The government has called on multinational corporations (MNCs) and business enterprises to increase their research and development (R&D) activities as their contribution to the Gross Expenditure on R&D (GERD) source of finance has been declining. Minister of Science, Technology and Innovation Chang Lih Kang stated that the contribution dropped from 60.2% in 2012 to 32.8% in 2020. The GERD for Malaysia in 2022 stands at 0.92%, lower than the average for Upper Middle Income Nation at 1.73%. This funding gap has prompted the government to develop a fundraising mechanism to establish the Malaysia Science Endowment (MSE) with a target of raising RM2 billion through a matching funding mechanism.
Chang mentioned that the decrease in GERD was due to the impact of the Covid-19 pandemic, but now that the pandemic is over, he hopes that business enterprises will invest more in R&D activities, as it benefits both the enterprises and the country. In Budget 2024, the government has shown strong commitment to R&D, with an increase in funds for the Ministry of Science, Technology and Innovation (Mosti), including RM95 million for R&D programs, up from RM50 million in 2023.
Under Mosti and the Ministry of Higher Education, a total of RM510 million has been allocated for R&D in the recently announced budget. Additionally, the government has set aside RM76 million to strengthen the research, development, commercialization, and innovation (R&D&C&I) ecosystem, providing support for the commercialization of products developed by business enterprises, non-governmental organizations (NGO), and government agencies. Another RM27 million has been allocated to enhance the utilization of local R&D products and services through a program called MySTI.
Chang also emphasized the need for a thorough discussion on the regulatory aspects of artificial intelligence (AI), particularly with the prevalence of Large Language Models (LLM) like ChatGPT. He stated that ethical guidelines are crucial for monitoring AI and ensuring the healthy development of AI-driven technologies. Areas of AI Ethics include avoiding potential AI mistakes and bias, as well as addressing privacy concerns.
The 2023 Multinational Corporation Leadership Summit, organized by the One Belt and One Road (OBOR) Economic Friendship Association, aims to foster collaboration between enterprises, promote diversification, and ensure steady progress. – Bernama
