Two of the government agencies under Malaysia’s Ministry of Science, Technology and Innovation (MOSTI) will be restructured through a consolidation process that will create a new technology commercialisation agency.
This new mandate, which was approved by the Cabinet on Wednesday, will act as a technology commercialisation accelerator, the ministry said in a statement.
The synergy will bring together Technology Park Malaysia (TPM) and the Malaysian Global Innovation and Creativity Centre (MaGIC).
TPM is the only 4th generation technology park in Malaysia with physical incubators and tech infrastructure, while MaGIC has played an important role in cultivating technology startups and innovation ecosystem with a wide range of interventions ranging from regulatory facilitation, market access support as well as capacity building, the ministry added.
“This initiative is aimed at equipping the country to be better positioned to tackle issues such as low commercialisation rates, low gross domestic expenditures on R&D (GERD), low R&D spend by the private sector, and overlapping of roles between government agencies,” the ministry said.
A joint task force comprising both TPM and MaGIC, headed by the newly appointed CEO of TPM, Dzuleira Abu Bakar, who recently relinquished her position at MaGIC, will be set up to oversee the establishment of the new agency.
Such development came after Science, Technology and Innovation minister Khairy Jamaluddin said in his first year at the helm of MOSTI, he has reviewed areas of priority that required government interventions, starting with the commercialisation agenda.
“The landscape for innovation continues to evolve at a furious pace for both tech start-ups and tech giants. We have done reasonably well in riding the wave of the 4th Industrial Revolution, and we want to speed up the rate of commercialising our technological and innovative solutions in our push to make Malaysia a high-tech nation,” said Khairy.
Last November, another government agency, Malaysia Digital Economy Corporation (MDEC), made headlines for the restructuring exercise it undertook to spur innovation and digitalisation in the country.
MaGIC was rumoured to be disbanded back in 2018 after Malaysia’s general election on May 9 as the government looked to streamline its budget.
In 2019, the then government led by Dr Mahathir Mohamad was also in the midst of reviewing and restructuring its venture capital agencies to avoid overlaps in financing schemes. The funds involved were Cradle Fund, Malaysia Venture Capital Management (MAVCAP), Malaysia Debt Venture (MDV), Kumpulan Modal Perdana (KMP) and Malaysian Technology Development Corporation (MTDC).