Malaysia - State of Science & Technology

©

Established in 1993 as an industry-government partnership think tank under the Prime Minister’s Department

©

Datuk Dr. Mohd Yusoff Sulaiman President & CEO

Tan Sri Dr. Zakri Abdul Hamid Joint Chair – Government

Science Advisor to Prime Minister

Tan Sri Ir. Ahmad Tajuddin Ali Joint Chair – Industry Chairman UEM Berhad

©

The conception of Formula 1 in Malaysia as means to advance

National Motorsports

©

…was responsible in driving the development of aerospace

industry

©

… gave birth to these notable organizations…

6

©

…the nation’s kitchen crew ” “

8 ©

Agriculture Based Economy

Resource-Led Economy

Innovation-Led Economy

1957 to late 1970s 1980s to mid 1990s Late 1990s to NOW

©

©

Source: World Bank, OECD

Gross Domestic Products (GDP) US Dollars

10

Guided and supported by adapted policies

• Import substitution

• FDI tax incentives, etc

• Support to technology transfer

©

Source: World Bank, OECD, GSIAC

0

10000

20000

30000

40000

50000

60000

Malaysia Gap to high income level

High income

Upper middle income level

Malaysia ambition is to become a fully

developed country by the year 2020

Malaysia’s GNI per capita

11

©

Poverty headcount ratio at national poverty lines (% of population)

0

5

10

15

20

25

30

35

40

45

Source: World Bank, OECD, DSM, ILO, MIGHT Analytics

Unemployment Rate

±3% ±7%

Malaysia Developed Countries

12

© Source: PEMANDU, DSM, Min. of Finance, MIGHT Analytics

Government Revenue from Oil & Gas

±15%

For the past 10 years

Malaysia GDP Structure (NKEA Sectors)

1. 13

©

Share of Manufacturing in GDP

Source: World Bank, OECD, GSIAC, MIGHT Analytics

14

©

Visionary Leadership

Political Stability

Natural Resources

Planning Mechanism

S&T Competency

Infrastructure

Diversification

© * Adopted: IMF Diversification Kuwait City, Tajuddin

© 16

©

©

Building a progressive society that will make use of science and modern technology.

18

©

Establishing a scientific and progressive society, a society that is innovative and forward-looking, one that is not only a consumer of technology but also a contributor to the scientific and technological civilisation of the future.

19

©

©

Malaysia Ranked

Source: WEF, INSEAD, KKMM, DoS, Insights, MIGHT Analytics

Mobile Phone Penetration 146%

Internet Users 22 Mil

18 Mil Active Social Media Users

*Approximate Figures

7 Mil Online Shoppers

21

© 22

©

Source: EPU, DoS, BNM, MITI, MIGHT Analytics

Horizontal Diversification Vertical Diversification

23

©

+$63b

High Technology Exports – Products with high R&D Intensity e.g aerospace, computers, pharmaceuticals, instrumentations

±43%

Total Manufacturing Exports

Source: World Development Indicators, MIGHT Analytics

70b

60b

50b

40b

30b

20b

10b

1990 1995 2000 2005 2010

In 2014

US D

ollars

24

25 ©

To continue increase our added value… a continued emphasis on Science, Technology & Innovation

Source: World Bank, MITI, MIGHT Analytics

© 26

2016. For Petronas Scenario Planning

©

To strengthen public service delivery systems in order to create a conducive environment and ecosystem that would enable the development of science & technology, through:- • Policies & regulations • Infrastructure development • Fiscal & finance

© ©

• Strengthens STI ecosystem through better governance

• Strengthens governance by utilizing S&T

• Using S&T to improves & strengthens industry

• Creating new source of economic growth through exploitation of S&T

• Improves societal wellbeing through the exploitation of science and technology

• Ensures continuous national capability & capacity in S&T to support Nation Building

SCIENCE FOR GOVERNANCE SCIENCE FOR WELLBEING SCIENCE FOR INDUSTRY

Dato’ Sri Mohd Najib Tun Abdul Razak YAB Prime Minister of Malaysia

This is why I instructed the Office of the Science Advisor to look into putting Science to Action in place. I strongly believe that the successful implementation of the many science, technology and industry programs will depend heavily on the close understanding and collaboration between the industry and the Government

28

©

NPSTI 2013 – 2020

HARNESSING STI FOR SOCIO-ECONOMIC TRANSFORMATION AND INCLUSIVE GROWTH

• Takes stock of the successes, challenges, lessons learnt and prospects of STI development at national and international levels

• Sets out a new and focused approach to harness the full potential of STI to achieve the nation’s goals

• Represents the nation’s commitment towards revitalising the national STI ecosystem

• Positions Malaysia to become a scientifically advanced nation for socio-economic transformation and inclusive growth by 2020.

ST 1: Advancing Scientific and Social Research, Development & Commercialisation

ST 2: Developing, Harnessing and Intensifying Talent

ST 3: Energising Industries

ST 4: Transforming STI governance

ST 5: Promoting and sensitising STI

ST 6: Enhancing strategic international alliances

29

© ©

Cybercities/ Cybercentres >20 Government

Research Institutes

>30

Industrial estates and Free Zones

500 Public universities 21

#5

Attractiveness for Infrastructure Investment

Best Infrastructure

#24

Source: Arcadis, WEF, MIGHT Analytics

** Highlights, not exhaustive

30

©

R&D Funds & Grants

Funding Agencies

Other Incentives

** Highlights, not exhaustive

31

©

USA

CHN

JPN

DEU

KOR

FRA

IND

GBR

RUS

BRA

ITA

CAN AUS

ESP

SWE

NLD

TUR

CHE

AUT

ISR

BEL

MEX

POL

DNK

FIN

CZE

NOR

ZAF

PRT

IRL

HUN

GRC

NZL

IDN

SVN

CHL

SVK LUX

ISL

EST

MALAYSIA

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

Researchers per thousand employment

Gross domestic expenditures on R&D in % of GDP

R&D expenditures in 2010

Source: OECD, GSIAC

32

©

©

Source: Akademi Sains Malaysia, Khazanah, MIGHT Analytics *As at 2014 Chaired by YAB PM #Direct Stakeholders.

National Councils* International Advisory Panels* Policies Ministries#

Agencies…Departments#

9

2

56

12

+100

©

Source: Khazanah, MIGHT Analytics *As at 2014 Chaired by YAB PM #Direct Stakeholders. **Not exhaustive

**

35

©

NPSTI 2013 – 2020












36

©

NPSTI 2013 – 2020












STI POLICY AWARENESS

Source: Akademi Sains Malaysia

37

©

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

%2013 or latest available year 2007

Source: OECD, GSIAC

The need to address issues that affects Malaysia R&D ecosystem

R&D expenditures as % of GDP

38

©

…realignment of National Councils with emphasis on S&T chaired by the YAB PM…

…establish a centralised research board through redeployment of resources to optimized, monitor & increase efficiency of R&D…

Tan Sri Dr. Zakri Abdul Hamid Science Advisor to Prime Minister

…need to improve coordination and strengthened the framework of STI …

39

40 ©

NSC

ADWG2 ADWG2 ADWG2 ADWG2 ADWG2 ADWG2

Global Science & Innovation Advisory Council (GSIAC)

Working Group 1

Working Group 2

Working Group n

Program 1 Program 2 Program n

NSC

Working committees on various areas & subject matter e.g STEM & health to deliberate on implementation

status of projects

High level discourse on key issues & priority areas of Malaysia, chaired by YAB Prime Minister

global viewpoints and collaborations

High level discourse on key issues & priority areas of Malaysia, chaired by YAB Prime Minister focusing on National implementations

National Science Council (NSC)

Consist of local & international members. Provide high level summary for the main GSIAC meeting – Chaired

by minister in-charged

Source: OSA, GSIAC

40

©

Covering wide ranges of topic where Science & Technology would address the local challenges • National Competitiveness

• STI & Industry Development • Human Capital Development

• Lifestyle & Healthcare • STEM Education • Smart Communities

• STI Strategies • Food Securities • Green Futures

Source: OSA, GSIAC

42 ©

R&D intensity – Malaysia, selected Asian countries and OECD average, top 5 and bottom 5 (in %),

Source: OECD, GSIAC,, MASTIC, MIGHT Analytics

GERD Target by 2020 2%

…establishment of Research Management Agency (RMA) to strengthen institutional mechanism to manage public R&D&C&I to improve effectiveness, maximize outcome & increase return on investment…

RMK11, Strategy Paper 21. EPU

“

“

42

©

Water Security

Food Security

Medical & Healthcare Transport & Urbanization

Domestic & National Security

Plantation Crops & Commodities

Energy Security

R&D to address issues & challenges faced by the country either realized or anticipated

Environment & Climate Change

Source: NSRC, OSA 43

©

©

©

…by 2020 Malaysia will only have half of the STEM workforce required which accounts to about 3% of the working population


30% Average of STEM workforce in

advanced countries

46

© Source: ILO, World Bank, Kelly Services, MIGHT Analytics

47

©

Decreasing Enrolment

Lagging in Science & Mathematics

Critical Thinking

of students in science at secondary education level

achievement & literacy in international assessment studies

is poor. Unable to connect STEM knowledge to real life problems

Source: Asma Ismail, MoHE 48

49 ©

Source: MoE, MoHE, MIGHT Analytics

…to have more enrolment of students in STEM related fields. 60:40 ratio

SPM 2013 470,402

132,540 : 308,148

SPM 2014 455,839

143,327 : 312,512

SPM 2015 440,688

145,080 : 325,322

Science Art

SPM Science Candidates

©

Enrolment vs

Eligibility ___________

The pool is getting

smaller


50

©

Projected Public Universities Entry

Qualified Candidates (CGPA>2.0)

Pool Science Candidates (STPM+Matriculation/Asasi)

Number of qualified candidates are less than

projected entry

51 Source: MoHE

©

PISA – Programme for International Student Assessment

Malaysia Ranked

Source: PISA, OECD, MIGHT Analytics

OECD Average

Reading Mathematics Science

496 494 501

Malaysia Average

Reading Mathematics Science

398 421 420

414 404 422

2015

20

12

52

©

©

Influence…

Lack of Interest…

Career Path…

Cost… That is the question

54

©

They see STEM as the following

Source: International Policy Dialogue on STEM, myForesight, MIGHT Analytics

Factors influencing STEM decisions

Parents Surroundings Teachers Peers Others

55

©

Do not hold a degree 41%

Do not qualify for a degree program 70%

• Ineffective teaching methodology • Awareness of policies • Awareness of the demand for specialised talent


56

57 ©

…less than 35% of the top management of Malaysia’s

Top 20 Companies comes from a STEM background…

57

© ©

…our science lessons are no

longer focusing on hands on science

discovery…

International Policy Dialogue on STEM Education

Practical science examination was stopped in 2000

78% science lessons is teacher centred

TIMSS Assessment

58

©

©

Systemic changes. Wholesome approach

Strengthening delivery of Science education across the education systems

Nurturing competencies & pedagogies of teachers

Engagement of public & students awareness

Improving participation in science

Source: International Policy Dialogue on STEM, Curriculum Development Division MoE 60

©

Initiatives across the STEM value chain


HARNESS DEVELOP INTENSIFY

Develop inquiring mind & interest in

S&T

Acquire S&T knowledge.

Specialization & development of

expertise

61

©

The Fair

Government, academia & private sector participation to create awareness amongst students on STEM learning as well as STEM careers

62

©

ISKANDAR MALAYSIA ECO LIFE CHALLENGE A program to promote a low carbon society

involving 236 schools and up to 50 000 students in Iskandar Malaysia

PETROSAINS S2A TINKERMIND Undertaken by Petrosains with UTM & UiTM to train mentors in Science as well as promote the

interest in Science.

NOBELIST MINDSET Conducted in collaboration with NYAS to expose

teachers and students the mindset necessary, aspiring to become a Nobel Laureate

BITARA STEM UKM-FELDA STEM focused programs conducted in MARA &

Felda Schools nationwide.

UITM SCIENCE 2 ACTION A STEM mentorship program conducted

nationwide by UiTM by adopting 5 schools nearby its campus.

KLESF MENTORSHIP A regional program targeted for teachers, to

share and explore novel new ways of teaching STEM subjects

63

©

A joint paper between MOSTI, MoE & MoHE is to

be tabled to the National Science Council

©

©

66

The National science related

policies hinges on Industrial

Participation

THE NEW ECONOMIC MODEL FOR MALAYSIA

SRI 1: Re-energising the private sector to drive growth “Those firms investing

in innovative and technologically advanced production and services with spill-

over effects across economic sectors will be supported by the government.”

THE 11TH MALAYSIA PLAN 2016-2020

Strategy 21 “Strategies will be targeted at two levels – the enterprise and

society with the aim of translating innovation to wealth.”

THE NATIONAL POLICY ON SCIENCE, TECHNOLOGY & INNOVATION 2013-2020

Strategic Thrust 3: Energising Industries “To spur innovation and

commercialisation, industry is the key player by which ideas are transformed

into jobs and wealth for the nation.”

©

67 Source: OECD, UNESCO, MASTIC, MIGHT Analytics

64. 5% 0.73%

BERD per GERD . BERD per GDP .

Malaysia’s BERD is lower than OECD’s average

© © 68

PUSH FOR BUSINESS

ENTERPRISES R&D

NEWTON-UNGKU OMAR FUND A joint research funding between the Malaysia

& UK government

MYLAB A program by Ministry of Higher Education to

promote the Industry Academia Research Solutions

PUBLIC PRIVATE RESEARCH NETWORK A program by Ministry of Higher Education to

promote the Industry-SME Academia Collaboration

HIGHLIGHTS OF GOVERNMENT - INDUSTRY RESEARCH PROGRAMS

Ministry of Higher Education

© 69

Source: Derwents World Patents Index, Thomson Reuters, MIGHT Analytics

Aerospace & Defense

Automotive

Biotechnology

Information Technology

Medical Devices

Oil & Gas

Pharmaceuticals

Semiconductors

Telecommunications

Cosmetic & Well Being

Food, Beverage & Tobacco

Home Appliances

Global Innovation Output (2009-2015) Growth of Innovation (2009-2015)

© 70

Source: MIGHT Analytics, Thomson Reuters IP& Science, MyIPO database & WIPO database, MASTIC

Company Inventions (2015)

United Technologies Corp, US 716

State Grid Corp of China 715

Airbus Operations, France 620

Jiangxi Hongdu Aviation, China 617

Boeing, US 531

General Electric, US 424

LG, S Korea 392

Siemens, Germany 387

Toyota, Japan 360

Hyundai, S Korea 334

Malaysia (2000-present) 39 inventions

Comparison of Malaysia inventions with Top 10 Global Innovators

Aerospace & Defense


Toyota, Japan 4214

Hyundai, S Korea 2469

Bosch, Germany 2390

Denso, Japan 2169

Honda, Japan 2039

Ford, US 1837

Daimler, Germany 1575

GM, US 1435

Beiqi Foton, China 1223

Nissan, Japan 1188


Automotive


DuPont, US 407

University of Jiangnan, China 287

Monsanto, US 229

Roche, Switzerland 203

University of Zhejiang, China 200

Rural Dev. Administration, S Korea 191

University of California, US 184

CNRS, France 166

Lanzhou Veterinary Inst, China 165

INSERM, France 160


Biotechnology

© 71



Cosmetic & Well Being Food, Beverage & Tobacco Home Appliances


LG Household & Healthcare, S Korea 315

L'Oreal, France 314

Kao, Japan 214

Henkel, Germany 154

P&G, US 144

AmorePacific, S Korea 125

Aesthetic Beijing Technology Co, China 87

Unilever, Netherlands/UK 75

Beiersdorf, Germany 73

Kose, Japan 70



China Tobacco Hubei Ind Corp, China 1122

Qingdao Xiuxian Foods Co. , China 165

Philip Morris, US 121

University of Guangxi, China 118

Inst Agro Food S&T Chinese, China 114


University of Zhejiang Ocean, China 104

Hefei Bulaochuanqi Health S&T, China 87

Wuhu Hongyang Food, China 72

Anhui Xianzhiyuan, China 69



Midea Group, China 5427

Zhuhai Gree Electric appliances, China 1995

Haier Group, China 1315

Panasonic, Japan 949

Mitsubishi Electric, Japan 948

Samsung, S Korea 736

BSH Hausgerate, Germany 697

LG, S Korea 690

Hitachi Kucho System, Japan 460

Daikin Kogyo, Japan 446


© 72



Information Technology Medical Devices Oil & Gas


State Grid Corp China 7479

Canon, Japan 6370


IBM, US 4205

Ricoh, Japan 3539

Google, US 3164

Huawei, China 2799

Lenovo,China 2798

LG, S Korea 2521

Tencent Tech. Shenzhen, China 2418

Malaysia 2000-present 136 inventions


Olympus Optical, Japan 818

Siemens, Germany 638

Toshiba, Japan 627

Fourth Military Medical Uni, China 623


Terumo, Japan 482

Philips, Netherlands 479

Canon, Japan 473

Medtronic, US 362

Covidien, US 358



Sinopec, China 1991

Petrochina, China 1982

Halliburton, US 940

China National Offshore oil, China 455

Schlumberger, US 378

Baker Hughes, US 288

PRAD research & development, US 272

Uni. of China Petroleum, China 239

Toyota, Japan 219

Tatneft Stock, Russia 189

Malaysia 2000-present 48 Inventions

© 73



Pharmaceuticals Semiconductors Telecommunications


Roche, Switzerland 351


University of Zhejiang, China 271

LG household & healthcare, S Korea 270

Foshan Saiweisi Pharma Techn, China 266

University of California, US 235

Sanofi, France 232

Univ. of Shanghai Jiangtong, China 225

CNRS, France 223

University of Guangxi, China 209




BOE Technology Group, China 2900

LG, S Korea 2884

Shenzen China Star Opto E Tech, China 1701

Toshiba, Japan 1521

Taiwan semiconductor Mfg Co, Taiwan 1424

Semiconductor Mfg. Shanghai, China 1405

IBM, US 969

SK Hynix, S Korea 873

Oceans King Lighting S&T, China 872




Huawei, China 3496

LG, S Korea 2795

State Grid Crop China 2585

ZTE Corp, China 1960

Qualcomm, US 1841

Ericsson, Sweden 1424

Sony, Japan 1129

NTT, Japan 1129

Fujitsu, Japan 1087

Malaysia 2000-present 81 Inventions

©

[CEL

LRAN

GE], [VAL

UE]

[CEL

LRAN

GE], [VAL

UE]

[CEL

LRAN

GE], [VAL

UE]

[CEL

LRAN

GE], [VAL

UE]

[CEL

LRAN

GE], [VAL

UE]

[CEL

LRAN

GE], [VAL

UE]

[CEL

LRAN

GE], [VAL

UE]

[CEL

LRAN

GE], [VAL

UE]

[CEL

LRAN

GE], [VAL

UE]

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

USD

(Millions

)

Malaysian High-Tech Exports (2015)

Source: MIGHT, DOSM

Notes: (a) High-Technology product categories are based on definitions from the World Bank & OECD. (b) Export data are based on the Malaysian External Trade Statistics from the Department of

Statistics, Malaysia. ©

74

…WHAT ARE “OUR”

TECHNOLOGY EXPORTS?…

©

…my view of the future is indeed bleak for this country… we failed at regeneration of talents in the management of STI and R&D… …but I hope my pessimism will lead to actions being taken, actions that will prove 30 -50 years from now – although I may not be around to see it – that I’m wrong, then I will be happy

Tan Sri Ir. Ahmad Tajuddin Ali Joint Chair MIGHT – Industry Chairman UEM Group 75

©

Rushdi Abdul Rahim

[email protected] @RushdiAR

Malaysia - State of Science & Technology

Government & Nonprofit