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Research & Development (R&D)

R&D plays a critical role in the long term success of companies which in turn, translates to the growth of their respective economies. MIDA promotes growth strategies and R&D activities that generate new customer values in key business areas. R&D is important for any country‘s well-being. It creates value and enables the country to remain competitive in the world economy.

From the annual National R&D Survey conducted by Malaysian Science and Technology Information Centre (MASTIC), the national initiative of reaching 70 researchers per 10,000 labour force by 2020 was achieved in 2016.

The achievement can be attributed to the Government’s initiation of the Malaysian Research Universities (MRU) project in 2007. The MRU project was modelled after similar initiatives in South Korea and Singapore, aimed to enculture R&D in Malaysia, enhance commercialisation, increase postgraduate and post–doctoral student intake, and improve Malaysia’s global standing.

21%

Domestic Investments

(RM11.5 mil)

RM57.0 mil

Total Approved Investments 

in 2019

79%

79%

Foreign Investments

(RM45.6 mil)

RM57.0 mil

Total Approved Investments in

2019

21%

Domestic Investments

(RM11.5 mil)

79%

Foreign Investments

(RM45.6 mil)

RM3.03 bil

Total Capital Investments

(as at 2019)

193

Approved Projects

(as at 2019)

6,729

High-tech Jobs Created

(as at 2019)

6 University-linked companies
were awarded R&D Status (as at 2019)

Clients of R&D Status companies can enjoy double-deduction on R&D expenditure

This encourages collaboration and ensures projects are focusing on value-adding research outcomes and impact for industry partners to improve their innovation and competitiveness

Malaysia has a Vibrant R&D Landscape

8th

Most Innovative Country

among Asian Economies
(Global Innovation Index 2020,
World Intellectual Property Organisation, WIPO)

Our efforts to nurture the R&D ecosystem in the country have made an impact as Malaysia has moved up two spots to rank 33 overall in the Global Innovation Index (GII) 2020 report released by the World Intellectual Property Organisation (WIPO). Within Asia, Malaysia ranks 8th among 17 economies in this region thanks to its world-class tertiary education system, sophisticated capital market and robust private sector, particularly excelling in high-technology exports and creative goods exports.


Malaysia continually supports companies in a wide spectrum of industries to achieve their R&D aspirations through various incentives and financial assistance, which covers the value chain of innovation, from ideation to commercialisation. The main R&D incentives include R&D Status, Contract R&D Company, R&D Company and In-House R&D.

Government Support

 A R&D company is a company that provides R&D services in Malaysia to its related companies or to any other company.

 

100%

100% of the qualifying capital
expenditure incurred within ten
(10) years.

 

70%

The allowance can be offset
against 70% of statutory income
for each year of assessment.

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Find out more about the policies, incentives and facilities in the R&D services sub-sector.

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