KUALA LUMPUR (Feb 23): Malaysia’s push to become a high-tech, knowledge-based economy is slowed by delays, weak oversight and low completion rates in government research and development (R&D), commercialisation and innovation projects, says the latest Auditor General's Report.
Under the 12th Malaysian Plan, which ran from 2021 to 2025, RM3.563 billion was allocated for over 12,000 projects across 79 programmes managed by the Ministry of Higher Education (KPT); the Ministry of Science, Technology and Innovation (Mosti); the Ministry of Investment, Trade and Industry (Miti); and the Ministry of Agriculture and Food Security (KPKM).
The audit found that by mid-2025, 87.4% of allocated funds had been spent but only 34.1% of projects were completed, leaving most initiatives unfinished; 5,539 projects (64.7%) remain ongoing, delaying tangible outcomes such as prototypes, patents and commercial applications; and RM183.11 million in research grants across 7,904 projects remain unreturned, with some funds unused or repurposed without approval.
Malaysia’s National Science, Technology & Innovation Policy (DSTIN 2021-2030) aims to make the country a high-tech, science-based economy by 2030 by strengthening R&D, innovation and technology infrastructure.
By mid-2025, only one of six core strategies had been achieved, while 50-58% of initiatives remained incomplete.
Key challenges include R&D spending falling short of targets; poor management of R&D funds and alternative financing; limited open data sharing with underused scientific facilities; and weak coordination across ministries, agencies and universities.
For example, the strategy to promote open data sharing through strengthening the National Scientific Facilities and Equipment (NSFE) aims to encourage the sharing of scientific facilities and equipment within the STI community and boost R&D collaboration.
As of September 2025, NSFE registered 3,279 pieces of equipment worth RM1.645 billion. However, Mosti lacks data on usage, collaborations and advisory services because information from research institutions is collected manually and voluntarily.
These inefficiencies have impacted national R&D targets:
- Malaysia’s patent application goal of 2,000 per year was missed, averaging only 968 applications from 2021 to 2024.
- Gross expenditure on R&D (GERD) fell short of the 2.5% GDP target, reaching only 1.01% in 2022.
- The country ranked 34th in the Global Innovation Index, missing the top 20 target.
- Business R&D (BERD) achieved 51.37% of the 70% target.
- Only Universiti Malaya entered the global top 100, failing broader higher-education KPIs.
- Most DSTIN short- and medium-term initiatives remain unfulfilled.
The report attributes these shortcomings to weak governance, poor project monitoring, fragmented cross-ministry planning and underutilised R&D facilities.
It recommends structural reforms to strengthen Malaysia’s R&D ecosystem, including:
- Centralised monitoring through a Research Management Unit (RMU) to coordinate ministries, research institutions, universities and industry partners.
- National guidelines for R&D funding, intellectual property management and reporting to improve oversight and transparency.
- Shared facilities and equipment to optimise costs and maximise resource use.
- Greater focus on high-impact R&D that supports commercialisation, technology transfer, job creation and economic growth.
The audit warns that without immediate improvements, Malaysia risks falling behind in technology adoption, innovation and competitiveness, potentially undermining its goal of becoming a science-driven economy by 2030.
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