PETALING JAYA: Wage growth has not kept up with living costs, Finance Minister Lim Guan Eng said today.
“There is little comfort to take from GDP (Gross Domestic Product) growth if our wages do not increase as well,” he said in his keynote address at the 2020 Budget Consultation in Putrajaya.
“To have higher growth, the only sustainable way of doing so is to raise our productivity. The government has identified Industry 4.0 as the new source of productivity and economic growth.
“This specifically means the digitalisation of the economy, and wider application of new technology such as artificial intelligence, big data and robotics in our daily life.”
Lim said the country needs to digitalise its economy rapidly, or risked being left behind.
“In 2019 Budget, the government has introduced several measures to catalyse the digitalisation process, especially among the SMEs.
“Among them include guarantee schemes by the Government-owned Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP), of which RM2 billion is to ease financing access for SMEs to apply Industry 4.0 technology in its business. This is part of the RM6.5 billion guarantee schemes for SMEs, of which RM1 billion has been reserved for bumiputra SMEs.”
He added that the government also provides RM3 billion via the Industry Digitalisation Transformation Fund managed by Bank Pembangunan Malaysia Berhad to accelerate adoption of new technology including artificial intelligence, automation, big data and robotics among Malaysian companies.
“But the government cannot be doing this alone,” Lim said. “We hope to grow the economy through 4P Partnership. One such example has been the government support in boosting innovative new fundraising methods such as equity crowdfunding (ECF) and peer-to-peer (P2P) financing.
“In 2019, we have committed RM50 million towards a co-investment fund (CIF) for ECF and P2P investment for micro-SMEs, where the government would match private investment.”
He suggested that the country leverage the strength of its universities to create an entrepreneurial state.
“Having a one-stop centre within the proximity of our universities and high-tech manufacturing zones could the key to unleash innovation by providing entrepreneurs and students having great ideas with easy access to patent office, trade bureau and financing office, as well as start-up incubators and accelerators,” he added.
