Malaysia’s investment in research and development (R&D) has seen a rollercoaster ride since 2008. After a period of significant growth, reaching a peak of RM17,685 million in 2016, Gross Expenditure on R&D (GERD) declined by 14.8% in 2018 and a further 10.5% in 2020. This decline can be attributed to a confluence of factors, including shifts in government policy, fluctuations in the economic climate, adjustments to R&D strategies, and the disruptive impact of the COVID-19 pandemic.

Between 2010 and 2020, Malaysia’s research and development (R&D) funding landscape underwent a significant shift. Business Enterprise (BE) contributions witnessed a sharp decline, dropping from 64.5% to 34.2%. This suggests that businesses may be optimising their R7D activities, potentially focusing on publishing existing research or analysing accumulated data, leading to decrease in overall expenditure.

Meanwhile, Higher Learning Institutions (HLI) emerged as the primary source of R&D funding, with their share rising from 29% to 47.3%. Government Research Institutes (GRI) also saw an increase, with their contribution growing from 6.1% to 18.5%. Non-Governmental Organisations (NGOs) continued to play a minor role, maintaining a contribution around 0.1%.

Malaysia’s R&D workforce experienced an encouraging rise since 2010, reaching a peak of 108,557 researchers in 2016. However, this growth was followed by a decline after 2016, continuing until 2020. This decrease in personnel, particularly from 2018 to 2020, suggests a potential shift in R&D workforce dynamics or the influence of external factors like the global COVID-19 pandemic.