Malaysia: Malaysia recorded a flat performance in global innovation capability after failing to achieve its target of ranking among the top 20 countries in the Global Innovation Index (GII) during the 12th Malaysia Plan (12MP) period, according to the Auditor-General's Report 1/2026.
According to BERNAMA News Agency, the report said the country's ranking remained between 33rd and 36th out of 139 countries throughout the 12MP period (2021 to 2025), placing 34th in 2025. The World Intellectual Property Organisation (WIPO) publishes the GII annually in collaboration with other international institutions. The index serves as a global benchmark measuring a country's innovation capability and performance.
The report highlighted three weaknesses in Malaysia's innovation ecosystem based on the 2025 GII Report. These include infrastructure, specifically logistics costs and transport efficiency; human capital and research and development, where investment and research output are not on par with developed nations; and creative output, which faces challenges in commercialising innovation and generating market value.
On the strengths of the national innovation ecosystem, the report noted that Malaysia has strengths in institutional aspects, such as a stable political and regulatory environment, and market sophistication, including a conducive investment and competitive environment. Other identified strengths include knowledge and technology outputs, particularly in the creation and diffusion of technology.
According to the report, feedback received from the Science, Technology and Innovation Ministry (MOSTI) stated that the main reason the 12MP target was not achieved was that the original target did not consider the risks posed by the COVID-19 pandemic and the global economic slowdown. MOSTI has taken corrective action by applying to the Economic Planning Unit through the Mid-Term Review of 12MP to revise the target from top 20 countries to top 30 countries by 2025. Based on data simulations and realistic justification, it has proposed that the 13MP target be framed as a relative improvement (20 percent improvement) compared with Malaysia's position in the GII Report.