PETALING JAYA: The Malaysian Investment Development Authority (Mida) plans to drive the adoption of enterprise resource planning (ERP) solutions among the local small and medium-sized enterprises (SMEs) through the allocation of government grants.

ERP refers to a type of software that helps businesses to digitalise and manage their business processes for optimal efficiency.

Yesterday, Mida and the Collaborative Research in Engineering and Science and Technology Centre (Crest) inked a memorandum of understanding (MoU) with software company Dassault Systèmes Singapore Pte Ltd to drive the readiness of Industry 4.0 among the SMEs in Malaysia.

The MoU is aimed at embracing cloud-based collaboration for SMEs, through the adoption of ERP solutions while also providing them access to the global marketplace.

In a joint statement, it was noted that the ERP solutions will leverage on Dassault Systèmes’ technology.

This is specifically in its computer-aided design software and product life-cycle management solutions, which are used in various industries including manufacturing, engineering and life sciences.

Speaking during the MoU signing ceremony, Mida chief executive officer Datuk Arham Abdul Rahman believes the initiative would not only equip local SMEs with the latest technology, but also enhance their business efficiency by adopting ERP solutions.

Arham highlighted that Mida is committed to helping SMEs through government grants, especially those wishing to take part in Industrial Revolution 4.0.

“Globally, industries are increasing their footprint and digitally exposing their operations to be competitive. Malaysian SMEs in the manufacturing sector must be no exception,” he said.

Arham added that he was optimistic of ERP and believes it will improve resource utilisation and management, subsequently reducing resource waste.

“This is in line with the spirit of environmental, social and governance practices that seek to ensure companies are responsible stewards of the environment, good corporate citizens, and are led by accountable managers,” he added.

According to Arham, through the MoU, Dassault Systèmes will provide the requisite licence to their software solutions to SMEs identified by Crest.

Crest CEO Jaffri Ibrahim believes that Industry 4.0 is key to Malaysia’s progress in building a more resilient and sustainable economy and it will continue to play an instrumental role in steering the nation towards a post-Covid recovery.

“As the country embarks on its digitalisation journey, more effort needs to be made for our SMEs to ensure they keep abreast with current trends and technologies to stay competitive in the future,” he said.