KUALA LUMPUR, Oct 13 (Bernama) -- MIMOS Berhad welcomes the Government’s continued emphasis on strengthening Malaysia’s technology and innovation ecosystem and views Budget 2027 as an important opportunity to accelerate the transition from research and development (R&D) to commercialisation, industry adoption, and tangible national economic value.

MIMOS also acknowledges the Government’s commitment to advancing Malaysia’s technology and innovation agenda, particularly through the Ministry of Finance and the Ministry of Science, Technology and Innovation (MOSTI). These priorities provide an important foundation for strengthening Malaysia’s R&D capabilities, developing home-grown technologies and translating innovation into meaningful economic and societal outcomes.

The Budget’s RM6 billion allocation for research, development and commercialisation activities across ministries provides an important national framework for strengthening the journey from research to market. Separately, Khazanah and KWAP 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. The Budget also includes an RM30 million MDEC fund to help 4,000 MSMEs adopt AI and automate their operations, alongside measures to support technology startups. Together, these initiatives underscore the importance of translating local R&D into industry-ready solutions.

As Malaysia advances its technology agenda, MIMOS believes that the next phase of growth must go beyond investment in research infrastructure and technology development. Greater emphasis should be placed on ensuring that home-grown technologies are translated into Malaysian intellectual property (IP), commercially viable products and solutions, higher productivity, high-value employment and stronger Malaysian companies.

Dr Saat Shukri Embong, the President and Group Chief Executive Officer (PGCEO) of MIMOS Berhad, said the success of Malaysia’s technology agenda should ultimately be measured by the value created for the nation.

“Malaysia has built significant capabilities in R&D, technology and innovation. The next step is to ensure that these capabilities translate into commercial outcomes, stronger Malaysian IP, industry adoption and economic value. Budget 2027 can play an important role in strengthening this pathway, from research to technology development, to commercialisation and ultimately to impact. 

The RM6 billion commitment to R&D and commercialisation, together with the focus on moving local semiconductor companies into higher-value activities, presents an opportunity to connect research capabilities more directly with national industrial priorities and market demand. This is also important in strengthening Malaysia's technological sovereignty by building our own capabilities, developing home-grown technologies and creating greater value from Malaysian innovation.”

Dr Shukri added that Malaysia’s applied R&D institutions have an important role to play in bridging the gap between technological capability and market adoption.

“Our objective should not simply be to develop more technologies, but to develop technologies that industry can adopt, scale and use to become more productive and competitive. This is how R&D investment ultimately creates value for the Malaysian economy.” 

From an operational and industry adoption perspective, Abdul Rashdee Abdul Kadir, MIMOS Berhad’s Deputy Group Chief Executive Officer and Group Chief Operating Officer, said greater attention should be given to helping businesses translate technology investment into measurable productivity gains.

“Technology adoption must ultimately solve real business and industry challenges. Whether through AI, automation, smart manufacturing or other advanced technologies, the focus should be on enabling companies, particularly businesses that are ready to scale, to improve productivity, efficiency and competitiveness. The RM30 million MDEC fund announced under Budget 2027 will help 4,000 micro, small and medium enterprises (MSMEs) adopt AI and automate their operations. The programme will also train and certify 5,000 AI professionals. This is one example of the opportunity to connect technology developers with businesses that can benefit from practical, measurable solutions.” 

Abdul Rashdee said stronger mechanisms to connect technology developers with industry would help accelerate the movement from technology readiness to real-world deployment.

“The measure of success is not simply how much technology we develop, but how effectively that technology is adopted, deployed and scaled. A stronger 3 R&D-to-industry pathway will allow Malaysian companies to capture greater value from technology investment.” 

Meanwhile, Nurezmy A. Majid, MIMOS Berhad’s Deputy Group Chief Executive Officer and Group Chief of Staff, said sustained technology development requires a coordinated ecosystem involving Government, industry, academia and R&D institutions.

“Technology development 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. 

This includes connecting R&D institutions with industry, investment and talentdevelopment pathways so that promising technologies can progress from validation to adoption and scale.”

Nurezmy added that strengthening the national technology ecosystem would also help Malaysia develop and retain the capabilities needed for future industries.

“We need to build not only technologies, but also the people, institutions, partnerships and pathways that allow those technologies to create sustained national value. This includes stronger collaboration between Government, industry, academia and R&D institutions.” 

From a technology perspective, Dr Zulaikha Kadim, Group Chief Technology Officer of MIMOS Berhad, said Malaysia should continue strengthening strategic technology capabilities, particularly in areas such as artificial intelligence (AI), semiconductors, and digital technologies.

“AI and semiconductor technologies are increasingly central to economic competitiveness. Malaysia must continue building indigenous technological capabilities while ensuring that our R&D efforts generate intellectual property and solutions that can be developed, protected and commercialised locally. Budget 2027 identifies quantum technology as a future skills area. It also states that NACSA and the Malaysian Communications and Multimedia Commission (MCMC) will develop local post-quantum cryptography technologies to protect data against threats from quantum computers. These priorities reinforce the need to build expertise across strategic technologies while ensuring that research is directed towards relevant national and industry needs.” 

Dr Zulaikha said strengthening local technology capabilities would enable Malaysia to participate more meaningfully in higher-value segments of the global technology ecosystem.

“The opportunity is not simply to adopt technologies developed elsewhere. We should also strengthen our ability to develop, validate and commercialise technologies that carry Malaysian IP and can compete regionally and globally.”

Ir Dr Hazian Mamat, Group Chief of Corporate Planning & Strategy, MIMOS Berhad, said Budget 2027 should continue to encourage technology investments that are linked to clear and measurable economic outcomes. 

“Strategic investment in technology should ultimately translate into measurable outcomes: stronger productivity, greater commercialisation, higher-value jobs, stronger Malaysian companies and greater economic value. This outcome-based approach will be important in ensuring that every investment in innovation contributes meaningfully to Malaysia’s long-term competitiveness. 

As Budget 2027 places emphasis on R&D commercialisation and the advancement of high-value sectors, these outcomes should be tracked through clear indicators such as industry adoption, technology readiness, Malaysian IP development, private-sector participation and commercial returns.”

Dr Hazian added that Malaysia’s technology strategy should be viewed through a longer-term lens.

“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.”

Collectively, MIMOS views Budget 2027 as an opportunity to strengthen the country’s R&D-to-commercialisation pipeline, accelerate the adoption of home-grown technologies, develop Malaysian IP and build the capabilities required to create higher-value economic opportunities. The Budget’s cross-ministerial R&D and commercialisation commitment, semiconductor investment measures, AI adoption initiatives and support for technology startups provide relevant avenues for collaboration, subject to programme eligibility and implementation arrangements.

MIMOS believes that the ultimate measure of technology investment should be its ability to generate real-world impact through commercialisation, productivity, industry competitiveness, high-value jobs and sustainable national economic value.

About MIMOS Berhad 

MIMOS Berhad, a strategic agency under the Ministry of Science, Technology and Innovation (MOSTI), is Malaysia’s national applied R&D centre and innovation catalyst. MIMOS drives technology development and adoption by connecting research, industry, and policy to address national priorities and create socio-economic impact.

Its role spans applied research, technology commercialisation, ecosystem and standards development, policy and roadmap advisory, and talent capacity building. Through strategic collaborations across the public and private sectors, MIMOS enables the translation of innovation into scalable solutions that strengthen Malaysia’s technological capabilities, economic resilience, and global competitiveness. Its applied R&D capabilities support national priorities in areas including semiconductors, advanced electronics, digital technologies and emerging technology domains.

For more information, please visit www.mimos.my.

SOURCE: MIMOS Berhad

FOR MORE INFORMATION, PLEASE CONTACT:
Corporate Communication team
Name: Patricia Liew
Email: patricia.liew@mimos.my

Name: Nurazuin Wahab
Email: nurazuin.wahab@mimos.my

Name: Nuramalina Husna
Email: Nuramalina.nurdin@mimos.my

--BERNAMA