Is Malaysia Running Faster?

 

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