CONTEXT :
1. Based on IMD’s (International Institute for Management Development) World Competitiveness Report 2016, Malaysia’s Innovation Capacity was greater than Singapore, Taiwan and Republic of Korea.
2. However, Malaysia’s GDP per capital is below the global growth average leading to a wealth gap of 49.2% against global growth.
3. In recognizing this gap, the current 11th Malaysia Plan (2016-2020) further emphasized on the importance to accelerate Innovation and Technology Adoption through the Policy Pillar VI : Strengthening Economic Growth.
4. As in past plans, the 11th Malaysia Plan implementation is primarily driven through the Ministries and its implementation agencies with the support from private sector, academia and NGOs.
5. As Malaysia navigates into the high income game, private sector investments play pivotal role especially in Direct Domestic Investments (DDI) with export driven as highlighted in the previous Series 1.
ISSUES & CHALLENGES TO ADDRESS FOR 12MP :
1. Based on a report by the Academy of Sciences Malaysia in 2019, despite SMEs being the largest businesses in Malaysia at 98.5%, its contribution to the economy is still relatively low compared to our ASEAN neighbours.
2. Assessing through the Innovation to Market ‘S’ Curve, Malaysia’s strategic innovations need to be critically provided with ecosystem support during the Early Growth Stage. 3. This stage seems to be Malaysia’s ‘Achilles Heel’ and challenging period in unleashing home grown innovations to contribute to the economy.
4. This Early Growth Stage is a critical gap in the current implementation governance of Malaysia Plans which need to be given due attention especially by the coordinating ministry, The Ministry of Economic Affairs Malaysia.
5. Despite the need for private sector driven approach, the implementation of the 11th Malaysia Plan is still practically government driven through the ministries and its agencies.
6. From contents perspective, the usual ‘periodic musical chair’ involving government officers being transferred or promoted to another departments to some extent, distrupts implementation in nation-building coordination and progress.
7. Adaptibility of existing regulatory requirements also equally critical to realise and empower new innovations for socio-economic development.
8. The key issue is “How to empower private sector in supporting the implementation of 5 year Macro Economic Planning of the country and significantly contribute to the economic achievements ?”
REQUIRED IMPLEMENTATION STRATEGIES FOR 12MP :
1. Have visibility on strategic innovations (especially platform technologies) that can contribute the scale and speed in creating new economies for the country , e.g. Digital, Circular and Green Growth in general.
2. Empowering private sector through strategic industry platforms/associations as implementation partner to governments (as adopted in successful developed countries). 3. In implementing future National Plans, the Ministries and Agencies role need to be limited to policy, implementation monitoring and developmental fund management.
4. Program and project implementations for future National Plans need to be implemented through NGOs and industry platforms/associations with developmental funding support from government through matching funds arrangement where possible.
5. The involvement of NGOs and Industry Platforms/Associations will help to address the ‘periodic musical chair’ issue involving government officers by maintaining continuity on the developmental agenda and activities.
6. The government need to identify responsible ministry for the Early Growth Stage to oversee and unleash our strategic innovations and adding value.
7. The National Regulatory Sandbox initiative by Cyberview/Futurise is an important initiative to provide regulatory support to new innovations, which need to be systemised and institutionalised, if Malaysia intend to compete at the global front with speed and impact.
8. With the global capital market’s high appetite for strategic innovations, there is now less need to keep on pressing Government Linked Companies (GLCs) to play developmental nation-building role.
9. Combined with its strategic innovation, ecosystem support and access to global capital market, Start-ups/SME’s now in position to accelerate into exponential growth and contribute sizeable numbers to the country’s economy.
TAKE-AWAYS :
1. Need to urgently address the implementation gap in Early Growth Stage by Government providing ecosystem support to strategic innovations.
2. Need to empower and provide implementation mandate to Industry Platforms/Associations and NGOs.
3. Need to nurture and put believe in the mindset of SMEs as….THE SMALL NOW IS THE NEW BIG !
NEXT : Series 3 – Empowering SMEs as Growth Drivers.
Comments