Under the New Economic Model, the electrical and electronics (E&E) sector has been identified to assume a significant role in the country’s economic agenda. In particular, the local light emitting diode (LED)/solid state lighting (SSL) sub-sector has been selected to be a new economic driver in making significant contribution to the economy as it could provide more opportunities both downstream and upstream in the local E & E industry.
To realise the targets set by PEMANDU under EPP 10 (Entry Point Projects) of the Electric and Electronic sector of NKEA, MITI through SME Corp Malaysia has been tasked to create a minimum of five local Malaysian SMEs to become global champions in the SSL/LED lighting industry. In meeting the objective set under EPP 10, this Phase II LED/SSL project will involve undertaking tangible activities where strategically it is required that the participating companies will:
i. Collectively generate total revenue of RM178 Million by 2020
ii. Be provided with assistance to penetrate international market expansion in at least 2 regions.
Ten selected SMEs identified in Phase 1 of this project are provided with requisite capacity building and skill sets, including fiscal and non-fiscal incentives to upscale performance of companies at firm level. In ensuring that companies conform to standards and certification as well as automation initiatives to ensure enhanced productivity levels, the Government also provide financial support to those participating companies. The transformational journey which include a diagnostic analysis on the supply chain management of participating companies which not only focussed on the unmet needs of the companies but it also provided an exposure to the challenges of the international LED/SSL lighting markets faced by the companies in their quest to achieve the status of world class champions.
Out of the 10 participating companies under Phase I, seven companies have been shortlisted to continue their journey in Phase II. Six of these companies are from Phase I while another one company was selected based on its potential to be nurtured to become a world class company.
These companies were selected based on the following criteria:
i. Must have a valid factory to operationalise their business; and
ii. Companies are already manufacturing finished LED/SSL products as opposed to producing product components.
To continue the work in Phase II, BDEC Resources (M) Sdn Bhd and its international partner, ISIS Innovation Ltd, the technology transfer company of the University of Oxford, United Kingdom, have been appointed as Service Provider to oversee and implement the programme.
The scope of work under Phase II to execute the action plans by participating companies will cover the following six workstreams:
- Certification & regulation
- Marketing Plan Development and Support
- International Partner Search
- Technology Roadmap Development
- Supply Chain Management