Malaysian Technology Strategic Outlook

MALAYSIAN TECHNOLOGY STRATEGIC OUTLOOK 2023/2024 Energy, Healthcare & Space Industry

PUBLISHED BY

Malaysian Industry-Government Group For High Technology MIGHT Partnership Hub, Jalan Impact 63000 Cyberjaya Selangor, Malaysia

www.might.org.my

ISSN NO: 2773-5133 E-ISSNNo: 2773-5168

The information in this document is accurate as at the date of publication. MIGHT aims to encourage information sharing and promote knowledge dissemination and discussion through citation of appropriate acknowledgements and attributions to MIGHT or other respective sources.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

MALAYSIAN TECHNOLOGY STRATEGIC OUTLOOK 2023/2024 Energy, Healthcare & Space Industry

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

ACKNOWLEDGEMENTS • Thoughts from the Leadership | YAB Prime Minister of Malaysia • Thoughts from the Leadership | YB Minister Science Technology & Innovation (MOSTI) • Messages from the Joint Chairs & CEO of MIGHT

THE INSIGHT

• The Changing Technology Landscape: A Global Overview • Unleashing Potential: Exploring Malaysia’s STI Scene & Performance • Making Sense of the 3 Sectors as Focus Areas for MTSO 2023/2024

ENERGY INDUSTRY Technology Overview • Introduction to the Energy Industry and its Direction • Industry Trends on Sustainable Energy in Global Energy Mix • Energy Industry Challenges Technology Development & Application • Global Best Practices

• Malaysian Energy Players Involved in the CCUS Movement • Rare Earth Industry Towards Clean Energy Transition Industry Views: • GEF 6 UNIDO MIGHT UNITEN Smart Grid Project TABLE OF CONTENTS

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

HEALTHCARE INDUSTRY 70

Technology Overview • Introduction to the Healthcare Industry & the Technology Scope • Trends in the Healthcare Industry • Supply & Value Chain: Understanding Strengths & Opportunities Technology Development & Application • The Digital Healthcare Transformation • Potential Technology Application for Pharmaceutical, Healthcare Services & Medical Devices Industry Industry Views: • Medicine Security: Lessons from the Pharmaceutical Sector During Crises

SPACE INDUSTRY 88

Technology Overview • Introduction to Space Exploration

• Trends in the Space Industry • Space Industry Challenges Technology Development & Application • Global Best Practices • Space Technology Applications for Malaysia Industry Views: • A New Space Economy, a New Space Race

WAY FORWARD 116

• Partnership the MIGHT Way: Conversation, Collaboration, and Co-Creation (3C) • 3C: Success Stories • 3C: Malaysia (MY)-Turkiye (TR) Programme

The cover design rationale intricately weaves together symbolic elements representing diverse domains. The blue hue embodies the essence of healthcare, reflecting themes of well-being and healing. Neon red accents symbolise space technology, orbits, and exploration, signifying futuristic innovation and boundary-defying advancements. The cube represents the energy, serving as a dynamic powerhouse generating transformative forces. This amalgamation of visual elements aims to convey the interconnectedness and potential synergies among healthcare, space technology, and energy echoing their interconnectedness and potential synergies explored in this enlightening publication.

ACKNOWLEDGEMENTS

EDITORIAL TEAM

We wish to express our deep appreciation for the invaluable contributions and support received from numerous individuals and organisations for the completion of the Malaysian Technology Strategic Outlook 2023/2024. Without the dedicated involvement of these contributors, this publication would not have come to fruition. Our sincere gratitude is also extended to the authors who generously dedicated their time and expertise to this document; we are profoundly thankful for their efforts. Furthermore, we would like to recognise and appreciate the substantial input provided by the reviewers and editors, who played a pivotal role in ensuring the document’s quality, coherence, and overall presentation. Lastly, our heartfelt thanks go out to the dedicated team for their unwavering commitment and hard work in delivering this publication. And special thanks to the members of our management for their thoughtful encouragement and close supervision.

ADVISORS Datuk Dr Mohd Yusoff Sulaiman Rushdi Abdul Rahim Ida Semurni Abdullah Ali

PROJECT DIRECTOR Mohd Zakwan Mohd Zabidi

ANALYSTS Ahmad Hafizi Mohamed @ Adam Ain Zawiyah Norariffin Dr Aini Abdullah Farah Abu Bakar Ir. Mohd Qaharuddin Abdullah Mahalil Amin Abdul Malek Mohamad Azreen Firdaus Abd Aziz Mohd Hafiz Ariffin Muhammad Asyraf Mastor Muhammad Erfan Sefor Rahman Muhammad Haikal Mohd Zaki Muhammad Izham Mohd Mokhtar Natrah Mohd Emran Nik Nurhani Nadirah Kamalruzaman Nor Shahida Razali Nor Syahira Sahari Nur Suraya Mustafar Robert Tai Chiang Vun Siti Halimah Ismail Sri Widias Tuti Asnam Rajo Intan Nik Sufini Nik Mohamed Norsam Tasli Mohd Razali EXTERNAL CONTRIBUTION Haslinawati Besar Sa’aid Universiti Kuala Lumpur - Malaysian Institute of Aviation Technology Prof. Ir. Dr. Izham Zainal Abidin Universiti Tenaga Nasional

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

As we embrace technology and innovation, we will revolutionise industries, spur economic growth, and enhance our global competitiveness. Our nation will become a magnet for investments, attracting leading companies and fostering an environment that encourages startups and small businesses to flourish. Moreover, technology and innovation have the power to solve societal challenges and improve the quality of life for our people. The Malaysian Technology Strategic Outlook (MTSO) sectoral focus areas which include healthcare, energy and space will provide technology-driven solutions that will enhance efficiency, accessibility, and overall well-being. This in turn directly contributes to ‘Malaysia Madani’ that we embrace with enthusiasm and hope which is deeply rooted in the belief that our diversity is our strength - a mosaic of cultures, traditions, and beliefs that make us unique. It envisions a Malaysia where every citizen is treated with dignity and respect, where the principles of democracy, human rights, and good governance are upheld, and where social justice and economic prosperity are accessible to all. By uniting our efforts and embracing technology and innovation, let us create a brighter and better future for our people - a future where the power of technology and innovation drives progress, uplifts communities and fulfils the dreams of every citizen. Yang Amat Berhormat Dato’ Seri Anwar bin Ibrahim Prime Minister of Malaysia FROM THE LEADERSHIP

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

FROM THE LEADERSHIP

In a world propelled by rapid advancements, Ministry Science Technology and Innovation (MOSTI) emerges as the driving force behind our nation’s journey towards a future brimming with possibilities. MOSTI is committed to nurturing a culture of innovation by creating an ecosystem that encourages creativity, risk-taking, and collaboration. We promote investments in cutting-edge research and nurture a vibrant research ecosystem, as well as seek to develop homegrown solutions to complex challenges. Through collaboration between academia, industry, and government, we foster an environment where innovation flourishes and breakthroughs are made in priority sectors. The National Science, Technology and Innovation Policy (NSTIP) 2021-2030 holds the key to unlocking our potential as a nation, charting a course that will elevate us from mere technology users to trailblazing technology developers. Our approach will be rooted in leveraging existing resources, a testament to the strength of our local talent and the wealth of knowledge accumulated over generations. By promoting Research and Development (R&D) in national strategic areas, we embrace innovation as a driving force behind progress. We are committed to building a technology infrastructure, particularly in the digital domain, that paves the way for a more connected, efficient, and empowered future. Together, let us embrace this era of science, technology, and innovation with open minds and hearts. By fostering a culture of curiosity, collaboration, and perseverance, we can build a sustainable future that benefits all citizens and leaves a positive legacy for generations to come.

Yang Berhormat Chang Lih Kang Minister of Science, Technology and Innovation

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

With the launch of the Malaysian Technology Strategic Outlook 23/24, we move further ahead in a journey towards a future characterised by cutting-edge innovations, sustainable growth, and inclusive prosperity. The focus sectors of space, energy and healthcare have been carefully chosen to align with our national priorities and global trends, harnessing the potential of technology to drive progress across our nation. The realm of space exploration beckons us with boundless possibilities, and we are determined to seize this new opportunity and explore this new frontier. Our strategic outlook envisions Malaysia’s participation in satellite technology, and space-based applications that empower various sectors, from agriculture to communication, and expand our horizons beyond Earth’s domain. In the sphere of energy, we envision a future that is sustainable and green. By nurturing renewable energy sources, and adopting energy-efficient practices, we pave the way for a greener tomorrow. Healthcare, as an essential pillar of well-being, calls for advancements that are accessible, inclusive, and innovative. Central to our approach is collaboration - a thread that runs through every aspect of this strategic outlook. We recognise that progress is a collective endeavour, requiring the synergy of government agencies, private sector champions, academia, and global partners. Together, we forge an ecosystem that fosters knowledge exchange, innovation, and entrepreneurial spirit. We extend our heartfelt gratitude to all those who have contributed to shaping this Malaysian Technology Strategic Outlook 2023/2024. Together, we aspire to lead Malaysia to new heights of technological excellence, becoming a beacon of innovation and progress in the global arena. FROM THE JOINT CHAIRS & CEO OF MIGHT

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

ABOUT MIGHT

Three types of partnership in MIGHT

The Malaysian Industry-Government Group for High Technology (MIGHT) emphasises market intelligence initiatives using foresight practices and methodologies to identify technology and business opportunities. MIGHT serves as a think-tank and provides strategic advisory in the prospecting for and promotion of industry development through strategic application of science and technology for Malaysia’s socioeconomic development.

Industry

Academia Government

MIGHT’S Vision

An organisation built on the strength of partnership with local and international members and partners. MIGHT also facilitates and empowers members’ and partners’ success through nurturing, expanding and building high technology capacity of the Malaysian high technology ecosystem by creating opportunities and building competencies. This partnership is driven by localising R&D solutions for growth as well as building the talent for tomorrow. To serve the nation in advancing competency in high technology through partnership towards sustainable development.

Platform for Technology & Industry Clusters

Foresight & Future Studies

Nurture & Invest to Build Technology Capabilities

Strategic Advice to Government and Industry

Programmes and activities include building strategic partnerships and alliances, technology acquisition and nurturing capacity building as well as strengthening the growth of these sectors through policy intervention and flaghsip programmes.

EXECUTIVE SUMMARY The theme of this 2023/2024 edition revolves around 3 sectors namely space, energy, and healthcare. The global space industry is growing, with ample opportunity for Malaysia to tap into the market possibilities and further boost its economy. Opportunities abound in the areas of satellite manufacturing, launch services, space exploration-related activities and satellite data applications. Space technology has broad multi-sectorial applications, including in telecommunications, agriculture, and healthcare, and Malaysia is actively investing in research and development to harness space technology for innovation in these and other sectors. It is also essential for Malaysia to continuously monitor and adapt to global trends, such as shifts in international space policies and collaborations to remain relevant.

As Malaysia’s aging population continues to grow, a growing demand for healthcare services and pharmaceuticals and medical devices is evident. Investments in healthcare infrastructure and services are therefore essential, and continued investment in medical research and development crucial. While this will increase the nation’s capacity for advancements in healthcare technologies, treatments, and pharmaceuticals, it will also increase the country’s capacity and capability to handle emerging diseases. Investors and businesses alike should seize these opportunities and make strategic investments for collective economic growth and a more diversified and resilient economy. Collaborations with established international agencies and organisations will fast-track Malaysia’s advancement in these sectors through knowledge-sharing, cost-sharing, and access to expertise. Malaysia has significant potential for economic growth in these sectors.

As for energy sector, Malaysia is fully committed to achieving 70% renewable energy capacity by 2050 in line with global sustainability goals. This provides substantial opportunities for investments in renewable energy, as well as embracing and investing in cutting-edge renewable energy technologies. Incorporating environmental considerations into energy projects, including mitigating ecological impact, is just as essential. Innovations in energy storage, grid management, and energy efficiency can further the transition to renewables and gear industries towards responsible and sustainable energy development.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

THE INSIGHT

THE CHANGING TECHNOLOGY LANDSCAPE: A GLOBAL OVERVIEW

GLOBAL TECHNOLOGY TREND

AI is the buzzword of today. The age of human-machine interweaving with each other seems to have begun and is synonymous with the 5 th Industrial Revolution. What used to be heavily discussed in theory is now presenting itself in the physical domain, and we will be stumbling upon the word ‘cognitive’ more often than ever, as that is the backbone characteristic of AI. What do we really know about it? We understand that it is able to mimic the problem-solving and decision-making that human beings make to a certain extent. That brings us to a bigger buzzword – Generative AI. One example of such generative AI is none other than ChatGPT.

Launched in November 2022, this is an AI chatbot developed by OpenAI. Due to its well-articulated responses, it garnered massive attention within a short period of time, despite its obvious little flaws. No doubt, it has successfully displayed its ‘prowess’ which is superior to earlier chatbots. In simplified machine language terms, GPT which stands for Generative Pretrained Transformers, is a bunch of neural networks trained using internet data to generate responses in the most convincing and human-like form as it possibly can. Use cases of ChatGPT include converting a text or statement into several different forms, analysing data, creating content, undertaking translation, coding, making grammar checks, and many more. It does not come without limitations of course. One of the main concerns is that it produces ‘hallucinating’ responses, which means that at times, it provides responses that seem plausible and convincing but are illogical. In this emerging market of AI chatbots, its rivalry list has grown since ChatGPT came into the limelight, with the likes of Google’s Bard AI, touted as the most powerful of its alternatives.

AI cuts across various industries and is definitely transforming the world we live in.

Healthcare Automobile

Education

Space Exploration

Finance

Gaming Robotics

Surveillance

Social Media Entertainment

Agriculture E-commerce

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry 18

We believe that AI is the defining technology of our time. It is revolutionising the way we work; helping us to innovate, be more creative, and productive, and helping us solve critical problems in important areas such as medicine and climate change. Nations that are able to rapidly gain fluency in AI—bearing in mind the need for responsible use for inclusive and sustainable positive impact—will be able to seize an opportunity for exponential progress toward socio-economic development targets. Antony Cook, Corporate Vice President and Deputy General Counsel, Microsoft “

Can a machine neural network outsmart a human neural network, or put simply, will AI take over the world? Here are some of its limitations, risks, and dangers:

Uncontrollable self-aware AI

Lacks creativity

Limited ethics

Privacy violations

Algorithmic bias

As we progress beyond 2020, we have witnessed countless profound technological advancements that have changed and are continuously changing how we work and live. Innovations in technology apply to most categories, including communications, energy, biomedical, transportation, and manufacturing.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

TECHNOLOGY TREND 1: COMMUNICATIONS Communication technologies also include sensors in the form of IoT and high-capacity data storage in the form of cloud technology. Cloud technology will be further enhanced with a distributed cloud whereby one cloud may run in multiple locations. Hyperscalers are enormous data centres, with large networks of servers connected to a single network.

The future of communications is also about green and cubic broadband networks that can provide harmonised communication and sensing (HCS), amongst others: The connections would be AI-native, secure, and trustworthy.

From connecting billions of people to connecting hundreds of billions of things

Harmonised Communication and Sensing (HCS)

Computing

AI-Native

Sensors

Individuals

Displays

Cloud

Cubic Broadband Network

Edge

Organisations

Communication Network 2030

Green and Low-carbon

Machines

Content

Vehicles

Homes

Security and Trustworthiness

Deterministic Experience

Appliances

Huawei, Communications Network 2030

High-speed networks include the Internet, and future trends will be about connectivity for everyone, and we will also be witnessing terabyte internet speeds. Internet speed is generally the time the connection can download or upload data. Japan set a new world record in 2021 with 319 terabytes per second (Tbps), which means getting all of Netflix’s offerings immediately after clicking the download button. In other words, 57,000 full-length films can be downloaded in less than one second. Countries and nations have stressed the importance of being intelligently connected, such as China in its 14 th 5-year plan, EU’s 2030 Digital Compass Plan, and Vision 2030 of the USA.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry 20

TECHNOLOGY TREND 2: ENERGY

According to several research, there is a growing interest in renewable energy as the Earth’s population continues to grow. They are clean and do not produce greenhouse gases. It is vital to overcome the challenges of climate change and energy security. For instance, solar panel technology is the process of converting sunlight into electricity. Solar panels are made up of photovoltaic (PV) cells, which are semiconductor devices that convert light into electricity. When sunlight hits a PV cell, it knocks electrons loose from their atoms. These electrons flow through the cell, creating an electrical current. Energy resources are raw materials that are used to generate energy. There are two types of energy which are renewable energy and non-renewable. Renewable energy resources are those can be replenished over time. Non- renewable energy resources are those that cannot be replenished over time. The world’s energy demand is growing and there is a need to find sustainable sources of energy. Sustainable aviation fuel (SAF) is a type of fuel produced from sustainable feedstocks. It is similar in chemistry to traditional fossil jet fuel, but it has a lower carbon footprint. SAF can reduce carbon emissions by up to 80% compared to traditional jet fuel over the lifecycle of the fuel. Jet fuel is a high-energy fuel that is essential for commercial aviation. It is this energy density that has enabled commercial flight to become possible. Today, there are no other viable options for transporting groups of people quickly over very long distances, so we are dependent on jet fuel in aviation. Additionally, global oil demand is expected to rise by 2.2 million barrels per day (mb/d) in 2023, reaching a new record of 102.1 mb/d. However, because of persistent economic headwinds, which are evident in the deepening manufacturing slump, we have lowered our 2023 growth estimate for the first time this year by 220,000 barrels per day.

Fueling a sustainable future

Forestry waste

Used cooking oil

From waste to wingtip the production journey for sustainable aviation fuel (SAF) using SAF can reduce lifecycle carbon emissions by up to 80% compared to the traditional jet fuel it replaces

Fuel is delivered to airport and into wing

Household waste

Feedstock is collected - such as household waste or watse oils.

Feedstock is converted to sustainable aviation or waste oils

bp.com

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

Genomics is the study of genes and their functions. It is a rapidly growing field that has the potential to improve human health and well-being. Genomics can be used to understand the structure and function of genes, as well as the downstream biological products that are produced by genes. This information can be used to develop new treatments for diseases, prevent diseases from developing, and diagnose diseases at an early stage. Human genomics research has the potential to achieve several public health goals. For example, it can be used to reduce global health inequalities by providing developing countries with efficient, cost-effective, and robust means of preventing, diagnosing, and treating major diseases. Digital twin technology is becoming increasingly popular in many industries. The digital twin market is expected to grow from USD6.75 billion in 2021 to USD96.49 billion by 2029, at a CAGR of 40.6% during the forecast period. It has the potential to improve the efficiency, safety, and patient outcomes in the healthcare industry. Still in its early stages of development, the new technology has the potential to revolutionise the way healthcare is delivered. TECHNOLOGY TREND 3: BIOMEDICAL The healthcare industry is a large and growing sector that is expected to continue to expand in the future. There are several factors driving this growth, including an ageing population, the increasing prevalence of chronic diseases, and technological advances. A digitised healthcare system can collect and analyse large amounts of data, which can be used to identify diseases earlier and more accurately. A digitised healthcare system has the potential to improve the quality of care, reduce costs, and make healthcare more accessible to everyone.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry 22

75 YEARS OF GENETICS AND GENOMICS IN THE NATIONAL HEALTH SERVICE (NHS) 1948

RESEARCH AND DISCOVERY

HEALTHCARE

BIRTH OF THE NHS

GENETIC DISCOVERIES

1946 1948 1958

1953 1956 1961

First genetic counselling clinic in Europe is established at Great Ormond Street Hospital NHS is launched The first consultant clinical geneticist is appointed in the UK at Great Ormond Street Hospital

The DNA double helix structure is identified The number of human chromosomes is established Genetic code is deciphered: How DNA provides the instructions to make an organism

EARLY GENETICS SERVICES

FIRST DNA SEQUENCING

1960 1971

Cytogenetics begins to be used for diagnoses Cytogenetics is funded in some laboratories by the NHS

1977

Sanger sequencing is developed and first genome (a bacteriophage) is sequenced

COPYING DNA

1983

Polymerase chain reaction (PCR), a way of making copies of DNA, is developed— essential for most sequencing technologies

EARLY DIAGNOSTICS

1985

First NHS-funded DNA diagnostic service is launched

TESTING AND DIAGNOSTICS

Human Genome Project is completed UK government announces 100,000 Genomes Project Cost of sequencing a whole genome reduces to $1,000 First patient enrolled in 100,000 Genomes Project receives diagnoses GENOMICS IN THE NEW MILLENNIUM Human Genome Project begins First bacterial genome is sequenced First human chromosome (22) is sequenced GETTING SERIOUS ABOUT SEQUENCING 100,000 whole genome is sequenced NHS patients having a sequencing test given a choice to allow approved researchers to access their de-identified genomic data and samples for clinical studies Genomics England launches Newborn Genomes Programme to explore benefits and challenges of sequencing and analysing newborns’ genomes 100,000 GENOMES AND BEYOND

1997 2001

DNA sequencing is used within NHS diagnostic services Molecular testing for BRCA1&2 mutations is conducted in high-risk families

1990 1995 1999

SETTING THE DIRECTION FOR

2013 2014

First multigene sequencing diagnostic test for tumour profiling is conducted in the NHS NHS Genomics Education Programme is launched to support NHS staff to have the right knowledge, skills, and experience in genomics NHS Genomic Medicine Service is established with a network of seven Genomic Laboratory Hubs and a new National Genomic Test Directory Genomics Education Programme launches GeNotes to support clinicians in accessing the right genomic test for their patient Five-month old baby with spinal muscular dystrophy becomes first NHS patient to be treated with life-changing gene therapy NHS publishes Accelerating Genomic Medicine in the NHS—a strategy for embedding genomics in the NHS over the next 5 years REALISING THE VISION

2003 2012 2014 2016

2018

2021

2018 2018

2021

2022

2023

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

TECHNOLOGY TREND 4: TRANSPORTATION Flying cars are one of the transportation modes of the future, powered by sustainable or green fuels. The world’s first fully electric flying car was certified by the Federal Aviation Administration (FAA). It can also travel on land at a low speed of 25 mph. Autonomous vehicles are also seen as the technology driving the future transportation industry. Besides cars, we will witness hyper-fast trains, boom-free supersonic flights, space travel and colonisation of other planets, and driverless commercial vehicles.

Advanced air mobility (AAM) is believed to be the safe, affordable, and sustainable way to travel in the future. Will it be commonplace by 2030 as one air mobility company, Lilium, believes it to be? With the right combination of policy and infrastructure to support the technology (the manufacturing of the vehicle and what fuels it), there is no reason not to believe that we will be driving/flying one by then. Travelling by train will also be revolutionised if hyperloop technology becomes a reality. It is a super- speed ground-level vacuum tube transportation system where we can travel in a hovering pod at speeds reaching 1,220 kmh, which is just a little shy of the speed of sound.

All the technological advancements in transportation are not about vehicles only. They must be supported by intelligent infrastructure, structured traffic zones, and workable policies. As human habitats converge into smart cities, demand for fast, safe, efficient, and environmental- friendly modes of transport would naturally rise.

Space exploration is seen to be more vital now than ever before as the Earth’s situation is becoming more and more precarious. The following are the areas that can and will be delved into:

R&D

MONITORING

COLONISATION OF OTHER PLANETS

SPACE TOURISM

Weather prediction, solar cells, UV filters and biomedical experiments can be conducted in space

Safeguarding the solar system from asteroids etc.

Potential colonisation of other bodies in the solar system to survive Earth

Potential experiences include space stations, the moon, other planets, asteroids

SPACE MINING

EXPLORATION

MOON 2024

BIOMEDICAL R&D

Potential mining of rare minerals on asteroids

Continuous and expanded exploration of the universe

Landing on the lunar south pole by NASA

It was observed in 2021 that more change had occurred in the previous six years compared to the last 60 years . Mobility hubs will become more common, supported by high-speed telecommunications for commuters whilst adhering to sustainability and environmental-friendliness in solutions.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry 24

TECHNOLOGY TREND 5: MANUFACTURING Robotic process automation (RPA) is a mechanical technology that will continue to grow in innovation, and more companies and organisations will adopt it to improve operational efficiency with tactical automation. By 2050, technological advancements in robotics and automation will put science fiction into reality, more or less. In 2017, robotics was seen to be the next technological revolution. By the end of 2033, the global industrial robotics market is estimated to surpass USD220 billion. Now it stands at USD39 billion.

Manufacturing of the future is formation of intelligent factories, shaped by four trends, according to Microsoft:

This is about preventing supply chain disruptions to ensure resilience across materials, inventory, and the whole distribution network.

The industrial metaverse is built on the foundation of AI, digital twins, mixed reality, and cloud-to-edge technologies.

A connected workforce is critical to improving operations by streamlining daily work with a connected workforce for increased efficiency, safety, and productivity.

Sustainability is a top priority for manufacturers who are adopting eco- friendly practices and implementing initiatives.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

GLOBAL TOP INNOVATORS The Global Innovation Index (GII) ranks 132 countries on 81 indicators based on the innovative performances of the economies using innovation matrices highlighting the countries’ strengths and weaknesses. For 2022, the following shows the top three economies by income groups:

In 2022, several technological breakthroughs have been identified. Here are some according to Forbes:

HIGH INCOME

UPPER MIDDLE-INCOME

Nuclear Fusion: The successful attempts to create ‘self-heating burning plasma’ are hoped to lead to commercially-viable fusion reactors that could provide us with limitless, cheap, and clean energy sources.

1. Switzerland

LOWER MIDDLE-INCOME

1. China

LOW-INCOME

2. United states

1. India

3. Bulgaria

1. Rwanda

The year saw a significant milestone reached, with the Axiom-1 becoming the first privately-funded crewed mission to dock with the International Space Station (ISS).

2. Vietnam

3. Sweden

2. Madagascar

3. Malaysia

3. Iran (Islamic Republic of)

3. Ethiopia

The Orca is a carbon removal plant in Iceland which is the biggest yet and can capture 4,000 metric tons of CO 2 in a year.

According to this report, only a few countries have consistently delivered peak innovation performance. Switzerland tops the list for the 12 th consecutive year, and the US climbed to the second spot.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry 26

At the industry or company level, patents are strong indicators that reflect a company’s investment and commitment to innovation, and as the World Intellectual Property Organisation (WIPO) has described, a patent is “an exclusive right granted for an invention. In other words, a patent is an exclusive right to a product or a process that generally provides a new way of doing something or offers a new technical solution to a problem” . Samsung, a South Korean electronics and IT company, ranks number one. Most of the top 10 companies are from the IT/ICT, electronics and communications industries, except for Toyota, which is an automotive manufacturer. The following graph shows the top 10 innovators for 2022 based on the number of patents granted in that year.

Number of Patents Granted in 2022

7000

Position

Number of patents

6,248

6000

5000

4,398

4000

3,024

2,836 2,694

3000

2,641 2,625

2,418 2,285

2,214

2000

1000

NASDAQ, Jan 2023

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

Industry 5.0 (I5.0) integrates Industry 4.0 (I4.0) and is more human-centric to address challenges faced by the global population, for example, pandemics, resource depletion, natural disasters, growing economic disparity, and ageing societies. Hence, this brings about Society 5.0, where humans are at the centre of innovation. INDUSTRY 5.0 AND THE QUINTUPLE HELIX DESIGN APPROACH TO TECHNOLOGY

Here are the pillars of Industry 5.0 :

a. A human-centric industry that puts human needs and interests at the core of the production process. The question to ask would be, ‘What can the Industry 5.0 technology do for workers?’ Humans provide critical and creative thought processes, while robots conduct mundane, tireless, and precise processes. b. A resilient industry that moves with a high degree of robustness and increased agility in handling vulnerabilities. c. A sustainable industry that helps businesses reduce environmental impact by developing circular economy processes. This can be achieved, for example, by reducing energy consumption, greenhouse emissions, and waste. It is also about conserving natural resources and safeguarding them from depletion. MTSO 1.0 and MTSO 2.0 mentioned I4.0 as being defined by digitalisation, where machines and processes are connected and can make confident decisions without human intervention. The reports also made a note for more cautious steps towards I5.0, as I4.0 was seen as the ‘rise of machines that will likely replace the traditional routine jobs currently being performed by humans.’ Henceforth, I5.0 applies the Quintuple Helix model, which is a broader perspective incorporating natural environments and society.

The Subsystems of the Quintuple Helix Model

Natural environment, natural environments of society

Academia universities higher education system

Industry, firms, economic system

State, government, political system

Media-based and culture- based public

Carayannis, Barth, & Campbell, 2012

The Quintuple Helix model was co-developed and introduced in 2010 by Carayannis and Campbell. It is timely to apply the concept to the realm of technological advancements to ensure that the environment and society are not left behind as nations continue to grow and expand.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry 28

GLOBAL CHALLENGES

Technology advancements have always been for the good of mankind. Even though they have become increasingly complicated, they have also become increasingly connected. Today, they can be the ‘go-to’ solutions to solve our global challenges. Let us look at some of these global challenges and how each can be addressed using technology:

Sustainable development and climate change are the environmental challenges of today. They include access to clean water, deforestation, global warming, etc. ENVIRONMENTAL

ECONOMICAL

The threat of war, geopolitical unrests, trade barriers or sanctions, and financial crises, are examples of challenges that would impede economic growth, regardless of the use of technology to foster growth of industries and communities or preservation of the environment.

Hunger and malnutrition, population growth, migration and density, rising prices of food/water/energy, poverty, economic inequality, education, unemployment. These are the social challenges that most countries face today. SOCIAL

POLITICAL

Examples include maintaining peace and resolving conflicts, terrorism, taxation, governing policies, globalisation, government spending. These are just a few of the challenges seen from the political angle.

Addressing these global challenges will require all stakeholders to unite and forge together by:

a. Leveraging identified potential frontier technologies to realise a sustainable and inclusive growth for Malaysia. b. Complying with current policy frameworks to leverage frontier technologies and aspirations of the nation, whilst ensuring that they are deployed responsibly and by the highest ethical standards. c. Continuously collaborating in the deployment of frontier technologies to have the right impact to happen, between the relevant parties, adhering to the Quintuple Helix model of sustainable development.

Malaysian Technology Strategic Outlook 2023/2024 Energy, Healthcare & Space Industry

Unleashing Potential: Exploring Malaysia’s STI Scene & Performance

MALAYSIA’S JOURNEY

Malaysia has been steadily establishing itself as a dynamic hub for science, technology, and innovation (STI). As the world navigates the fast-paced currents of the 21 st century, Malaysia has embarked on a journey of discovery, embracing its untapped potential and carving a remarkable path in the realms of scientific advancement and technological ingenuity. With a rich tapestry of cultural heritage and a forward-looking approach to progress, this vibrant nation is unwaveringly committed to fostering a fertile ground for creativity and innovation. In this article, we delve into the captivating landscape of Malaysia’s STI scene, unveiling the nation’s groundbreaking achievements, pioneering initiatives, and the multifaceted endeavours that collectively fuel its ascent as a rising star in the global STI arena.

Key policies that shaped Malaysia’s growth and transformation from resource-based to industry- based and then innovative nation are the Malaysia Plans, New Economic Model, Vision 2020, and Shared Prosperity Vision. However, with the advent of the Fourth Industrial Revolution (4IR), Malaysia is seen as more proactive in establishing policies that are aligned to global developments. Among the newly-launched policies of late are (not limited to): 1. Twelfth Malaysia Plan 2021-2025 (RMK12) 2. National Science, Technology and Innovation Policy (DSTIN) 3. 10-10 MySTIE Framework 4. National 4IR Policy 5. Malaysia Digital Economy Blueprint 6. Industry4WRD 7. National IOT Strategic Roadmap

8. National Biotech Policy 2.0 9. National Space Policy 2030

10. New Industrial Masterplan (NIMP) 11. National Energy Transition Roadmap

On top of that, the National Science Council was set up in 2016 to address the critical issues pertaining to the developments of STI and its governance. This council is chaired by the Hon. Prime Minister of Malaysia. However, it was reported that the majority areas of economy and science was not common or aligned. STI do not have a direct link to economy. Embracing the dynamic intersection of STI, Malaysia has emerged as a thriving hub in this ever- evolving landscape. Navigating the swift currents of the 21st century, the nation has embarked on a compelling journey, unlocking its latent potential and charting an impressive course in scientific progress and technological brilliance. Rooted in a rich cultural heritage and propelled by a forward-thinking ethos, Malaysia is steadfast in its dedication to cultivating an environment conducive to creativity and innovation. This exploration delves into the captivating panorama of Malaysia’s STI sphere, unraveling the nation’s pioneering achievements, groundbreaking initiatives, and the diverse endeavours propelling it as a rising star on the global STI stage.

Industry collaboration is essential for driving innovation and growth in today’s rapidly changing business landscape. By working together, businesses can pool their resources, share their expertise, and develop new solutions that create value for their customers and stakeholders. Tan Sri Datuk Dr. Ir. Ahmad Tajuddin Ali, FASc Joint Chairman (Industry), MIGHT

TAN SR TAJ

LEARNING FROM OTHERS

Key global assessment reports were reviewed and studied to ascertain the key indicators and parameters for measuring major areas of development of a country. At this juncture, several reports were studied to identify areas of competitiveness, issues, and challenges. Below are the global reports reviewed:

1. The Global Competitiveness Report (GCR) 2. The Global Innovation Index (GII) 3. The World Talent Report (WTR) 4. The Sustainable Development Report (SDR) 5. World Happiness Report (WHR) 6. Human Development Report (HDR)

The reports serve as key references in benchmarking Malaysia’s global performance against other countries in key areas of concern.

Justification

Europe

Asia Pacific

Justification

1. Performance in the key global reports above 2. Similar geopolitical situation as Malaysia 3. Similar locality

SINGAPORE INDONESIA SOUTH KOREA VIETNAM

1. Performance in the key global reports above 2. Notable key economic indicators

NETHERLANDS FINLAND SWITZERLAND GERMANY

RANKING OF SELECTED COUNTRIES IN VARIOUS GLOBAL REPORTS Ranking of Selected Countries in Various Global Reports

140

120

100

Chart toppers such as Switzerland, Finland, and especially Singapore, have not only become among the world’s most technologically advanced, innovative, and dynamic economies in the world, but are also providing better living conditions and better social protection, are more cohesive and more sustainable than the rest, apart from their robust policy support and implementation.

GII2022 SDG2023 WHR2023 WTR2022 GCR2019 HDR2020

MIGHT Analytics

MALAYSIA’S GLOBAL RANKINGS

out of 189 countries

Human Development Index 2021 • The Human Development Index (HDI) measures a country’s average achievement in key dimensions of human development: A long and healthy life, being knowledgeable, and having a decent standard of living. The index is released by United Nations Development Programme (UNDP) and has been published from 1990 until 2020. • The main objective of HDI is to provide a simple measure of human progress which is built around people’s freedoms to live the lives they want by assessing a population’s average longevity, education, and income. • Malaysia’s HDI Index score improved by 26% from 0.643 to 0.810 between 1990 and 2019, while the score increased by 0.62% from 0.805 to 0.810 in 2019 compared to 2018. Malaysia was ranked 62 out of 189 nations and territories in the very high human development category.

78 33 out of 166 countries

out of 63 countries

World Talent Ranking 2022 •

SDG Index 2022 • The Sustainable

According to the 2023 IMD World Talent Ranking (WTR), Switzerland maintained its top spot, Luxembourg moved up to second place, and Iceland retained the third spot. As for Asia countries, Malaysia remained in 33 rd place globally while Singapore ranked first.

Development Report (SDR) is a global assessment of countries’ progress towards achieving the Sustainable Development Goals. Malaysia ranked 78 th globally based on the SDG Report 2023.

•

36 out of 132 countries

out of 150 countries

out of 64 countries

Malaysia’s Competitiveness Index 2023 • The IMD World Competitiveness Yearbook (WCY), first published in 1989, is a comprehensive annual report and worldwide reference point on the competitiveness of countries which it analyses. It ranks countries according to how they manage their competencies to achieve long-term value creation in terms of political, economic, and social dimensions. • Malaysia ranked 27 th for competitive economies according to the 2023 IMD World Competitiveness Ranking (WCR) due to the high inflation rates. • Malaysia needs reliable domestic energy production, strong supply networks, and beneficial trade balances to maintain or increase levels of prosperity and to improve the ranking.

Global Innovation Index 2022 • According to the report, Malaysia was the third most innovative country after China and Bulgaria. • As for ASEAN countries, Malaysia remained in second place after Singapore. • In addition, Malaysia was in the first position for two indicators, namely high- tech exports and creative goods exports.

World Happiness Index 2023 • Malaysia was ranked 79 th on the World Happiness Index 2023 Report with a score of 5.384, ahead of Indonesia and China. •

Published by the UN Sustainable Development Solutions Network, the report draws on global survey data from people in more than 150 countries. Countries are ranked on happiness based on their average life evaluations over the three preceding years, in this case 2020 to 2022.

•

THE R&D LANDSCAPE IN MALAYSIA

Research & Development (R&D) refers to activities that comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, which could then be used to devise new applications. While R&D has always been synonymous to universities and research institutions, it also plays a critical role in the long-term success of companies which in turn, translates to the growth of their respective economies.

Top 5 R&D National Priority Areas by Expenditure, 2020 (%)

R&D Expenditure by Three Types of R&D Activities

28.1% Energy Security

Basic research 27.7%

16.4% Medical & Healthcare

There are three types of R&D which are categorised by the nature of activity as follows: • Basic research • Applied research • Experimental research

14.8% Food Security

Applied research 26.8% Experimental development research 45.5%

10.5% Others

9.5% Environment & Climate Change

The National Priority R&D Areas are areas that have been of major concern to Malaysia over the past many years as they affect our economic growth and the people’s well-being, i.e. energy security, healthcare, food security, and climate change. Hence, research in these areas need to produce beneficial impact to the society and nation, providing pragmatic solutions to pressing economic needs and social issues.

National Survey of Research and Development (R&D) in Malaysia 2021

According to Datuk Seri Mohamed Khaled Nordin, the Minister of Higher Education, the following five guiding principles determine the value of the research: • All types of research are important, but some are more critically strategic • Research fundings need to be sourced through strategic collaborations and not solely be dependent on the government • Consortiums of research, transcending disciplinary boundaries, and that are implemented on a much longer term, are of higher impact

• Research should be conducted responsibly and be accounted for • Research should be among the key aspects of a university’s income

R & D Expenditure by R &D Expenditure by National Priority Areas, 2020 R&D Expenditure by National PriorityAreas, 2020

Type of Research (RM Million), 2010 - 2020 R&D Expenditure by R&D Expenditure by Type of Research (RM Million), 2010 - 2020

67.1% Energy Security

226

4468

838

6.7% Environment and Climate Change

2341

3324

1175

10.8% Other

217

5669

493

1147

7250

1609

3.1% Plantation Crops and Commodities

311 641

2984

2989

3.5% Biodiversity

756

3544

3.4% Medical and Healthcare

Experimental Development

Applied

Basic

Applied

Experimental Development

When it comes to business enterprises, their R&D expenditures primarily emphasise applied research, enabling them to develop products that are challenging for competitors to duplicate. Concurrently, these R&D endeavours can enhance productivity, thereby boosting profit margins and giving them a competitive advantage.

1.7% Transportation and Urbanisation

1.6% Cyber Security

1.1% Food Security

1.0% Water Security

• Cost Management - R&D is not only conducted for product improvement, it can also contribute towards managing operating costs which often take up a substantial portion of a company’s expenses. Research into efficient technologies and practices can lead to cost savings, and increased productivity will make businesses more competitive. While business entities do conduct research according to the National Priority Areas, 67.1% of them focus on Energy Security. Undeniably, energy security has direct and indirect impact to these business owners. Numerous industry participants engage in research within the energy security domain for several compelling reasons: 1. Resource Dependence Management 2. Risk Mitigation 3. Regulatory Compliance

0.3% Other Funds

3.4% Foreign Funds

1.7% Business Enterprises 7.7% Government

Source of R&D Funds, 2020

86.9% Institution - owned

• Innovation and Sustainability 1. Competitive Advantage (Being proactive) 2. Supply Chain Resilience 3. Market Trends 4. Managing Public Perception

Almost 90% of the funding is sourced internally, meanwhile entities utilise their own fundings to conduct the research.

• In summary, industries conduct research in the energy security field to safeguard their operations, reduce risks, manage costs, stay compliant with regulations, and position themselves for a sustainable and competitive future in a rapidly evolving energy landscape.

National Survey of Research and Development (R&D) in Malaysia 2021

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