Manufacturing has always been the economic strength of the US. The country wants to bring back that glory days.

This is the essence of Trump’s strategy to make America great again. But tariff manipulation is not the right way. Many top economists of the US have made this fact known.

The key to bringing back manufacturing is strengthening manufacturing R&D. This has been the formula deployed by China.

China now leads the world in the technologies for sustainable manufacturing.

For decades, Malaysia wore the badge of a manufacturing hub. From electronics to electrical goods, our factories hummed, assembling components designed elsewhere.

This assembly prowess fueled growth, created jobs, and anchored our economy.

But the global manufacturing landscape has shifted seismically. Value no longer resides primarily in the efficient tightening of screws; it flows towards the spark of innovation in design and the commanding power of branding.

Here, Malaysia’s manufacturing model shows cracks. Clinging to the assembly-centric past is a recipe for stagnation.

The diagnosis is stark: Malaysia is trapped in the low-value trough of the manufacturing curve.

We excel at the middle—assembly—which offers the thinnest profit margins and is most vulnerable to cost competition.

The high-value peaks—conceptual design, R&D, and global branding—remain elusive.

Walk into any global electronics store: how many products scream “Designed in Malaysia” or carry a globally coveted Malaysian brand? The silence is deafening.

Initiatives like the Second Industrial Master Plan (IMP2) recognized this weakness.

It ambitiously aimed to propel Malaysia up the value chain. Yet, its failure to catalyze a fundamental shift speaks volumes.

Reasons are complex: perhaps insufficient focus, inadequate investment in truly disruptive R&D, a lack of deep industry-academia collaboration, or an ecosystem that still overly incentivized low-cost assembly volume over high-value creation.

The result? We remain predominantly an assembly floor.

The critical missing ingredient is robust, industry-driven Manufacturing R&D.

This isn’t just about tweaking existing processes; it’s about pioneering new materials, inventing smarter production technologies, developing unique product functionalities, and embedding cutting-edge digitalization (Industry 4.0) not just as a tool, but as a core competitive philosophy.

Without this engine of innovation, design remains derivative, and branding lacks authentic technological substance.

This is where SIRIM enters the crucible. As the nation’s premier industrial research and technology organization, SIRIM possesses the infrastructure, technical expertise, and mandate to be the catalyst for this transformation.

However, its potential remains largely untapped for driving manufacturing innovation at the scale and urgency required.

It’s time for a fundamental reinvention: SIRIM must pivot decisively from broad-spectrum R&D towards becoming a dedicated powerhouse for manufacturing process and product innovation.

This means deep dives into areas like advanced automation, additive manufacturing, sustainable production technologies, AI-driven quality control, and next-generation materials science specifically for manufacturing applications.

SIRIM’s research agenda must be dictated by the real-world challenges and ambitions of Malaysian manufacturers, especially SMEs.

Establish co-creation labs, industry consortia for pre-competitive R&D, and rapid prototyping facilities accessible to businesses.

Research must translate swiftly into commercializable solutions. SIRIM should become a key player in de-risking and scaling up promising manufacturing technologies developed locally.

This involves providing pilot production lines, facilitating access to venture capital for manufacturing tech startups, and offering robust testing and certification tailored for innovative manufacturing processes.

Attract and nurture world-class scientists and engineers passionate about manufacturing innovation. Foster an entrepreneurial culture within SIRIM, encouraging spin-offs focused on advanced manufacturing solutions. Become the training ground for the next generation of manufacturing R&D leaders.

SIRIM, armed with deep industry insights, must actively advise the government on crafting targeted policies, incentives, and standards that actively promote high-value manufacturing R&D and adoption.

This reinvention isn’t optional; it’s existential.

Competitors across Asia are aggressively moving up the value chain. Vietnam and Thailand are enhancing their assembly capabilities with cost advantages. Meanwhile, South Korea, Taiwan, and increasingly China dominate design, core technology, and branding.

Malaysia risks being squeezed from both ends. Investing in Manufacturing R&D, spearheaded by a revitalized SIRIM, is not an expense; it’s the down payment on Malaysia’s future economic sovereignty.

It’s the path from being a subcontractor to becoming an originator.

It’s how we move from “Assembled in Malaysia” to “Conceived, Designed, and Engineered in Malaysia”—and proudly branded as such to the world.

The machinery of our manufacturing sector needs more than oil; it needs a new engine.

It’s time to reignite SIRIM’s furnace and forge a manufacturing future built on Malaysian brains, not just Malaysian hands.

The blueprint for IMP2 might have gathered dust, but the imperative for reinvention burns brighter than ever.

Let’s not just assemble products; let’s assemble the will, the resources, and the innovative spirit to design our own manufacturing destiny.

(Academician Professor Dato’ Dr Ahmad bin Ibrahim, FASc, UCSI University.)