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Smart Manufacturing Investment Is Growing, But Industry Leaders Say ROI Must Come First 

Money Compass by Money Compass
September 26, 2026
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 Selangor Techsphere Summit 2026 to connect manufacturers with global technology providers, investors and regional business opportunities 

Manufacturers are increasing investment in artificial intelligence, automation and smart manufacturing, but industry leaders are cautioning businesses against investing in technology simply because it is the latest trend.

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Instead, technology investment should begin with a clear business problem and an understanding of the potential return.

This will be one of the key business issues explored at the Selangor Techsphere Summit 2026 from 14 to 17 October at the Kuala Lumpur Convention Centre.

Hosted by the Selangor State Government and delivered in collaboration with the Selangor Technical Skills Development Centre, the summit is powered by HANNOVER MESSE and forms part of the Selangor International Business Summit 2026.

Natalie Green, Director Program and Partnerships (Industrial), Hannover Fairs Asia Pacific, said manufacturers globally are placing greater attention on physical AI and smart manufacturing technologies.

She said research highlighted in the summit’s industry discussions points to continued investment in robots, collaborative robots, autonomous systems and vision enabled equipment.

However, Green said manufacturers should start with the business problem rather than the technology.

“What’s actually constraining your output, quality or margin should dictate the investment, rather than adopting AI or automation because you think you should,” she said.

The Selangor Techsphere Summit is designed to give manufacturers access to practitioners who have deployed these technologies, technology providers and other companies that have gone through similar transformation journeys.

“Come with a specific problem, and use the conference, the expo and the people in the room to test whether a technology genuinely solves it,” Green added.

Mike Nissen, Senior Commercial Director APAC, Hannover Fairs Asia Pacific, said industrial events can also play an important role in connecting investment with actual business relationships.

“Investment follows relationships and confidence, and a well-run summit compresses both into four days,” he said.

Manufacturers attending the summit will be able to meet technology providers, hear from industry leaders about technology implementation and participate in business matching opportunities through the wider Selangor International Business Summit.

The regional opportunity is also becoming increasingly important as global supply chains continue to change.

Nissen said Malaysia is well positioned within ASEAN because of its established manufacturing ecosystem, including semiconductor, electrical and electronics and precision engineering capabilities, supported by logistics infrastructure such as Port Klang and Kuala Lumpur International Airport.

“The opportunity for Malaysian companies is to become the trusted regional tier for multinationals building out ASEAN production: the automation integrator, the precision component supplier, the test and packaging partner,” he said.

However, technology investment alone will not determine whether companies and economies benefit from industrial transformation.

Dr. Harizal B. Hamid, Chief Executive Officer of STDC, said workforce readiness is becoming an important part of investment competitiveness.

“A company can invest in sophisticated automation, AI-enabled production equipment or advanced manufacturing facilities, but the return on that investment depends partly on whether there are technicians, engineers, operators and managers capable of deploying the technology effectively,” he said.

According to Dr. Harizal, investment and talent development must therefore move together.

“Technology investment must be accompanied by investment in people. The strongest industrial ecosystem is therefore not simply one that attracts capital. It can absorb technology, develop local capability and retain value within the economy.”

The Selangor Techsphere Summit 2026 will cover AI and the digital economy, semiconductors and microelectronics, green technology and smart automation, as well as governance, talent and TVET.

Registration is now open. Please visit their website: https://selangortechsphere.com

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