Malaysian Technology Strategic Outlook

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

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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