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R&D Country Profile Malaysia

Overview 

In developmental terms, Malaysia is characterized as an “emerging economy” or “newly industrialized country”. In its “Vision 2020”, the country aims at getting the status of a developed industrialized country in 2020. At least for Malacca, Kuala Lumpur and Penang, this seems to be possible.

During the last years, Malaysia has shown a stable and viable economic development and transformed from an exporter of mainly agricultural commodities to one of the leading trading partners in the fields of electronic and IT-devices. Besides, the country is engaged in the discovering and improvement of further market segments like ICT, Agro- and Pharma-Biotech and the modernisation of the tertiary sector. In 2008, Malaysia’s economic growth stood at a still remarkable 4.6 per cent (7.1 per cent in the first half and 2.4 per cent in the second half of the year). Per capita income rose to USD 8,141 in 2008 (2007: USD 6,956, source: IMF April 2009).

The Malaysian development policy is structured by five year plans. The most recent five year plan as well as the “third industrial master plan”, which laid out the strategy of the economic development for the years 2006 – 2020, mentioned the central importance of knowledge for the national development. A subsidiary political measure to strengthen the future economic growth are regional development corridors, namely the East Coast Economic Region (ECER), Iskandar Malaysia, MSC Malaysia, Northern Corridor Economic Region (NCER), Sabah Development Corridor (SDC) and the Sarawak Corridor of Renewable Energy (SCORE).  

Malaysia has a tropical climate and is well-endowed with natural resources in areas such as agriculture, forestry and minerals. In terms of agriculture, Malaysia is one of the top exporters of rubber and palm oil, which together with sawn logs and sawn timber, cocoa, pepper, pineapple and dominate the growth of the sector.

Research Policy

Research, development and technological innovations are cited as essential in the Malaysian government's strategy of sustainable development and knowledge-based economy. The 9th Malaysia Plan, which outlines a National Mission for the years 2006-2010, and the country’s Vision 2020 define the generation of new knowledge-intensive activities and employment in ICT and Biotechnology as well as the raise of the country’s knowledge, creative and innovation capacities as central national aims. This encloses the development of human capital of the highest quality as a means for turning Malaysia into a developed country. This effort has been visible during the recent years, as the number of universities and scientific personnel has been multiplied. Compared to the other ASEAN member states, the share of GDP spent on R&D in Malaysia is quite big – topped only by Singapore. 

In 1986 the government introduced a centralized Grant System for R&D, characterized by an “Intensification of Research in Priority Areas Programme” (IRPA) as a tool to select, prioritise and monitor the national R&D activities. The IRPA was judged as partly deficient and therefore enhanced by two new schemes during the eight plan period, namely the Science Fund (support R&D projects within five specific research clusters: ICT, Biotechnology, Industry, Sea to Space and Science and Technology Core) and the Techno Fund (Funding for Research projects alongside two “Types”: Pre-Commercialisation and Intellectual Property Acquisition). According to Thiruchelvam’s report on higher education in Malaysia, the government’s expectation of returns from its growing investments in R&D is evident as indicated in several planning documents and also in the reoriented (also still enclosing Science and Techno Fund) funding structure for the ninth plan. The latter was shaped in order to provide more support for projects that are more applied in orientation and those that boast promising market returns. (Thiruchelvam 2009)

International science cooperation is part of the national strategy mentioned earlier. As Malaysia’s open economy relies on technological transfer from abroad, cooperation is characterized by the economical profile of the country – namely the large agricultural sector. Additionally, the government identified several thematic priorities as important for future collaborative development, namely genomics and molecular biology and nutraceuticals and pharmaceuticals. A further motive for Malaysia’s interest in R&D collaboration is a perceived shortage of high qualified human capital in all sectors which where identified to heighten the country’s competiveness. In 2006 the government launched a special programme explicitly dedicated to Brain Gain by “leveraging the talent pool of Malaysian Diaspora and/or foreign Researchers, Scientists, Engineers and Technopreneurs residing abroad through incentive offerings for mutual benefit.” (www.mosti.gov.my).

Structure of Research System

While the National Council for Research and Development (NCSRD) has advisory and coordinative functions, R&D policy is formulated and implemented by the Ministry of Science, Technology and Innovation (MOSTI). MOSTI acts as the secretariat to the NSCRD. The latter is chaired by the Chief Secretary to the government. Representations include the universities and public research institute and key central government agencies, and the private sectors. This council meets three to four times a year to deliberate on matters related to research and scientific advancement. Semi annual dialogues between the NSCRD and the scientific non-governmental organisations (NGOs) discuss issues pertaining to the promotion and development of science and technology

In 1992, the Malaysian Science and Technology Information Centre (MASTIC) has been established as the collecting and disseminating centre for strategic STI information in the country. MASTIC also provides access to STI information from various institutions and acting as a linking mechanism among the policy makers, fund providers, researchers/developers, the industries and end users. It is the country’s key statistical organization for STI statistics and indicators.

Public universities in Malaysia are funded by the Government and are governed as self-managed institutions. Apart from the University of Malaya and the MARA University of Technology which were established by two separate enabling Acts of Parliament (1962 and 1967), the other public universities in Malaysia were created by executive order as per the provisions of the Universities and University Colleges Act of 1971.

Besides, there are a number of private Universities in Malaysia and higher education institutions that are authorized to confer their own degrees but do not have the status of Universities (commonly refereed to as university colleges).

More detailed Information about European - Malaysian cooperation is provided by the SEA-EU-NET project partner RISTEK here

Key S&T Indicators

Government’s Expenditure on R&D (GERD) 0.64 (MASTIC 2006)
Researchers 12669,49 (Year 2004, Source: ASEAN)
R&D Personnel 17886,55 (Year 2004, Source: ASEAN)
Patent Applications 6,286 (MASTIC 2006)

GERD to GDP 0.63 (Year 2004, Source: ASEAN)
Total Researchers per 1000 total employment 1.21  (Year: 2004, Source: ASEAN)
Total R&D Personnel per 1000 total employment

1.71 (Year: 2004, Source: ASEAN)

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