While the food and beverage industry experiences rapid modernization and high consumer demands, certain elements remain constant among customers – high quality, convenience and affordability1.
On 20 July, 2018, the Malaysian Investment Development Authority (MIDA) signed a Memorandum of Understanding (MoU) with Siemens Malaysia2. This strategic collaboration aims to digitalize the food and beverage industry in Malaysia. Food organizations can look forward to an improved supply chain through the adoption and integration of technology1.
It has been identified that food manufacturers frequently operate with thin margins while producing at high standards. It is believed that leveraging digital technology might be the solution to increase profits, reduce overall operational costs and improve productivity1. For example, digitizing paperwork is more labor-productive as compared to traditional means of documenting via pen and paper. Through the ease of digitalization, it helps to reduce additional labor costs and improves efficiency between parties.
Through digitalization, food manufacturers can produce better designs, make more accurate forecasts and have control in all aspects along the manufacturing process1. Additionally, they can also reduce energy consumption and improve sustainability1. Another key benefit of the partnership between MIDA and Siemens Malaysia is providing food and beverage companies an edge over their competitors through advanced technologies1. According to MIDA chief executive officer Datuk Azman Mahmud, the agency will be investing a total of RM51.2 billion (US$12.5 billion) in 2,154 food and beverage manufacturing projects in Malaysia. He also shared that many firms are collaborating with technology solution providers in order to become competitive3.
A digital consumer doing online shopping
A digital consumer on the go
References:
- Tech Wire Asia. (2018). Digital transformation: The recipe for success in Malaysia’s F&B industry? [online] Available at: https://techwireasia.com/2018/07/digital-transformation-the-recipe-for-success-in-malaysias-fb-industry/
- Open Gov Asia. (2018). Malaysian Investment Development Authority signs MoU to digitalise Malaysia’s Food & Beverage industry. [online] Available at: https://www.opengovasia.com/articles/malaysian-investment-development-authority-signs-mou-to-digitalise-malaysias-food-beverage-industry
- New Straits Times. (2018). Malaysia’s F&B sector embraces digital tech. [online] Available at: https://www.nst.com.my/business/2018/07/392360/malaysias-fb-sector-embraces-digital-tech