Nerdy Science Blog

Malaysian Prime Minister Datuk Seri Najib Tun Razak outlined the 2010 Budget Speech on 23th October 2009, Friday.  This is the first Budget of  Datuk Seri Najib since he became the Prime Minister of Malaysia.  I quoted few sections involving the development of science and technology in Malaysia National Budget 2010.

INTENSIFYING RESEARCH, DEVELOPMENT AND COMMERCIALISATION

34. Currently, expenditure on R&D activities is at 0.6% of GDP, well below the United States at 3%, South Korea 3.5% and Taiwan 2.4%. To Shift towards a high-income economy, we need a strong foundation in research, development and commercialisation (R&D&C) activities. Therefore, to strengthen R&D&C activities, the Government will undertake the following measures:

First: Rationalising all research funds and grants to be more effective to achieve set targets;

Second: Establishing a National Innovation Centre supported by a network of innovation excellence centres under the Ministry of Science, Technology and Innovation and in collaboration with the Ministry of Higher Education;

Third: Integrating R&D activities with patents, copyrights and trademarks registration to ensure R&D&C processes are implemented more effectively. The cooperation between patent and research agencies will expedite the commercialisation of research findings; and

Fourth: Providing small and medium enterprises with tax deduction on expenses incurred in the registration of patents and trademarks in the country.

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DEVELOPING GREEN TECHNOLOGY

54. Green technology has the potential to become an important sector in economic development. Towards this, the Government launched the National Green Technology Policy in August. The objective of the policy is to provide direction towards management of sustainable environment. To further promote the development of green technology activities, the Government will:

First: Restructure the Malaysia Energy Centre as the National Green Technology Centre tasked with formulating a green technology development action plan. This Centre will function as the focal point to set standards and promote green technology. To intensify green awareness activities and practise environment-friendly lifestyle, an allocation of RM20 million will be provided;

Second: Organise an international exhibition on green technology in April 2010. The exhibition is expected to attract internationally renowned companies and experts in green technology.

Third: Develop Putrajaya and Cyberjaya as pioneer townships in Green Technology, as s showcase for the development of other townships; and

Fourth: Give priority to environment-friendly products and services that comply with green technology standards in Government procurement.

55. To promote green technology, the Government will establish a fund amounting to RM 1.5 billion. This fund will provide soft loans to companies that supply and utilise green technology. For suppliers, the maximum financing is RM50 million and for consumer companies RM10 million. The Government will bear 2% of the total interest rate. In addition, the Government will provide a guarantee of 60% on the financing amount, with the remaining 40% by banking institutions. Loan applications can be made through National Green Technology Centre. This scheme will commence on 1 January 2010 and is expected to benefit 140 companies.

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ENHANCING HIGHLY SKILLED HUMAN CAPITAL

59. High quality human capital is a prerequisite to support the national development agenda. Therefore, the Government will ensure human capital development is implemented comprehensively, encompassing efforts to increase skills and knowledge. Apart from this, measures will be taken to develop intellectuals in science and technology, groom entrepreneurial capabilities as well as nurture positive and progressive values.

You can download the full speech of Malaysia Budget 2010 Speech here.