By Dr Chin Jit Kai, Expert Committee of CROSS
Recently, YB Chang Lih Kang, Minister of Science, Technology, and Innovation, proposed a bold legislative initiative for Malaysia by suggesting the implementation of a Science, Technology, and Innovation Act. This Act would require the government to allocate a minimum of 2% of the gross domestic product (GDP) annually to research and development (R&D). The Minister highlighted that, as of 2020, Malaysia’s R&D expenditure was only 1% of GDP, significantly lower than that of South Korea (4%), Taiwan (3.54%), and Singapore (2.2%).
Back in 2015, a report authored by Reda Cherif and Fuad Hasanov highlighted that Malaysia must invest in and strengthen its research and development (R&D) capabilities, as well as nurture more talent, in order to escape the middle-income trap.
Although the minister acknowledged that the legislation would take time to implement, this initiative is worth in-depth discussion by the R&D and industrial sectors. The funding may not be entirely allocated to MOSTI or Ministry of Higher Education (MOHE)’s R&D projects; it could also be directed towards high-end industries under other ministries, commercialized R&D projects, R&D incubation, and so on. These allocations will vary depending on the country’s development needs and international trends.
Currently, Malaysia’s R&D funding can be accessed through various ministries, each offering different categories of grants. For instance, MOHE provides the Fundamental Research Grant Scheme (FRGS), the Prototype Development Research Grant (PRGS), and the Trans-disciplinary Research Grant Scheme (TRGS), while MOSTI focuses on the commercialization of R&D projects. In addition to these existing funding categories, the government should introduce new initiatives, such as De-risk funding, National Strategic Technology Funding, and funds specifically designed to support women scientists and young talented researchers.
Many highly innovative technologies encounter significant risks before they are certified or commercialized. In the past, numerous small-scale incubators failed to survive in the market due to delays in identifying these risks, especially for technologies subject to various uncertainties, such as medical devices and chemical precursors. Instead of investing substantial funds in commercialization only to later discover technological deficiencies, R&D funds should be strategically used to help researchers identify risk factors early, develop targeted research methodologies, and conduct risk analyses. This proactive approach can significantly reduce the risks associated with commercialization. Consequently, funders should recognize that the expectations for this category of funding should differ from others; the primary goal should be achieving de-risking, which, in itself, represents a successful outcome and fulfills the purpose of the funding.
Regarding the National Strategic Technology Funding, first, certain technologies, though still in their early development stages, have already demonstrated potential, such as quantum communication and new materials. While these technologies may not show immediate economic value, they have the potential to disrupt traditional technologies. Second, technologies like high-energy green materials, high-altitude aircraft control, and nuclear fusion are considered cutting-edge, and many countries are reluctant to share research data in these areas. As a result, Malaysia must rely on self-sufficiency and continue cultivating researchers to track these technological developments. Although our nation’s resources are limited, preventing us from investing large sums to focus on developing these advanced technologies as some other countries do, the National Strategic Technology Reserve Research Fund ensures that Malaysia will not be left completely behind in these areas.
Currently, female scientific researchers in Malaysia still represent a minority. Malaysia could draw inspiration from the European Union’s Marie Curie Fellowship, which specifically supports female researchers. Additionally, it is crucial to establish research grants dedicated to outstanding young scientists. For example, Taiwan’s National Science and Technology Council offers the ‘Einstein Program,’ which provides funding for scientists under the age of 32 who hold a PhD. This program encourages bold experimentation, innovation, and the crossing of scientific boundaries. Furthermore, exceptional young scholars under the age of 45, who have gained recognition in the international research community, can apply for the International Excellent Young Scholar Research Grants to collaborate with foreign researchers.
As technology advances rapidly, the government could allocate funds to establish specialized research programs. Relevant departments could annually propose funding for specific research topics based on different technological fields and national development policies. This approach not only offers flexibility but also enables academia to better align with the country’s development pace.
While establishing various categories of research funding is vital for advancing R&D, it is even more crucial for the government to ensure these research programs are effectively executed. This requires setting up robust mechanisms to monitor project progress, including mid-term reviews and other evaluations. For instance, some research projects under the MOHE lack proper monitoring mechanisms, often resulting in funds being spent without achieving the expected outcomes, only discovered near the end of the project.
Additionally, MOSTI should establish new mechanisms to proactively fund researchers who show promising results and outstanding research projects, ensuring the continuity of R&D efforts. In the past, many promising research projects were halted due to insufficient funding, leading to wasted equipment, incomplete research, a gap in talent development, and even the loss of skilled researchers.
The importance of R&D in today’s world cannot be overstated. It not only enhances a nation’s competitiveness but also reflects its overall strength. Malaysia must intensify its efforts to remain competitive on the global stage and to break free from the middle-income trap.
The article was published in Sin Chew Daily on 24 August 2024. https://www.sinchew.com.my/news/20240825/yl/5866197