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UTM Merdeka WebinarBecoming a Developed Nation:

Are we on Track?

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Coming soon September 2021

All Publication can be downloadedthrough our websitewww@akademisains.gov.my

What has Malaysia achieved after 64 years?

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0

10000

20000

30000

40000

50000

60000

1970 1980 1990 2000 2010 2015

GDP

per

Cap

ita (U

SD)

YearSource:Kunio, (2004). The comparative economic performance of Malaysia : An Analysis. Southeast Asian Studies 42, 1Knoema, (2017). GDP per Capita by Country.

Japan

Economic Growth Comparison between Malaysia, Republic of Korea, Japan and Singapore

Malaysia

Singapore

Republic of Korea

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New Economy Policy

Vision 2020-6th Malaysia

Plan-

National Transformation

Program

National Transformation

2050 (TN50)

Shared Prosperity Vision 2030

1971 1991 2010 2016

2009 2015

ASM Malaysia 2050 Agenda

Envisioning Malaysia 2050:

Foresight Initiative

2018 2021

NPSTI 2021-2030 :

High-Tech Nation

2030 and beyond

A Developed Nation by 2020

Committed to 2030 Agenda for Sustainable Development

Reduce GHG emission intensity (per unit of GDP) to 45 % by 2030

Among the top 20 countries in the world in economy, happiness and creativity & innovation

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To make Malaysia a nation that achieves sustainable growth along with fair and equitable distribution, across income groups, ethnicities, regions and supply chains.

RukunNegara

To build a progressive

society that shall utilise modern

science and technology

Vision 2020

6th Challenge:Establishing a scientific and progressive

society

TN50

To build a progressive

nation according to the peoples’

aspirations

SHARED PROSPERITY 2030

Restructuring the economy to be more progressive, knowledge-based and high-valued with full community participation at all levels.

Our Proposed Vision (2015):

Living in a harmonious, prosperous and sustainable milieu

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1. To ensure Malaysia remains competitive globally and powered by STI , the government continues its efforts to mainstream Science, Technology and Innovation (STI) as a driver of economic growth in its transformation plans.

2. This will enable Malaysia to become a high income- High-Tech Nation and developed country based on knowledge as well as competitiveness.

3. With rapid change of technology brought about by Industry 4.0, we need to instill innovation in our industries in order to move productivity.Source: Adapted from Science & Technology Foresight Malaysia 2050-Emerging Science, Engineering & Technology

(ESET) Study (ASM, 2017)

(Mainstreaming of STI)

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The Innovation Imperative: Overview by World Bank

Source: World Bank Report 2020

Innovation activity differs within and across developing East Asian countries

Malaysian firms are high in introducing process innovation, have low indigenous technologies, low R&D expenditure and high dependency on adopting and adapting outside technologies

Source: Bank staff elaboration, using World Bank Enterprise Survey Data (most recent available years).Note: The innovation score captures both innovation outputs and inputs. It is calculated as the average of the likelihood that firms have a product innovation, a process innovation, positive R&D spending, and using licensed technology from foreign companies.

Source: A Study on Knowledge Content in Key Economic Sectors in Malaysia Phase III (MyKEIII), EPU 2016

1. Malaysia current GDP: RM1.42 trillion

2. Technology is the fuel of the future economy. These technologies are STI-driven. After 63 years, we do have the building blocks of success.

3. Malaysia has transitioned from capacity building to being innovation-driven as evidenced by our pace-setters

4. But we also have laggards which alarmingly are industries providing basic needs (clothing, shelter, food)

5. How to move all our economic sectors up the value chain?

6. To move forward, we need to address pressing challenges with whole-of-government strategic approach

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Malaysia’s Key Economic Sectors and Innovation Capacity (Pockets of Excellence)

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Pace-setter industries should uplift the laggards by sharing technological knowledge and expertise

Imitators

Laggards

Laggard industries moving up the value chain to become pace-setters

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PRE-R&D R&D R&DEARLY STAGE

COMMERCIALISATION (PRE-COM)

COMMERCIALISATION

Pre-R&D Process

Value Analysis

Concept Idea

Basic R&D Applied R&D Prototypes Incubation Pilot Production

Early Growth

ProductionMature

ProductionValue

Realisation

Experimental Development Applied ResearchBasic Research

Reality Check 2: Inadequate investment in experimental development to translate R&D outputs to market

GERD: Gross Domestic Expenditure on R&D

Source: 1) Updated based on Science Outlook 2017 (ASM, 2019) , data source : UNESCO Institute of Statistics Database accessed in November 2020, MASTIC National R&D Survey 2019 (embargoed) 2) Adapted from Frascati Manual 2015, OECD 2015; EPU, 2015

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Reality Check 3: Malaysia’s researchers are mainly in Higher Learning Institutions limiting innovation capability of industry

Percentage of Researchers (in full-time equivalent) Source: Updated based on Science Outlook 2017 (ASM, 2019) , data source : UNESCO Institute of Statistics Database retrieved in November 2019, MASTIC National R&D Survey 2019 (embargoed) 16

MOVING FORWARD

• We cannot do the same thing over and over againand expect different results• Time for systemic change

(fundamental change that affects the whole ecosystem)

Socio-economic Development STI

Priorities

DSTIN for the first time officially link Science & Technology Drivers to Socioeconomic Drivers for Value Creation

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We need a driver [Technology

Commercialisation Accelerator (TCA)] to create

seamlessness between R&D priorities and

economic development

10-10 MySTIE Framework

©Academy of Sciences Malaysia – Monash University Malaysia, 2019

To address economic disparities and show

RESULTS we need to create seamlessness between R&D

priorities and economic development

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10-10 MySTIE Framework will serve as a catalyst to achieve the strategic goals of NPSTI 2021-2030.

NPSTI 2021-2030 Goals:• High-Tech Nation• From technology user to technology

producer• Link STI to Economy• Emphasize on impact rather than KPI only

NPSTI 2021 – 2030 and 10-10 MySTIE Framework

3824 downloads with 6560 readers from 38 countries (June 2021)

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National STIE Framework as a Technology View of the world towards the development of niche areas for Malaysia’s competitive advantage

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Guiding tool to deep dive and serve as the base matrix for

engagements with all relevant ministries, agencies,

industries and researchers towards implementing high

impact projects

ADVANCED INTELLIGENT SYSTEMS

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10-10 STIE Framework: Technology view of the world mapped against Malaysia’s Socio-economic Drivers: Horizontal Analysis

Multi-stakeholder partnership model:Establish a Center of Excellence (CoE) to lead R&D in 5G/6G. The CoE should be constituted by multiple stakeholders.As part of the CoE, research universities are to undertake fundamental research that complements the work of other institutions (e.g. other universities, GLCs, industries and community groups), undertaking applied and experimental research and translational outcomes in the 10 socio-economic areas.

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ADVANCED INTELLIGENT SYSTEMS

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10-10 STIE Framework: Technology view of the world mapped against Malaysia’s Socio-economic Drivers: Vertical Analysis

*ROV definiti

on

A national agriculture strategic plan should focus on investing in theecosystem such that it develops and applies the 10 S&T drivers to enhancethe Return on Value (ROV) of the sector.

This will also spawn new economic sub-sectors like agribusiness, agritech and agri-green financing / sukuk.

A strong S&T-driven agriculture sector will also have positive multiplier effecton other socio-economic drivers. This in turn can further boost Malaysia’sfood industry and the Halal economy.

*Return on Value (ROV) is the value an organisation gains as a result of continuous improvement using new technology, systems, processes and new business models. The return on investment (ROI) is hence a function of ROV. In the context of STI, managing our resources effectively and efficiently will enhance the value proposition of the STI initiatives for all stakeholders, which in turn will increase its ability to raise the ROI.

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ADVANCED INTELLIGENT SYSTEMS

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Tackling the Next Frontier

Deep Tech is advanced, complex and sophisticated technologies that provide solutions to important and significant scientific and engineering challenges which includes broader technology outlined in 10-10 MySTIE

Leap-frogging technologies are new frontier or disruptive technologies or new ways of integrating existing technologies that leads to new integrated technology solutions (fusion of technologies) that bypasses existing linear stages of development to solve existing complex scientific and engineering challenges.

Digital Tech is a subset of DeepTech which is related to digital connectivity that provides seamless connection between information and knowledge (information superhighway)

Source: Analysed by ASM (ASM, 2021)

Digital Tech

Deep Tech

Leap-frogging technologies

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Energy Business & Financial Services

Culture, Arts & Tourism

Medical & Healthcare

Smart Technology & Systems (Next-

Generation Engineering & Manufacturing)

Smart Cities & Transportation

Water & Food

Agriculture & Forestry Environment &

BiodiversityEducation

National Niche Areas to Malaysia Grand Challenges

Personalised and Experiential

Learning

High-Value Seafood

Local Superfood

Integrated Urban Infrastructure and

Infostructure Management

Precision Medicine

Digitalised & Autonomous

Services

DigitalisedTourism

Premium Tropical Fruits

Premium Halal Food

Precision Biodiversity

Microgrid

Next-Gen Smart Factories

Digital Health

Fintechin Islamic Finance

Creative Content and Heritage

Local Agricultural Input

Smart Supply Chain Management for Sustainable

Forest Products

Energy Storage System

High-Value Tourism

Innovative Eco-Products from Waste

Integrated Water Resources

Management

Subscription Business Models

and Sharing Platforms

Manufacturing of Smart Devices &

Technology Development

Diversified Renewable

Energy

Advanced Materials for Circular Economy & Sustainable Society

Smart Systems for Connected Rural-Urban Communities

Microcredentials

Global Online Learning: Promoting

Local ContentClinical Trials Hub for Developing

Countries

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Human-CentredDesign & Analytics

30 National STIE Niche Areas were endorsed by the National Science Council on 14 July 2020These niche areas are to be reviewed every 2-3 years

8i Innovation Helix Ecosystem Analysis

Source: ASM Analytics, 2020, Adapted from European Commission (2014) Cluster Collaboration and Business SupportTools to Facilitate Entrepreneurship, CrosssectoralCollaboration and Growth

Collaboration to jointly create Knowledge Clusters, Talent Hubs and ultimately Disruptive Innovations

Collaborative Platform:1. Synthesize traditional disciplines2. Assemble diverse actors (quadruple helix)3. Drive the Convergence of technologies

4 Pilot Clusters:• Halal Economy• IR 4.0• Health and Wellness• Fintech in Islamic Finance

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10-10 MySTIE: A mechanism for sustainable development for shared prosperity

10-10 MySTIE

Emphasises

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Legislative ParliamentPrime Minister’s Department

National Science Council (NSC)

Ministerial Clusters

High Tech Nation Council - Chaired by the Minister of MOSTI *

Economy Infrastructure Social Security

Innovation Accelerators

Technology Commercialisation Accelerator (TCA)

Trade & Investment

• MATRADE• MIDA• SME Corp

Physical Digital Health

• HealthResearch Council

Community Engagement

• STIEnculturation Council

Education

• Academic ResearchCouncil

Defense

Coordination / Financing of Technology Development Entities

● Malaysia Science Endowment (MSE) ● MTDC ● CREST ● MaGIC ● MAVCAP ● Cradle Fund ● Malaysian Business Angels Network

(non-exhaustive list)

National STIE Framework 10-10 MySTIE

R&D Performers(Public & Private)

Hospitals

Business enterprises

Institution of Higher Learning

Center ofExcellence

Research Institutes

Systemic change: The Malaysian STIE Landscape (based on functions)

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Technology Commercialization Accelerator (TCA) to move economic-oriented research and nurture industry-ready talent facilitated by Sandbox

Source: Adapted from ASM Proposal to the Council of Eminent Persons for A Revamped Governance Framework & the

Establishment of the Malaysian Research, Innovation & Enterprise Agency (MyRIE) to Drive Innovation, 27 Aug 2018 & Malaysia Policy

& Master Plan on STI 2021-2030 Study (ASM, 2019)

TCA

Creation of Spin-offsDemand Driven R&D & Market Driven Delivery

Commercialisation & Technology Transfer

Capacity Building for Technology & Future Skills

Incubator/ Accelerator for Development of Innovative Products

& Services(Pilot, scaling up,etc)

Knowledge Clusters

Industry-readyTalent Development

Outcomes

Outputs

Collaborative Networks[e.g. I-CONNECT]

Financing: Government-Industry Matching Fund & Alternative Funds

• Increased researchers in Business Enterprises, Start-ups• Global Talent Hub

• Increased Business Expenditure on R&D• Industry–wide

Technology-based Advancements

Collaborative R&D Projects

National Technology & Innovation Sandbox (NTIS)

[RoI & RoV]Business

Enterprises

[RoV]Social

Enterprises

q Function:TCA to play the role as a catalyst, enabler & convenor of innovation to spearhead all economic-oriented research (demand-driven R&D & market-driven delivery system), bridge research & technology commercialisation as well as nurture industry-ready talent

Reports to High Technology Nation Council

Approved by Cabinet in April,2021

Source: Tracxn, MaGIC, 2021

Success stories: Malaysian Start-ups

5435 Start-ups (founded from 2010-2020)

40% of Malaysian Start-ups are in Consumer and Retail Sector

Start-ups are high in technology adoption and innovation

Ranked 3 with most no of start-ups in Southeast Asia(Malaysia: 170 start-ups per million population but no unicorn yet, Indonesia: 25 start-ups per million population)

Unicorns (valued at USD 1 billion and above) Indonesia - 5Singapore - 3 Phillipines - 1 Malaysia – 1 (Carsome) July 2021

Since start-ups are high in technology adoption and innovation

capabilities, the robustness of the start-up ecosystem is an indicator of

high-tech nation trajectory

There are only around 600 Unicorns worldwide. What does it take to be one?

Source: How to become a Unicorn in 2021? Business and Research Advice, Embroker.

Number of Malaysian Start-ups based on 10-10 MySTIE Socioeconomic Drivers

Do we have what it takes to grow a

Unicorn?

Malaysia Grand Challenge (MGC) to Realise 10-10 MySTIE• The 10-10 MySTIE Framework injects new life into

Malaysia’s research, innovation and enterprise activities to address ‘Grand Challenges’.

• The MGC reflects the 30 national STIE niche areas with an aim to spur the country’s research, development, innovation and commercialisation activities by design.

• Malaysian Grand challenges during this unprecedented time are complicated and daunting but crucial to be solved. E.g Climate change; Food and water security; Energy sustainability; Rapid urbanization; Health pandemics; Rising non-communicable diseases; Sustained economic growth and social inclusion; Disruptive technologies, job losses, financial, economic volatility and contagion effect.

• Grand challenges call for intensive and collaborative measures to harness and mainstream science, technology and innovation (STI) to transform Malaysia into a high-tech nation, realise the Shared Prosperity Vision 2030 (SPV 2030) and achieve SDGs).

WHAT TO DO (THINKER)

+ HOW TO DO

(DOER)

PEOPLE/TALENTNurturing the Right Talent & Enhancing Graduate Employment

Challenges:i. Need to ensure industry-ready

talentii. Supply-demand dynamics &

mismatch – e.g. generalists vs specialists

iii. Need for effective policies that focus on underlying causes

iv. Entrepreneurial mindset – job creators vs job seekers

v. Leadership capabilitiesvi. Need to tackle systemic challenges

– resource allocation, talent fit, policy inconsistencies

Nurturing Future Talent

Need for Versatile and Adaptive Talent

Transformational Leadership

Conclusion:What needs to happen if we want to become a prosperous high-tech nation (Developed Nation) ?

• Need to focus on SMEs and focus on start ups to adapt and adopt technology or use indigenous technology since they are much agile and can be pushed to lead the economy in the desired direction.(NTIS ,TCA)

• We need to improve our innovation pipeline. We need to identify the areas that Malaysia could have the competitive edge and narrow the gap time for translation from lab to industry. We need to identify niche areas of impact to allow for fast economic recovery of the country (10-10 MySTIE)

• We also need to ensure the talent pipeline must be equipped with the right future skills to support the industry and initiatives leading to high tech nation . (TCA) (MHEB)

• Need a policy to ensure that academia perform impactful research that connects STI priorities to the socio-economy (NPSTI)

• We need entities to fund and facilitate innovations and narrow the time gap from lab to industry or to community (TCA, NTIS, MGC,MSE,MTDC)

• We need continuous evaluation & monitoring of implemented initiatives for impact assessment (EPU,ASM etc.)

@HazamiHabib