GEORGE TOWN, Sept 21 — Penang is pushing for the readiness of its local manufacturing players for the digital age by combining efforts with technology solutions providers to further harness innovation and knowledge exchange.

Chief Minister Chow Kon Yeow said state government-linked company Digital Penang has inked a memorandum of understanding (MoU) with YGL Convergence Bhd to carry out outreach programmes, workshops and training so that small and medium-sized enterprises (SMEs) would be better equipped to adapt to the rapidly evolving technological landscape.

"This partnership will facilitate a platform for micro and small enterprises within the manufacturing sector to immerse themselves in Industry 4.0, a concept poised to revolutionise business operations.

"This can translate to increased efficiency, reduced operational costs and enhanced competitiveness for these businesses, a step towards ensuring that Penang’s manufacturing sector remains relevant and resilient amidst global challenges,” he told a press conference after witnessing the MoU signing here today.

YGL chief executive officer Yeap Kong Chean said the company, which specialises in Enterprise Resources Planning (ERP) software, IT consulting and system integration, had been working with SMEs for the past 30 years and its clients have emphasised the importance of digitalisation for the company’s survival.

He said these are clients that are of a higher tier bracket with over 90 per cent exposure to the export market.

"We are concerned with some companies that are not so well-informed on the importance of digitalisation because the adoption rate is still low among SMEs,” he added.

Meanwhile, Chow also witnessed an agreement signing between YGL and Exabytes Network Sdn Bhd today, which would result in a partnership to bring the cloud-based Nervo ERP Manufacturing Solution to manufacturers in Penang.

By extending Industry 4.0 solutions to micro and small-sized enterprises, Chow said this initiative would empower these businesses to harness the power of data analytics, automation, and smart manufacturing, which are resources that were previously only within the reach of larger enterprises.

According to YGL, the cloud-based Nervo ERP Manufacturing Solution would benefit SMEs in terms of reducing the company’s labour dependency by up to 45 per cent, increasing warehouse inventory control by up to 40 per cent and reducing inventory holding costs by up to 30 per cent. — Bernama