Asia School of Business

Global Inquiry, Local Heart

Malaysia’s Innovation Paradox: Local Success Amid National Deficit

Author: Pieter E. Stek

From Tun Dr Mahathir Mohamad’s Vision 2020 and the Multimedia Super Corridor in the 1990s to the current government’s New Industrial Master Plan 2030 (NIMP2030), Malaysia has repeatedly set its sights on becoming a high-income, innovation-driven economy. On paper, Malaysia has the capabilities to succeed — a solid university sector, advanced manufacturing capabilities in electronics, automotive and petrochemicals, and a history of rising research and development (R&D) expenditure — at least until recently.