MIDA positive on R&D investment outlook
12 Apr 2021
KUALA LUMPUR: The Malaysian Investment Development Authority (Mida) is maintaining a positive outlook on research and development (R&D) investments in line with the cautiously optimistic investment climate at present amid the Covid-19 pandemic, said chief executive officer Arham Abdul Rahman.
He said that R&D investments are a strategic cornerstone for companies to grow and thrive in both good and bad economic times, and that by continuing to invest in R&D, companies will be better prepared to face the recovery phase of a crisis.
“Based on previous studies conducted over multiple recessions, companies that are investing heavily in R&D will grow, whilst competitors that reduce investment in R&D will face a greater risk of business decline, ” he said in his welcoming remarks during the Research and Development for Business (RD4B) programme organised by MIDA yesterday.
Arham also stressed that R&D has become among the most important elements for the industry to grow, develop, and innovate, and businesses are highly encouraged to tap into R&D to improve business processes, reduce the cost of doing business and and gain invaluable competitive advantages.
Meanwhile, citing the 2020 edition of the Global Innovation Index (GII), he said that Malaysia ranked second among the top three innovation economies in the upper middle income group while, overall, the country achieved 33rd placing.
“This has put Malaysia ahead of all its Asean peers, second only to Singapore, and Malaysia is tops in high-tech net exports globally, ” he added.
Last year, Mida approved 199 R&D-related projects with capital investments of RM3.1bil which were expected to create 6,949 high-skilled jobs.
“This involves 30 R&D companies, 80 contract R&D companies, 46 companies with in-house R&D facilities, 26 R&D status companies and 17 national strategic R&D projects, ” he said.
Arham said among the top sectors were electrical and electronics, auto and transport, machinery and equipment as well as chemical and chemical products.