Malaysia’s industrial sector urged to accelerate technology adoption to remain competitive

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Industrial technology adoption in Malaysia

Highlights

Anwar highlighted the need to accelerate mastery of emerging fields such as artificial intelligence to ensure Malaysia’s industrial sector remains competitive.
Industrial policy implementation must begin with a grassroots understanding and encompass all segments of society to prevent inequality from widening as the country pursues growth and exports.
The recipient of the Prime Minister’s Award, UMW Aerospace Sdn Bhd, was recognized for excellence in management, high-impact product quality, sustainability and the integration of advanced technology.

This article was translated from the original. Read the original version by our correspondent here.

Call for industrial reform and effective policy implementation

The Edge Malaysia reported that Anwar said industrial dynamism requires the government and industry players to be ready to implement change quickly while ensuring economic policies are translated into effective action. In his keynote address at the Industry Excellence Awards 2026 ceremony in Kuala Lumpur on Friday night, he said policy development must begin with understanding the framework of every sector at the grassroots level before being coordinated across ethnic groups, religions, sentiments and regions.

He also stressed that economic growth and increased exports must be balanced with efforts to ensure the benefits of development reach all segments of society without widening inequality. The country cannot focus solely on high growth and export figures if the poor continue to be left behind, including in areas such as Hulu Kelantan and Kapit, Sarawak, he said.

Anwar said Malaysia can no longer rely on outdated economic approaches and must instead strengthen its industrial capabilities to remain competitive. He added that mastering emerging fields such as artificial intelligence, or AI, is essential, as failure to do so could leave the country behind despite its existing talent and industrial strengths.

Implications for competitiveness and industry recognition

He said close cooperation between the government and industry players is essential to ensure policies are implemented effectively. The drive to accelerate technology adoption and innovation reflects growing pressure on local manufacturers to improve productivity, quality and their ability to access export markets amid a more challenging global competitive environment.

At the same ceremony, Anwar presented the Prime Minister’s Award, the highest recognition under AKI, to UMW Aerospace Sdn Bhd. The company received the award in recognition of its overall excellence in management, high-impact product quality, sustainability practices and the integration of advanced technology.

In our previous coverage of AI adoption among SMEs in Malaysia, we highlighted how the industry’s focus is shifting from adoption rates alone to the extent to which AI is actually transforming operations and competitiveness. The article also noted that while AI adoption is becoming more widespread, most businesses are still at a basic stage of use, with only a small share achieving advanced, transformational adoption.

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