KUALA LUMPUR, Sept 22 — The government is looking to strengthen Malaysia’s research and development (R&D) ecosystem through more market-driven funding mechanisms and closer industry collaboration, said Minister of Finance II Datuk Seri Amir Hamzah Azizan.

He said Malaysia is shifting from a “Made in Malaysia” to a “Made by Malaysia” approach as it seeks to strengthen value creation and drive economic upgrading, with R&D playing a central role.

While Malaysia’s R&D spending has reached about one per cent of gross domestic product, or nearly RM20 billion, he said the main challenge is turning research into commercial results.

“The issue is not just the amount of R&D, but whether it leads to value capture in the country, including ownership of intellectual property and the ability of local firms to compete globally.

“What we (government) want to do is actually to make sure that we provide a capital market that can help support the development of local firms along the way by providing capital,” he said during a panel session at the University Research and Innovation Investment Summit 2026.

Amir Hamzah said the government is focusing on aligning research efforts with national priorities, including the New Industrial Master Plan, the National Semiconductor Strategy and the Energy Transition Roadmap, to attract investments and improve commercialisation prospects.

He said capital is already available through initiatives such as the GEAR-uP programme, under which government-linked investment companies have committed RM120 billion over five years, alongside about RM10 billion channelled into venture and growth funds such as Dana Perintis, Dana Permaju and Dana Impak.

However, he said the gap lies in the ability of researchers and institutions to bring innovations to the market.

“Sometimes the product may be brilliant, but if you do not know how to position and sell it, investors will not come in,” he said.

Amir Hamzah said universities also have a critical role to play by shifting towards more applied research and strengthening partnerships with industry, while continuing to build foundational knowledge through fundamental research. — Bernama