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SCIENCE OUTLoOK

Converging Towards Progressive Malaysia 2050


Executive Summary
Version 2
Let us work together to build Science Outlook is a flagship Mainstreaming Science,
a condusive STI landscape. study of ASM that aims to Technology and Innovation (STI)
In an ever more complex world, present insights supported by at all levels and sectors is
we need to make informed relevant data on Malaysia’s STI recognised as the key enabler
decisions based on evidence landscape. These inputs from to catalyse productivity,
and data. With this, leaders the Science Outlook 2017 enhance competitiveness and
will make the right decisions report reflect the views of promote inclusive growth.
in any given scenario. the scientific community and To realise Malaysia’s aspiration
complement key national of becoming among the top
The Science Outlook 2015 initiatives. innovation-led nations in the
and 2017 are an exemplary world we have to increase STI
initiative on providing I hope this report would serve proficiency and transform the
evidence-based analysis, as a useful reference for way STI is coordinated and
insights and recommendations. national STI planning as well propelled in Malaysia.
This is pertinent in ensuring as effective monitoring and
inclusive and integrated evaluation. The uptake and The theme ‘Converging towards
STI reforms in critical areas implementation of the proposed Progressive Malaysia 2050’ is
to boost growth and strategies calls for effective timely towards addressing this
competitiveness for the nation. collaboration, coordination and vision.
commitment. I am confident
YB Datuk Seri Panglima that if all parties work together
Wilfred Madius Tangau in the spirit of national
Minister of Science, Technology and Innovation interest, we can successfully Professor Datuk
Dr Halimaton Hamdan FASc
mainstream STI in nation Chairperson, Science Outlook 2017
building and converge towards
a Progressive Malaysia 2050.

Professor Datuk
Dr Asma Ismail FASc
President, Academy of Sciences Malaysia

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Executive
included as a distinctive strand within the the country’s R,D&C capacity and
Fifth Malaysia Plan (1986–1990). This was capabilities in both the public and
followed by other similar action plans, private sectors. This is done through

Summary culminating with the NPSTI (2013-2020)


– all with the goal of leveraging on STI for
inclusive socio-economic transformation.
establishing a competent and efficient
STI governance, strengthening
stakeholder network to facilitate
Converging towards Is Malaysia still playing catch-up? resources and expertise sharing through
dependable platforms, and building
Progressive Malaysia 2050 It is vital to examine the outcomes of R,D&C infrastructure for strategic
Over the past 50 years Malaysia has these policies, what have been the most national, regional and international STI
transcended from an economy that significant hurdles to date, what new collaborations. Malaysia has the
heavily relied on primary commodities challenges that are expected to crop up potential of developing world-class
to one which is now driven by high-tech during the transformation period into scientific innovations to benefit the
manufacturing and Foreign Direct becoming an advanced economy, and country and global denizens; we just
Investments (FDI). The economy now is what possible course correct need to ensure that we deploy our ideas,
geared towards global collaborations to interventions will needed. The Science talent, and resources effectively and
tap on current knowledge and Outlook 2017 continues to present an efficiently.
innovations. A sustainable and inclusive objective independent review of the
developed economy in the 21st century outcome of these policies in building
is driven by knowledge capital that fuels Malaysia’s STI capabilities and capacity
technological innovations that are the against international benchmarks. The
basis of high value-added enterprises. analyses provided in the Science Outlook
The various prosperity and development 2017 Report are supported with new data
programmes introduced by the collated from the various STI
Government such as Economic stakeholders in the country, from
Transformation Programme (ETP) and ministries and agencies, to corporate
National Key Economic Areas (NKEA) are entities, researchers and policy makers.
founded upon the utilisation of science, It also examines if and how the
technology, and innovation (STI) as the recommendations in Science Outlook
engine of growth. In tandem, Malaysia’s 2015 have been implemented, and
aspiration to become an advanced nation whether these actions have made an
can only be realised if Malaysians are a impact on the STI landscape in Malaysia.
progressive and innovative society.
Although Malaysia has only begun to
Although Malaysia’s growth has been make serious public investment in
steady, the STI development however has building an STI ecosystem for high
not shown much satisfactory trajectory technology industry and knowledge-
in comparison to developed nations. In based economy in the past three
1986, the First National Science and decades, the Government is committed
Technology Policy was formulated and to implement strategic policies to build

Converging towards Progressive Malaysia 2050 3


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01
STI Governance
CURRENT PROGRESS (2015-2017)

A monitoring mechanism for STI


landscape is not in place
Strengthen STI
Management
Cycle
The National Science Council (NSC) was formed
in January, 2016

Establish A
Centralised A dedicated centralised STI body to operationalise
STI Body STI-related decisions is yet to be established
2015
recommendations
Establish A
Parliamentary
Select
Parliamentary Select Committee on STI-related matters has
Committee not been established under recent Parliament restructuring

Enactment of
a Science Act
A Science Act is yet to be enacted

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ecosystem for the future generation. policy instruments. The multiple
Good STI Governance overseeing the stakeholders and support instruments
entirety of the STI ecosystem is have led to fragmentation of resources,
paramount as it deals with the public’s overlapping competencies, and the risk
money for good science to create of redundancy resulting in ineffective
wealth for its people. wealth creation and decision making.
Is the STI Ecosystem The fragmented landscape of the STI
Malaysia’s STI landscape unlike ecosystem at present causes inefficiency
Well-Coordinated? countries like the UK and Singapore and dysfunction in the service delivery to
Malaysia is one of Asia’s remarkable is multifaceted characterised by the support a strong innovation ecosystem.
success stories. Its economic and social variety of institutions ranging from
development since independence has ministries, agencies, to government- One of the key components of any STI
been impressive. As in many developing linked corporations. As of December management cycle is monitoring and
countries, in Malaysia the process of 2017, there are 48 active national STI- evaluation. At present Malaysia’s STI
modernization is generally understood related policies in place; and for most the management cycle is a fragmented
as to unleash the productive power of implementation and monitoring is not wheel. STI cross-cuts but monitoring
science and technology into society and measured. The national STI landscape activities are only conducted by the
to fuel economic growth for well-being. overarches 23 Federal Ministries. ministries for its respective policies.
The gaps in the cycle are also caused
STI Governance, the first focus area of There are 26 STI-related national by components placed under the domain
this study is especially important in Councils; 10 of these Councils are of different agencies. Therefore,
understanding the complexity of actors chaired by the Prime Minister, while alignment of national STI actors through
and entities in the STI landscape. the other 16 are chaired by respective a rationalisation exercise is proposed to
Well informed and independent STI Ministers. Six intermediaries are in be carried for better coordination,
governance plays the primary role in STI place to develop and intensify industry- monitoring and evaluation and a leaner,
development of a country. The actors in academia collaboration are carried out empowering and efficient STI
the STI Governance like any Governance through. A lot of initiatives are also Governance.
comprises of the Government and its mirrored under the Prime Minister’s
machinery. Department or Central Agency. There The National Science Council (NSC)
are more than 160 STI-related agencies, established with the purpose of
The accountability of the Government foundations, institutes, statutory bodies streamlining the various STI-related
is supported by responsive participation and companies under respective councils and act as the apex STI advisory
from the private sector, academia and ministries of which at least 16 are body in the country is chaired by the
civil societies in charting the STI future under the Prime Minister’s Department. Prime Minister. It is a step forward for
of the country through mutual sharing STI Governance in Malaysia as for the
of information and exchange of The plethora of entities engages in every first time 12 Ministers from relevant
experiences. A strong and stable STI facet of STI policy making and, funding Ministries come together to discuss STI
Governance will have the competency and implementation. Each organisation matters. The representation at the NSC
and capacity to chart a sustainable in the STI landscape is with its own however should be more holistic,
orientation through a robust STI objectives, strategic framework and comprising key public and private sectors

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players in order to have an all-inclusive A National Science Agenda and a STI A Parliamentary Select Committee
view on implementation progress and Masterplan (STIMP) will help in providing (PSC) on STI, made up of a small number
issues, and to evaluate new development the direction for all the players in the of parliamentary members that are
in the STI landscape. In order to remain ecosystem. At present, neither is in appointed should be established. The
sustainable the NSC ideally should be place. A specific national science agenda establishment of PSC on STI is important
backed up by a legislative mandate and to serve as the consolidating guideline to build political will and create
a dedicated and empowered secretariat. of the various STI-related policies and legislative consensus towards promoting
Such an entity is missing in our governance at present should be the STI agenda. It will become a formal
landscape. developed with an eye to harness STI platform in the parliament to discuss
to achieve Malaysia’s aspirations beyond STI issues, supported with expert inputs.
At present in Malaysia, the NSC the year 2020. The agenda should Thus, the establishment of the
secretariat support comes largely from nurture an STI ecosystem that supports aforementioned committee is important
the Office of Science Advisor to the Prime technological innovations for knowledge- to be included and mandated in the
Minister and the Policy and Strategic intensive productivity of a high-income Science Act.
Planning Division of MOSTI which also nation.
has 14 other functions under its portfolio. Effective delivery and coordination of STI
A central council such as the NSC The STIMP outlines the Government’s governance should seamlessly cascade
requires a more robust bureaucratic development goals, strategies, from Federal to State level and vice-
intelligentsia - perhaps an aptly named parameters, and timeframe to implement versa. This however, requires concerted
Science Planning Unit (SPU) - to the policy framework reflected in the cooperation between the two. A formal
effectively carry out all that has been national STI policy will serve as a crucial structure with clearly delineated
outlined in its mandate. governance tool to harmonise, expectations, roles, and supporting
consolidate and focus all of the nation’s network will benefit the development
A full-time role of the secretariat with STI-related initiatives and players in and implementation and coordination
often monitoring and evaluation of consonance with the national aspiration. of STI Governance in each state.
on-going programmes/projects and, The STIMP initiative is currently being
deliberation on new proposals before undertaken by ASM and MOSTI. The lack of effective STI governance in
presentations to the NSC will strengthen the nation in the last 15 years has caused
the apex body. For SPU to achieve its Nearly all aspects of national and global the state of STI to become retrogressive.
objectives, it must be granted a development involve STI, underscoring In addition, the lack of cross-cutting
legitimate, legislative mandate that is the importance of a dedicated legal co-ordination of STI has failed to
supported with sustainable funding and structure to facilitate STI governance. mainstream STI for socio-economic
strategic manpower. Roles and functions Legal instruments such as a Science advancement. STI is usually associated
of relevant entities can be consolidated to Act are established to reinforce the with knowledge generation and
function as a centralised SPU for Government’s and stakeholders’ technology development. However the
coordination of planning, monitoring commitment towards STI-related direct impact of STI to economic growth
and evaluation of macro STIs as well as implementation and enforcement. A has not been well translated in Malaysia.
working as Secretariat of the NSC. Science Act will also provide mandate
and legislative clout for the NSC and
other national STI actors.

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Way Forward
1. Strengthen Science Planning and
Coordination through a Centralised
Dedicated Body
Alignment of national STI actors through
a rationalisation exercise is proposed to
be carried out and a centralised STI body
named as the Science Planning Unit
(SPU) is proposed to be established
under the purview of the Prime
Minister’s Department. SPU will be the
enforcement arm of the NSC with a
mandate that transcend all ministries to
enable greater stakeholder participation
and synchronised planning, coordination
and monitoring of STI decisions.

2. Establish a Formal STI Platform


between Federal and States
Governments in West Malaysia as
well as Sabah and Sarawak
Effective delivery and coordination of
STI governance at federal and state level
require concerted cooperation between
the two. A formal structure with clearly
delineated expectations, roles, and
supporting network will benefit the
development and implementation of STI
policies in each state.

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Research,
Development &
Commercialisation
CURRENT PROGRESS (2015-2017)

Empower
Centralised
Coordination The Research Management Agency proposal was
Body approved by the Cabinet, however details of the current
establishment has yet to be ironed out

2015
recommendations

Effective A mechanism on improving the effectiveness of the Nation’s


Use of
GERD utilisation has yet to be developed
GERD

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income generated from patents. has been growing steadily since 2008,
reaching 69,864 in 2015. Malaysia is
Malaysia’s GERD has been on an upward ranked 37th in the number of
trend over the years; the country’s researchers (FTE) per million population
percentage of GERD/GDP is ranked 29th in the Global Innovation Index 2017
in the Global Innovation Index 2017 at report. However, the top 10 economies
How Impactful is RDC 1.3%. To date, only 19 economies have have 2.5 to 4 times more researchers
achieved above the ideal ratio of 2% (FTE) than that of Malaysia, indicating a
towards Socio-Economic GERD/GDP. Although BEs are the largest need for Malaysia to increase the number
Development? contributing sector to Malaysia’s GERD, of researchers to achieve greater R&D
A key element of a robust advanced it is still not comparable to the proportion intensity.
economy of the 21st century is knowledge of top innovative economies. At the
capital generated by scientific innovation. moment, the biggest commitment for The majority of Malaysia’s researchers
This is the underpinning of Malaysia’s R,D&C in the private sector is from the are found in universities, in contrast to
policies on STI and the Government’s multinational corporations (MNCs); the high performing economies whose
commitment to nurture the nation’s very few small and medium enterprises researchers are mostly in BEs. This
research, development and (SMEs) engage in R,D&C. imbalance in the number of researchers
commercialisation (R,D&C) ecosystem versus funding allocated for their
by synergising public and private Malaysia’s percentage of GERD spent on organisation may be another contributing
stakeholders. A mature scientific basic research is similar to top innovative factor to the inefficiency and
innovation system does not happen economies, but differs greatly in applied ineffectiveness of GERD utilisation in
overnight; intensive investment in research and experimental development. Malaysia. Industry-led R,D&C is key to
research and development (R&D) in Malaysia’s high percentage of applied technological innovations that drive the
Malaysia only began little more than 20 research and extreme low percentage nation’s economic expansion. Malaysian
years ago. of experimental development indicates industries are not innovating using
the lack of potential for applied research R,D&C like the top economies, making
At present, R,D&C in Malaysia’s public to move to experimental development the country vulnerable to technological
sector are led by public universities and stage. As a result, only a handful of seismic shifts that affect the global
public research institutions (PRIs). research can be developed into products market.
Business enterprises (BEs) – both local and services for commercialisation. This
and foreign owned – also engage in could be caused by the lack of With the notable exception of Republic of
R,D&C to make sure their products and collaboration between university and Korea, advanced economies tend to have
services can command top dollar in the industry. a longer R,D&C history with entrenched
global market. Investment in R,D&C ecosystem for experimental development
from both the public and private sector The NPSTI (2013-2020) aims to increase and commercialisation. Therefore, they
in 2015 amounted to RM15 billion (about the ratio of researchers per 10,000 understand that investing money and
USD3.54 billion), roughly 20 times higher workforce to at least 70 by 2020 to ensure time in experimental development is
than in 1996; the outcome of which are Malaysia has sufficient R,D&C human crucial in innovation-led growth. Lack of
measured by the number of publications, resource. The number of researchers investment in experimental development
patents filed and granted, as well as full-time equivalent (FTE) in the country and limited number of researchers in

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BEs may halt the progression of applied produce more patents which can be industry, academia, government and civil
research to commercialisation stage. translated into novel products and society is needed to materialise the
The innovation ecosystem should be services. national quadruple helix innovation
reshaped to encourage BEs to conduct system.
more experimental development and Malaysia is hampered by the lack of a
facilitate migration of researchers from right advisory body that can advise on Innovation clusters have worked very
IHLs into industry. Gap funds can be STI development strategies as well as well in developed economies such as
introduced as a financial enabler to identify focus areas and opportunities the Netherlands. Since creating clusters
support researchers in the development for research, training, and knowledge from scratch is extremely challenging,
of prototypes, hence reducing the risks transfer. As a result, Umbrella terms identifying and catalysing existing
involved in commercialising technology. are commonly used as priority areas clusters ‘hidden’ in their respective
in Malaysia, leading to difficulty in regions should be prioritised. To optimise
Knowledge-based economy is driven by producing focused and solution-oriented resource allocation for the country’s
intellectual assets that provide economic research. The complexity of R&D admittedly limited R,D&C financial and
returns. Malaysia is ranked 34th globally processes in Malaysia which involve talent, mapping out the industrial
in terms of total publication from 1996- multiple agencies under the scope of clusters within the economic
2016 based on the SCImago Database; different ministries makes it urgent for development corridors to identify R&D
our published documents per researcher the proposed Research Management needs is needed to increase the
average is similar to Japan, but still Agency (RMA) in the 11th Malaysian Plan efficiency of R,D&C resource utilisation.
not comparable to other top innovative to do more than just administering funds When institutions of higher learning are
economies. The number of patent applied disbursement, proposal evaluation, and involved, this strategy can lead to
and granted in Malaysia remains low. monitoring the progress of public funded intensification of industry-academia
The reason for this observation should research. The proposed RMA should play collaboration as well as encourage
be investigated in order to increase the a larger role which includes coordinating knowledge diffusion and specialisation.
number of successful patent application. research priorities across ministries and As large firms move up the value chain,
agencies. SMEs will also benefit from providing
Although the average expenditure per their services to these large firms in the
patent application for Malaysia is on par Aligning national research priorities to cluster.
with Singapore, Singapore’s income from industry’s needs has the potential to help
the use of intellectual property (USD Malaysian industries to be more In essence, all stakeholders must move
18.6 billion) is much higher compared to competitive globally. It is crucial for towards increasing the country’s GERD
Malaysia (USD 1.2 billion). This may be Malaysia to conduct foresight studies in the direction that will stimulate
because industry-driven R,D&C have a involving industry players periodically profitable output in terms of publications,
bigger push on productivity with a focus to identify focus areas which can then patents filed, and intellectual property
on return on investment. The existing be incorporated into upcoming Malaysia monetisation. Malaysian private sectors,
national R,D&C ecosystem must be Plans to ensure all ministries and particularly the SMEs, should take
transformed to explicitly highlight agencies share the same focus. The advantage of the incentives and
national research priorities and the Malaysian public also need to be engaged infrastructure available to enhance
country’s research agenda, as well as when identifying issues that require STI their innovative capacity and
strengthening industry-driven R,D&C to interventions. The synergy between technological adoption.

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Boosting R,D&C in Malaysia must be a 2. Expedite the Establishment of
cooperative effort among all the players a Multifunctional Research
– both the public and private sectors – Management Agency (RMA) and to
to align their vision and share resources Consider Establishing a Technology
for mutual advantage. The SPU proposed
Commercialisation Agency (TCA)
in Chapter 1 and the RMA that was
mooted in the 11th Malaysian Plan can be It is important to expedite the
central coordinators to enhance establishment of a RMA to catalyse
Malaysia’s STI R,D&C and harmonise the demand driven collaborative research
roles of all the stakeholders. Leveraging with effective utilisation of funds and the
on existing industrial and research hubs TCA to complete the ready-to-market
to galvanise niche clusters through delivery cycle. Expediting the
university-government-industry synergy establishment of a RMA and TCA will
can help to fire up the regional economic assist in prioritisation of research and
corridors and generate sustainable formation of symbiotic relationships with
growth for all states holistically. technology transfer offices and
collaborative platforms.

Way Forward 3. Re-identify National RDC


Priority Areas
1. Emphasis on Experimental Re-identifying national RDC priority
Development areas by aligning and streamlining to
Increased funds for experimental Malaysia’s research and economic
development will encourage more strengths and needs will result in
collaboration between university and optimisation of available resources.
industry towards demand driven
research which will consequently 4. Development of Regional
increase experimental development Innovation Clusters
activities to produce more market ready Development of regional innovation
products and/or services. clusters by enhancing collaboration
between industry and knowledge
institutions as the case in Malaysia’s
E&E sector must be considered.

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What is Experimental Development?

PRE-COMMERCIALISATION COMMERCIALISATION

Proof of
Concept Prototype Pilot Scalling Up Production

EXPERIMENTAL DEVELOPMENT

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03
STI TALENT
CURRENT PROGRESS (2015-2017)

This is being manifested in


• National STEM Action Plan (2018-2025)
• National STEM Movement
Systematic
Planning &
Development

Various initiatives are being rolled out to


bridge this gap through
• Visioning Malaysia’s Future of Work: A Framework
for Action led by Talentcorp
2015
recommendations
Bridge
between
Policy &
• Embracing Industry 4.0: A Malaysian Technology Strategic
Outlook led by MiGHT
Reality • Malaysia Productivity Blueprint 2017-2020 led by EPU
• TVET Malaysia Master Plan led by MOHR (on-going)
• The National Industry 4.0 Policy Framework led by MITI (on-going)
• Malaysian Higher Education 4.0 led by MOHE (on-going)

Retain Incentivise talent through upskilling initiatives and


STI Talent recognition via
• Malaysian Board of Technologists (MBOT)
• Human resources Development Fund (HRDF)
• Penang Skills Development Centre (PSDC)
• National STEM Centre

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Blueprint 2013-2025. One of them is next industrial revolution bandwagon,
inclusion of higher order thinking skills we may face a possible shortage of
(HOTS) in the syllabus beginning in 2014. technological competent talent. As it is,
the trend of lesser candidates taking
The first year where 20% of the questions subjects offered in the Science Stream
are set based on HOTs was in 2016 which for SPM is shrinking the talent pool
STEM Talent Development: saw a dramatic decline in the entering institutions of higher learning
performance of Ujian Penilaian Sekolah (IHLs) for subsequent STEM training.
Is Aspiration and Action Rendah (UPSR) Science and Mathematics Approximately 50% of SPM leavers
Well-Aligned? which continued into 2017. This may pursue tertiary studies. Data from MOE
Malaysia’s drive to become a developed indicate that the students are not and MOHE shows that only about 80,000
nation in a sustainable and equitable prepared for HOTS-style evaluation or enrolled in STEM-related tertiary
manner means increasing the dynamic there is a need to review how HOTS is courses.
capabilities of the nation’s workforce. It delivered. Performance in Science and
is a holistic endeavour that targets all Mathematics in Penilaian Tahap Tiga (PT3) Lack of awareness of opportunities in
levels of the population, from children in in 2014 to 2016 has been rather STEM careers, parents not favouring
pre-school all the way to secondary and alarming; less than a quarter passed science education, STEM subjects are
tertiary education, as well as making Mathematics and Science with a too difficult, learning science is boring
sure that the current labour force is minimum of C. Only 23% of the PT3 and too theoretical, and lack of
ready for the inevitable transformation of students were eligible for Form Four encouragement to take up STEM subjects
the job and socio-economic landscape. Science stream in 2017, the pattern over in school were among the reasons on
The Science and Technology Human the last five years showed less than 30% low popularity of STEM subjects among
Capital report was established to map were eligibility annually. This is low and students. Our survey on secondary
out the route to ensure that the quality insufficient to fulfil the desire of reaching school STEM teachers resulted in 48%
and quantity of Malaysia’s labour force in 60% Science or Technical based students responding that they had never attended
STI to fulfil the country’s development up in our education system as outlined in STEM related training, reciprocating the
to the year 2020 is sufficient. the 60:40 Science/Technical: Arts Policy. boring teaching and learning complaint
The Technical steam recorded around made by the students.
There are approximately 5 million 22.5% enrolment in 2017.
students enrolled each year in both The advent of Fourth Industrial
primary and secondary schools across In the 2016 Sijil Pelajaran Malaysia (SPM) Revolution means that Malaysia’s talent
Malaysia. About 100,000 enrol in Science level examination 80% passes with a must be adaptable to change, have a high
Streams at upper secondary level. To minimum C grade were recorded for degree of facility for life-long learning,
ensure these valuable assets remain in Physics and Biology, while slightly above good interpersonal and collaborative
the pipeline for Malaysia’s continuous 50% were recorded for Additional skills, and is trained in multi-sectoral
supply labour force the Ministry of Mathematics and Chemistry. Students thinking. Preparation for technological
Education (MOE) has set up a number without a sound Additional Mathematics disruption is possible through training
of initiatives to improve STEM education qualification may not gain entry into and education; Reskilling and upskilling
delivery including and beyond what is critical courses such as engineering. must be the norm for Malaysian talent to
outlined in the Malaysia Education As the nation moves towards joining the stay relevant to the job market.

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Therefore, the Ministry of Higher STEM talent is the core of high-skill, Way Forward
Education (MOHE) included a new knowledge-intensive economy for global
strategy to enhance student experience competitiveness. Like most economies,
in the industry through degree Malaysia’s demographic will be moving
1. Attracting and Retaining STEM
apprenticeship. The 2U2I programme towards an ageing population by 2030 Talent through Improved
is being rolled out by selected which makes lack of STI talent in critical Remuneration and Continuous
universities whereby the student will sectors more acute. While Malaysia Career Development
spend 2 years in the university and 2 ranks 16 out of 118 economies in Engaging and attracting young people
years in the industry to enable them to Vocational & Technical Skills pillar of to first enrol in STEM-related degree
have real world experience with the the Global Talent Competitiveness Index programs and then to pursue careers in
theoretical knowledge they have obtained 2017, we rank 41 for the Global STEM remains a challenge. Therefore,
in the university. A similar module can Knowledge Skills. The Global Innovation revisiting of the entire education
be started at an earlier stage – during Index places Malaysia at 46 out of 137 pathway to be in-line with current global
secondary schools to expose both economies in terms of technological demands, STEM pedagogy and
teachers and students to the expectation readiness. The average ranks of our curriculum is proposed. An improved
of the industry. The establishment of talent are a concern that the present remuneration scheme comparable to
the National STEM Learning Centre is STEM talent pipeline may be less other nations and continuous career
expected to address the mundane competent to helm the country’s development is proposed to ensure
teaching and learning of STEM subjects aspiration towards the Fourth Industrial sustainability and succession.
by producing more passionate teachers Revolution bandwagon.
as well as engaging public to be 2. Prioritisation of Numerically
encultured to science. From the pipeline, we may not be and Technically Competent
producing sufficient number of talent Talent Development
Upon enrolment and graduation, needed to sustain the country’s growth
students and generally their parents in 2020 and beyond. However, STEM Numeracy skills are the foundation of
need to be assured that STEM jobs are talent utilisation in Malaysia is not a most STEM courses at tertiary level and
as rewarding as non-STEM jobs. Besides straight forward matter of demand and it is predicted to come in handy in most
curriculum that involves hands-on- supply, but rather a shortage of the right future jobs. Therefore numerically
trainings, the Government should proficiencies and unmet compensation competent talent development must
conduct STEM career path review with expectations. Rather than continue to be prioritised to develop technical
emphasis on remuneration and career produce over qualified and underutilised competency.
development. This is because the workers, the upskilling, training and
Government is considered as the education pathway in the country should 3. Development of Biennial National
benchmark for employment wage and be strategized to produce talent with the STEM Talent and Skill Gap Assessment
benefits, as well as positioning post with right mindset for life-long learning, and Development of a biennially nationwide
matching qualifications (i.e. not utilising the flexibility to explore new niches. It STEM talent and skills gap assessment
under-educated labour force to save is also vital to make sure that the talent is proposed to gauge and identify the
cost). powering the economy is appropriately mismatch of our STEM talent - if there is
compensated to match the nation’s either an oversupply or an under-
aspiration to be a developed country. demand of for especially critical jobs.

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04
STI Energising
Industries
CURRENT PROGRESS (2015-2017)

In 2017, the National Science Council has decided for the


collaborative network model to be implemented to enable
Formal +
demand driven research and enhance innovation capacity
Regulated
Linkages for
Public-Private
Partnership

To disseminate
2015
recommendations
STI Agenda
amongst
Selected industry captains have been appointed as
members in the National Science Council and the
Industry National Innovation Council
Players

STI Data
Centre

A centralised STI knowledge repository is not in place

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the Malaysian workforce to engage in fairly less than 1% – being imitators,
high-value innovation. market saturation has unable our
products to compete globally. The SME
Given that 98.5% (DOSM, 2016) of Corp’s Survey of the first quarter of 2017
Malaysian business establishments are states that firms often release products
small and medium enterprises (SMEs), and services to the market without
Are Malaysian Industries there is a need to elevate the capacities developing foundational and driver
of our industries, infrastructure, conditions of the ecosystem, leading
Poised to be Innovators? workforce competency as well as to high failure rates due low novelty of
Over the years industries in Malaysia technology utilisation to be on par with products and services.
have transitioned from resource-based global players. In 2016, SMEs only
to one that is knowledge intensive. contributed 36.6% to the country’s GDP. Realising this, the Government continues
Malaysia has charted its course towards It is clear that Malaysia needs to to formulate policy measures intended to
becoming an innovation-led economy invigorate the industry landscape by nurture and establish conducive
by recognising the need to develop enhancing innovation capacity as SMEs environment for technology development
indigenous science, technology and have low appetite for investment towards to spur investment in technology for
innovation (STI) capacity and capability R&D (MyKE III, 2017). more innovative output. The current IMP3
for competitiveness and sustainability to (2006-2020) outlines the industry’s
better leverage on market opportunities Innovation requires integration of strategies and policies for the country’s
and elevate along the global value chain. knowledge and competences from a sustained efforts towards realising
number of different fields: technology, Malaysia’s objective to be a developed
On the global front, Malaysia enjoys a market intelligence, product design, nation. The Government has also mapped
reasonably competitive position in the economics, etc. Our findings show that out numerous initiatives to assist
overall global competitiveness. However, most of our SMEs are unable to create especially SMEs to strengthen their
when it comes to specific innovation value from R&D output - most of the competitiveness.
indices, Malaysia fares quite moderately. business establishments are technology
Malaysia ranked 17th among 40 countries imitators rather than true innovators. The SME Masterplan (2012-2020) targets
in the 2016 Global Manufacturing Our national ecosystems primarily contribution of 41% of the nation’s GDP
Competitiveness Index; in the product support absorptive capability; but are and 25% of the nation’s total export value
innovation pillar of the Global not able to enhance our adaptive and by 2020, by the SMEs. It also targets to
Entrepreneurship Index (GEI) 2018 innovative capabilities. Only 6% of reduce employment share to 62% from
Malaysia ranked 130 out of 137 countries Malaysian companies are creators 65% in 2016, by reducing reliance on
- lowest among most ASEAN countries. (MyTIC, MPC, 2012). Foreign firms and cheap foreign labour and adopting
GEI measures a country’s ability to countries benefit from our strong technology that will help increase
develop new products and integrate new absorptive capability while Malaysian productivity. High Impact Programme
technology. The 2017 Global Innovation firms remain stuck at this level, unable (HIPs) aims to help SMEs develop
Index ranking saw Malaysia suffering to move up the innovation value chain. innovations from prototype to
a massive drop in Knowledge Workers commercialisation stages. The Innovation
from 35th to 93rd spot. This raises Novelty of new products from both Certification for Enterprise Rating and
concerns about the competency of manufacturing and services sector are Transformation (1-InnoCERT), a

22
programme facilitated by SME Corp growth of SMEs have been identified A strong and robust STI-based industry
awards certificates to innovative SMEs through innovation intermediaries such would pave the path to enhanced
and facilitates fast-track access to as SIRIM-Fraunhofer, Steinbeis Malaysia productivity, job creation, innovation
funding or incentives (SME Corp., 2014) Foundation and PlaTCOM Ventures. The capacity and high-skilled talent pool.
to encourage entrepreneurs to venture Public-Private Research Network (PPRN) Therefore, Malaysia should strategically
into high technology and innovation- was established to strengthen university- invest in selected niche STI based indus-
driven industries. industry linkages to facilitate knowledge- tries based on our current strengths and
transfer and catalyse R&D. However, future projections to leapfrog from being
Growth of industries is supported by these intermediaries are limited by immitators to innovators of technology.
strengthening the nation’s ICT nature of partnerships – they are not
infrastructure such as the broadband industry-led to foster demand-driven Way Forward
strength and speed, and initiatives such research and to effectively bridge the
as the Cloud First Strategy, the National innovation chasm as well as to 1. Establish Industry-Led
Big Data Analytics Framework and Cyber encourage open innovation. Hence Collaborative Networks to Enhance
Security Malaysia. The Digital Free Trade establishing collaborative networks Demand Driven Research and
Zone (DFTZ) launched in 2017 is an co-ordinated by industry-led trusted Private Sector Participation
initiative to capitalize on the confluence neutral entity for growth-potential key
and exponential growth of the internet sectors should be the way forward. An initiative to stimulate the uptake of
economy and cross-border e-Commerce R&D and innovation among industries
activities. This setup facilitates seamless Multiple actors and multiple industry- should be facilitated by industry-led
cross-border trade and enable local related knowledge dissemination ollaborative networks that shall guarantee
businesses especially SMEs to export channels with weak connections between the rise of knowledge clusters, leading to
their products globally with ease them are diluting efforts of creating a organically formed talent hubs (thus
successful innovation ecosystem. A enhancing knowledge workers) and
The Malaysian Business Angel Network centralised virtual knowledge repository disruptive innovations.
(MBAN) offer opportunities for project to integrate, synergise and coordinate
owners to book investments - MBAN’s access to STI-related information must 2. Facilitate Dissemination and
Accredited Angel Investors are eligible be considered. The virtual platform Monitoring of Industry Related
to enjoy a tax benefit amounting to RM should be built upon intelligent systems Information through a Virtual
500,000 under the Angel Tax Incentive encompassing research and market Centralised Knowledge Repository
Programme. Securities Commission analytics frameworks and also capture and Data Centre
Malaysia has introduced six equity crowd information about teaching, training, In order to enhance the development of
funding (ECF) platforms in 2015 to facilities, business partnerships, and STI-based SMEs and innovative start-ups,
provide alternative venue for capital- existing international engagement across it is essential to provide sufficient
raising for SMEs and innovative new scientific and non-scientific disciplines, industry related STI resources. Therefore
businesses (start-ups). and it should be accessible to all. This a virtual centralised knowledge repository
platform should also track and monitor and data centre to make the full range of
Strategic partnerships models to spur STI-based BEs and SMEs to have STI-based resources as well as market
technology development, commercialisa- targeted intervention. intelligence information known to all, is
tion and to accelerate the productivity pertinent to energise the industries.

23
05
STI Enculturation
CURRENT PROGRESS (2015-2017)

The Malaysian Education Blueprint 2013-2025 addresses the


need for early childhood education to STI

Early
Exposure to
Science

The National STEM Action Plan (2018-2025) being formulated


Players in by MOSTI, MOE and MOHE has incorporated STI enculturation
Popularising strategies
Science
2015
recommendations
Engage
Public through Many public engagements on STEM are anchored by NGOs,
Multiple industries and ministries, although weak coordination is
Platforms
observed

Develop Science
Enculturation
Index
A dedicated STI Enculturation Index has yet to be developed,
however, STEM Student Index is being formulated by MOE

24
25
05
the public in their vicinity through for science coverage apart from regular
activities such as faculty specific news with science content but have
campaigns, public service programmes, lesser content in comparison to Political
scientific societies, film screenings, and Sports coverage. YouTube channels
public forums, inaugural lectures, etc. that appeal to Malaysians are
entertainment and comedy channels;
Scientifically Encultured Informal science enculturation appears similar to global YouTube viewing
to have greater impact in nurturing a patterns and not a single STI-related
Society: Where Are We? scientifically literate society; these out- YouTube channel made it to Malaysia’s
Culture is the collective manifestation of-school experiences are life-long, top favourites.
of human intellectual achievement. and enjoyment for it can be inculcated
Enculturation is the acquisition of from young. Malaysians are fortunate A virtual Science Media Centre for STI
one’s own culture, including its values, that there are various designated content resource can improve the quality
behaviours, beliefs, understandings, environments that serve as STI of STI content across platforms in
social norms, customs, rituals, and enculturation spaces such as science Malaysia. This centre will focus on
languages. centres, museums, zoos, nature communicating science concepts in
preserves, botanical gardens, and layman encouraging translation and
STI enculturation is the process through aquariums offer a variety of permanent creation of STI content.
which science culture become integrated and temporary exhibitions to enrich
in the mind and habits of the people, STI immersion throughout the country. Civic scientific literacy in Malaysia is
similar to how national and ethnic There are also new entertainment supported by STI grassroots movement
identity are internalised. STI culture spaces or commercial theme parks and non-governmental organisations
includes scientific literacy, public that offer fun activities with STI elements (NGOs) alongside professional
understanding, acceptance and incorporated such as Kidzania and associations; most of them utilise social
awareness of science and scientific Legoland. Continuous efforts to keep media as a platform for STI activism.
methods, as well as the applications of these spaces current, exciting, and These grassroots movements debunk
science in day-to-day life engagements. attractive to new and recurrent visitors pseudoscience, give information on
must be in place. nutraceutical, and health products on the
Various government institutions and market, share relevant media content,
universities conduct programmes to The Malaysian media – print, broadcast, invite knowledgeable speakers to give
promote STI literacy and enculturation and electronic – remain the most talks, and many more. Environmental
to the public. The Ministry of Health important means for most Malaysian NGOs in Malaysia such as the Persatuan
(MoH) for instance conducts various adults to keep updated on science Khazanah Ma’ of Terengganu are
awareness programmes, ranging from information. Study of publicly available instrumental in mainstreaming nature
promoting disease prevention to healthy broadcast over a three month period conservation and campaigning for
living. MOSTI has a dedicated unit for STI showed that Government television wildlife preservation, important civil
related awareness programmes; with the channels offer the most of in terms of elements in STI enculturation.
latest being the NICE’17. Universities are STI content; private television channels
also venues and promoters of had little to none. In Malaysia, Science education in the classroom is the
disseminating scientific information to newspapers have dedicated sections most important formal method of science

26
enculturation; large amount of research Malaysians has yet to achieve the STI Way Forward
and investment goes into strengthening literacy of citizens in advanced countries;
science education in Malaysia from the good news is that there are plenty
1. Public-Private Partnership to
primary to tertiary level. However, the of avenues for Malaysians to enjoy STI
strongest agency of science literacy is enrichment, particularly for the benefit
Update and Upgrade STI
through informal approaches that incites of the younger generation. Support for Enculturation Spaces
curiosity and encourages knowledge- STI enculturation are not just from the Encourage Public-Private partnership
seeking habits, supported by the Government and profit-driven private to update and upgrade STI enculturation
availability and accessibility of designed entities with STI agenda, but also by spaces to attract more visitors. STI
environments (e.g. science centres, ordinary Malaysians who are determined places should also leverage on local
museums, zoos, galleries). Casual to highlight the importance of science in scientists, scientific associations and
discussion with peers and family on STI our everyday lives. We can be optimistic social innovators such as content
matters, using information gleaned from that every effort is being expanded to providers giving input on STI.
attending public forums and expositions, make Malaysia a scientifically literate
as well as media and popular culture society for the 21st century. 2. Virtual Science Media Centre to
also promote habits of the mind for STI Strengthen STI Content in Various
enculturation. Media Platforms
A virtual resource centre that focuses on
Benchmarking the Malaysian public’s
communicating science in laymen
STI literacy against other countries, to
Bahasa Melayu and English and
assess scientific knowledge illustrated
encouraging translation and creation of
that science and mathematics literacy
STI content needs to be in place.
among young people in Malaysia are
below the international average. STI
enculturation survey showed that
3. Prioritise Development of
Malaysian adults generally scored below STI-based Creative Content
the international average; lower than the The trend shows Malaysians are
adults in most developed countries. inclined towards entertainment-based
Science culture is highly influenced by programmes hence creative
level of education, mass media coverage edutainment-based STI content must
and cultural mentality. It is clear that be considered. This will likely increase
more is needed to make science interest in STI.
mainstream in Malaysia’s culture.

It is evident that STI enculturation is a


complex interplay of formal and informal
learning, in and out of dedicated
enrichment spaces as well as developing
life-long habits of the mind to satisfy
scientific curiosity. Even though
24

27
06
Strategic
International
Alliance
CURRENT PROGRESS (2015-2017)

Increase
STI-focused
International
Alliance Increase in Institutional Level Agreements

2015
recommendations

Position
Malaysia’s STI Increased membership in international organisation
Capabilities to
Strategic Increased perticipation in international high level meetings
Partners

28
29
06
As of the end of 2016, the Malaysian important missions such as the ASEAN
Government has signed 964 bilateral Economic Community which was
agreements with countries all over the launched during Malaysia’s chairmanship
world of which 187 of them are directly of ASEAN. Malaysia also leverages upon
STI-related, mostly to promote its membership in various international
cooperation in scientific research and organisations to secure international
How Do STI International development. 112 of these were signed funding for ambitious and impactful STI
with Asian countries due to the projects.
Alliances (Science geographical factor, trade partnership,
Diplomacy) Stir Malaysia’s as well as common diplomatic agenda. There are also many Malaysians having
Competitiveness? Malaysia has also signed 107 multilateral
key roles in international organisations.
This is an added advantage for Malaysia
Globalisation has transformed not just agreements to safeguard its international to lobby and secure important key
the economy of the world, but also how interest. 58 of these are STI-related; ositions in international organisations to
scientific resources, personnel, and such treaties present platforms where improve Malaysia’s visibility in the global
research funding are no longer restricted Malaysia can attract knowledge, talent STI arena. This is especially important in
by geographical borders in advancing and resources for STI advancement. fighting for Malaysia’s stand in vital
scientific knowledge and finding Majority of STI-related multilateral issues that could affect Malaysia’s
solutions to global challenges. One of agreements signed by Malaysia are position and sovereignty.
the ways to fully harness the potential of efforts to monitor, regulate and
globalisation of STI is by understanding standardise procedures where science is The international networking of STI
science diplomacy. an important element for an agreement researchers and experts is unique;
to achieve its objective. crossing national boundaries with
Science diplomacy is defined by the use partnership traditions that open many
of scientific collaboration among nations By being part of the signatory members, doors and support crucial frameworks
to address common problems and to Malaysia can retain its voice in the for joint efforts to address a wide array
build international cooperation. It is formulation of the monitoring, regulation of problems of broad interest. There has
further segregated into three distinct and procedures as well as leverage on been substantial amount of strategic
types that differ according to the the advancement of technology of first international agreements signed by
objective of the diplomacy required; world countries to boost our STI capacity Malaysian Research Universities (MRUs)
• Science in Diplomacy and capability. These multilateral
• Diplomacy for Science
from years 2012 to 2016 resulting in an
agreements are vital in promoting increase of projects funded under these
• Science for diplomacy
Malaysia’s security, international law agreements. These MRUs performed
advancement as well as active well when compared to some other
Malaysia’s international alliances
participation in the international fora. neighbouring countries except with
leverages on diplomacy and science
through international agreements, Singapore. Most collaborations are done
Malaysia also is a member of many with the United States of America (USA),
membership in international STI-related
international organisations. As a member the United Kingdom (UK), Bangladesh
organisations, joint research
of ASEAN and APEC, Malaysia has been and Nigeria. Malaysia both learn from
collaborations of IHLs and industries.
holding significant posts in spearheading developed nations and help developing

30
nations. In terms of publications, It is evident through this study that 3. Strengthen Linkages Between
Malaysia is the top among ASEAN national policies plays large role in Ministry of Foreign Affairs (MOFA)
countries since 2010. determining the direction of foreign and Malaysian Scientific Community
policies initiatives. Therefore, it is
The linkages between the Ministry of
Strategic STI international alliances important for Malaysia to strategise
Foreign Affairs (MOFA) and Malaysian
increases access to research funding on its international alliance internally
scientific community should be
and knowledge transfers. In 2016 with important stakeholders to craft
strengthen to include scientific
approximately RM21.7 million worth the right strategies in the Nation’s
evidences as an avenue for diplomatic
of international research funds were best interest.
decision makings.
pledged. Besides funds, strategic
alliances also increase opportunities
4. Leverage Malaysia’s Trade
through expert engagements. At times,
capacity building, technical assistance, Way Forward Platforms Globally to Facilitate
knowledge transfer, sharing of facilities Market Intelligence in STI-based
and resources adds to the success of 1. Leadership in Positioning Industries
important scientific discoveries. Malaysia’s Strategic STI Malaysia’s should also leverage on its
International Alliances global trade platforms and trade
Malaysia actively trades with economies To further strengthen the strategic STI missions for gathering STI-related
around the globe. The number of trading international alliances, the various intelligence to develop the right STI-
nations bring along opportunities for international platforms where Malaysia related strategies for the Nation.
further developing our STI capacity and is a member must be fully utilized by
capabilities especially in technology our STI key opinion leaders to add to
transfers. There are also opportunities global competitiveness and increase the
to leverage onto the abundance of trade visibility of Malaysia’s STI capacity and
data and intelligence to predict trends capabilities.
and fore-sighting for emerging
technologies.
2. Enhance Roles of Science Attaché
Malaysia and its people need to continue
in Malaysian Embassies
to take the lead in strategising and The roles of Science Attaché in
positioning Malaysia’s standing at global Malaysian embassies should be
platforms. Hiring diplomats with enhanced and expanded to include
technical know-hows will help ministries strategising, monitoring and evaluating
to make informed decisions on matters STI-related issues pertinent to the
related to STI. nation’s interest.

31
Conclusion diluting available funding and resources. With 98.5% of our industry being the
The weak link between the Federal and SMEs; most do not adopt technology and
Malaysia’s aspiration to be an advanced State Governments on the STI issues do not invest in R&D while only 6% are
nation requires all sectors to have the also must be bridged to cascade policies creators. The productivity of our SMEs
capacity for developing knowledge capital and decision for effective transformation is low; the contribution to the GDP is less
to fuel Malaysia’s drive to be an advanced of the nation towards joining the than 40% and most SMEs do not have
economy. STI has underpinned the pillars paradigm shift towards knowledge the capacity to hire knowledge workers.
of our economic growth for the last six economy. Malaysia aspires to be an There is also no national data on the
decades since independence and should innovation-led nation. However, little number of S&T based business
be seen as a catalyst to spur the new emphasis is being put on experimental enterprises in Malaysia. Overall global
economy. development. Hence we are going to see indices show competitiveness level is
much less prototyping and product test- strong but innovation output is not
The Science Outlook 2015 outlined 18 ing and even lesser commercialisation. realised through our industries.
recommendations to mainstream STI. The R&D done in Malaysia is also not
11 were taken up through 16 initiatives industry-led as most of our researchers Malaysians STI literacy and awareness is
and programmes by the relevant are concentrated in IHLs. low although engagement is quite
stakeholders. The Fourth Industrial satisfactory based on visits to STI spaces.
Revolution has made it more urgent for To ride on the knowledge economy, the But the content of exhibits can be further
all stakeholders to collaborate in making country relies on knowledge-workers. updated to follow global trends to
sure that the country is capable of coping However, there is a decline in interest of increase STI literacy of Malaysians. The
with potential socio-economic young people in enrolling in STEM-fields. STI content in media and the avenue for
uncertainties brought about by STI The quality based on major national level science communication can be further
upheavals to the global economy. examination is about average. Is STEM- improved. Globally, Malaysia and some
Malaysia’s progressive and innovative field unattractive or is the pedagogy prominent Malaysians have stamped
society must have the necessary STI losing touch with the learning style of their mark in various international
robustness for the country to navigate millennials? Our survey showed almost platforms. However, output through
the deep waters of knowledge-based 47% STEM teachers from secondary collaborations show that these avenues
economy for our sustained growth and school had not received any STEM- are not fully leveraged and internal
inclusive development. Besides putting related training. The future jobs will be strategizing between international
forth new ideas on how Malaysia’s STI technology based. There are also critical divisions of various Ministries needs
landscape can be further strengthened, STEM related jobs which may not be strengthening for better planning to
the Science Outlook 2017 proposes that filled by national talent since the capitalize on opportunities to form
the remaining recommendations be numbers are declining over the years. collaborations. Tying these loose ends
revisited by these stakeholders. But then again, is our industry ready to should propel Malaysia’s STI ecosystem
hire STEM talent? and innovation to greater heights.
But first some cross-cutting issues must
be addressed. The multitude of actors
in the national STI landscape has to be
revisited. Too many actors and funding
agencies become self-competing hence

32

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