The Penang Skills Development Centre (PSDC) today marked a significant milestone in strengthening Penang’s manufacturing ecosystem with the official launch of the AI for Manufacturing Program (AIMP) and the AI Sandbox for Industries.
The two strategic initiatives are designed to accelerate the adoption of artificial intelligence (AI) across the manufacturing sector. Both initiatives are spearheaded by PSDC in collaboration with key industry and technology partners.
The AI for Manufacturing Program (AIMP) is a structured upskilling initiative designed to equip manufacturing professionals with practical AI and data analytics competencies. The programme focuses on applied use cases within industrial environments, including predictive maintenance, quality optimisation, and data-driven manufacturing decision-making.
Scheduled to run from April to December 2026, the programme targets the participation of at least 200 manufacturing professionals from Malaysian-registered manufacturing firms. Participants must be full-time employees of the participating companies.
PSDC Management Council chairman Datuk Solomon Lorthu said the programme adopts a co-funding model to encourage industry participation. “The initiative is supported by Silicon Island Development, which sponsors half of the programme fee to strengthen Penang’s talent pipeline for next-generation advanced manufacturing industries.
“By building AI capabilities within the local workforce, the initiative also enhances Silicon Island’s attractiveness as a destination for high-value manufacturing investments. The remaining programme fees may be claimed by eligible companies through HRD Corp,” he said.
Meanwhile, Silicon Island Development Sdn Bhd chief executive officer Datuk Szeto Wai Loong said Silicon Island is designed to support the next wave of high-value manufacturing investments. “As AI reshapes the manufacturing industry, demand for highly skilled engineering talent will surge.”
“Through our partnership with PSDC, we are strengthening the talent pipeline to support future investments while ensuring Malaysian talent remains globally competitive,” he said. For the AI Sandbox initiative, Solomon said PSDC is partnering with SNS Network (M) Sdn Bhd to establish the AI Sandbox for Industries.
“The AI Sandbox for Industries is a dedicated facility that provides manufacturers with access to high-performance GPU (graphics processing unit) computing infrastructure. The facility will support AI use case development and minimum viable product (MVP) prototyping, complemented by structured bootcamps and technical onboarding programmes.
“Priority will be given to small and medium enterprises (SMEs) and local industries to accelerate inclusive digital transformation across Penang’s manufacturing supply chain,” he said.
Chief Minister Chow Kon Yeow, who officiated the programme at PSDC in Bayan Lepas today, said the initiatives reflect the state government’s commitment to advancing Industry 4.0 readiness and ensuring Penang remains competitive as a global hub for electronics, semiconductor and automation equipment manufacturing.
“Artificial intelligence is rapidly transforming how industries operate. Around the world, factories are becoming more connected, more automated, and increasingly driven by data and intelligent systems.”
“Companies that successfully adopt AI will be able to improve productivity, strengthen innovation, and remain competitive in global supply chains. Those that delay may find it harder to keep pace,” he said.
According to Chow, the future of manufacturing will be more intelligent, more connected and increasingly powered by AI. “Penang’s direction is clear: we aim to move further up the value chain, from manufacturing excellence to leadership in intelligent manufacturing. The launch of the AI for Manufacturing Program and the AI Sandbox today sends a clear signal that Penang is ready for this next chapter,” he said. Chow also encouraged manufacturing companies in Penang including multinational corporations, SMEs and local industry players to take full advantage of the initiatives.
“Invest in your people and explore how AI can strengthen your operations. Ultimately, the future of Penang’s industry will depend on the talent, creativity and determination of our people. “With the strength of our ecosystem, I am confident that Penang will remain competitive, resilient and globally relevant in the age of intelligent industry,” he added. Also present was PSDC chief executive officer Dr Hari Narayanan.
On a separate matter, when asked about the ongoing regional conflict involving several Middle Eastern countries and its potential impact on Penang, Chow said industries in the state must undertake short-term and medium-term planning to ensure operational continuity, particularly in areas such as logistics, energy costs, and supply chain management.
“Secondly, companies may need to adjust their delivery schedules and timelines, especially those in the logistics and shipping sectors, as certain maritime routes may no longer be accessible. For example, Iran has effectively blocked the Strait of Hormuz following United States and Israeli airstrikes on its nuclear facilities, and has threatened to attack ships passing through the strait.
“As such, related industries in Penang must take this development into consideration when planning their operations,” he said.
