Malaysia must turn innovation into an industry, not just a research exercise

 

UNLIKE Malaysia, China has made the integration of scientific research and industrial innovation a central part of its economic strategy. Its policy direction is explicit: enterprises must lead, research must serve practical applications, and the journey from idea to market must operate as an integrated system.

Malaysia wants similar outcomes. The question is whether it is prepared to undertake the less glamorous industrial work needed to achieve them.

Malaysia’s innovation problem is not a shortage of ideas. It is the gap between research and development (R&D) outputs and the ability of local technologies to penetrate real markets.

The country’s gross expenditure on R&D (GERD) stood at 1.01% of GDP in 2022, according to the latest completed National Survey of R&D.

A September 2026 analysis by the ISEAS-Yusof Ishak Institute estimated that spending remained at around 1% of GDP in 2025, still well below Malaysia’s innovation ambitions.

The private sector’s contribution also warrants attention. Industry accounted for 51% of national R&D expenditure in 2022, but privately funded R&D was estimated at just 0.5% of GDP in 2025.

This suggests that businesses still have considerable room to strengthen their role in commercial innovation.

(Image: OIC Today)

Malaysia ranked 34th in the 2026 Global Innovation Index (GII), a respectable position among 139 economies but the breakdown reveals an interesting contrast.

Malaysia ranked first globally in high-tech exports and imports, eighth in science and engineering graduates, and 32nd in knowledge and technology outputs. It also ranked third in creative goods exports.

These figures point to a country that is highly capable of participating in sophisticated global production networks, but still needs to strengthen its ability to turn domestic research into commercially successful technologies and intellectual property.

Malaysia is exceptionally good at making things designed elsewhere. It is less successful at developing and commercialising products that the world wants to buy.

We need to treat innovation as an industry, with upstream, midstream and downstream activities, each supported by dedicated capital, specialised labour and measurable performance targets.

Malaysia has many of the necessary components. What it lacks is the connective tissue that turns them into a functioning system.

China’s approach is instructive. Its policies emphasise stronger integration between scientific and industrial innovation, with enterprises taking a leading role in collaborative research.

The focus is on connecting research with industrial needs, improving the commercialisation of scientific achievements and ensuring innovation contributes directly to productive activity.

Malaysia has made gestures in this direction, but intent alone does not create an industry. The difference is that China’s policy places greater emphasis on enterprise leadership and the translation of research into industrial outcomes.

Malaysia’s innovation ecosystem still suffers from what has been described as a “broken bridge” between knowledge producers and users, with universities, research institutions and businesses often operating in silos.

When a start-up fails to commercialise its technology, the university blames the market, the market blames the university, and the agency blames both while ticking its KPI box for workshops conducted.

The government’s rhetoric has shifted from “Made in Malaysia” to “Made by Malaysia”. The challenge, however, is not simply increasing R&D expenditure.

It is ensuring that research generates value within the country through intellectual property ownership and the ability of local companies to compete globally.

The diagnosis is right, but the institutional architecture has yet to catch up. Universities are still largely rewarded for publications and research grants, rather than licensing income, industry partnerships and successful spin-offs.

If Malaysia is serious about treating innovation as an industry, three things need to change.

First, the metrics must change. An industry measures commercial performance, not just activity.

Malaysia should track revenue generated per researcher, licensing income relative to R&D expenditure, and the five-year survival rate of university spin-offs. These figures should be published annually, with agencies held accountable for measurable outcomes.

Second, funding must follow the market. Public R&D grants should place greater emphasis on industry participation and commercial viability.

For larger grants, Malaysia could require a named industry partner to contribute at least 30% of project funding and commit to a first right of refusal on the resulting intellectual property.

This would encourage researchers to engage potential customers before submitting proposals.

Third, Malaysia needs accessible prototyping and pilot-production facilities that operate according to industrial timelines. MRANTI already provides prototyping, testing and innovation facilities.

These capabilities should be strengthened and made more responsive to industry requirements, with turnaround times and service standards that reflect commercial realities.

Malaysia does not necessarily need another innovation policy. It needs to stop treating innovation as a separate sector that can be stimulated through occasional funding injections and then left to develop on its own.

China’s approach demonstrates the importance of treating the journey from idea to market as an integrated industrial system, with enterprises at the centre, research connected to production, and policy designed to remove obstacles to commercialisation.

The question is whether Malaysia is willing to make the changes this requires: less ceremony and more enterprise leadership; fewer grants without commercial commitments and more industry partnerships; less emphasis on publications alone and more focus on products.

Until then, innovation in Malaysia risks remaining an accidental investment: generously funded, but chronically under-industrialised. 

The author, Prof Datuk Dr Ahmad Ibrahim is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an Adjunct Professor at the Ungku Aziz Centre for Development Studies, Universiti Malaya.

The views expressed are solely of the author and do not necessarily reflect those of  MMKtT

- Focus Malaysia.

Sabak Bernam carnival draws 38,000 visitors, generates RM125,000 for local businesses

 

KARNIVAL Ban Canal 2026 attracted more than 38,000 visitors over three days, generating nearly RM125,000 in direct revenue for 34 local vendors and micro-enterprises.

Held from Nov 6 to 8 at Ban Canal Parit 14 in Simpang Lima, the festival was organised by Menteri Besar Selangor (Incorporation) (MBI Selangor), in collaboration with the Sabak Bernam District and Land Office and Sabak Bernam District Council.

The event was organised under the Sabak Bernam Development Area (SABDA) framework, with the theme “Alam, Budaya, Lestari” (Nature, Culture, Sustainability). It aimed to promote local tourism and cultural heritage while creating business opportunities for the surrounding community.

The festival also highlighted Ban Canal, a 45km waterway originally built to support Selangor’s agricultural activities. The canal is also located within the nomination zone for the proposed UNESCO Anjung Utara Selangor Biosphere Reserve.

MBI Selangor group chief executive officer Datuk Ts. Saipolyazan M Yusop said the carnival supported SABDA’s efforts to develop sustainable rural tourism and agritourism by involving local communities in economic activities.

He said this year’s edition marked a milestone with the introduction of international-level water sports through a collaboration with the Selangor Canoe Association.

The event attracted athletes from countries including Japan, South Korea, Indonesia, Afghanistan and Somalia, he added.

Beyond the sporting activities, the carnival provided a platform for local businesses to reach visitors and generate income.

The Platform Selangor (PLATS) entrepreneur showcase and Jualan Eko Tani featured local products, while cottage industry operators and homestay providers also took part.

Food and cultural activities offered visitors an introduction to Sabak Bernam’s heritage. Local delicacies such as nasi ambeng and traditional kuih were among the offerings, while the Perkampungan Hos Komuniti Setempat (Local Community Host Village) featured activities such as traditional dodol-making and folk games.

The programme also included Project Strong Ban Canal, organised by Sinar Daily, which featured challenges inspired by everyday village life, alongside stand-up paddleboarding, the Larian Warisan Alam marathon featuring traditional costumes, wall climbing and flying fox activities.

Other attractions included tug-of-war competitions, the SABDA Idol final, face painting, colouring and batik painting activities, congkak and a traditional fashion competition. Visitors were also treated to a performance of the traditional play Musang Berjanggut.

Exhibitors included SABDA, the Sabak Bernam District Council, the district agriculture department, Selangor Research Institute, Agrobank and Sinar Daily. They showcased their services and engaged visitors on areas including financial and media literacy.

The entertainment programme featured performances by local artistes Hazama, Datuk Hattan, Kristal X and Umayrah.

At the carnival’s closing ceremony on Nov 8, Selangor public health and environment committee chairman Jamaliah Jamaluddin said the event had attracted more than 34,000 visitors as of Nov 7.

She also highlighted the participation of 34 PLATS entrepreneurs and 20 local product vendors under Persatuan Eko Tani, describing the turnout and business involvement as evidence of Sabak Bernam’s potential as an ecotourism and cultural destination.

Through Karnival Ban Canal, MBI Selangor aims to connect the district’s tourism and cultural assets with income opportunities for local businesses and communities.

The initiative also supports the aspirations of the Second Selangor Plan (RS-2), which seeks to promote more balanced development and ensure rural communities participate in and benefit from the state’s economic growth. ‒  Focus Malaysia

Four floods in November: MCA demands answers from Selangor government

 

MCA Selangor has urged the state government to provide clear timelines and effective interim safeguards for residents of Kampung Melayu Subang after the area was reportedly hit by its fourth flood in November.

Videos shared by residents on social media showed parts of the neighbourhood inundated again on Wednesday (Nov 11), prompting concerns over the effectiveness of existing flood mitigation measures.

MCA Selangor state liaison committee chairman Datuk Lawrence Low said residents should not have to live in fear every time heavy rain strikes, with their homes, belongings and families exposed to recurring flood risks.

“MCA Selangor takes note of the Selangor government’s announcement to raise the embankment along Sungai Pelempas by between 0.5 and one metre to reduce flood risks, particularly by preventing river water from overflowing into residential areas during heavy rain and high tides,” he stated.

“However, what assurance can the government provide that this measure will be sufficient to address a problem that has persisted for so long?”

The proposed embankment works were announced by Selangor infrastructure and agriculture committee chairman Datuk Izham Hashim on Nov 4, following inspections that identified low-lying sections of the riverbank where water had been overflowing during heavy rain.

(Image: Bernama)

The works were estimated to cost less than RM1 mil and were subject to state approval.

Low also questioned whether the existing drainage and sewerage systems could cope with heavy rainfall, calling for a comprehensive assessment of drains, main drainage channels, water outlets and pumping systems to identify the causes of recurring floods.

He said the state government should also explain how the implementation of the Flood Mitigation Plan (Rancangan Tebatan Banjir, RTB) would be monitored to prevent delays.

Another concern was the impact of new developments in surrounding areas on existing residential neighbourhoods, particularly whether their drainage systems and land-use changes had increased flood risks.

Low further called for details of emergency arrangements should flooding recur before the mitigation projects were completed.

These should include early warning systems, evacuation procedures, emergency assistance and coordination among the relevant agencies, he said.

“Transparency is essential to ensure residents know what is being done, rather than being left with announcements but little information on their implementation,” he added.

He also urged the state government to provide regular updates on the progress of mitigation works, including the utilisation of allocated funds and the actual work completed on the ground.

State outlines immediate and long-term measures

Meanwhile, the state government has announced several measures to address flooding in Kampung Melayu Subang.

On Nov 7, the Selangor Irrigation and Drainage Department (JPS) said it would deepen Sungai Pelempas to improve drainage capacity while preparing larger pumps and other measures to reduce flood risks.

The department also said pump capacity at Jalan Resak would be increased from 140 litres per second to 280 litres per second, while a 280-litre-per-second pump would be provided at Jalan Ikhlas.

Other measures include installing flap gates to prevent river water from flowing back into internal drains and identifying locations for flood walls and river improvements.

On Wednesday, Nov 11, Selangor Menteri Besar Datuk Seri Amirudin Shari announced that work to deepen Sungai Pelempas would begin the following day. The state would also clean several retention ponds around Elmina as part of immediate flood mitigation efforts.

He said a special meeting involving relevant departments, agencies and local authorities had reviewed the progress of the longer-term flood mitigation plan and identified additional measures to reduce the impact on affected residents.

(Image: Bernama)

Amirudin also said he would meet residents in affected areas the following week to hear their concerns and explain the measures being implemented.

The longer-term Sungai Buloh Flood Mitigation Plan is expected to take several years to complete, with the state previously indicating that the process could require four to five years, including design, land acquisition and construction.

Low acknowledged that large-scale flood mitigation projects required time and coordination among multiple agencies.

However, he said the time needed to complete them should not leave residents exposed to repeated flooding without adequate interim protection.

He stressed that residents simply wanted to go about their daily lives without fearing that their homes would be inundated whenever heavy rain occurred.

“Therefore, MCA Selangor urges the state government to provide clear answers, take systematic action and deliver tangible solutions,” he stated.

“This recurring problem must be addressed comprehensively rather than allowing residents to endure further disruption and uncertainty while waiting for promised improvements.” ‒  Focus Malaysia

FWD accords protection 250K plus underserved, poor M’sians via affordable coverage solutions

 

FWD Insurance Bhd has extended insurance protection to more than 250,000 individuals, largely from Malaysia’s underserved and lower-income communities through simple and affordable solutions designed to make financial protection more accessible to those who need it most.

The milestone reflects the life and health insurer’s commitment as an inclusive insurer to helping close Malaysia’s protection gap, particularly among the B40 segment where insurance and takaful coverage remain disproportionately low despite greater exposure to financial vulnerabilities.

According to Bank Negara Malaysia (BNM), insurance and takaful penetration among the working-age B40 segment stood at just 30.3% compared with 50.4% for the national working population, thus highlighting a significant protection gap among lower-income households.

Moreover, the central bank also noted that B40 families are especially vulnerable to financial shocks due to limited savings and lower financial resilience.

To address these challenges, FWD has focused on developing products that remove common barriers to insurance adoption, including affordability, complex application requirements and medical underwriting.

Highly accessible, affordable packages

Among these solutions is Qaseh Bakti Plus, a health insurance plan that provides hospital cash and death benefits for both accidental and non-accidental causes.

The plan offers guaranteed acceptance and starts from as little as 17 sen/day, hence making it accessible and convenient for individuals and families seeking basic financial protection.

Complementing this is Qaseh Murni, an affordable and hassle-free insurance plan that provides hospital cash benefits during hospitalisation as well as death benefits for both accidental and non-accidental causes to help ease financial burdens during unexpected life events.

FWD also offers Qaseh Setia, an affordable life insurance plan that provides coverage in the event of death or total and permanent disability (TPD) along with funeral expense benefits of up to RM3,000.

With premiums starting from just RM70/year, the plan features a simple application process with no medical check-up required. Eligible customers also receive a RM50 subsidy from FWD to purchase Qaseh Setia which helps to lower the cost of obtaining essential life protection.

Together, these solutions reflect FWD’s commitment to making protection more accessible, affordable and easier to obtain, particularly for underserved and lower-income communities that may otherwise remain unprotected.

“At FWD, we believe every Malaysian deserves access to affordable financial protection that helps them navigate life’s uncertainties with greater confidence,” commented FWD Insurance Bhd’s CEO Mak See Sen.

FWD Insurance Bhd’s CEO Mak See San (left) with the Qaseh Bakti Plus Microinsurance Campaign’s grand prize winner

Reaching more than 250,000 individuals through our inclusive protection solutions is a meaningful milestone but it’s also a reminder of the work that remains to be done.

Many lower-income households continue to face financial vulnerability in the event of unexpected illness, accidents or the loss of a breadwinner.”

As FWD continues to grow its reach across Malaysia, the insurer remains committed to delivering customer-led solutions that make protection easier to understand, easier to access and more relevant to the needs of everyday Malaysians.

Qaseh Bakti Plus, Qaseh Murni and Qaseh Setia are distributed exclusively through FWD’s bancassurance partner Bank Simpanan Nasional (BSN)

FWD Malaysia is part of FWD Group – a pan-Asian life and health insurance business that serves more than 40 million customers across 10 markets, including BRI Life in Indonesia.

Established in 2013, the company operates in some of the fastest-growing insurance markets in the world. FWD Group is listed on the Hong Kong Stock Exchange under the stock code 1828. –  Focus Malaysia