Invigorating innovation in R&D in Malaysia

Photo: Tribune News Service

MALAYSIA has invested much in research and development (R&D). Though only about 1.5% of GDP, less than the targeted 2.5%, the amount is still substantial – after all, World Economics estimates Malaysia’s 2024 GDP at US$1.705 trillion (RM7.531 trillion).

Much of the R&D is funded by the government. This is different from developed economies where the bulk of R&D spending comes from private industries. Despite efforts in Malaysia to increase private sector spending on R&D through tax-related incentives, the result has been mixed – R&D commercialisation remains a bone of contention in the country.