KUALA LUMPUR: Malaysia spends nearly RM20bil on research and development (R&D), but the bigger challenge is turning that investment into commercially successful innovations and globally competitive local companies, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said the issue was not just the amount spent on R&D, but whether it is translated into value for the country, including ownership of intellectual property and the ability of local firms to compete globally.
“What we (the government) want to do is ensure we provide a capital market that can support the development of local firms by providing capital,” he said during a panel session at the University Research and Innovation Investment Summit 2026 (Uriis 2026) here on Tuesday (Sept 22).
Amir Hamzah said the government was also looking to strengthen the country's R&D ecosystem through more market-driven funding mechanisms and closer collaboration with industry.
He said Malaysia is shifting from a “Made in Malaysia” to a “Made by Malaysia” approach to strengthen value creation and drive economic upgrading, with R&D playing a central role.
The government is also focusing on aligning research efforts with national priorities, including the New Industrial Master Plan, National Semiconductor Strategy and Energy Transition Roadmap, to attract investments and improve commercialisation prospects.
Amir Hamzah said capital was already available through initiatives such as the GEAR-uP programme, under which government-linked investment companies have committed RM120bil over five years, alongside about RM10bil channelled into venture and growth funds such as Dana Perintis, Dana Permaju and Dana Impak.
However, he said the bigger gap was the ability of researchers and institutions to bring their innovations to market.
This will ensure that the innovations match industry needs, said Amir Hamzah.
“Sometimes the product may be brilliant, but if you do not know how to position and sell it, investors will not come in,” he said.
Amir Hamzah said the country's transformation was opening up many opportunities for those who could identify and pursue them.
“You need to look into the latest trends and align yourselves with what the country is pushing for. The funding is there, and opportunities will come with it.
“If you go against the direction the country is moving, it will be difficult.
“The important thing is to understand the priorities and, within your own ecosystem, identify which areas you can embrace and prioritise,” he said.
