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Selangor Industry & Trade News : Volume 1/No.3 January -April 2003
By Azura Abas

Although the state has in recent years being placed at the forefront of the country's technology progress and infrastructure developments, it is becoming more crucial in today's world to be able to create and innovate.

Being a relatively young nation at just over 45 years of age, we are in general - and understandably too - a follower, rather than an innovator of new ideas and discoveries. In most cases, our local products and services are emulated from the more advanced parts of the world, even though we have on various occasions surprised many with our occasional breakthroughs in fields such as technology, manufacturing and engineering accomplishments. Despite our age, and in heeding the country's Prime Minister Datuk Seri Dr. Mahathir Mohamad's challenge to the scientific community to produce a Malaysian Nobel Laureate by 2020, it is visibly no longer sufficient to merely follow what the rest of the world are doing.

In today's knowledge-based economy, which is further escalated by international business globalisation, Malaysia's business communities and producers of goods and services are exposed to competition not just from the local market, but at the regional and international front as well. In addition, with information and world trade no longer restricted to geographic boundaries or communication inaccessibility, the key to being competitive - or at the very least, survival - lies in being able to introduce new products, better manufacturing processes, and more efficient services. More importantly, rather than fearing the worse in the face of global competition, the advent of this scenario also presents an excellent opportunity for our local entrepreneurs to penetrate the global market with better wares, products and services. Thus, this is where they have to start looking towards research and development (R&D) initiatives to attain the vital competitive edge for their respective businesses. What then are R&D all about?

"R&D comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications," explained Frascati Manual (1993).

R&D is a term covering three activities:
" Basic research (experimental or theoretical work undertaken primarily to acquire new knowledge without a specific application or use in mind).
" Applied research (original investigation undertaken in order to acquire new knowledge directed towards a specific practical aim or objective), and
" Experimental development (systematic work, drawing on existing knowledge gained from research and/or practical experience, that is directed to producing new materials, products or devices, to installing new processes, systems and services, or to improving substantially those already produced or installed).

The Selangor State Government has always been a strong advocator of research and development
programmes and activities, more so as it move towards its goal of becoming a fully-industrialised state by the year 2005. Nothing exemplifies this more than the emergence of the innovative Multimedia Super Corridor (MSC) project, especially with a world-class infrastructure already in place, and supported by all necessary facilities and regulations required in spearheading the country's next technological breakthroughs. A key feature of the technology corridor is in its R&D cluster, aimed at bringing together leading international researchers together with our local talents to develop world-class products and innovations.

Another up-and-coming facility expected to raise the competitiveness of the country's level in science and technology development is the ultra-modern Selangor Science Park-1. Conceptualised to extend Selangor's push to attract both local and multinational companies equipped with the latest state-of-the-art technologies, the park is designed to accommodate industrial research institutes, technological developments, production plants, and industries with access to R&D institutions, universities and technical training institutions. Clearly, the State Government understands and appreciates the importance of increasing R&D initiatives amongst its business population so as to raise the level of competitiveness not just within our shores, but also abroad as well.

On a bigger picture, the catalyst for the country's push for more R&D-orientated activities have been emphasised via the Eighth Malaysia Plan (2001-2005), in which research and development is highlighted as amongst the key features in driving the population towards the new economy. Allocating a sum of RM1.6 billion towards the public sector's involvement in R&D, the funding is to focus on the potentials for commercialization of research findings. Being an increase from the previous Seventh Plan's apportion of RM935 million and the RM629 million budget during the Sixth Plan, this reflects the need to start turning ideas into realistic applications that can benefit the country's business industries and ultimately, the country and her people. In addition to the above allocation, several R&D grant schemes have been introduced to date to specifically boost science and technology research developments, including:

Intensification of Research in Priority Areas (IRPA)
" The purpose of IRPA Program is to focus on R&D activities which are in line with the national R&D Priority Areas, and catered for public research institutions, local universities, and private sector working in collaboration with local research institutions and universities on industry-wide research projects.

Industry Research and Development Grant Scheme (IGS)
" The objective of IGS is to increase R&D amongst the private sector, and also to promote closer co-operation between the private sector and the Government research institutions and public universities. The aim is to reduce the gap between research work and commercialisation.

Multimedia Super Corridor Research and Development Grant Scheme (MGS)
" The purpose of MGS is to help local entrepreneurs and businesses, including joint venture with multinational organisations in developing innovative multimedia technologies and applications that will contribute to the overall development of the MSC project. Priority is given to proposals that lead to the development of R&D products and services across the multimedia value chain and the MSC Flagship Applications.

Demonstrator Application Grant Scheme (DAGS)
" DAGS was conceived to facilitate the growth of bottom-up innovations, which are indigenous in design, contain local content and culturally relevant to meet the demands of the Malaysian community. Priority is given to IT and multimedia technology-based proposals that have local content and services.

From the above incentives, it is evident that the Government has initiated wide-ranging measures to boost R&D activities in the country. While the country has a wide array of R&D specific research institutions looking into respective areas of national industries, such as the likes of; Malaysian Agricultural Research Development Institute (MARDI), Rubber Research Institute of Malaysia (RRI), Forest Research Institute Malaysia (FRIM), Malaysian Institute of Microelectronic System (MIMOS), Palm Oil Research Institute Malaysia (PORIM), Standard & Industrial Research Institute of Malaysia (SIRIM), Malaysian Centre of Remote Sensing (MACRES), Fisheries Research Institute, and the Malaysian Institute of Nuclear Technology (MINT), there needs to be a more synergism from all, especially the private
sectors.

Organisations and manufacturers have to follow-up these initiatives with their own programmes to facilitate their own respective industry's growth and progress. For all intent and purposes, arguably MSC-status companies has done significantly little to deliver any new and unique offerings to the local market, let alone the world audience. Already over six years, there has yet to be stories of a world-leading product or application being developed, even though many have inked in R&D as their core business activity in their company profiles, either to acquire its promised benefits, or to solely receive funding for their companies.

The lack of interest or comprehensive implementation of R&D activities could be owed to the fact that it often involves a high sum of investment. The expenses usually include salaries of qualified and experienced researchers, specialised equipment and tools, and although not mandatory, a dedicated laboratory to conduct the research work itself. But more decisively, the lack of short-term returns to the business is perhaps the biggest obstacle for business owners. Furthermore, this situation is not eased by the lack of financial backing by our local bankers and venture capitalists that are more often than not sceptical of new start-ups and in unproven ideas. Well, it was a proven profitable business; it would not be termed as research and development, would it? In testament to this constraint, Malaysian venture capitalists were recently called upon by Deputy Prime Minister Datuk Seri Abdullah Ahmad Badawi to be more accommodating in financing new start-ups and business concepts, especially in the early stages of research and development, as expectations should be balanced between the financier and the
entrepreneur.
Looking down the road, any potential research and development initiatives in the future can only be sustained with a strong foundation and supporting interest from the younger generation of science and technology graduates. Unfortunately, this may seem easier to visualise than to achieve, as foremost of all, the country's current education system and existing academic syllabus is not primarily designed to cater for research-focused learning. It is encouraging to note that various public academic establishments have been designated to promote research and development programmes, including at the Research Management Unit of University Malaya, Counselling and Research Centre at University Utara Malaysia, and the Development and Research Unit in University Technology Malaysia.

However, most private universities - of which many of them are technology-inclined centres - do not seem to place a higher priority on this area of study. Justifiably, they could argue that there are not enough numbers to offer such courses, but possibly if such programmes are made as elective subjects, or even compulsory for all science and technology students, the appreciation and interest of research work will increase substantially.

Having recognised this aspect, the Government had recently announced plans to establish research grants specifically for secondary school students, as an effort to nurture scientific talents among Malaysian youths, especially in the field of information and communications technology (ICT) development. Announced by Science, Technology and Environment Minister Datuk Seri Law Hieng Ding, the grants is to include funding for research in ICT, design, robotics and environment.

Having a research and development-orientated society does not simply mean having every single researcher sitting behind a microscope in a laboratory. Many a times, we have come across discoveries or new technology applications being created from the comfort of our own homes, or as history famously depict, by merely sitting under an apple tree. Discovery lies not just in having the mindset and desire to present your ideas to the world, but also to contribute towards our society's progress and future developments.

Unlike the western world where young scientists and engineers would eagerly transform their own garage laboratory into business ventures, the entrepreneurial sense and risk-taking mindset amongst our local intellectuals is still relatively low. Albeit, the risk are high and that casualties are aplenty for all to hear and fear, but it is perhaps in overcoming these barriers, and having the correct spirit and confidence in our ability that will transform us into becoming innovators rather than mere followers.


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