MALAYSIA must commit to “deep, deliberate and sustained” innovation if it is to strengthen its economic resilience and prosper amid rising global uncertainty, acting Economy Minister Datuk Seri Amir Hamzah Azizan told delegates at the National Economic Outlook Conference in Kuala Lumpur today.
Speaking at the event hosted by the Malaysian Institute of Economic Research and Affin Bank, the Minister said this year’s theme — “Towards an Innovation-Based Economy” — mirrors the Government’s ambitions under the Thirteenth Malaysia Plan (RMK13), which positions innovation as the core driver of future national growth.
“Innovation is a challenge that preoccupies nations across the world,” he noted, adding that the most recent Nobel Prize in Economics honoured scholars whose work advances global understanding of innovation and technological progress.
Malaysia, he said, is taking “deliberate and concrete steps” to cultivate an innovation-driven ecosystem spanning industry, business and society.
Amir emphasised that the Government aims to enhance Malaysia’s economic complexity by promoting high-value ‘Made by Malaysia’ products and services.
Achieving this, he said, requires accelerated technology adoption, increased research and development, and more effective pathways for commercialisation so that Malaysia can compete more assertively on the global stage.
He said innovation must be anchored in robust funding models, strengthened intellectual property ownership and continuous talent development. “These elements are essential to sustain innovation and drive Malaysia’s long-term growth,” he said.
The Minister highlighted several national frameworks that will shape the next phase of technological advancement, including the National Science, Technology and Innovation Policy, the National Fourth Industrial Revolution Policy and the Malaysia Digital Economy Blueprint.
He added that the forthcoming AI Technology Action Plan 2026–2030 will help position Malaysia as an inclusive, sustainable and AI-enabled nation.
Against this policy backdrop, he warned that the global environment remains fraught with tension — from intensifying conflicts and protectionist trade measures to rising extremism and growing unease among younger populations.
Ageing demographics, retirement insecurity and technological disruption, he said, further complicate long-term planning for many countries.
“Throughout the history of economic development, innovative nations have always risen above economic and global political uncertainty,” he remarked. “The productive outcome of innovation will always outlast temporary chaos.”
He drew attention to the role of digital tools such as video conferencing, which existed long before COVID-19 but only became transformative when crisis necessitated widespread adoption.
Innovation, he said, must also address practical local challenges — such as using technology to help smallholders in Telupid secure fairer prices for their crops or creating systems that verify how charitable funds are utilised. “That, too, is innovation,” he said.
Many of these localised challenges, he added, do not typically attract major research grants or corporate investment, yet they affect micro, small and medium enterprises (MSMEs) every day.
Under RMK13, the Government will support MSMEs through strategic partnerships with government-linked companies, investment funds, working capital support, capacity-building initiatives and targeted assistance in areas such as logistics, certification and export access.
Amir praised the dynamism of Malaysia’s younger generation, describing them as a rising entrepreneurial force reshaping industries through creativity and technology.
Many, he noted, are localising global innovations to suit Malaysian needs and successfully turning even modest products into multimillion-ringgit ventures.
He called on financial institutions to innovate as well, particularly in developing modern risk-management frameworks and funding models that keep pace with evolving business realities.
“Funding institutions themselves must continue to innovate,” he said.
Turning to artificial intelligence, he observed that no conversation on innovation can exclude the rapid rise of large language models such as ChatGPT.
Their development, he said, underscores the need for structured learning built on high-quality data and continuous refinement.
“Innovation, like AI, depends on thoughtful design and high-quality inputs,” he said. “We shape the machine. We are not merely its users who copy and paste, but the architects of how it serves us all.”
He urged a whole-of-nation commitment to innovation. “Innovation is not the work of a few, but the collective effort of a nation,” he said.
By combining creativity, collaboration and technology with strong values and human purpose, Malaysia, he added, can forge a future that is “inclusive, sustainable and uniquely our own.” - November 27, 2025
