MALAYSIAN TECHNOLOGY STRATEGIC OUTLOOK 2019/2020

Main Drivers Of Growth For Industrial Robot, 2017

Others • Metal industries – more flexibility and cost efficiency • Rubber and plastics industry – more integrated manufacturing concepts • Food and beverage industry – shift to even shorter production runs • Pharmaceutical industry – improving productivity without sacrificing quality

Automotive • Transition from Internal Combustion Engines (ICE) to electric vehicles/ hybrids • Increased complexity • Customisation – increasing mix requires more flexible production • Automation of final assembly • Automotive parts suppliers – more SME’s will use robots Innovation National Science, Technology and Innovation Policy aims for Malaysia to achieve Gross Expenditure on R&D (GERD) of at least 2.0% by 2020. That figure is a slight increment from 2015’s 1.3%, as shown in the table below. This is one of the policy measures to advance scientific and social research, development and commercialisation with the objective of enhancing capacity to generate, deploy and utilise knowledge to move into higher value- added activities. Comparatively, with other countries globally, the set target is commendable but still lower even when compared to 2016’s internationally posted GERD where Republic of Korea recorded GERD per GDP of 4.3%, Israel with 4.2% and other countries that recorded relatively high GERD per GDP above 3.00% were Switzerland (3.2%), Japan (3.15%) and Taiwan (3.1%).

E&E • Continuously increasing demand for batteries, chips and displays • Short life cycles of electronic products • High turnover of people with associated labor shortages • Increasing degree of robot adoption • Higher quality demands on manufacturing process

Source: International Federation of Robotics (IFR)

Gross Expenditure On R&D (GERD)

Location Legend

0.01 - 0.24 0.24 - 0.5 0.5 - 0.96 0.96 - 2.1 2.1 - 4.5

Source: World Development Indicators (WDI)

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Malaysian Technology Strategic Outlook 2019/2020 Intergration of High Technology

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