KUALA LUMPUR: Funding models for research and development (R&D) will be strengthened and national intellectual property (IP) ownership will be enhanced with the aim to build an innovation-driven economy, said Finance Minister II and Acting Economy Minister Datuk Seri Amir Hamzah Azizan.
He said Malaysia is focused on raising economic complexity by promoting high-value “Made by Malaysia” products and services.
“To achieve this, the country will strengthen its ecosystem through advanced technology adoption, increased research and development, and active commercialisation and innovation that shall boost global competitiveness,” he said in his opening remarks at the National Economic Outlook Conference organised by the Malaysian Institute of Economic Research today.
Amir Hamzah said Malaysia will develop a comprehensive artificial intelligence (AI) ecosystem under the forthcoming Pelan Tindakan AI Kebangsaan 2030 to position itself as an inclusive and sustainable AI-driven nation.
He said the rapid rise of AI is reshaping how societies learn, work and innovate, and Malaysia must be prepared to harness its potential responsibly. However, he noted rising concerns among educators and professionals about the reliability and responsible use of AI tools.
“This captures the core challenge of AI and innovation in the digital era. Before a LLM (Large Language Model) can deliver reliable information, it must be trained on vast amounts of high-quality data. The machine’s learning process must also be structured to build context and logical reasoning.”
Amir Hamzah the global economy is confronting challenges that few could have imagined a year ago, including intensifying trade tensions, armed conflicts, rising extremism and growing youth discontent, alongside structural issues such as ageing populations, retirement insecurity and job vulnerabilities driven by rapid technological change.
“However, throughout the history of economic development, innovative nations have always risen above economic and political uncertainty. The productive outcome of innovation – whether in goods, services or new ways of doing things — will always outlast temporary chaos,“ he said.
Amir Hamzah stressed that innovation is not confined to large-scale technological breakthroughs but can also address local, real-world challenges, such as using technology to aggregate smallholder produce in Telupid, Sabah, at fairer prices, or developing systems that verify how charitable funds are utilised to strengthen public trust.
“These challenges may not attract significant R&D attention or funding, nor the interest of large conglomerates, yet they are precisely the issues faced daily by our micro, small and medium enterprises.”
To help MSMEs move up the value chain, he said, the government under the 13th Malaysia Plan is prioritising strategic partnerships with government-linked companies, supported by initiatives such as a strategic investment fund, working-capital enhancement, project financing and capacity-building programmes. This will be complemented by targeted interventions including improved logistics systems, halal certification facilitation and better access to export markets.
Beyond government efforts, he said, the private funding sector plays a crucial role in enabling entrepreneurs to innovate and scale their businesses.
“To remain effective, funding institutions themselves must continue to innovate in developing effective solutions and approaches to risk management that keep pace with rapid developments in business and technology,” Amir Hamzah said.
