Malaysia lags in R&D at 1% of GDP, says Chang

KUALA LUMPUR: Malaysia is lagging in research and development, with investment at about 1% of GDP, says Science, Technology and Innovation Minister Chang Lih Kang (pic).

He said that this translates to RM18.16bil in absolute terms and added that Malaysia targets raising R&D to 3.5% of GDP by 2030.

“This will require annual R&D investment of RM86bil,” he said during his winding up on the Supply Bill 2026 on Monday (Nov 3).

“When compared with other R&D focused countries, Malaysia is still behind.

South Korea spends about 5.21% of GDP, Japan 3.41% and Singapore about 2.61%,” added Chang.

“Their GDP is bigger, hence their allocation is greater,” he said.

Chang said the ministry will also focus on tech startups.

He said business expenditure on R&D must be encouraged alongside government funding.

He said high impact areas include semiconductors, electrical and electronics products and artificial intelligence.

However, Chang said the government has no plan to legislate mandatory company R&D spending.

Datuk Dr Ku Abd Rahman Ku Ismail (PN–Kubang Pasu) asked about reduced development expenditure for the ministry under Budget 2026.

Chang said geopolitical uncertainties and fiscal pressures drive the reduction.

He said Putrajaya must fund civil service salary increments under the Public Service Remuneration System.

“The second phase of the SSPA will cost RM18bil, hence cuts in some ministries including Mosti,” he said.

“The reduction is not drastic, and we can make up for it through other ways,” he added.