Innovation in Malaysia
To deliver this agenda, the government developed an action plan for science, technology, engineering, mathematics (STEM) and medicine as part of its 2018 budget.
Since 2018, the administration has acted on its predecessor’s recommendations to raise the number of students enrolled in STEM courses and foster uptake of Industry 4.0 technologies like nanotechnology.
[citation needed] Research and development (R&D) are conducted predominantly in large-scale enterprises in the electronics, automotive and chemical industries.
This is because most of the small and medium-sized enterprises that work as subcontractors for multinational firms have remained confined to the role of original equipment manufacturers.
In order to help these small and medium-sized enterprises (SMEs) access the requisite knowledge, skills and finance that will enable them to participate in original design and original brand manufacturing, the government has adopted a strategy of connecting SMEs to the incubation facilities in the country's numerous science and technology parks.
[3] However, even the R&D conducted by foreign firms tends to be confined to process and product improvements, rather than pushing back the international technology frontier.
[1] A total of RYM 1.1 billion (ca US$ 270 million) was allocated in the 2020 budget to five economic corridors to support projects such as the Chuping Valley Industrial Area and Kuantan Port.
[1][7] Over the past 15 years or so, the share of manufacturing in GDP has gradually declined as a natural consequence of the concomitant growth in services as a corollary of greater development.
[1] High-tech manufacturing has stagnated in absolute terms in recent years and its share of global added value has slipped from 0.8% in 2007 to 0.6% in 2013.
Over the same period, Malaysia's global share of high-tech exports (goods and services) contracted from 4.6% to 3.5%, according to the World Trade Organization.
[1] While discovery and patenting are crucial for Malaysia's export-oriented competitiveness and growth strategy, there still seems to be little return on investment in research and development.
The low commercialization rate can largely be attributed to a lack of university–industry collaboration, rigidities in research organizations and problems with coordinating policies.
[3] Introducing a requirement for universities to collaborate with industry would be a means of supporting the commercialization of research results to boost the country's innovation performance.
One notable initiative is the Smart Manufacturing Experience Centre, announced in mid-2020 by the Standard and Industrial Research Institute of Malaysia.
Launched in 2021, the center supports SMEs in developing their strategies and capacities for Industry 4.0, by providing access to existing platforms and technologies.
This matching grant targets firms in the services sector, including wholesale and retail, which pay at least half of the total cost of their digitalization project.
In February 2021, 66 SMEs and mid-tier firms in traditional sectors such as tourism, real estate, education, and healthcare system were awarded the Smart Automation Grant as part of Malaysian government’s National Economic Recovery Plan (Penjana) in the wake of 2020-21 political crisis and COVID-19 pandemic.
According to the World Resources Institute, Malaysia contributed about 0.9% of global greenhouse gas emissions in 2012, taking into account land-use changes and forestry.
'Although Malaysia remains committed to reducing its carbon emissions by 40% by 2020 over 2012 levels, as pledged by the Malaysian prime minister at the climate summit in Warsaw in 2013, it faces growing sustainability challenges’.
The incidence of dengue increased by 90% in 2013 over the previous year, for instance, with 39,222 recorded cases, in a trend which may be linked to deforestation and/or climate change.
In 2019, the Sustainability Energy Development Authority began implementing the MySuria programme with the intention of installing 3-kW solar photovoltaic systems in 1 620 households from the bottom-40% income group.
