KUALA LUMPUR, Oct 13 — The government’s continued focus on strengthening the technology and innovation ecosystem through Budget 2027 provides an opportunity to accelerate the transition from research and development (R&D) to commercialisation, industry adoption and tangible economic value, said Mimos Bhd (Mimos).
It said the government’s commitment to advancing Malaysia’s technology and innovation agenda, particularly through the Finance Ministry (MOF) and Science, Technology and Innovation Ministry (Mosti), would help strengthen the country’s R&D capabilities, develop home-grown technologies and translate innovation into economic and social benefits.
The Budget allocated RM6 billion for R&D and commercialisation activities across ministries, while Khazanah Nasional Bhd (Khazanah) and Kumpulan Wang Persaraan (KWAP) separately will invest RM1.2 billion to help local semiconductor companies move into higher-value segments.
“These measures present an opportunity to connect research capabilities more directly with national industrial priorities and market demand, including the development of higher-value technology capabilities and stronger local companies,” Mimos said in a statement today.
It said the budget also allocated RM30 million through the Malaysian Digital Economy Corporation (MDEC) to help 4,000 micro, small and medium enterprises (MSMEs) adopt artificial intelligence (AI) and automate their operations.
It said the measures, together with initiatives to support technology startups, underscored the importance of translating local R&D into practical, industry-ready solutions that could be adopted by businesses and contribute to economic growth.
Mimos President and Group Chief Executive Officer Dr Saat Shukri Embong said the next step for Malaysia is to ensure that these capabilities translate into commercial outcomes, stronger Malaysian intellectual property (IP), industry adoption and economic value.
“The RM6 billion commitment to R&D and commercialisation is an important step in strengthening Malaysia’s technological sovereignty by building our own capabilities, developing home-grown technologies and creating greater value from Malaysian innovation,” he said.
Saat Shukri added that it is crucial for Malaysia to not simply develop more technologies, but instead focus on developing technologies that can be adopted, scaled and used by the industry.
From an operational and industry adoption perspective, Mimos’s Deputy Group Chief Executive Officer and Group Chief Operating Officer, Abdul Rashdee Abdul Kadir, said technology adoption should be able to solve real business and industry challenges, so that it can help businesses increase their productivity gains.
“Whether through AI, automation, smart manufacturing or other advanced technologies, the focus should be on enabling companies, particularly businesses that are ready to scale, improve productivity, efficiency and competitiveness,” he said.
On the other hand, Mimos’s Deputy Group Chief Executive Officer and Group Chief of Staff, Nurezmy A. Majid said sustained technology development requires a coordinated ecosystem between the government, industry, academia and R&D institutions, as it cannot happen in isolation.
“Malaysia needs a strong, connected ecosystem where policy, R&D, industry demand, talent development, and commercialisation work together. Budget 2027 is an opportunity to strengthen these linkages and ensure that national investments in technology capabilities are aligned with Malaysia’s broader economic priorities,” she said.
From a technology perspective, Mimos Group Chief Technology Officer Dr Zulaikha Kadim said the government’s effort to put quantum technology as a future skills area in the Budget reinforced the need to build expertise across strategic technologies such as AI and semiconductors that are increasingly central to economic competitiveness.
“The opportunity is not simply to adopt technologies developed elsewhere, but we should also strengthen our ability to develop, validate and commercialise technologies that carry Malaysian IP and can compete regionally and globally,” said Zulaikha.
Meanwhile, Mimos Group Chief of Corporate Planning and Strategy Dr Hazian Mamat said the Budget 2027 outcomes should be tracked through clear indicators such as industry adoption, technology readiness, Malaysian IP development, private-sector participation and commercial returns.
“We need to look beyond individual projects and consider how today’s investments build tomorrow’s capabilities. This means strengthening the pipeline from R&D to commercialisation, supporting technology adoption and developing the talent required to sustain Malaysia’s competitiveness in strategic technology sectors,” he said.
According to Hazian, this outcome-based approach would be important in ensuring that every investment in innovation contributes meaningfully to Malaysia’s long-term competitiveness. — Bernama