Nearly RM86 bln in R&D investment needed to achieve NSTIP targets — Mosti
17 Oct 2024
Approximately RM85.7 billion in research and development (R&D) is required to achieve the targets set by the National Science, Technology, and Innovation Policy (NSTIP) 2021-2030, said the Science, Technology, and Innovation Ministry (Mosti).
The policy aims to increase the gross domestic expenditure on R&D (GERD) to 2.5 per cent of the gross domestic product (GDP) by 2025 and 3.5 per cent by 2030.
“Based on projections, to raise R&D expenditure to 3.5 per cent of the GDP by 2030, the estimated R&D spending needed is RM25.7 billion from the public sector and RM60 billion from the private sector.
“This is based on a contribution ratio of 30:70 between the public and private sectors,” it said on the Parliament website today.
Mosti was responding to Simpang Renggam MP Datuk Seri Hasni Mohammad’s query on whether the R&D funding rate impacts the country’s technological development and innovation capacity, referencing Malaysia’s position compared to other countries like South Korea in terms of R&D allocations.
It said the ratio of GERD to the national GDP is about 1.0 per cent, equivalent to RM13.48 billion, which significantly lags behind South Korea’s allocation of nearly 5.2 per cent of its GDP, amounting to RM368.09 billion in 2022.
“Data also shows that the R&D expenditure ratio between the public and private sectors in Malaysia is 59:41, where the private sector contributes 18 per cent, which is lower compared to the public sector,” Mosti said.
The government is taking proactive steps through initiatives such as the Malaysia Science Endowment Fund, i-Connect, Single Window, grant financing, and double tax deduction incentives for R&D expenditures.
Mosti added that the government is also enhancing access to the latest technology through various programmes under different agencies and departments to increase private sector involvement.
Source: Bernama
