Malaysia is strengthening its research and development (R&D) ecosystem through more market-oriented financing and closer industry collaboration as the Government seeks to shift from ‘Made in Malaysia’ to ‘Made by Malaysia’, said Second Finance Minister Datuk Seri Amir Hamzah Azizan.
He said R&D would play a key role in strengthening value creation and driving economic growth, noting that Malaysia’s R&D expenditure had reached about 1% of gross domestic product (GDP), or nearly RM20 billion.
However, the main challenge was turning research into commercial outcomes, he said.
“The issue is not just the amount of R&D, but whether it leads to value being captured in the country, including ownership of intellectual property and the ability of local companies to compete globally.
“What we (the Government) actually want to do is ensure that we provide a capital market that can help support the development of local companies over time by providing capital,” he said during a panel session at the University Research and Innovation Investment Summit (URIIS) 2026 today.
Amir Hamzah said the Government was also focused on aligning research efforts with national priorities, including the New Industrial Master Plan, National Semiconductor Strategy and National Energy Transition Roadmap to attract investment and improve commercialisation prospects.
He said funding was already available through initiatives such as GEAR-uP, under which government-linked investment companies had allocated RM120 billion over five years, alongside about RM10 billion channelled into venture and growth funds such as Dana Perintis, Dana Permaju and Dana Impak.
However, the gap remained in the ability of researchers and institutions to bring innovations to market.
“Sometimes the product may be very good, but if you do not know how to put that product in the market and sell it, investors will not be interested in investing,” he said.
Amir Hamzah said universities also had an important role to play by shifting towards applied research and strengthening industry collaboration, while continuing to build fundamental knowledge through basic research.
