Automation Capital Allowance (ACA) is a tax incentive introduced by the Malaysian government to encourage businesses to adopt automation and modern technology in their operations. It is part of national efforts to improve productivity, efficiency, and competitiveness across the manufacturing and services sectors. Under ACA, eligible businesses can claim a 200% capital allowance on the first RM10 million of qualifying expenditure related to automation and technology investments. This allows companies to deduct more than double the actual cost from their taxable income, significantly reducing tax payable.
How Automation Works: From Data Input to Output
Every automation process starts with data input. This data can come from many sources, such as online forms, customer orders, sensors, emails, spreadsheets, or internal systems. The data provides the information needed for the automation to run. At this stage, the system may also clean, validate, or organise the data to ensure it is accurate and usable. Good-quality input data is essential, as it directly affects how well the automation performs.
Automation Is Rising in Southeast Asia, And Malaysia Is Working to Catch Up
Automation is quickly growing across Southeast Asia as companies look for faster, more efficient, and higher-quality ways to work. While progress varies across the region, Malaysia is becoming one of the most active countries pushing automation, supported by government policies and rising investment, even though it still trails global leaders.
Southeast Asia’s Journey Toward Smart Manufacturing
Southeast Asia is undergoing one of its most important industrial shifts in decades. The region, long known for cost-efficient manufacturing, is now rapidly embracing automation, AI, and connected systems to build the next generation of smart factories. And the momentum is real. Across Malaysia, Vietnam, Thailand, Indonesia, and the Philippines, companies are redesigning how they operate. What was once manual and labour-intensive is now becoming digital, data-driven, and automated.
How Motion Control Technology Is Transforming Malaysia’s Packaging Industry
Malaysia’s packaging sector is moving fast. Rising e-commerce, stricter quality standards, labour pressures, and sustainability demands are pushing manufacturers to replace legacy machines with smarter, motion-driven systems. So, what’s driving this transformation, and how is it reshaping packaging lines across Malaysia? Let’s dive in together.
Tariffs and Technology: What They Mean for Malaysia’s Automation Industry
In recent years, Malaysia’s manufacturing sector has been on a determined march toward greater automation and Industry 4.0 adoption. However, an underappreciated factor shaping this progress is trade policy, particularly tariffs, both on imports into Malaysia and on Malaysian exports.
For local manufacturers and technology adopters, understanding how these tariffs influence costs, supply chains, and investment decisions has become increasingly important. Let’s break down how tariffs are shaping Malaysia’s automation journey.
Why PLC Programming Is the Best Language for Automation
When it comes to industrial automation, Programmable Logic Controllers (PLCs) stand out as the backbone of modern factories, assembly lines, and critical infrastructure. While many programming languages exist for automation, PLC programming remains the most reliable, versatile, and widely adopted option in industry.
Will Cobots Replace Workers, or Help Them?
If you’ve been following automation trends, you might have come across a new buzzword: cobots. Cobots, short for collaborative robots, are not like the traditional industrial robots you see fenced off behind safety barriers. Instead, they are specifically designed to work safely alongside human operators, sharing the same workspace without needing to be separated.
6 Core Skills That Will Shape the Future of Smart Manufacturing
The future of factories and engineering isn’t just about robots and AI. It’s about people with the right skills to build and run these systems.










