KUALA LUMPUR (Oct 17): A total investment of 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, according to the Ministry of Science, Technology, and Innovation (Mosti).

The ministry stated that the policy aims to increase the gross domestic expenditure on R&D (GERD) to 2.5% of gross domestic product (GDP) by 2025 and 3.5% by 2030.

“Based on projections, to raise R&D expenditure to 3.5% of 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,” Mosti said on the Parliament website on Thursday.

The ministry was responding to Datuk Seri Hasni Mohammad (BN-Simpang Renggam), who asked 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.

Mosti said the ratio of GERD to the national GDP is about 1.0%, equivalent to RM13.48 billion, which significantly lags behind South Korea’s allocation of nearly 5.2% 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%, which is lower compared to the public sector,” it stated.

The ministry noted that the government is taking proactive steps through initiatives such as the Malaysia Science Endowment Fund (MSE), 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.

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