Zafrul’s Industrial Master Plan A Sweeping Vision For Local Companies To Be Global Contenders

By Nurul Jannah Kamaruddin & Nur Aiman Najwa Dzamae

KUALA LUMPUR, Dec 2 (Bernama) -- Tengku Datuk Seri Zafrul Abdul Aziz ends his term as Investment, Trade and Industry Minister today, leaving behind a sweeping vision for Malaysia's future, where companies from small and medium enterprises (SMEs) to major players can rise to become global contenders.

At the core of this vision was his supreme confidence in the National Industrial Master Plan (NIMP) 2030, a strategic plan launched just two years ago to elevate Malaysia’s manufacturing capabilities and contribute significantly to economic growth and national prosperity.

In a relatively short time, NIMP was already bearing fruit, with Malaysia achieving higher value-added in gross domestic product (GDP) growth, increased employment, and higher wages, and spawning key flagship projects such as smart factories and electric vehicle (EV) development.

Tengku Zafrul, who has been guiding NIMP 2030 since its launch on Sept 1, 2023, and nine months after he took his oath as the MITI Minister in December 2022, has been instrumental in shaping Malaysia’s endeavour to this end.

“I have been personally involved in the development of NIMP 2030. I also hope that NIMP 2030 fosters inclusive growth across all regions and sectors. By prioritising support for SMEs, mid-tier companies and businesses in lagging regions, we ensure that the benefits of industrial modernisation are widely shared.

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“This inclusivity is key to creating a balanced economy where no region or sector is left behind, strengthening overall resilience and cohesion in our industrial ecosystem,” he told Bernama in an exit interview a day before his tenure at the Ministry of Investment, Trade and Industry (MITI) ended.

NIMP 2030 potent driver for Malaysia’s industrialisation

Even on his second last day, Tengku Zafrul was upbeat about this bold programme, enthusiastically sharing that the current challenges, many of which were not anticipated earlier, only strengthen the case for NIMP 2030 to take on a more vital role.

“We did not expect the world to be what it is today in terms of challenges to the supply chain. There are now numerous disruptions and, of course, trade barriers in the form of tariffs,” he said.

He said this, alluding to the global trading arena, which was thrown into chaos in April this year when United States President Donald Trump announced a shock move to impose tariffs on a majority of its trading partners, including Malaysia.

Because of the NIMP, the manufacturing sector is already showing encouraging momentum and dividends.

This is reflected in the value added to the GDP, which grew by 3.7 per cent in the second quarter (2Q) of 2025 compared to the same period last year, bringing the total to RM96.9 billion.

Concurrently, the median wage increased from RM2,360 in 2023 to RM2,490 in 2024, a 5.4 per cent increase, and is in line with the manufacturing sector’s growth, which offers more high-skilled jobs.

Several key flagship projects and initiatives under NIMP 2030 have also shown good progress, including the Smart Tech-Up and Smart Factory Recognition Programmes.

As of 3Q 2025, a total of 26 companies have been recognised as smart factories, with an additional 44 companies expected to receive recognition by the end of the year.

These figures surpass the 2025 target of 40 smart factories.

Another initiative already bearing fruit is the NIMP Strategic Co-Investment Fund (CoSIF), launched in February 2025 with an allocation of RM131.5 million.

As of October 2025, six fundraising campaigns have been completed, and 40 new campaigns have been identified, with a total fundraising target of RM160 million.

The minister also highlighted that progress in electric vehicle (EV) development is evident following the unveiling of Perodua’s QV-E on Dec 1, hours before this interview.

From development gaps to green growth

Another of his key desires is that the NIMP 2030 would drive sustainable and green industrial development, which aligns neatly with Malaysia’s net-zero and circular economy goals.

“Smart factories, green investments and carbon reduction initiatives should become the norm rather than the exception, demonstrating that economic growth and environmental stewardship can go hand in hand,” he said.

To sustain NIMP 2030’s impact, strong governance, monitoring and adaptive implementation are essential.

Mechanisms like the Delivery Management Unit office at MITI ensure coordinated oversight, timely evaluation and the ability to recalibrate initiatives based on results and emerging global trends.

While it is true that smart factories are currently concentrated in more developed states, Tengku Zafrul said MITI is committed to preventing this from widening regional disparities.

Under Mission 4 of NIMP 2030, which focuses on inclusivity, targeted initiatives are in place to ensure that SMEs and mid-tier companies across all regions, including lagging areas, have access to the support needed to adopt smart manufacturing practices.

In fact, the Smart Tech Up Programme is open to companies from all states, and the team has conducted roadshows, he said.

Keeping 3,000 smart factories resilient to 2030

In short, Malaysia is ensuring smart factories are built to change through modularity and built to last through supply diversification and analytics, Tengku Zafrul said.

“Factories must be designed to integrate new automation, digitalisation, and data analytics solutions as they emerge, allowing upgrades without major overhauls.

“This approach ensures that operations remain efficient, competitive, and adaptable to the rapid evolution of Industry 4.0 technologies,” he said.

To achieve this, MITI and its technical partners, such as SIRIM Bhd, constantly monitor global Industry 4.0 trends and guide technology roadmaps to help factories plan their technological upgrades in line with current advancements.

Through programmes like Smart Tech Up, SIRIM provides ongoing advisory and capability-building support to manufacturers.

This includes readiness assessments, technology roadmaps and best-practice guidelines that guide factories in implementing automation, digitalisation and data-driven operations that can evolve with technological advancements.

Such strategic guidance enables manufacturers to invest in upgrades, research and development (R&D) and resilience-building initiatives.

In addition, the workers must be constantly trained and upskilled to effectively operate and optimise new technologies.

“Advanced technology is useless without skilled people running it.

“Lastly, the implementation of policy and financial support mechanisms such as CoSIF and other incentive frameworks ensures that companies have access to funding for technology upgrades and resilience-building projects,” he said.

NIMP 2030 ignites collaboration in the Malaysian industry

“I hope NIMP 2030 inspires a culture of innovation and collaboration across Malaysia’s industrial sector.

Tengku Zafrul said that by fostering partnerships between government, academia and industry, encouraging investment in advanced technologies and nurturing talent through Science, Technology, Engineering, and Mathematics (STEM) and Technical and Vocational Education and Training (TVET) initiatives, Malaysia not only meets the targets set out in NIMP 2030 but also builds an industrial ecosystem that is resilient, forward-looking, and globally competitive for generations to come. 

“Through TVET, we want to produce 'Technology Ambassadors' in factories, so this TVET focuses on practical skills. We have various programmes that provide opportunities for our trainees or students to work while learning.

“We do hands-on practical training not only in the classroom but also in factories, which will expose them to the most sophisticated tools and technology that are not available in universities and TVET centres,” he said.

Tengku Zafrul ready to assist his successor

Tengku Zafrul Aziz also recently offered to assist his successor after his senatorship expires on Dec 2.

He said he had informed Prime Minister Datuk Seri Anwar Ibrahim of his intentions and was awaiting a decision on the ministry’s future leadership. 

“If I had to ask what is most interesting is the people behind all these initiatives. I feel very fortunate to be working with the MITI, whom I consider family.

“I do feel sad that I can’t be with them for longer, but I hope that the effort that the MITI team has undertaken for the past 3 years will continue, and I believe it will continue, and I want to thank the team here,” he said.

On Monday, the Prime Minister said Tengku Zafrul will be appointed to a new position.

This perhaps sent a clear signal of the Prime Minister's deep appreciation for Tengku Zafrul’s contribution to Malaysia’s industrialisation and the necessity of enabling him to continue serving the nation.

“I know what he has done in expanding international trade networks,” the Prime Minister said yesterday.

-- BERNAMA