The world market landscape is changing rapidly and the new driver for economic growth is INNOVATION. In line with this progress, Malaysia is transforming itself into a knowledge and service based innovation economy.
The Prime Minister of Malaysia, YAB Dato’ Sri Mohd Najib Tun Razak, has been emphasising innovation as a main agenda in facing the current challenges and to seize open opportunities in the knowledge economy.
The economic meltdown has created alarming conditions for R&D and innovation-led businesses where risk capital is scarce, which has placed R&D investments at lower priority.
However, due to their technology competitiveness, new product development and greater effi ciency through investments in research, some leading innovative fi rms have been less impacted by the crisis due.
Government’s effort to boost Malaysian Economy
Governments are trying to boost the economy and industrial growth through strategic policy changes by creating a more favourable R&D ecosystem.
A successful innovation policy requires collaborative efforts amongst government, industry, academia, NGOs and non-profit institutions, where the government’s key function is to provide the seeding ground for innovation and the process of change through innovation.
With this in mind, the Malaysian Government has provided various schemes to encourage research, development and innovation in the industry, especially to SMEs, ranging from tax incentives to direct grants.
A combination of innovation, investment fund, and business channels results in successful businesses, which forms the thrust for economic growth.
The key to success lies on the deployment of intangible assets – technology, brands, know-how and human capital. Hence, the need for innovation and entrepreneurship to transform these intangible assets into products and services, thereby driving forward economic growth, creating jobs, societal well-being and improving effi ciency becomes pertinent.
The Malaysian SMEs have a crucial role to play in this process since they form a signifi cant portion of the national economy.
Congratulations to SMI Association of Malaysia and Tourism Publications Corporation Sdn Bhd for their invaluable contributions to ensure the success of the SME sector through the publication of the 9th edition of the SMI/SME Business Directory.
I am confident that with the overwhelming support by all players from the public and private sectors, Malaysian SMEs will prove to be a major success on all fronts. I wish you all the best.
‘Championing Scientifi c Discovery, Transforming Innovation’