Kuala lumpur: The Science, Technology and Innovation Ministry (MOSTI) will focus on the development of startups conducting high-impact research and development (R and D) to improve the country's competitiveness. Its minister, Chang Lih Kang, stated that the new strategy is vital to ensure Malaysia emerges among the best technology creators in the ASEAN region and is competitive globally.

According to BERNAMA News Agency, the country's main challenge lies in the fact that only 0.25 percent of 1.1 million businesses in Malaysia actively conduct R and D. Therefore, the government needs to transition to increasing startups involved in high-impact R and D in the country. Chang emphasized this point while winding up the debate on the Supply Bill 2026 at the policy level for MOSTI in Dewan Rakyat today.

Chang further explained that R and D financing should focus on the country's strategic fields, such as semiconductors, electric and electronics, biotechnology, and artificial intelligence, to foster comparable economic generation. In support of this initiative, the government has mobilized the Malaysia Science Endowment Fund with an allocation of RM20 million for 2026 to boost innovation financing.

Additionally, private investors have shown significant interest, investing up to RM110 million in fields such as semiconductors, aerospace, medicine, and deeptech. This investment indicates a strong commitment from the private sector to support and grow Malaysia's R and D capabilities.