Malaysia has an ambition to become one of the world’s top
30 economies within the next five years. And that is not unachievable. To
achieve this, Malaysia must rise as a centre of innovation and high-quality
research and development (R&D) to give the economy the support it needs.
The problem is: the country is not spending enough on R&D despite the clear
policy direction to do so. As always, ideas do not translate into the best
implementation.
Source: https://en.m.wikipedia.org
The country has failed to reach its 12th Malaysia Plan
(12MP) target of 2.5% gross expenditure on R&D (GERD) to the gross domestic
product (GDP) by 2025. The 2.5% target has now been pushed to 2030 under the
13th Malaysia Plan (13MP). This is a huge downgrade compared to the earlier
target of 3.5% GERD-to-GDP by 2030 as mentioned in the National Science,
Technology and Innovation Policy 2021-2030.
As of 2022, Malaysia’s GERD-to-GDP stood at just 1.01%,
down from the peak of 1.44% in 2016. In comparison, South Korea and Japan
recorded a ratio of 5.2% and 3.4% in 2022. Meanwhile, Singapore’s GERD-to-GDP
was 1.8%, slightly lower than 2021’s 1.9%.
Amid the lower-than-projected spending, it is worth
noting that the country has also missed its target for patent application by
Malaysians. The 12MP had aimed for 2,000 patent applications by 2025. However,
as of last year, 993 – or less than half the target – were applied for by
Malaysians.
As pointed out by the government itself, shifts in
government policy, fluctuations in the economic climate and adjustments to the
R&D strategies all caused the failure. The 13MP has laid out a slew of key
strategies to boost R&D initiatives over the next five years. These include
improvement to investment models, intellectual property, talent and R&D
governance. However, such measures can only be achieved if they are monitored
and implemented well. Expenditures on R&D must be tied to the fulfilment of
performance indicators. The nation should not keep funding so-called R&D
efforts that have no clear directions and poor results. For example, existing
research grants for universities must be reviewed and new expectations must be
set for grants to be approved. Is the nation spending on low-quality research
with low commercialisation potential?
In the Global Innovation Index 2024, Singapore ranked
fourth in the world, followed by South Korea (six), China (11) and Japan (13).
Malaysia, on the other hand, was ranked 33rd. This is still far from 12MP’s
target to enter the Top 20 by 2025. Under the new 13MP, the target has been
postponed to 2030. Without a comprehensive overhaul to Malaysia’s approach to
R&D and innovation, the new target is still difficult to achieve.
We need to run faster. The post-tariff world will only
reward competitive and innovation-driven nations. So, are we prepared to
scuttle some “old” songs on equity and affirmation action or still want to
cling on to right-wing flag issues or other rigid religious sentiments?
Reference:
Running faster to
top 30, Ganeshwaran Kana, The Star, 9
August 2025