KUALA LUMPUR, A total investment of RM85.7 billion in research and development (RandD) is required to achieve the targets set by the National Science, Technology and Innovation Policy (NSTIP) 2021-2030, according to the Ministry of Science, Technology, and Innovation (MOSTI). The ministry stated that the policy aims to increase the gross domestic expenditure on RandD (GERD) to 2.5 per cent of gross domestic product (GDP) by 2025 and 3.5 per cent by 2030. 'Based on projections, to raise RandD expenditure to 3.5 per cent of GDP by 2030, the estimated RandD spending needed is RM25.7 billion from the public sector and RM60 billion from the private sector. 'This is based on a contribution ratio of 30:70 between the public and private sectors,' MOSTI said on the Parliament website today. The ministry was responding to Datuk Seri Hasni Mohammad (BN-Simpang Renggam) who asked whether the RandD funding rate impacts the country's technological development and innovation capacity, referencing Malaysia's position co mpared to other countries like South Korea in terms of RandD allocations. MOSTI said the ratio of GERD to the national GDP is about 1.0 per cent, equivalent to RM13.48 billion, which significantly lags behind South Korea's allocation of nearly 5.2 per cent of its GDP, amounting to RM368.09 billion in 2022. 'Data also shows that the RandD expenditure ratio between the public and private sectors in Malaysia is 59:41, where the private sector contributes 18 per cent, which is lower compared to the public sector,' it stated. The ministry noted that the government is taking proactive steps through initiatives such as the Malaysia Science Endowment Fund (MSE), i-Connect, Single Window, grant financing, and double tax deduction incentives for RandD expenditures. MOSTI added that the government is also enhancing access to the latest technology through various programmes under different agencies and departments to increase private sector involvement. Source: BERNAMA News Agency