Science Outlook Exec Summary

EXECUTIVE SUMMARY

“STI cannot be considered in isolation as it cuts across economic sectors, ministries and knowledge domains. I consider the Science Outlook 2015 by ASM, a strategic document that offers timely insights into the Malaysian STI landscape and the way forward.” Datuk Seri Panglima Madius Tangau Minister of Science, Technology and Innovation As Malaysia prepares itself towards 2020, there is a needto better understand and harness Malaysia’s STI capabilities, capacity andpotential to devise a more realistic and pragmatic implementationstrategy, as well as an approach for socio-economic transformationand inclusive growth. The Science Outlook signifies a new beginningin an effort to bring Malaysia’s STI development to the next level.

“ASM is pleased to publish “Science Outlook highlights Malaysia’s first Science Outlook pertinent areas that need to bethat presents an independent review effectively addressed concerning of key trends in science, technology Malaysian STI policies, capabilities, initiatives, opportunities and aspirations and innovation in Malaysia. by various stakeholders such as policy makers, government officials, The issues highlighted are ‘nothing new’. However, ASM has academics, industry leaders, endeavoured to present the issues international partners and with supporting data and evidence the general public. along with recommendations to It is hoped that this address them effectively. Science Outlook initiative I hope this Science Outlook would catalyse the will facilitate the harnessing transformation of STI for of STI for national development and global competitiveness.” wealth creation and societal well-being.” Tan Sri Datuk Dr Ahmad Tajudin Ali FASc Professor Datuk Dr Halimaton Hamdan FASc President, Academy of Sciences Malaysia Chairperson, Science Outlook 2015

Science, technology and innovation (STI) is critical for 4socio-economic development in today’s knowledge-intensive, innovation-led economy. As the world becomes The Science Outlook 2015: Action towards Vision presentsmore competitive and globalised, countries that have an independent analysis and consolidated report on key STIembraced the knowledge paradigm with high proficiency trends and development in Malaysia. The Science Outlookin STI undoubtedly command success and prosperity. STI provides a reality check based on the 6 strategic thrusts ofplays an indispensable role in catalysing knowledge-based the National Policy on Science, Technology and Innovationdevelopment, a knowledge society and knowledge-centric, (2013-2020) (NPSTI) (Figure 1). Namely STI Governance,high value-added enterprises. As Malaysia aspires to Research Development, and Commercialisation (R,D&C),become a high-income, developed nation by 2020, STI is a STI Talent, Energising Industries, STI Enculturation, andkey enabler to enhance productivity and competitiveness Strengthening International Alliances.as well as catalyse inclusive growth. Thus, it is imperativeto evaluate Malaysia’s STI performance and strategies toascertain if we are on track towards realising envisionedoutcomes. Figure 1. National Policy on Science, Technology and Innovation (2013-2020) (NPSTI) Source: MOSTI 2013

5 where gaps action we are in Identify indicators towards Benchmarking STI Evaluation vision AnalysisStocktaking Way forwardStudy key trends and challenges Towards evidence-based informed decision makingData gathering Future implicationsInternational reviewers Recommendations Figure 2. The philosophy of Science OutlookThe philosophy of the Science Outlook is to evaluate where From the introduction of the STI agenda in the nationalwe are in STI, benchmark ourselves with other countries that policy framework in 1986 to the current National Policy onare advancing well in STI, identify the gaps, consider future Science, Technology and Innovation (2013-2020) (NPSTI),implications and advocate the way forward to realise our we have come a long way. The Government hasaspirations. The Science Outlook presents insights and fresh demonstrated commitment to build national STI capacityperspectives on the Malaysian STI landscape with relevant and capability through requisite infrastructure, institutionalsupporting data in the spirit of promoting informed, framework, collaborative platforms and incentives. However,evidence-based decision making. much more strategic and synergistic action is needed to realise a robust STI ecosystem. Such an ecosystem is characterised by an efficient STI governance system, competent scientific community, vigorous research, development and commercialisation, STI encultured society, innovative private sector as well as formidable local, regional and global STI networks. This calls for transformative thinking, integrated planning and inclusive implementation. Only then, would we be able to effectively deploy ideas, talents and resources to advance Malaysian STI to be world class.

6 Figure 3. Multiple policies and implementing agencies and institutions01 STI GOVERNANCE Do we have a robust STI Governance Framework in place? STI Governance, the focus of the first chapter of the report, is essential for many reasons. The vast scope of governance requires objectivity, a fundamental understanding of the STI development and management cycles, and above all, an unbiased appraisal by an independent body at critical phases. Top eleven countries with high economic output such as USA, Germany, Sweden, South Korea, Japan and Taiwan and others have a stable STI governance structure. A sound STI governance framework enables structured and continuous monitoring of policy implementation and STI performance. In addition, the effectiveness of targets set, best practices adopted, strategies deployed and solutions realised can also be regularly evaluated. Ultimately, effective STI governance will set the stage for a dynamic and enabling STI ecosystem. In Malaysia, we have had comprehensive development plans since Independence. This has been complemented with the development of a solid institutional framework, infrastructure, collaborative platforms and incentive mechanisms. Since the first science policy, the National Science and Technology Policy (1986-1989) (NSTP) to the current National Policy on Science, Technology and Innovation, 2013-2020 (NPSTI), much has been expended to ensure STI creates both economic and social value. There are 81 national policies out of which, 56 are STI-related with multiple agencies (around 458) promoting or implementing them. However, these multiple agencies and institutions are not working in synergy but often seen to be competing to get their voices heard. This has proved to be counterproductive in fully harnessing our STI potential. As such, even with robust policy frameworks, government support and private sector participation, the implementation of policy measures seem to be fragmented and eclectic (Figure 3), yielding poor results.

7The main reasons cited for implementation weakness are“insufficient political will and legislative drive to addressSTI-related issues”, “absence of an overarching STI MasterPlan”, “lack of direction, co-ordination and focus” and mostimportantly “failure to converge STI with economics andfinance, geopolitics as well as society and culture throughintegrated planning and inclusive implementation”. This callsfor an urgent rationalisation of Malaysia’s STI governancestructures.Furthermore, we often fail at the implementation stage Figure 4. STI Management Cyclebecause we do not start right with a robust ideation processthat can give rise to better strategic thinking for planning,target setting, and regular evaluation and monitoring. STIinputs and interventions should not be seen just as aprecursor to policy development or as a support fordecision making, but must be an integral part of the wholeecosystem of policy implementation towards meeting settargets. The availability of credible, relevant and timely STIdata is also central to evidence-based decision making andin Malaysia, this has often been the missing link to effectivelymeasure the performance of STI related policies andinterventions. As a result, STI directions may be chartedwithout a strong rationale based on relevant and timelydata. In keeping with global best practices, there is a needto strengthen the STI management cycle (Figure 4) withemphasis on ideation as well as monitoring and evaluation.For this to happen, we should empower a centralised STIco-ordination and monitoring body, that will transcend allministries to realise greater stakeholder participation andsynchronised implementation.

8Hansard (transcripts of Parliamentary Debates) analysis inMalaysia from 2008 to 2013 showed that the debatesfocused primarily on toeing the party line, topical accordingto media sentiment or constituency centric (Figure 5). Thishas resulted in STI issues taking a backseat leading to a lackof legislative drive and motivation to correlate STIcontributions or its potential with national goals. Inbenchmarking with other advanced countries that areprogressing well in STI, it was found that most of thesecountries have a formal platform at the legislative level suchas a Parliamentary Select Committee to deliberate on STIissues with relevant expert and stakeholder inputs. Malaysiawould do well to emulate this.Given that STI is pervasive and cuts across economic sectors, Figure 5. Parliamentary debatesministries and knowledge domains, a National Science Act(NSA) would be instrumental to strengthen Malaysia’s STIframework and ensure sustainability and stability in the longrun. An NSA is advocated to provide legislative impetus forthe implementation of STI related policies or action plansand serve as an overarching STI Master Plan for a unifiedexecution strategy.

9 RecommendationAn enabling environment for effective STI GovernanceStrengthen ESTABLISH A ESTABLISH A Enactment sti centralised PARLIAMENTARY of amanagement sti body SELECT science act cycle COMMITTEE• We need to strengthen • Empowerment of a • The establishment of a • The proposed Science the STI Management centralised STI Parliamentary Select Act (of Malaysia) will be Cycle by focusing on coordination and Committee on STI will instrumental in setting up continuous Monitoring monitoring body that build the necessary a robust institutional and Evaluation, as well as transcend across all political will and create framework on science Ideation, in keeping with ministries is needed to legislative consensus governance. The Act will global best practices. ensure harmonisation of towards promoting STI serve as an overarching efforts, collaboration of agenda. Master Plan for unified resources, exchange of execution strategy. information between various stakeholders, and a seamless progression across various stages of the STI Management Cycle.

02 r,d&c 10 Does R,D&C address national priorities, challenges and opportunities?In the past two decades, Malaysia has progressed Although Malaysia has seen a rise in gross expenditure insignificantly in research, development and commercialisation R&D per gross domestic product (GERD/GDP) from 0.5% in(R,D&C) in terms of increases in R&D budget, expansion 2000 to 1.13% 2012, the country is still far from achievingin research manpower, infrastructure development and its desired GERD/GDP of 2.0% by 2020. The average R&Dinstitutional support. These have contributed to Malaysia spending in G20 countries was 2.04% in 2012 and inmoving up in global rankings such as 20th position comparison, Malaysia has relatively low R&D expenditure.amongst 144 countries in the Global Competitiveness In this context, it is important to note that several studiesReport 2014 and 33rd position amongst 143 countries in have shown a direct correlation between R&D investmentthe Global Innovation Index 2014. However, the and commercialisation success rates. However, we mustGovernment’s aspiration is to position Malaysia amongst bear in mind that R&D resources (human capital,the top 10 countries in both the index by 2020. This is infrastructure and funds) must be optimally utiliseda tall order and enhancing Malaysia’s research, to achieve intended outcomes. For example,development, commercialisation and innovation having qualified and(R,D,C&I) capacity and capability would be a key factor quality researcherstowards realising this aspiration. While Malaysia may be /scientists anddoing well in several areas of competitiveness, it is not technologistsbeing effectively translated to innovation capacity and has been provencapability as reflected in the much lower ranking of the to have a significantlyGlobal Innovation Index. greater impact on the outputs compared to amount of R&D spending (Figure 6). Figure 6. Drivers of publication and patent output Source: Chandran et al. 2014

Over the years, multiple ministries and agencies have been 11allocated R&D funds from the Government, expanding thescope and opening many possibilities for meaningful Industry or business sector participation alongsideR,D&C. The composition of the R&D pie in Malaysia is Institutions of Higher Learning (IHLs) and Governmentskewed towards applied research, with relatively low Research Institutes (GRIs) has been minimal. This isemphasis on basic or experimental research. This is unlike reflected in Malaysia’s business sector R&D expenditureother advanced countries such as Singapore and South per GDP was 0.7% in 2012 compared to 1.4% in Singapore,Korea where experimental research has more traction. It is 2.3% in Taiwan and 3.1% in Korea (Figure 7). Low privatevital for Malaysia to have a balanced strength in basic and sector participation in RD&C in Malaysia has limitedapplied research in order to generate and own scientific opportunities to strengthen R&D output for commercialdiscoveries and indigenous technology platforms. This in intent and application. In addition, research prioritisationturn will create a competitive edge for the nation. is currently practised without organised efforts, monitoring and follow-through. This often results in abandoned projects with no practical outcomes.Another observation of the Malaysian R,D,C&I landscape One of the major issues identified in the R,D&C value chainis that Government ministries often undertake the role of in Malaysia is fragmented research activities. There is nopolicy maker and implementer. This could result in one role single, cross-cutting co-ordinating body that transcendsor the other being undermined. A conflict of interest arises all ministries to effectively implement the nation’s R,D,C&Iwhen ministries carry out both roles of policy maker and activities. The existence of a multitude of R,D,C&Iimplementer. This also prevents the execution of effective institutions has resulted in a lot of duplication. Diversificationmonitoring and evaluation. of R&D funding and allocation has resulted in the budgets being assigned to a greater number of research projects, leaving little or no room to create enough pool or economies of scale (masses) in specific sectors or fields of research. This impedes the realisation of value and impact from R&D. The management, administration and coordination of the funds are also believed to be an issue due to the involvement of multiple agencies.Figure 7. GDP invested in scientific research (%) 2012 Fundamentally, there is also a need for a standardised definition and a common understanding of various stages of R,D&C. Pre-R&D and R&D in the context of experimental, basic and applied research along with pre-commercialisation and commercialisation must be clearly defined and understood by all actors in the R,D,C&I landscape. This will help bridge the current gap in prioritisation and implementation of R,D,C&I.

12Fragmented research activities are further compounded by This requires a holistic approach that would address aspectsthe lack of a seamless process to allow for research projects such as industry set-up, role of solution-providers,to move from one stage to another along the R,D&C value intellectual property (IP) bundling as well as interest ofchain. Records show that only 2% of projects managed to researchers and project managers for sustainable R&D withmove between different stages. Basic research is not funded socio-economic benefits. In this context, the introduction ofon a national level in priority areas for the nation’s future a special purpose Ideation Fund may help evidence-baseddevelopment but seemingly on the basis of researchers’ decision making, when it comes to establishing R,D&Cpersonal liking. Applied researchers on the other hand priority areas and ensuring efficient allocation of resourcesshould be expected to productise their findings to the point to achieve optimum capacity.that a business case for commercialisation can be validated. Clearly, there is an urgent need to engender greaterOnce this has been proven, actual entrepreneurs and coherence and continuity both at the policy andinvestors need to be brought in, who will bring in their own implementation levels where R,D,C&I is concerned. Variousmoney to commercialise the product. There seems to be a incentives and instruments should be well strategized andsignificant gap between the pre-commercialisation and aligned to national priorities to improve co-ordination andcommercialisation stages in Malaysia. Overall, value integration. One way to achieve this would be for therealisation from R&D in S&T remains weak. government to empower an existing centralised body toAgainst such a backdrop, a long term R,D&C perspective function as a research council or a research managementis often side-lined in the quest for quick wins and low agency that transcends ministries to promote seamlesshanging fruits. Typically in Malaysia, the progress of R&D is R,D,C&I implementation, management and monitoring.only monitored across a five-year cycle. In the 10 Malaysia Such an entity should be given a mandate and requisitePlan (2011-2015), R&D activities are treated as a rolling plan, resources to manage public R,D,C&I effectively andcreating uncertainty among IHLs and GRIs. This does not efficiently. It can undertake planning, coordination, andaugur well for long-term research project continuity. monitoring of public-funded R,D,C&I projects, conductSustained commitment to R,D&C over the long haul is studies on technology foresight, set national priority areasimperative to realise impactful economic and social gains. and foster interdisciplinary as well as multi-agency researchIn order to fully realise an innovation-led economy in the efforts. In addition, overlapping or low-impact programmesnation, R,D,C&I must move beyond mere return on can be eliminated. A much needed centralised database oninvestment (ROI) to value creation. Innovation results from R,D,C&I schemes, grants and research activities can also besuccessful realization of value. Information and knowledge established and efficiently maintained through this entity.applied creatively results in products and services that are Multiple efforts and initiatives should be synergised tounique and differentiated. They can command higher prices nurture a holistic and robust R,D,C&I ecosystem to tackleand produce higher returns. Value creation is also be intertwined challenges that concern people, planet andmaximised through dynamic interaction and collaboration profit. Only then can we successfully translate public andof researchers with industry, government and community. private investments in R,D,C&I to socio-economic impact in Malaysia.

13 RecommendationMeasures to build capacity and establish the socio-economic impact of Malaysian R,D&C EMPOWER EFFECTIVECENTRALISED USECOORDINATION OF GERD BODY• Empowering a body will help oversee, manage • For better planning and targeted results, and evaluate all R,D,C&I budgets for a seamless empowerment of existing organisation/s for and smooth transition from the Pre-R&D stage to centralised funding mechanism or management is subsequent stages of R,D,C&I, Early Stage crucial. An introduction of a special purpose Ideation Commercialisation and Commercialisation. Fund may help evidence-based decision making, Additionally, it will be possible to evaluate beyond when choosing the areas of R,D,C&I as well as the ROI by integrating intellectual property (IP), towards efficient allocation of resources to achieve industry set-up, role of solution-providers, interest optimum capacity. of researchers and project managers for sustainable R,D,C&I, with socio- economic benefits.

1403 STI TALENTHow is Malaysia positioned with regardsto our STI talent pool? “We cannot be on the road to a knowledge-intensive, innovation-led economy without talent to drive it.” Prime Minister, YAB Dato’ Sri Mohd Najib Tun Haji Abdul RazakTalent or quality human capital who are able to use their Out of the 1 million S&T workforce required by 2020,scientific, technical, conative (know-what, know-how and there needs to be 500,000 high skilled workers with atknow-when) and life-long learning skills to promote least a diploma or university degree. The remaining 500,000understanding of science to society; extend boundaries workforce are to have completed a technical or vocationalof knowledge; provide pathways towards better, more programme aimed at providing support services (Figure 5).sustainable life and enhance the nation’s economic growth.As such, talent is an imperative that is most fundamental Figure 8. STI human capital quantitative distributions by 2020not only in pursuit of science, technology and innovation Source: MOSTI 2012(STI) targets but to also sustain STI development. Indicatorspoint to a worrying trend that we are lagging in developing,harnessing, intensifying as well as retaining STI Talent at arate that is required to support our national aspirations andinitiatives.Quality human capital or talent is needed to promoteMalaysia’s growth and position its excellence in the globalmarketplace. A national study, S&T Human Capital: AStrategic Planning Towards 2020 (2012), confirmed that thecountry will need one million S&T workers by 2020. This isbased on a 6% projected annual economic growth and theemergence of EPPs (Entry Point Projects) under the NationalKey Economic Areas (NKEAs) as well as the emergence ofnew high value-added, technology-driven sectors.

In most advanced countries, skilled STEM workers make up 15about 30% of the total workforce. In Malaysia, the targeted500,000 skilled STEM workers would only make up 3% of is not urgently addressed to reverse the current trend,our expected total workforce of 15 million in 2020. Malaysia will not be able to produce the much needed future researchers, scientists, engineers and innovators.Table 1. Talent juxtaposition of current and targeted cohort size As a result, future Malaysians will remain merely as consumers of technology and not transcend to become producers of technology for wealth creation.Cohort 2012 2020 Advanced Table 2. Science to non-science students ratio Countries (Current) (Projection) Total 13 mil 15 mil Workforce (WF) Skilled WF 29% 3.48 mil 40% 6 mil 6.7% 1 mil STEM WF 1% 120K 30%Highly skilledSTEM WF 0.7% 85K 3% 500K (Average) RSEs 58 : 10,000 WF 70 : 10,000 WF (105K RSEs) (69K RSEs) Source: MOSTI 2012; MOSTI 2013; MASTIC 2014bQualified researchers, scientists and engineers (RSEs) are es- Source: MOE 2012sential to scientific advances, innovation and productivitygrowth. Malaysia had 58 RSEs per 10,000 workforce in There are multiple gaps along the entire STEM talent chain2012. The 2020 target for Malaysia is 70 RSEs per 10,000 from the secondary school level to the R&D personnel level.workforce (Table 1). This is well below the OECD countries’ Despite many efforts and substantial investment in STEMaverage of around 115 RSEs per 10,000 workforce in 2012 education, there seems to be a decline in interest in science(Source: UNESCO Institute for Statistics). and mathematics, contributing to STI talent depletion. Some of the reasons that could contribute to the declining interestThe talent we see in the market place today is a product in Science and Mathematics are ad-hoc changes inof 20 or 30 years ago. The supply of STI talents depends education policies, the low bar on quality teachers andto a great extent on new entrants into STI higher education. ineffective STEM teaching methods. Generally, science isThe target of 60:40 science to non-science students ratio not appealing to students due to a teaching approach thathad been around since 1967 and has never been achieved is theoretical, textbook-based and examination-oriented.as of 2014 (Table 2). Barely around 20% of our students arecurrently in the science stream. The interest to take upscience and mathematics is rapidly dwindling. If this issue

16This also does not help develop higher order thinking skills others (at 9.8%), but professionals in related fields arethat emphasise critical and analytical thinking. Something earning more (Science Pioneers, 2014). Likewise, in UK,must be done now to inculcate, nourish and develop the average salaries for graduates in science occupations areinterest of students in science and technology. Conventional higher than those in non-science occupations (Sjoberg &approaches will not work as many students today tend to be Schreiner, 2005).ahead of their teachers owing to a hyper-connected worldwith ready access to information. These students may also The situation is aggravated by an exodus of Malaysianbecome less and less interested in school unless a conducive talent. To quote the National Economic Advisory Councilecosystem that stimulates their interest is created to engage (NEAC, 2010), “Not only is our education system failing toand sustain them in the science stream. deliver the required talent, we have not been able to retain local talent of all races or attract foreign ones due toQuality of teachers is a very important factor in nurturing poor prospects and a lack of high-skilled jobs.” Malaysia’sSTI talent right from the early years. Approximately 41% of brain drain is quite intense relative to a narrow skill basescience teachers in the country do not possess a Bachelor’s (World Bank, 2013). In 2000, one in ten Malaysians with adegree, with 37.13% holding only SPM/STP qualifications tertiary degree migrated to an OECD country – that is twiceand 3.75% holding diplomas. Additionally, a high number the world average. The shrinking talent pool would have aof teachers holding a Bachelor of Education did not have negative impact on our productivity and competitiveness.the prerequisites for entering the Bachelor’s programme. In order for Malaysian talent, to thrive and contributeThe requirement for the programme is at least three distinc- effectively to the nation, there needs to be a sustainedtions at the SPM level, but 70% of those offered a place in exercise to position the right opportunities and incentivesthe programme fall short of this. Only 3% of the offers went through a rewarding, professional environment. The answerto applicants who were considered to be high-performers may also lie in intensifying brain circulation through targeted(World Bank, 2013). engagement of highly skilled Malaysian talent, wherever they may be based.Many also turn away from pursuing STEM-related careersdue to low levels of awareness of the demand for specialised When it comes to developing, intensifying, harnessing astalent, attractive remuneration packages and prospects for well as retaining talent, in particular STI talent, it cannotdynamic career paths. As Malaysia advances closer to 2020, be business as usual! The way forward would be to endorsea natural trend should be increasing job prospects with the Human Capital Roadmap for Science and Technologyhigh-income opportunities in sectors that have traditionally for systematic planning and development of STI Talent.relied on STEM talent as well as emerging and high growth The government also needs to take drastic interventionareas such as biotechnology, nanotechnology and measures to bridge the gap between policy targets andenvironment-related fields. Similar trends have been reality through a review of implementation action plans.reported by developed nations. For example, according to Finally, there is a need to devise a comprehensive,the US Department of Commerce, not only are STEM sustainable action plan to ensure Malaysia is talent-readyoccupations in the country growing faster (at 17%) than for 2020 and beyond.

17 RecommendationDeveloping, harnessing and intensifying talent systematic bridge gap retain planning & between stidevelopment policy & reality talent• Having a strategic framework that will • Drastic intervention measures need to • There is a need to devise a ‘sustainable’ guide human capital development in be taken at each domain of the human action plan for retaining STI Talent, S&T services and delivery is essential. capital value chain in order to reach especially to fuel the high-priority The Human Capital Roadmap for the targeted number of 500,000 sectors of the economy. Such a plan Science and Technology 2012 – 2020 skilled S&T workforce. could outline methodologies and (HCRST) which includes a review of criterion to identify the right talent, the current status of people, with the right skills and expertise, who processes, technology and culture can be incentivised with a career and the identification of S&T human roadmap in the country, with capital goals and priorities, opportunities created through measurable success factors that will public-private partnerships. drive the development of an actionable roadmap has already been strategised and documented.

1804 ENERGISING INDUSTRIES How engaged are our Industries in existing STI frameworks?Industries play a paramount role in the national STI Figure 9. Share of R&D by sectorframework to transform innovative ideas into commercially Source: MASTIC 2014bsuccessful products and services. As observed by OECD,“business enterprises that thrive on innovation are at the Industries should see innovation in a broader sense.centre of all national innovation systems”. This highlights the Innovation is not restricted to technology and R&D but it isneed to energise industries to foster new economic growth essentially about ideas that are successfully implementedthrough innovation and commercialisation particularly in to create new value. Companies that innovate have beenhigh priority sectors of the economy. reported to grow twice as fast as those which do not. As such, our industries must examine how their businesses canThe NPSTI has identified and defined ten policy measures embody ‘innovation’ in their processes, modules andto invigorate industries and stimulate productivity and practices for greater productivity, capacity, pricing andinnovation powered by STI. One of the key targets is to competitiveness.increase private sector investment in R&D to 70% by 2020.This is necessary to reduce reliance on the Government andbring industry players to the forefront as investmentpartners to drive the STI agenda of the nation. Consideringthat the business enterprises have traditionally been thelargest contributor to R&D activities in Malaysia with 64.5%R&D expenditure in 2012 (Figure 9), this may be a realistictarget for 2020. The other important aspects addressed bythe NPSTI are enhancing industry-driven collaborations,developing knowledge enterprises with distinctive STIcapabilities as well as encouraging social, grassroots andprosumer-driven innovation.

19In this context, the fundamental question is how engagedare industries in Malaysia with the national STI agenda topositively contribute to advancing national priorities. Thegeneral trend in Malaysia (as in other developing countries)is that the industry is only receptive to research that providesdirect solutions to their business and promises return oninvestment (ROI). In addition, industries are mainly focusedon attracting investments and maximising profits whileneglecting to develop indigenous technologies andcompetencies.An Industry Perception Audit carried out in 2014 by ASM Figure 10. Poor industry awareness on the existing STI policy frameworksfound that there was poor industry awareness on existing Source: ASM Industry Perception Audit 2014STI policy frameworks, as well as sources and criteria forresearch funds. Only 36.7% of industry leaders were Poor awareness of STI policy measures, action plans andaware of national policies or infrastructure that supports incentives prevents industry players from fully contributingthe industry to achieve local, regional and global growth. or participating in national STI initiatives (Figure 6). IndustryThe other two-thirds were either not aware of any such is often disconnected with the many facets of the nationalpolicies or were unsure of the policies that are related to STI Agenda due to minimal engagement of industry in thethem (Figure 10). Further to this, only 29.5% have existing very process of strategising national STI policies andpartnerships with any R&D institute or university for product frameworks, a lack of effective two-way communicationinnovations. These findings are consistent with a 2008 platforms as well as the absence of a comprehensive,survey where the industry viewed clients, suppliers and national database of relevant STI information for industrycompetitors as top three external innovation information reference.sources i.e. a consumer/demand driven market.Nonetheless, an upward trend of accepting universities asa primary source of innovation information was alsoobserved. This provides opportunities for universities,particularly research universities to effectively partnerindustry as solution providers for specificindustry needs thatrequire STI interventions.

20As stated in the Global Innovation Index 2015, innovation The complex challenges in innovation andis strongly influenced by knowledge-based activities. commercialisation necessitate collaboration. A quadrupleMalaysia’s ranking on knowledge-based workers, innovation helix partnership among Government, research & academialinkages as well as knowledge and technology output has base, industry and community is crucial to drive socio-fallen from the year 2011-2014. This has also led to weak economic transformation. Such collaborative linkages wouldvalue realisation from R&D in science and technology. As facilitate the flow of ideas, knowledge, skills as well asthe knowledge-driven economy takes centre stage, we relevant information on enabling mechanisms towardsmust examine if Malaysian industries are committed to meaningful R&D outputs, innovation and successfulundertaking R&D with deployment of requisite resources. commercialisation. For example, researchers cannot beAccording to OECD (2013), only 5.5% of firms actively expected to be entrepreneurs because they are not businessparticipate in R&D, mainly multinational corporations savvy and lack market knowledge. Business people should(MNCs). However, the ASM Industry Perception Audit (2014) be the ones to realise a business plan. However,found that industry (including Small and Medium Enterprises researchers need the industry feedback in order to ensure(SMEs)) preparedness in adopting technological innovation targeted research that caters to industry demand.is quite evident from their willingness to allocate funds andundertake R&D. 58.7% of the local firms interviewed have a The current and future success of STI development willsection/unit/division/department devoted to R&D. 16.0% of largely depend on the extent and quality of linkagesrespondents foresee an increase in overall corporate between relevant stakeholders and industry. Indeed, suchspending in research and technology in the next five years. linkages should be established to enable cross-pollinationThey felt the need to invest in research and technology to of STI ideas, programmes, investments, resources andensure a high quality products or services that can be outcomes. It is important to strategise effectivesustained in the long term. In addition, technology will help implementation of formal and regulated linkages forthem increase productivity and save cost. public, private, university and government. There is also the need to have aggressive and continuous informationThere is merit in understanding what really motivates the channels to disseminate the focal areas of the nationalbusiness sector or the industry players in general to STI agenda to industry players towards enhancingsignificantly invest in R&D or STI initiatives. 54.8% of understanding, engagement and involvement.respondents indicated that they have insufficient funds toengage in or outsource R&D. As such one of the primarymotivating factors to carry out R&D is availability of publicfunds for R&D. Industries in Malaysia seem to have anappetite for value creation through R&D and this should beleveraged to stimulate greater investments in R&D andaccelerate commercialisation.

21 RecommendationAn ecosystem that will motivate the industry to undertake more R&D and to contribute significantly to the STI Agenda of Malaysia FORMAL + TO DISSEMINATE STI DATA REGULATED STI AGENDA CENTRE LINKAGES FOR AMONGSTPUBLIC-PRIVATE INDUSTRY PARTNERSHIP PLAYER• An “STI Stakeholder Engagement • An awareness and enculturation • A centralised knowledge repository Model” will not only define the campaign for the industry using will provide access to critical and “critical stakeholder universe” appropriate and innovative ICT credible Malaysian STI information. essential for STI policy implementation channels will help enhance the level Such a centre can also help synergise success but will also define the nature of understanding as well as and coordinate all STI funds, plans, and extent of collaborations between involvement in promoting STI agenda. policies, and programmes across the industry and other STI proponents The industry associations, with sectors, to avoid duplication of efforts (including academia). measurable KPIs, can educate and and maximise output. mobilise the industry towards creating a better STI ecosystem. This should encompass nominating industry associations as well as successful companies to represent on various policy-making committees, R&D review panels, and consultation clinics of ministries.

2205 STI ENCULTURATION Is STI exciting and meaningful to the society?Today’s globalised world is highly demanding and constantly society. Enculturation of science in society should bechanging. Mega trends and disruptive technologies, fuelled viewed to be as critical as the application of science forby STI are impacting society at an unprecedented rate. development. Hence, we need to strengthen theAdditionally, mitigation of global risks requires STI integration of STI into the mainstream consciousness ofinterventions. We cannot escape from the significance of society. The Government has introduced various grants andscience in our world. Being science literate will no longer be schemes to promote the enculturation of STI amongjust an advantage but an absolute necessity. However, to Malaysians. These endeavours in synergy with other factorsfully participate and benefit from a knowledge economy, appear to have brought positive results as interest in STIsociety must transcend from being science literate to among Malaysians have doubled in recent years.becoming science encultured. This would give way to a new 78% of Malaysians have expressed interest in STImindset that not only welcomes and embraces positive related issues compared to 19% of Malaysians who were notlife-changing applications of STI but makes society efficient interested with the rest being uncertain. This is a relativelylearners, creators and users of knowledge. Mindset and high level of interest in STI amongst the Malaysian public.attitude are paramount because even when equipped withknowledge and skills, innovation may not take place if Figure 11. Interest and knowledge on STI issuessociety remains entrenched in hierarchical structures of Source: MOSTI 2014bcommand and control, intolerance of failure, turf protectionetc. This kind of mindset must be nurtured from birth andcontinue into adult working life. This would lay a solidfoundation for society to transition from being a mereconsumer to a prosumer.The global philosophy of ‘Science beyond Scientists’ isrelevant for Malaysia as it sensitises society to variousaspects of development powered by STI. The enculturationof science in society should be pervasive in every strata of

23The Earth travels around the Sun 84.9The centre of the Earth is very hot 74.7The continents have been moving their 61.8location for millions of years and will..... 45.2It is father’s gene that determines 35.0the gender of the babyElectrons are smaller than atomsLasers work by focusing sound waves 30.3All radioactivity is man-made 20.2Antibiotics kill viruses as well as bacteria 15.5Average percentage 45.9 Figure 11. Correct answers to questions on scientific concepts and statements Source: MASTIC 2014bHowever, this interest seems to be temporal, driven by To further step-up the STI enculturation process, since 2013,current issues and is not translated into a corresponding through the NPSTI, the Government has initiated fourlevel of scientific literacy (Figure 11). In comparison, high measures to popularise STI among the public: EstablishSTI interest in other developed countries such as USA an advisory body to guide STI public awareness and(89%) and the EU (83%) has been well translated to high promotions; Expand and empower science centres toSTI capacity. Further cause for concern is the low knowledge popularise STI in society; Promote STI among schoolof STI among Malaysians with only 46% able to correctly children, professional bodies and science-oriented societiesanswer an STI factual knowledge survey in 2014 as well as Conduct outreach programmes to raise awareness(Figure 12). Despite multiple efforts by the government on ethics and humanities in society.and inculcation through the education curriculum, thepublic’s average knowledge levels of STI has hoveredbelow 50% over the past 16 years (1998 till 2014).This is an alarming trend that must be addressed.

24There are also several flagship events, programmes andconcepts (e.g: National Science Challenge, Petrosains’Volunteer Scheme, Young Inventors Challenge etc.) inMalaysia that were successful in imparting scientificknowledge, enhancing science exploration, innovationand communication amongst the future citizens andprofessionals of the country. However, these programmescould be even more effective if there is sustained followthrough to enhance STI understanding in society beyondmerely having a cursory appreciation of technology in theirdaily lives.To sustain the process of STI enculturation in the country,a strategic, long-term STI Enculturation Plan should beconstructed. This plan should recommend early exposure toscience in schools, ways to popularise science to society, andstrategies on engaging public using multiple platforms. Sucha plan should define the roles of multiple stakeholders(Government, scientists, prosumers, businesses, media,parents and youth, and the society at large) and theplatforms for public engagement, including the frequencyand the content to popularise science amongst non-sciencecommunities. The government should promote enculturationof knowledge-enhancing applications and content for thesociety to move from being just consumers to prosumers.There is also a need to introduce an STI Enculturation Indexto meaningfully measure the level of STI enculturation insociety. This data can be used for effective decision makingtowards influencing intended outcomes.

25 Recommendation STI Enculturation Plan to enable and sustain the process of STI enculturation in the country EARLY PLAYERS IN ENGAGE PUBLIC DEVELOPEXPOSURE POPULARISING THROUGH SCIENCETO SCIENCE MULTIPLE ENCULTURATION SCIENCE INDEX PLATFORMS• “Science beyond • Such a Plan should define • The Plan should also • An STI Enculturation Index Scientists”, is a global the roles of multiple clearly define the will help derive philosophy that is relevant stakeholders such as the platforms for public meaningful data, which for Malaysia as it helps Government, scientists, engagement, including can be used by critical to sensitise the society on prosumers, businesses, the frequency and the influencers (such as various aspects of media, parents and youth, content to popularise schools, educationists, development, while the and the society at large, in science amongst parents, industry leaders) nation achieves its 2020 promoting the cause of non-science communities. to garner interest for milestone of being a science for development. STEM disciplines as well developed economy. as scientific initiatives.• Hence, a strategic long-term STI Enculturation Plan is needed.

2606 STRATEGIC INTERNATIONAL ALLIANCE Can Malaysia tap into global opportunities through strategic STI collaborations?Knowledge knows no boundaries. In the era of STI collaborations across international networks. There isknowledge-based development, science has become a also a need to address new ways of measuring and evaluat-global enterprise. The current global scientific landscape ing the deliverables of international collaboration to maxim-is marked by millions of researchers worldwide, having an ise benefits for scientists as prime movers of collaborationsincreased intensity to collaborate with each other, as well as the overall STI agenda of the nation.motivated by the desire to work with the very best peopleand facilities in the world, driven by curiosity and creativity Figure 13. Malaysia’s STI-related treatiesto discover new knowledge to advance their field or find Sources: MOSTI 2014; KLN 2014solutions to specific problems for the benefit of humanity(The Royal Society, 2011). As such, Malaysia must addressthe question of how international scientific collaborationcan be harnessed to tap into global opportunities, positionMalaysia strategically in the global STI arena, contribute tothe advancement of global science as well as tackle grandchallenges that are interrelated in a holistic manner.The digital revolution has contributed to the scientific worldbecoming highly interconnected, efficient and effective inthe way knowledge and skills are acquired, shared and used.Open learning and open innovation are gaining credence interms of facilitating cross-fertilisation of ideas, rapidadoption of technology as well as spawning a creative andinnovative milieu. Indeed, one of the buzzwords for makingprogress in the innovation-led economy is collaboration. Thiscalls for comprehensive, well-strategised, flexible as well asinclusive policy frameworks and mechanisms to co-ordinate

27The need for enhancing strategic international alliances Malaysia as a developing nation, has been a member ofwas neither articulated nor highlighted in Malaysia’s initial several high profile multilateral organisations or platformsS&T frameworks, at least not until the current policy was such as the United Nations (UN), Organisation of Islamicintroduced. The focus (in the past) was primarily centred on Countries (OIC), Commonwealth, APEC and ASEAN justbuilding and strengthening national capabilities and to name a few. Participation in these platforms has helpedcapacity for research, technology and innovation. However, the nation to contribute effectively in various global policywe are now on the right track and in synch with how the deliberations and international agendas. This has positivelyworld is moving forward. Today, in Malaysia internationally impacted Malaysia’s position in the competitive regionalcollaborative STI is in many ways encouraged, supported and global marketplace. However, robust participation andand facilitated. There is evident commitment to collaborate, contribution must also be spearheaded in the global STIco-create and foster strategic STI partnerships for platforms. In this context, effective positioning of Malaysia’ssocio-economic growth through Memoranda of STI knowledge, competencies & infrastructure is needed toUnderstandings (MoUs), agreements and treaties with be considered as a strong potential partner in the regionalhigh-potential partner countries. However, we may not be and global arena. For example, Malaysia should focus onfaring well in terms of strategizing and deriving targeted highlighting our STI capabilities and establish linkages withSTI outcomes from the collaborative initiatives. According ASEAN and emerging economies such as MIST (Mexico,to the Ministry of Foreign Affairs, Malaysia has signed 108 Indonesia, South Korea and Turkey) and BRICS (Brazil,multilateral treaties but only 15.7% or 17 of the treaties are Russia, India, China and South Africa).STI-related (Figure 13). To-date, 26 bilateral MoUs have alsobeen signed between Malaysia and other countries for ASEAN leaders have long since recognised science andcooperation in STI. However, there seems to be no evidence technology (S&T) as a key factor in sustaining economicon how these agreements have provide benefits related to growth, enhancing community well-being and promotingSTI development for Malaysia. These international alliances integration in ASEAN. This is evidenced by the Krabimay be limited to promoting business and trade, as initiative mooted in 2010 that outlines strategic directionsopposed to facilitating meaningful exchange of knowledge, for a competitive, sustainable and inclusive ASEAN. Theskills, talent or technology. There is a need to establish a regional integration of the 10 ASEAN member countriesformal advisory process for distributing information to into a single market under the ASEAN Economic Communitystakeholders regarding benefits and opportunities arising (AEC) in 2015 is certainly a big opportunity for Malaysianout of such agreements. industries to strategically position themselves and highlight their STI competencies.

ASEAN has a combined population of approximately 625 28million people or 8.8% of the world’s population. In 2015,ASEAN’s combined nominal GDP had grown to more than The way forward to strengthen international strategicUSD 2.6 trillion. ASEAN is projected to rank as the alliances is to increase well-strategised, STI-focusedfourth-largest economy by 2050. ASEAN is an economic international alliances to gain better benefits at thepowerhouse that is making great strides in enhancing its individual country level, intra ASEAN level as well asproductivity. In addition, ASEAN is a growing hub of international level. Considering the multipolar scientificconsumer demand. Herein lie tremendous opportunities for world, for greater impact, multilateral partnerships shouldSTI. However, ASEAN is clearly not a homogenous group as be prioritised as emphasised in the “Knowledge, networksit has great variance in the level of STI capabilities among and nations: Global scientific collaboration in the 21stMember States as well as great diversity that extends to century” report by the Royal Society UK.culture, religion and langauge. Therefore, there is a need forenhanced collaboration and more platforms for collective Scientists should be positioned as torch bearers to driveaction to fast track competitiveness. Capability for tech- international scientific collaborations towards acquiring,nological innovation is one area where ASEAN needs to sharing and utilising knowledge that resides anywhere inimprove its standing. Effective collaboration would enable the world to connect the scientific community and theirus to avoid competing with each other in the same areas. endeavours meaningfully.Instead, we can complement each other’s strengths andcompensate for each other’s weaknesses. There must also be concerted effort to target strategic partners for STI collaboration on an international scale.In the case of MIST and BRICS who are members of the The basis for targeting such partners cannot be confined toG20 (an international forum for the governments and cen- only the researchers or government goals but in the besttral bank governors from 20 major economies) and com- interest of advancing the nation’s STI agenda. Attractingprise a mix of the world’s largest advanced and emerging strategic partners would of course require the righteconomies, an analysis of socio-economic indicators shows projection of STI capacity and capabilities to potentialthat Malaysia is on par. As such Malaysia should identify partners at various international platforms.synergistic opportunities with MIST and BRICS to upgradeSTI capabilities and tackle common issues that require STIinterventions.

29 RecommendationIdentifying and establishing practical models for strategic international alliances INCREASE POSITION STI-FOCUSED MALAYSIA'SINTERNATIONAL STI CAPABILITIES TO STRATEGIC ALLIANCE PARTNERS• STI-focused international alliances such as the following • Cross-border STI alliances with strategic partners such as should be increased to gain better benefits: i. Individual Country (Inter-Ministries): Partner with ASEAN, BRICS and MIST can be pushed as: respective ministries from various countries and develop i. An investment with clear economic benefits for the a comprehensive engagement plan. stakeholders involved; ii. Intra ASEAN – MOSTI to MOSTI equivalent: Define ii. Corporate Social Responsibility; and/or development strategies for Intra- ASEAN collaborations. iii. A technology transfer programme (as part of a iii. International (ASEAN-Rest of World): Develop ICT and larger trade deal). mobile engagement platforms that will allow the ASEAN scientific community to engage with Malaysian STI stakeholders. iv. Scientists as Torch Bearers: Establish multilateral linkages with global research institutions, technology houses, innovation hubs, STEM talent and experts.

30CONCLUSIONThe Science Outlook has reviewed the six strategicthrusts of the NPSTI, taken stock of Malaysia’sperformance thus far, identified gaps and forwardedeighteen recommendations to mobilise action in criticalareas. The key takeaway messages are firstly that STI inputsand interventions should not be seen just as a precursor topolicy development or as a support for decision making, butmust be an integral part of the whole ecosystem of policyimplementation towards meeting set targets. Secondly, STImust converge with economics and finance, geopolitics aswell as society and culture to fuel a robust ideation processfor socio-economic transformation. Thirdly and mostimportantly, we must adopt transformative thinking,integrated planning and inclusive implementation tomainstream STI in national development.