Optimising Research
In 2006, the Government had published its five year ‘The Second National Science and Technology Policy 2006 - 2010’. This policy sets out the ambition to increase R&D spending to at least 1.5% of Gross Domestic Product (GDP) by 2010 and to achieve a competent workforce at least 60 RSEs (Researchers, Scientist and Engineers) per 10,000 labour force by 2010. The implementation of this policy had involved a large financial outlat by the Government at RM9.5 billion in a hope to enhance national capacity in R&D.
The industry’s contribution to this target is at least static, if not declining. With the exception of the Medical, Engineering and ICT industries it is the service industries that are investing most in R&D, not the manufacturing base. Perhaps this is the time for the Government to reverse this trend, for example by offering tax credits or other incentives to those manufacturing companies that invest in R&D.
Whilst we are innovative and may be good in translating some of our inventions into exportable products, the Government still in a position to focus more and more on knowledge transfer and trying to stimulate industry to do better. Knowledge transfer from our universities to industry can be encouraged with the help of Government grants, incentives and supports.
Malaysian R&D base has become much more internationalised, which has benefits as well as risks. Below are the summarise of what this means.
Companies in Malaysia have turned to recruiting their scientists and engineers from other parts of the world, especially Asian, though not exclusively. Some of them have relocated their R&D bases in other countries. At the same time, other companies have built or expanded their R&D facilities in this country in recognition of the continued strength of our science base. It’s a two-way street.
Whereas the majority of companies that were located in Malaysia in the past used to be Malaysian companies. Today Malaysia is populated with an increasing number of ‘multinational enterprises’ (MNEs). Indeed, some of our GLCs and local biggest firms have internationalised themselves.
Outside the South East Asia, our strongest links are with the USA, although Japan features strongly in our economy too. We are more Americanised and Japanised than most other members of the South East Asia. A lot of the venture capital money invested in Malaysia is American and Japan. Until recently, it seems more investment will be coming from the middle east countries.
Malaysia is developing clusters of spin-out companies and technology incubators, through many venture capitalist such as MAVCAP. With the establishment of the Iskandar Development Region, the Government will invest heavily not only on the commercial factor but also in the science base there.
As a result of all this situation, R&D may has become more internationalised than any other developing country and our science base remains one of the most productive in Asia. However there are opportunities arising from this internationalisation.
Biotechnology is one the most successful industries in Malaysia and relies on the use of animals in the research. In some countries like UK, the animal rights activists have caused this industry a lot of grief, so much so that the industry has threatened to take its research elsewhere.
In 2006, the Government had published its five year ‘The Second National Science and Technology Policy 2006 - 2010’. This policy sets out the ambition to increase R&D spending to at least 1.5% of Gross Domestic Product (GDP) by 2010 and to achieve a competent workforce at least 60 RSEs (Researchers, Scientist and Engineers) per 10,000 labour force by 2010. The implementation of this policy had involved a large financial outlat by the Government at RM9.5 billion in a hope to enhance national capacity in R&D.
The industry’s contribution to this target is at least static, if not declining. With the exception of the Medical, Engineering and ICT industries it is the service industries that are investing most in R&D, not the manufacturing base. Perhaps this is the time for the Government to reverse this trend, for example by offering tax credits or other incentives to those manufacturing companies that invest in R&D.
Whilst we are innovative and may be good in translating some of our inventions into exportable products, the Government still in a position to focus more and more on knowledge transfer and trying to stimulate industry to do better. Knowledge transfer from our universities to industry can be encouraged with the help of Government grants, incentives and supports.
Malaysian R&D base has become much more internationalised, which has benefits as well as risks. Below are the summarise of what this means.
Companies in Malaysia have turned to recruiting their scientists and engineers from other parts of the world, especially Asian, though not exclusively. Some of them have relocated their R&D bases in other countries. At the same time, other companies have built or expanded their R&D facilities in this country in recognition of the continued strength of our science base. It’s a two-way street.
Whereas the majority of companies that were located in Malaysia in the past used to be Malaysian companies. Today Malaysia is populated with an increasing number of ‘multinational enterprises’ (MNEs). Indeed, some of our GLCs and local biggest firms have internationalised themselves.
Outside the South East Asia, our strongest links are with the USA, although Japan features strongly in our economy too. We are more Americanised and Japanised than most other members of the South East Asia. A lot of the venture capital money invested in Malaysia is American and Japan. Until recently, it seems more investment will be coming from the middle east countries.
Malaysia is developing clusters of spin-out companies and technology incubators, through many venture capitalist such as MAVCAP. With the establishment of the Iskandar Development Region, the Government will invest heavily not only on the commercial factor but also in the science base there.
As a result of all this situation, R&D may has become more internationalised than any other developing country and our science base remains one of the most productive in Asia. However there are opportunities arising from this internationalisation.
Biotechnology is one the most successful industries in Malaysia and relies on the use of animals in the research. In some countries like UK, the animal rights activists have caused this industry a lot of grief, so much so that the industry has threatened to take its research elsewhere.
The UK Government has had to bring in new legislation as a result in order to attempt to control the animal rights extremists. It still remains to be seen whether this will moderate their behaviour or not.
To make it worst, the impact of EU legislation make it more difficult for industry to operate in the UK, for example, the EU Directive on Clinical Trials and the REACH (Registration, Evaluation, and Authorisation of CHemicals) Regulation.
Public confidence in science has not to be forgotten either. UK has seen a series of ‘food scares’ - food poisoning from escheri coli and salmonella, foot and mouth disease, new variant CJD - and, more recently, the possibility of avian flu arriving in the UK and being transmitted to human via chickens has alarmed people. As a result of earlier events, the UK Government set up The Food Standards Agency.
These problems made it almost impossible for the UK Government to carry the public with them when it came to introducing food stuffs derived from genetically modified crops, although Monsanto’s advertisements didn’t help their cause.
On the other hand, the UK Government have had a vigorous debate about stem cell research and, so far, have managed to carry the public with them. But, the message is that scientists cannot ignore public opinion!
(continue to part 4)
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