Cover Story: Making innovation mainstream
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“People don’t think innovation is important. But in order for our country to become a high-tech and high-income nation, it is very important. And we need to start mainstreaming it.” - Chang

This article first appeared in Digital Edge, The Edge Malaysia Weekly on June 26, 2023 - July 2, 2023

Investment in infrastructure, innovation and skilled manpower. These areas, the cornerstone of Malaysia’s ambitions to be a high-income nation, are the key hurdles the government needs to address to improve the nation’s science and technology capabilities.

The government has also rolled out 12 curated blueprints and road maps to accelerate and support the uptake of science, technology, engineering and mathematics (STEM) in the last couple of years. Despite the many attempts to help the public master science and technology, it is hard to say if the country can achieve its aspirations before the turn of the decade.

Science, Technology and Innovation Minister Chang Lih Kang is under no illusions about the difficult task he has before him: strengthening the ministry’s role, supporting economic growth and, most importantly, putting Malaysia on the map when it comes to technological innovation.

“For science and technology, especially [when it comes to] research and development (R&D), there are no low-hanging fruits.

“We need to pump in a lot of money and [we’re in it for the] long haul. Hence, it isn’t practical for Mosti (Ministry of Science, Technology and Innovation) to present a 100-day report card,” Chang told Digital Edge in an interview in April. He was appointed to the post last December.

While Malaysia is not seeing a decline in terms of technological development and attracting tech investments, it is definitely lagging behind its neighbours, he says.

Despite the long gestation periods for the ministry’s projects, Chang stresses the importance of foresight. He says judging from the experience of other countries, it is the ones that invest in R&D that are ahead in the innovation game.

The more prominent of the 12 policy initiatives under Mosti’s purview are the National Science, Technology and Innovation Policy (2021-2030), National Space Policy (2030), National Robotics Roadmap (2021-2030), National Biotechnology Policy 2.0 (2022-2030), Artificial Intelligence Roadmap (2021-2025), Malaysia Startup Ecosystem Roadmap (2021-2030) and National Fourth Industrial Revolution (4IR) Policy.

With a new government in power after the 15th general election (GE15) and a new Mosti minister, will these blueprints — all of which were introduced by Chang’s predecessors — become obsolete when new schemes are introduced?

The minister, who was elected as the member of parliament for Tanjung Malim under PKR for the second time in GE15, says he does not intend to introduce more elaborate plans. He concedes that there may be too many road maps and achieving all these targets will be a challenge.

“We have so many road maps. We [already] have targets to achieve. We want to become a high-tech and high-income nation by 2030, so [we will focus on] those things [that] are concrete,” says Chang.

Entrusted with a budget allocation of RM1.1 billion in Budget 2023, he has much to do. Being an activist at heart, it is no surprise that Chang’s focus is on making science and technology more accessible.

He wants the average Malaysian to have basic access to and an understanding of technology, as he is convinced this is the foundation for realising the country’s high-tech ambitions and for it to become a high-income nation.

Chang, who reiterated his goal of “mainstreaming innovation” several times during the interview, says science and technology has been inaccessible and unattractive for far too long.

The implementation of the Malaysia Education Blueprint (2013-2025) is now entering the final phase but the goal of achieving 60:40 per cent student participation in science and arts is still far from being achieved, according to a research paper by Universiti Pendidikan Sultan Idris published in the International Journal of Academic Research in Business and Social Sciences.

According to the researchers, in 2020, the Ministry of Education (MoE) reported that only 47.18% of students were engaged in STEM activities. Of that number, only 20.51% chose pure science subjects, while the remaining 26.67% took technical education and vocational training subjects.

In addition, between 2016 and 2021, the trend of student participation in STEM has not been consistent. Citing Academy of Sciences Malaysia data from 2017, the paper found that student participation in STEM was highest in 2012 at 48.15% but dipped in 2021, when it fell to 40.95% or 152,568.

This will need to be fixed, Chang stresses.

To be considered a high-tech nation like France and Germany, Malaysia will need to double the number of engineers it produces, says the minister, who is a civil engineering graduate from Universiti Putra Malaysia.

He also highlights the importance of biotechnology and its link to food security, which is reinforced through the Dasar Bioteknologi Negara 2.0.

“Mosti places a high priority on fostering the interest, skills and confidence of young people in fields like artificial intelligence (AI), robotics, quantum computing and coding, among others. We’ve organised a range of programmes such as Minggu Sains Negara, Techlympics and MyHackathon.

“People don’t think innovation is important. But in order for our country to become a high-tech and high-income nation, it is very important. And we need to start mainstreaming it,” Chang asserts.

Attracting FDI

Making science and technology accessible to all seems to be at the top of the list for Chang. However, it doesn’t mean the need to draw global investment in technology has been put on the backburner. 

“Technology will play a more important role in the FDI [foreign direct investment] ecosystem because the government is hoping for more capital-intensive investments compared to labour-intensive investments. Tech companies are definitely in that category. I think tech companies will play a very important role in future FDIs in Malaysia,” he says.

“Amazon Web Services (AWS) [for example] has announced a huge investment. This is only one of [many]; there are more coming [our way].”

Following the company’s announcement in March of a RM25.5 billion investment in Malaysia by 2037 to launch an AWS infrastructure region, there has been strong investment interest from other corporations. Zhejiang Geely Holding Group has committed to an initial investment of RM2 billion, with future investments totalling RM32 billion, for its collaboration with Proton on the Automotive High-Tech Valley in Tanjong Malim, Perak. 

Furthermore, Australian data centre operator NEXTDC Ltd is entering the Malaysian market with a data centre facility in Kuala Lumpur. The company plans to invest RM3 billion over the next five to 20 years. 

“In recent years, Malaysia has experienced a robust resurgence in foreign direct investment inflows. Notably, in 2022, Malaysia attracted a net FDI of RM74.6 billion, marking a remarkable 48% increase from the previous year. Moreover, the first quarter of 2023 has witnessed approved investments amounting to RM71.4 billion, showcasing a significant 60% surge compared to the corresponding period last year,” Prime Minister Datuk Seri Anwar Ibrahim said at the launch of the Capital Market Talent programme for graduates on June 19.

Outreach initiatives

With the help of social media, Chang  has expanded his public outreach. From announcing programmes and competitions to posts on the InnovationNation town hall sessions, where he calls for tech start-ups to provide feedback on the state of the ecosystem, he is on a mission to make an impact.

The 42-year-old, who is one of the youngest ministers in the Pakatan Harapan unity government, has already made headway in his role. Through a collaboration with MoE, he has established an innovation reality show called Innovathon, which will start airing on Astro on July 15.

Local innovators of various levels will be able to highlight their tech creations, in the hope of winning RM100,000 cash or RM1 million in grant funding to commercialise their products.

Through the Malaysian Space Agency (MYSA), Mosti introduced the space segment known as Space Tech Nexus at the Langkawi International Maritime and Aerospace Exhibition (Lima) 2023.

“Malaysia aims to generate RM10 billion in revenue from the space industry, or 1 % of gross domestic product by 2030,” says Chang.

“Featuring the space segment in Lima 2023 can internationalise the local space industry sector while simultaneously boosting the growth of the country’s space economy. This development coincides with the country’s plans to become a regional space economic hub.”

This is just the tip of the iceberg. Digital Edge caught up with Chang to find out more about Mosti’s plans.

Digital Edge: What will Mosti’s focus be?

Chang: Mosti’s focus is mainly on three things. First is research and development. I think we need to enhance our R&D in terms of funding and also our role in emerging technologies.

We want to become a technology developer instead of a technology user. That is one of our aims. By 2030, we want to be a high-income nation, a technology-driven nation and a technology developer. That’s why, for R&D in terms of funding and support, we need to help.

Not many industries are interested in R&D because there is a need to spend money. When there is no industry involvement in R&D, everything will be initiated by academia. When academia comes up with something, the industry might not find it to be useful. We are closing the gap by linking academia with the industry from the beginning.

Second, it’s about the promotion of science and technology. We want the next generation and the population to be well-versed in science and technology. We are focusing on promoting science, technology and innovation.

Also, we want to mainstream innovation. So, we do more pitching programmes like MyHackathon. Those are programmes that involve innovators and the industry. For instance, corporations will come up with a problem statement and we will get innovators to come in and pitch and solve the problem.

Third is collaboration. We want to enhance the collaboration between the private [sector], the industry and also innovators and researchers. We call it the triple helix industry.

The National Technology & Innovation Sandbox (NTIS) is doing quite well. We have approved 98 projects costing about RM79.2 million in the past two years. This is a way to link innovators and researchers to the industry.

Are there any emerging technologies that Mosti is trying to introduce to the nation?

I am very interested in how science and technology can solve our problems. One of our pressing problems is food security. Biotechnology can help us to solve the problem by enhancing yield, shortening the harvest period and being less dependent on chemical fertilisers or alternative feeds. Biotechnology is a very big field that I would like to concentrate on.

We are looking at AI and advanced materials like graphene. Graphene is nanotechnology that enhances the strength of certain materials. We are also looking at hydrogen as an alternative power or renewable energy.

In terms of AI, we are nowhere near advanced countries. However, our AI readiness in this region is quite impressive; we are quite ahead. We are not looking at developing AI technology but we are looking at how to regulate it, especially now that we have ChatGPT. In fact, we have started discussions with other countries on how to use AI ethically.

On the one hand, AI is a good technology and an enabler to a lot of industries. On the other hand, we need to ensure we use it ethically without privacy intrusion, for example.

What are Mosti’s plans in terms of space exploration?

Space technology is one of the technologies that many people do not know the importance of. Now that we are invited to Lima to spearhead Space Tech Nexus, I think it’s a good platform for us to promote space technology.

When people think about space, it’s rockets and satellites. A lot of technology we are adopting today is space technology, for instance telecommunication and global positioning systems.

MYSA was involved in the search and rescue in the Batang Kali tragedy by using satellites to monitor movement on the ground. We also have a technology that is able to help fishermen identify areas with the most fish. We are working with the fishermen’s association and Jabatan Perikanan to help them for free and it is updated every three days.

What are the areas of science and technology that you want to focus on as Mosti minister?

Adoption of technology in the commoner’s daily life will be something I [will] focus on. In other countries, the adoption or application of technology is very common. Not cutting-edge technology, but normal technology that is used vastly.

We have a technology called frugal internet. We can use this technology to help underprivileged communities in remote areas get free internet. People can then feel how science and technology can improve their lives.

Rather than talking about nanotechnology and quantum computing, people don’t feel how it is able to help. Of course, graphene and nanotechnology is important, but it is also important for people to feel how science and technology can help them.

Once people feel [how] science and technology can improve their lives, they will be interested in science and technology, especially kids. That is another thing we are lacking, STEM education. A lot of kids feel science is dull and dry. Once they link up how science can improve their life, they will gain interest. Everything is interconnected.

How do you plan on rolling this out?

We have deployed our agencies to identify areas of technology we can implement. For instance, frugal internet is from Akademi Sains Malaysia (ASM).

We are also trying to build as many MakersLabs as possible, called Ruang Reka. Because of funding, we can only build 10 in a year. However, four years down the road we would have built 40, which is good.

MakersLab is a showcase of technology for kids. We have drones, 3D printers and AI demonstrations. It’s like a mini science centre. We are trying to build more of these with the help of the state governments and local MPs. Each lab is about RM300,000 depending on location.

What is Mosti doing to address the brain drain and what plans are being implemented to retain our STEM professionals?

There are two levels. We are putting a lot of resources into promoting events like Minggu Sains Negara and Techlympics. On the second level, I think we need an ecosystem and we need to involve effort from the government, the industry and also universities.

It’s like a chicken and egg situation. The industry accuses university graduates of not matching the demands of the job. When you talk to graduates, they say salaries are too low. I will say everyone needs to sit down and work it out.

To say our talent is not competent isn’t true, because other countries are absorbing our talents. Of course, low wages is an issue.

On the one hand, we need universities and our academic circle to really understand the needs and demands of the industry. The students they produce can then blend into the industry after graduation without any additional training. That is what the industry wants.

On the other hand, we also need to discuss with the industry on how they can come up with better offers. If they are reluctant, the brain drain to Singapore and other countries will still happen.

The government’s role is to facilitate the process.

Adoption of Industry 4.0 and automation are displacing jobs. How is that being addressed?

Some of the workers in labour-intensive industries might lose their jobs. At the same time, companies will need highly skilled workers because they are adopting automation, robotics and AI technologies in their respective industries. Thus, labour-intensive jobs will decrease but demand for highly skilled jobs will increase.

For people to adapt, we need to keep upgrading our skills and training our workers. That’s why we are having programmes for upskilling deep tech and future skills.

What do you hope to achieve during your tenure?

There are a lot of things, but in my four-year tenure, I would like to see a leap in students taking STEM because we are having a serious problem now. [The number of] students going into the science stream is reducing and it will really affect us if we want to become a high-tech nation.

I would also like to see a change in our renewable energy area. Energy is not under Mosti, but the technology and know-how is. We are very excited about hydrogen and electric vehicle batteries.

By 2030, the demand for science and technology talent will be even more than now, but students choosing STEM are getting lesser. I would really love to see a great leap. We are in discussion with multinational tech companies to have programmes such as student exchange and internship apprentice programmes. I would like to see people becoming more scientific-based.

We need to work with education and higher education to make it happen. We really need to work on the grassroots level of science and technology for us to achieve the status of an innovative high-income nation.

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