Malaysia is looking to strengthen its research and development (R&D) ecosystem by introducing more market-driven funding mechanisms and deepening collaboration between researchers and industry.
Second Finance Minister Datuk Seri Amir Hamzah Azizan said the country was moving from a “Made in Malaysia” approach towards “Made by Malaysia”, with R&D playing a key role in creating greater value and driving economic upgrading.
He said Malaysia’s R&D expenditure had reached around 1% of gross domestic product (GDP), or nearly RM20 billion, but the bigger challenge was turning research findings into commercially successful products and services.
“The issue is not just the amount of R&D, but whether it leads to value capture in the country, including ownership of intellectual property and the ability of local firms to compete globally,” he said.
Amir Hamzah said the government wanted to strengthen the capital market to provide local companies with the funding needed to develop and commercialise innovations.
He was speaking during a panel session at the University Research and Innovation Investment Summit 2026 (URIIS 2026).
The government is also working to align research activities with national priorities, including the New Industrial Master Plan, National Semiconductor Strategy and Energy Transition Roadmap.
Amir Hamzah said this alignment could help attract investment while improving the prospects of turning research into commercially viable products.
Funding is already available through initiatives such as GEAR-uP, under which government-linked investment companies have committed RM120 billion over five years.
Around RM10 billion has also been channelled into venture and growth funds, including Dana Perintis, Dana Permaju and Dana Impak.
However, Amir Hamzah said the bigger gap remained researchers’ and institutions’ ability to take innovations from the laboratory to the market.
“Sometimes the product may be brilliant, but if you do not know how to position and sell it, investors will not come in,” he said.
He added that universities had a crucial role in shifting towards more applied research and strengthening partnerships with industry, while continuing to develop foundational knowledge through fundamental research.
