Innovation, creativity driving Malaysia's Vision 2020

By Eden Estopace | Dec 15, 2011

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The Malaysian government has identified creativity and innovation as key elements in achieving the country's objectives of becoming a high-income nation by 2020.

Datuk Noharuddin Nordin, Director-General and CEO, Malaysia Investment Development Authority (MIDA), speaking on behalf of YB Dato' Mukhriz Tun Mahatir, Deputy Minister, Ministry of International Trade and Industry, at the recently concluded Accelerating Asia-Pacific Conference 2011 held in Kuala Lumpur, said the government realized the need to create an impetus to achieve development.

"In fact there is a budget announced by our Prime Minister in the amount of RM 100 million for creativity and innovation in the year 2012. The government also allocated RM 20 billion under the public-private partnership program to assist the public sector to develop programs with strategic value," he said.

The MIDA executive disclosed that since the mid-1990s, Malaysia has adopted a focus on and approach in attractive quality investments in high technology, capital-intensive and knowledge-intensive industries, as well as on R&D activities in support of the country's vision.  "These areas include biotechnology, advanced electronics, renewable energy, aviation, machinery and equipment, pharmaceutical and medical devices. These has resulted in Malaysia successfully developing its high technology industries," he noted.

Currently, he said Malaysia's R&D expenditure at 0.64 percent of the GDP is still relatively low. In terms of innovation, of the 2,242 patents granted in year 2008, only 198 or 9 percent were from Malaysia.

"Thus, the Malaysian government has placed innovation at the center of the Malaysia's development reform agenda, both through the creation of the agency Inovasi Malaysia, and the incorporation of innovation initiatives through economic transformation programs, including the new economic model, the development transformation programs, national key economic areas and the 10th Malaysia Plan," he explained.

Rising IT Township

Some 50 kilometers south of Kuala Lumpur, a rising township known as the Silicon Valley of Malaysia is testament to the serious intent of the government to promote information communication technologies as a driver of economic growth.

The science and technology park opened in 1997, known as Cyberjaya, forms part of the Multimedia Super Corridor and was established through the initiative of former Malaysian Prime Minister Mahathir bin Mohamad to move the country from labor-intensive to knowledge-based economy.

Today, 500 companies, including multinationals, are operating in the 6,960-acre IT-themed city.

"Cyberjaya is not only for ICT companies, we also welcome investors and government agencies. Basically it is a township and the largest cybercity in Asia at the moment," said MD Nazri Tumin, Senior Manager, Busines Corporate Communications and Planning, Cyberview Sdn Bhd, a company owned by the Malaysian government and landowner of Cyberjaya tasked with developing the facilities.

Local companies and multination relocating to Cyberjaya would benefit from world-class infrastructure inside the facility, full government support and a relatively affordable cost.

"Here, we ensure that the cost of doing business is kept low or affordable," MD Nazri Tumin said, adding that for local start-ups, rent could be as low as $1 per square foot. Buildings and facilities are also readily available for companies relocating to the facility. Currently, he said buses fetch employees from 7 locations within an 80-kilometer radius in Greater Kuala Lumpur employees but the township also encourages study and recreation for executives with the establishment of schools and universities as well as entertainment facilities.

Believing that technological innovations have always been at the heart of economic and social development and is even more essential for a rapidly developing country like Malaysia, Datuk Noharuddin Nordin said greater effort will be applied to strengthen innovation and aid in launching products and services into global markets.

"The Malaysia Investment Development Authority, which I represent, will continue to create a conducive business environment in the country like granting incentives to attract high-technology investments from both domestic and foreign investors in R&D and innovation-led activities," he said.

Private sector participation

Participation of the private sector is deemed important in realizing the country's vision.  "This growth must be holistic and the main ingredients to this is, of course, human capital," said Nordin.

He lauded efforts of Microsoft Malaysia in creating sustainable programs that encourage innovation within communities where it operates and for using its core business to develop communities.

Microsoft, for example, has the largest partner ecosystem in Malaysia with over 5,000 partners that create made in Malaysia IT solutions and focused on developing technology-related skills. Over the years, Microsoft has also given cash and software grants various deserving organizations in the country.

Recently, Microsoft Malaysia has launched a partnership agreement with SME Corp. Malaysia, the central coordinating agency tasked to spur the development of SMEs. The program was launched with an investment RM 20 million in the first year alone to help the organizations leverage cloud computing technology to transform their businesses.

An IDC study showed that for every $1 earns in revenue in Malaysia, $13.39 is generated for the local IT industry, with over 50 percent of employment related to Microsoft's contribution.

Another initiative called Partners in Learning works with the Ministry of Education, education institutions and key stakeholders to improve access to ICT in primary and secondary schools. ICT help desks program, project-based learning and peer coaching programs have benefited 3.5 million teachers and students in Malaysia.

Ananth Lazarus, Managing Director, Microsoft Malaysia, disclosed that its  strategic outlook for the country is to focus on transformation - transforming lives, transforming education and transforming business.

"This is a statement of our commitment as a corporate citizen because we want to contribute in a meaningful and concrete as a catalyst for growth in the country's growth as well as a way to give back to the community," he said. 

"Microsoft Malaysia will continue to partner with the government in initiatives to ensure state-of-the-art public service delivery, to transform education and to drive business transformation for workforce development. We believe that these are great engines of growth for the country to leverage on," he added, emphasizing the company's thrust to becoming a trusted adviser to the Malaysian government, a trusted partner of businesses and the people of Malaysia.

This initiative of combining technology with local partnership that addresses local societal issues is very much in line with the government's transformation program, Datuk Noharuddin Nordin affirmed.

"The tools provided in these programs which encourages the growth of talent base on innovation and creativity that ultimately enhances our competitiveness," he said.