The world continues to evolve thanks to innovations in the various areas that bring benefits to man and society. In ensuring that new products and services are continuously being churned out, it is necessary to ensure that investments are made into research and development and then into commercialising the fruits of such innovations.

Hence, it is my view that national expenditures on R&D should not be seen as any other government expenditure but as a national investment. The impact from the investments made by the government through its ministries and agencies are far-reaching.

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We have seen through partnerships between the government, academia and industry the potential in which these investments can bring to the rakyat in the form of new industries and thousands of high value jobs.

Thus, in ensuring that these goals can be realised, it is also important for the government to ensure that the investments are able to pay off and contribute to the national income.

The Malaysian Government has always had a generous allocation for R&D Grants and Risk Capital. It is time that we streamline these funding sources in order to optimise and maximise our Return on Investments (ROI).

We have given JKPDA the mandate to improve the investment landscape and mechanism in R&D to ensure reasonable returns and promote income generation through commercialisation and innovation.

Science, technology and innovation have been the main driving forces in pushing a nation’s socio-economic progress and sustaining its competiveness. Malaysia has been committed to nurturing science, technology and innovation, since the 5th Malaysia Plan, with the adoption of the first Science and Technology Policy in 1986. R&D allocations have increased over the years with the establishment of various grant schemes. The public research institutions and universities (Public Research Assets – PRAs) have prominently played a dynamic role in conducting R&D, thus supporting the national agenda of national development and wealth creation for societal prosperity.

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At present the country’s R&D&C system are implemented by various Public Research Institutions (PRIs) that are under the purview of at least seven Ministries. Parts of the system do well at optimising their own activities according to their individual mandates but frequently at the expense of sub-optimising the overall goal of the nation. This prevents the total impact of the system from being realised to achieve economic, environmental and social prosperity.

The findings of a study conducted by NSRC, in collaboration with the New York Academy of Sciences and MIGHT, reveal that the PRIs are working in silo and their research agenda seems fragmented, very low rate of commercialisation of their research output, lack of collaborative partnerships between industry and PRIs, and no single agency to coordinate the research activities. Moreover the sizeable investments made in the system in recent years are not yielding the expected returns.

With the JKPDA’s previous successes in streamlining and saving the government’s expenditure by reducing duplications in public funding applications, the next steps are for the JKPDA to have a more permanent structure functioning to manage the entirety of the country’s strategic investments in R&D and evaluate and monitor all such programmes as well as provide greater coordination and alignment within the system to achieve the country’s vision and transformation. This will also ensure the continuity and sustainability of all the Economic Transformation Programmes (ETPs) and the strategic initiatives of the country.

Everyone has a role to play in fostering innovation. The Government especially, plays an important role in enacting smarter policies to encourage businesses to open new markets and distribution channels so that investors could infuse greater capital into new products and services.

The Government must also be able to dismantle the roadblocks to innovation. This is no easy feat to achieve and thus, requires everyone to work together to create an environment where collaboration is interwoven in the culture.

The JKPDA is a good example of a collaborative culture in the current innovation sphere in Malaysia. By being the main entity tasked with streamlining all the available public funding in Malaysia for R& D&C activities, the JKPDA provides a one-stop solution to those looking to fund their innovations for commercialisation with the necessary information that would otherwise have to be found painstakingly through various different channels in the past. The information provided is also up to date and can easily be found with a click of the button.

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Through the public funding that is available, the Government hopes to encourage and assist.

There are 15 Agencies and nine Ministries that have funds for Research, Development and Commercialisation (R&D&C) and the headache has always been in how we can make it more transparent, not only for those who are seeking funding, but also for the funding bodies to ensure that the funds disbursed are able to have a further reach.

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The work was slow and tedious in the beginning, as we had to manually shift through mountains of applications and paperwork to see where and how funds were being disbursed.
The hard work paid off and the impact has been enormous. After going through two budget cycles, the JKPDA has managed to streamline and save the government around RM700 million in funding disbursements through its evaluation of project and programme applications which are valued at more than RM2.5 billion.

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The next stage is to look at how the money has been allocated so there is accountability.

The launch of the 1Dana online dashboard will for the first time, enable the public to see what funds are available from the various Ministries. Ultimately, we hope that through the JKPDA, we are able to achieve a cohesive direction that benefits the nation and its entrepreneurs who need this funding.

Although Malaysia has consistently been ranked favourably for many years on its public access to financing in the Global Competitive Index, admittedly, leakages still do occur within the system.

JKPDA, a unit under AIM, was formed to streamline all the channels for R&D&C grants that are currently available under multiple Ministries and Agencies in ensuring transparency and ease in obtaining funds for businesses. In addition, it is also tasked with the monitoring, evaluating and tracking of the performance of these funds, ensuring that gaps along the commercialisation process are tackled in a systematic manner.

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It is AIM’s hope that JKPDA, with the launch of 1DANA portal, can provide the Rakyat the entire funding landscape so that they can approach the right agency to seek the necessary funding. In addition to facilitating access to financing for R&D&C, I hope the Stakeholders will use the 1DANA dashboard to track the performance of their respective grants/fund to ensure that approvals granted to projects are aligned to the country’s sectorial focus areas as determined by the NSRC.

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With the right M&E tools in place, the 1DANA portal can provide insights to the ideal balance between fundamental and applied research.

As JKPDA continually improves its processes and the 1DANA portal gets timely technology and systems updates, we expect the entire process from application to evaluation to funding to monitoring of R&D&C grants can be done semalessly online.

With the right M&E checklist, the Government can know on a real-time basis the Return on Innovation (ROI) from its investments in R& D&C to drive the country to achieve the minimum GERD for R&D&C to at least 2% and lead the country to achieve high income nation status by 2020.