As the year draws to the close of Q1 in approximately 7 weeks, Futurise reflected on remarkable milestones in expediting innovation and Malaysia’s future economy thus far.
Established by the Ministry of Finance Malaysia in 2018, Futurise was tasked with leading the National Regulatory Sandbox (NRS) initiative. This initiative aims to tackle regulatory obstacles that may impede the smooth operation of technology and innovation in the market. Addressing concerns from industries and investors, the NRS initiative seeks to overcome challenges arising from outdated or insufficient regulatory frameworks for deploying innovations in the marketplace.
Futurise, Chief Executive Officer, Rosihan Zain Baharudin, said “If I could put it in simpler terms, we pave the ground for new and innovative ideas to operate in the market through safe testing of regulations and policies in a secured environment called a sandbox. The NRS brings together different groups like corporate organisations, government bodies, academia and entrepreneurs to solve regulatory challenges faced by innovation,” Rosihan said.
The existence of Futurise itself displays the commitment by the Malaysian Government to ensure that innovation within the economy can happen unhindered. Amidst the intricate regulatory landscape spanning various industries, Futurise serves as a specialised entity collaborating closely with government regulators and industry stakeholders to swiftly address regulatory challenges and facilitate timely solutions, thus promoting smoother innovation processes.
“The top-down approach used in yesteryears when prescribing regulatory frameworks may not be conducive to innovation. Futurise acts like a bridge, connecting different parts of the ecosystem – from regulators, industry players, organisations and relevant bodies. It is all about collaboration and ensuring that everyone can contribute to building a more innovative and advanced Malaysia.”
As Futurise proudly highlights its achievements, it is essential to acknowledge the hurdles and challenges that were encountered along the way.
“Were we successful? Absolutely. Ultimately, Malaysia has taken significant steps in establishing a more dynamic innovation ecosystem. We are seeing ongoing NRS initiatives like the Autonomous Vehicle and Micromobility progressing steadily as planned, while Futurise has gone into new areas like Sports Innovation, Digital Healthcare and Advanced Air Mobility. Meanwhile, our testbeds for autonomous vehicles and drone technology (Futurise together with the Civil Aviation Authority Malaysia created the nation’s first drone test zone in Cyberjaya) has seen a healthy rise in activity with increased testing by companies participating in the area,” said Rosihan.
Drone Academy Malaysia, Director and Accountable Manager, Erin Hoo, echoing the statement, said, “Working with Futurise offers valuable opportunities for companies aiming to make an impact in Malaysia. The Drone Testing Zone (DTZ) established by Futurise provides a controlled environment for testing and developing drone technologies. This has several benefits, including research and development opportunities and regulatory compliance facilitation. Overall, the DTZ has fostered collaboration and advancement in the field of drones.”
“Yet, with the rapid pace of innovation taking place globally, there is always more new ground to cover on our shores. Did we encounter challenges? Most certainly. Stakeholder engagements can be complex, and understandably, sometimes emotions can run high. There needs to be a balance between safeguarding public interest and driving enterprise – innovation and business likewise need to be cognizant of paramount issues like protection, health and safety of consumers.” added Rosihan.
According to Rosihan, “Overcoming the challenges add a special sweetness to the NRS success—a journey all of us can appreciate, especially for the regulators and industry players involved. Despite the differences of opinions and individual objectives, we can find a common way forward as there is already a binding intention among all parties entering the sandbox to see innovation progress in the nation. That shared commitment tends to yield meaningful solutions”.
Futurise’s collaborative achievements resonate as a symphony of progress, embodying Malaysia’s journey toward a technologically advanced future. Despite celebrating accomplishments, challenges remain, viewed not as obstacles but opportunities for growth. Collaboration remains the driving force, ensuring Malaysia’s innovation ecosystem flourishes. The increased cohesion witnessed underscores Futurise’s remarkable progress.
Accelerating Malaysia’s Regulatory Sandbox: Futurise’s symphony of achievements
1. Advancing Malaysian Advanced Air Mobility
In March 2023, Futurise and CAAM launched the Unmanned Aircraft System (UAS) certification and Manned eVTOL aircraft national regulatory sandbox, aiming to foster innovative air mobility solutions in Malaysia while ensuring public safety. The initiative, announced during the RegTalk series in Cyberjaya, streamlined regulatory compliance for UAS companies, praised by Deputy Minister of Transport Datuk Haji Hasbi for its transformative impact.
Rosihan highlighted the benefits of Advanced Air Mobility (AAM), stressing its role in faster, safer, and quieter transportation. CAAM CEO Captain Norazman Mahmud emphasised the importance of regulatory buy-in to propel the local drone industry. The RegTalk session facilitated discussions on regulatory frameworks and the state of the drone landscape, promoting engagement among stakeholders. Globally, AAM OEM companies secured substantial funding for development, with Malaysia’s initiative reflecting its commitment to advancing urban air mobility.
To date in the global market, several AAM OEM companies received funding for their AAM development totalling up to $8.5billion ($8463.4 million). With an average of 6.5/10 (65%) in AAM readiness and 4 AAM OEM companies being more than 8/10 (80%) in AAM readiness. Furthermore, AAM OEM companies that can provide vertiports which are needed for AAM activities have an AAM infrastructure average readiness of 5.3/10 (53%).
2. Exploring emerging technologies for Malaysia’s competitiveness
Futurise signed a Memorandum of Understanding (MoU) at the Langkawi International Maritime and Aerospace Exhibition 2023 (LIMA) with the Malaysian Industry-Government Group for High Technology (MIGHT) in May.
The collaboration, initiated with the advanced air mobility sector, aims to address disruptions and enhance sectors like transportation and logistics. MIGHT’s role involves leveraging its experience in identifying business prospects, fostering partnerships, and contributing to high-tech development. The collaboration anticipates identifying key drivers for change, preparing for future opportunities, and mitigating potential risks.
3. RegTalk on 3D Printing
In 2022, the global 3D printing market soared to US$19.8 billion and is projected to hit US$67 billion by 2028, indicating a remarkable CAGR of 21.4% from 2023 to 2028.
Recognising the pivotal role of 3D printing in modernising printing, Futurise organised a RegTalk panel discussion in August 2023 focused on “3D Printing – How it Should be Regulated.” This event, part of Futurise’s RegTalk series, brought together industry leaders and experts to delve into the regulatory challenges and opportunities in the burgeoning 3D printing sector.
The panel highlighted the necessity of a robust regulatory framework to balance innovation, security, and intellectual property protection while addressing legal concerns and assessing Malaysia’s global positioning in the 3D printing landscape.
RegTalk served as an essential phase in the NRS process, facilitating collaborative discussions among regulators, ecosystem enablers, ministries, agencies, and industry players to identify potential regulatory issues associated with innovative product and service introductions to the market.
4. MyAV Guidelines and Drone Sports Roadmap
Futurise, during the Cyberjaya Innovation Week 2023 held in September, introduced two groundbreaking initiatives, the MyAutonomous Vehicle 5.0 Guideline and the National Drone Sports Strategic Roadmap (NADSAR) 2023-2027.
The Global Autonomous Vehicles Market is projected to reach US$325.9 Billion by 2030, expanding at a robust CAGR of 47.1% from 2021 to 2030. In Southeast Asia, particularly Malaysia, collaboration with the Ministry of Transport within the National Regulatory Sandbox is paving the way for the advancement of Autonomous Vehicle (AV) solutions. Currently, Malaysia boasts five AV trial routes in Cyberjaya, Putrajaya, Selangor, Johor, and Kuala Lumpur, accelerating the development of AV technology. Anticipated for the following year is the transition of AV technology into the pre-commercialization phase, expected to catalyze the emergence of new talent and drive future economic growth.
Simultaneously, the NADSAR 2023-2027 (National Drone Sports Strategic Roadmap) delineates the trajectory of drone sports in Malaysia, with a primary focus on youth engagement and skill enhancement. Futurise, mandated by the Government, is spearheading the establishment of the National Drone Sports Excellence Centre (AKSADRON) to cultivate talent within the industry. AKSADRON has forged partnerships with various universities, including UKM, UTM, and UiTM, to implement drone sports development programs aimed at nurturing youth participation and skill development.
“Our partnership with Futurise and Institut Sukan Negara (ISN) through AKSADRON has been nothing short of a remarkable experience. From the development of the NADSAR to exploring new emerging sports, Futurise has been an integral enabler in our quest to achieve the National Sports Vision 2030 (VSN 2030) strategic objectives. As a subsidiary of ISN, Sports Technology Malaysia Sdn. Bhd. (STM) was mandated to accelerate sports technology adoption and creation, making Futurise the ideal partners in developing the sports technology ecosystem to greater heights. As we enter the second year of our partnership, STM is enthusiastic in expanding this partnership to many more opportunities in the future,” according to Shafiq Shamshir, Chief Strategy Officer of Sports Technology Malaysia Sdn. Bhd.
One of Futurise’s supportive university partners under the Dronecubator initiative, Prof. Madya Ts. Dr. Haryanti Mohd Affandi from Universiti Kebangsaan Malaysia (UKM) said that AKSADRON and DroneCubator initiative is a valuable resource for universities in Malaysia. This initiative provides students with the opportunity to construct their own drones and generate income through events or photography services using their creations. By extending this program to other educational institutions, including matriculation and vocational colleges focusing on TVET, the overarching goals of higher education within the framework of the 4th and 5th Industrial Revolutions can be realised.
Forging International Partnerships to Strengthen Regulatory Efforts
In June last year, Futurise and the UAE Regulation Lab (RegLab) signed an MoU to enhance regulatory innovation and share technical expertise. This collaboration included co-research activities focusing on regulatory sandbox programs and open innovation platforms across various industries. Additionally, two RegTalk sessions were conducted, gathering industry experts to discuss mobility topics and visiting the Abu Dhabi Integrated Transport Centre for further discussions and collaborations.
Furthermore, Futurise participated in the Paris Air Show to explore opportunities within the global aerospace ecosystem, particularly in advanced air mobility (AAM) companies. The visit to Skyport’s AAM testbed in Cergy Pontoise provided valuable insights for potential replication in Malaysia.
Looking Ahead: Growth for Regulatory Innovation
As Futurise reflected on its significant achievements, it eagerly anticipates the future beyond Q1 of 2024. Despite potential uncertainties in the global economic landscape, the company remains committed to its mission. With an increasing number of stakeholders seeking assistance with regulatory challenges, Futurise is poised to continue its impactful work in addressing industry needs.
“We have seen innovation remain persistent in both favourable and tough conditions. In fact, it’s been seen that challenging market situations can give rise to new technology driven solutions, products or ways business is conducted,” argued Rosihan.
The strategic collaborations, innovative initiatives, and commitment to agile regulatory frameworks position Futurise as a driving force in Malaysia’s innovation landscape. The resolve is depicted by a sign outside in the Futurise meeting room, apparent to anyone who walks past. It says: “The Future Economy starts Here”. Step inside.
Challenges Foreseen Ahead
Regular evaluations and adjustments to the sandbox framework are crucial for effectively addressing emerging challenges. A lack of awareness among key stakeholders, including businesses, entrepreneurs, and potential participants, often results in a limited number of applications or projects being submitted for consideration within the National Regulatory Sandbox (NRS).
Over the years, Futurise has fostered collaboration with industry players, investors, and other stakeholders, contributing to the success and growth of sandbox initiatives. Collaboration involves engaging a diverse range of stakeholders, including government agencies, industry players, innovators, and consumers, enriching the sandbox ecosystem with varied expertise and perspectives.
However, a persistent challenge lies in the lack of awareness among potential participants, businesses, and the public about the existence and benefits of the regulatory sandbox, limiting participation. Effective communication and outreach efforts are essential to overcome this challenge.
Another anticipated difficulty is the need to streamline and coordinate with international regulatory bodies, aligning sandbox practices with global standards, especially concerning cross-border innovations. This presents a significant challenge but is crucial for ensuring the effectiveness and compatibility of sandbox initiatives on a global scale.
