Industrial automation in Malaysia remains a key focus for policy makers, manufacturers, and technology companies as the country continues its transformation toward smarter, more efficient manufacturing.
However, the pace, scale, and distribution of adoption differ across sectors and companies.
Malaysia’s government continues to prioritise automation and digital transformation as part of its broader New Industrial Master Plan 2030 (NIMP 2030) and related initiatives like Industry4WRD.
These policies aim to boost productivity, competitiveness, and value-add in manufacturing by accelerating automation, AI, and digital technologies. Investment incentives, grants, and support programmes have been rolled out to encourage companies, especially micro, small and medium enterprises (MSMEs), to adopt smart technologies.
“Budget 2026 will prioritise policies aimed at attracting greater investment, accelerating automation and digital adoption, and creating better-paying jobs for Malaysians” said Deputy Minister of Investment, Trade and Industry Liew Chin Tong, as seen on The Vibes.
The manufacturing sector, a backbone of Malaysia’s economy, has seen growing interest in robotics, IoT, and AI-enabled systems.
For example:
- Robotics and factory automation are central to NIMP goals for productivity and competitiveness.
- Automation adoption helps improve efficiency, reduce errors, and support sustainability goals such as waste reduction and energy optimisation.
- Conferences like Intelligent Manufacturing Kuala Lumpur continue to bring thought leaders and global solution providers together, reflecting ongoing industrial interest in automation innovations.
However, there are real gaps in adoption rates. According to The Edge Malaysia, a 2026 robotics industry report highlights that only around 3–5% of MSMEs are actively adopting robotics compared to much higher uptake by multinational corporations.
This disparity underscores cost, skills, and awareness barriers that smaller manufacturers still face.
Major exhibitions like AUTOMEX Penang 2025 have expanded significantly, drawing hundreds of global automation brands and thousands of visitors. This shows that Malaysia remains a vibrant hub for industrial technology exchange, and automation solutions continue to be showcased and discussed at a high level.
Such events also reflect a broader move toward what some call Industry 5.0, a paradigm where humans and advanced technologies like AI and robotics work collaboratively.
Several trends are shaping how automation is being implemented in 2026:
- AI-powered predictive maintenance helps reduce downtime and improve equipment lifecycles.
- Industrial IoT (IIoT) is connecting machines and systems for real-time monitoring and decision-making.
- Hyperautomation and low-code tools are helping companies automate processes not just on the shop floor but across operations.
So, is industrial automation still a thing in Malaysia in 2026? Absolutely.
Automation continues to shape Malaysia’s industrial landscape, backed by national policies, growing market interest, and global participation in advanced manufacturing.
But it’s not uniform across the economy. For instance, large manufacturers and MNCs are adopting automation fast, whereas smaller firms are slower to implement it due to cost, skills, and readiness challenges.
In summary, automation is very much alive and accelerating in strategic sectors, with Malaysia steadily transitioning toward a smarter, AI-enabled industry, although a full realisation of that future is still a work in progress.
If you’re looking to start or scale your automation journey, Mirai is here to help.
We design and implement automation solutions tailored to your business needs, so your processes run smarter, faster, and more efficiently.
Get in touch with Mirai today and see how automation can transform your operations!