communication • • “We promote our services through various avenues such various avenues our services through promote “We as SIRIM Industry Engagement seminars and workshops, briefings, industrial visits and e-mail blasts. group focus as our clients will Our website is also a good resource, and programmes on the latest be able to obtain updates Mohd Azman. said Dr. there,” offers Both Rosniza and Dr Mohd Azman see the need to awareness increase to public the to out reach consistently and training in helping certification the importance of of achieve sustainable growth. organisations Towards a Future-proof Economy a Future-proof Towards The training programmes offered by SIRIM STS encompass offered The training programmes skills, management and best practices, soft standards, training, including Industry 4.0-related technology industries call for training in line with the government’s also are “We to adopt smart manufacturing technologies. personnel certification more to offering looking forward Manager, such as Certified Qualified programmes, and Certified Internal Auditor Certified Quality Professional Mohd Azman. added Dr. to name a few,” Quality, for On-ground vs Online On-ground 26 SIRIM LINK VOL 1 ADVANCING OURECONOMY EXCELLENCE LOCAL global sectors. small andmediumenterprises (SMEs)inmanufacturing interventions andtheprovision of targeted assistance to productivity at enterprise level through technology SIRIM-Fraunhofer hasaspecific focus of enhancing strength. the programme hasbeengrowing from strength to plan. AsMalaysiaheadstowards the12thMalaysiaPlan, Plan (2016-2020).Thisyearmarks thetailendof the labour productivity targets set out in the 11th Malaysia conceived to supportthegovernment in achieving the The SIRIM-Fraunhofer programme wasinitially BEYOND 2020. AND WHAT ISINSTORE FAREDDURING THISTIME HAS THE PROGRAMME TODAY. SIRIMSHARESHOW TO GAINMOMENTUM (SMES), ANDIT CONTINUES AND MEDIUM ENTERPRISES DEBUT AMONGSMALL MADEITS PROGRAMME SIRIM-FRAUNHOFER PASSEDSINCE THE HAVE FIVE YEARS expertise for audits supports thegovernment’s agendato technology alliance withtheFraunhofer Institute programme, whichwasestablished The SIRIM-Fraunhofer programme with betteraccesstotechnology for technologyinterventions and of Germanytoprovide ourSMEs in 2015, stemsfrom astrategic Malaysia’s SMEs. usage of technologyandinnovations among methodswithanaimtoincreasecountry’s the SIRIM-Fraunhofer programme adapts the in adoptingtechnologicalinnovations, the Inspired by the success of Germany’s SMEs Looking West innovation fortheSMEs.The penetration andupgrading. b p uil lat d f or be m t t e s r SIRIM LINK

VOL 1 27 % 13 SIRIM BERHAD SIRIM % 16 % solutions to key problems in problems solutions to key organisations recipient 42% of improvement in production control control in production improvement organisations recipient in 47% of culture work positive a of inculcation organisations recipient in 46% of decrease in production time in 43% in production decrease organisations recipient of 31 % an increase of 27% in annual sales of an increase 31% in labour productivity of an improvement 16% in labour cost of an improvement competitiveness (sales/labour cost) 13% in labour cost of an improvement competitiveness (labour cost per employee) % % % % 27 42 47 43 46 Nor Azlan cautioned that a drop in the capital cost a drop Nor Azlan cautioned that the higher of should be expected as a result productivity assets used. total fixed returns should be able to “The earliest. the at year fiscal following the in realised be in annual sales is significant the 27% increase However, issue.” operational this teething enough to offset has also In addition to financial gains, the programme contributed significantly in enhancing the operational This includes: organisations. of excellence Making a Positive Impact a Positive Making study commissioned by to an independent According the by undertaken and Secretariat SIRIM-Fraunhofer the Malaysia (UPM), Universiti Putra of Putra Business School witnessed: programme the SIRIM-Fraunhofer Innovation Workshops, whereby whereby Workshops, Innovation simple yet taught are organisations technology idea and methods in practical management training programmes, Technology-based and development which include product engineering-based training Other initiatives under the SIRIM-Fraunhofer under the SIRIM-Fraunhofer Other initiatives have benefited SMEs include: that programme • • To date, the technology intervention programme programme the technology intervention date, To include that areas has achieved significant success in product new and automation, mechanisation development, technology enhancement, localisation and labelling, training and packaging technology, of advisory. technical and compliance standards consultancy, Anticipated outcomes from these projects include an these projects from outcomes Anticipated new of generation the yield, production in increase reject in production a reduction and processes, products expansion. and market rates “We are consistently engaging with the SMEs to unearth are “We on work will we identified, is this once issues; their technology intervention delivering the solutions through explained Nor Azlan. projects,” Attractive Proposition Attractive to be programme SMEs find the SIRIM-Fraunhofer necessary tools and beneficial as it equips them with the their particular needs in customised solutions to address and include technological issues, new product that areas and mechanisation development, and automation process production. of A few years down the road, the response from SMEs from response the road, the down years few A SMEs than 2,700 In fact, more has been overwhelming. of various the implementation since benefited from have under the programme. initiatives According to Nor Azlan Mohd Ramli, the Principal Ramli, the to Nor Azlan Mohd According Centre Management Industrial Research Consultant of supports programme the SIRIM-Fraunhofer SIRIM, at for agenda to build better platforms the government’s the SMEs. for and innovation interventions technology stems “The in 2015, which was established programme, Institute alliance with the Fraunhofer a strategic from access to our SMEs with better Germany to provide of said. and upgrading,” he technology penetration 28 SIRIM LINK VOL 1 ADVANCING OURECONOMY target of 41%by2020iswithinreach. talent development. Thecontribution development,” detailedNorAzlan. a competitive edge and increases the drivefor talent Innovation essentiallycreates high-skilledjobs,provides component for anyorganisation toremain competitive. should bepartof theSME’sstrategy; it’sakey organisation and thecountry. “Investing intechnology in sustaining long-term economic growth for the SIRIM believesthat technologyinnovation iscritical Nor Azlan. towards digitisation andfor Industry 4.0,” elaborated will alsobeproposing aprogramme that prepares SMEs has responded positivelytoSIRIM-Fraunhofer 2.0. We Ministryof International Trade“The andIndustry(MITI) and calibration, andmarket access. market-driven research and development,compliance products through industrial andproduct design, These includefrugalinnovation, value-adding of remains the same, new initiatives will be introduced. sectors. Whiletheprimaryobjectiveof theprogramme both manufacturing and manufacturing-related services with anenhancedscopethat encompassesSMEsin Among others,SIRIM-Fraunhofer 2.0 issettoroll out that have proven tobe effective. existing initiatives of theSIRIM-Fraunhofer programme SIRIM looks forward tocontinuingandexpandingonthe With the12thMalaysiaPlancommencingnextyear, Moving Forward should bepartof the SME’sstrategy; organisation toremain competitive. Innovation essentially creates high- skilled jobs,provides acompetitive of MalaysianSMEs to thecountry’s gross domesticproduct (GDP)has six yearslater. Thismeans that the grown from 32%in2010to36.6% edge andincreases thedrivefor it’s akey component forany i t nve ech st n o i n l o g g i y n

A Silver Lining 2020 iswithinreach,” heenthused. 36.6% sixyearslater. Thismeansthat thetarget of 41%by domestic product (GDP)hasgrown from 32%in2010to contributionof MalaysianSMEstothecountry’sgross “The Nor Azlan. positive aboutpursuingtheprogrammes,” commented programmes. Itistoughfor theSMESbutmostare still SMEs inrelation totheirparticipation inSIRIM-Fraunhofer Nevertheless, wehave observedmixed reactions from outbreak is also impacting the global economy adversely. “In additiontobeingahumantragedy, theCovid-19 control order. the suspensionof theiroperations duringthemovement pandemic, manyof themare inastate of distress dueto uncertain economicconditions.Withthecurrent Covid-19 Typically, SMEsinparticularare more vulnerableto • • • • • • competitiveness dueto: could result in an inability to improve on Failure inadoptingtechnologicalinnovation manufacturing quality lack of motivation toincrease innovation low awareness of technological imported products over-dependence onforeign workers and lack of demand-basedresearch among theworkforce limited technical skills and knowledge low levelof technologyadoption talent development Industry 4.0Industry digitisation SIRIM LINK

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SIRIM BERHAD SIRIM y n g o i o t l a o v n o h revolution. n c e n i t With continued funding, we are funding, we are With continued optimistic to keep on playing an optimistic to keep in the era of the fourth industrial in the era of effective role in working with the effective is no longer an option today. It has is no longer an option today. organisation to remain competitive. to remain organisation SMEs and gearing them up to thrive become a central component for any component become a central Nor Azlan Mohd Ramli, Industrial of Principal Consultant Centre Management Research SIRIM at Catalysing Growth Catalysing been SMEs have globalisation, economic era of In this development. of sustainable engine identified as an ecosystem, in this catalyst a key With technology being instrumental an is programme SIRIM-Fraunhofer the the capabilities and elevate will, hopefully, that initiative Malaysia’s SMEs. competitiveness of experience, infrastructure With the right resources, unique position in its grasp, SIRIM is in a and networks As such, SIRIM will this task effectively. to undertake the supporting in efforts its intensifying continue upscaling SME productivity government’s agenda of technology interventions. through It today. an option longer is no innovation “Technology organisation any has become a central component for Nor Azlan. competitive!” declared to remain has whetted the the programme The initial success of its continued ensure many other SMEs. To of interest imperative. are funding and support success, government MITI’s for his gratitude this end, Nor Azlan expressed To the for proposal SIRIM’s towards response positive the programme. of and expansion continuation optimistic to keep “With continued funding, we are role in working with the SMEs on playing an effective the fourth era of and gearing them up to thrive in the he concluded. industrial revolution,” entities that are public-listed on the main public-listed are that entities board companies public-listed of subsidiaries on the main board, multinational (MNCs) or government- corporations companies (GLCs) linked Diperbadankan Kewangan Menteri Syarikat enterprises state-owned In the SME category Majority-owned by a Malaysian In the manufacturing sector for a minimum of Has been in operations 2 years – willing to be audited and Voluntary committed in follow-up programmes Willing to commit a monetary investment value the project 20% of of Defining SMEs SMEs in the manufacturing sector refer to refer sector manufacturing the in SMEs does not firms with a sales turnover that RM50 million or 200 or fewer full-time exceed employees. with registered The SMEs have to be entities Malaysia (SSM) of Commission the Companies bodies, excluding: equivalent or other • • • Apply at http://sirimtechnologyaudit.my Apply at Who Can Apply for SIRIM- Who Can Apply Fraunhofer Programmes 4 4 4 4 4 4 In view of this, the SIRIM-Fraunhofer Secretariat is doing Secretariat this, the SIRIM-Fraunhofer In view of financial hindrances. Among them it can to alleviate what a special loan with Bank Muamalat. up is the option to take Understanding a Memorandum of signed “SIRIM recently package attractive funding an to offer with Bank Muamalat in SIRIM-Fraunhofer to participate organisations for he explained. programmes,” ADVERTISEMENT RATES (RM)

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Payment must be made by crossed cheque or money order, and payable to SIRIM Berhad. Further enquiries, please call Nurazlina Ismail (Corporate Affairs: 03-5544 6772). SIRIM Standards Store

Find Us. Find Standards. SIRIM STANDARDS MALAYSIAN ACTS AND REGULATIONS ISOJIS ASTM CARBON FOOTPRINT BS SIRIM ECOAIAG IEC For Tel: 603 5544 6111/6112/6142 Email: [email protected] more information: Link: https://standards.sirimsts.my