FACULTY OF ENGINEERING
KNU1023 ENGINEERS IN SOCIETY
SEMESTER 2, 2022/2023
INDIVIDUAL ASSIGNMENT 4
NAME NURUL HAFIZAH BINTI TAHIR
MATRIC ID 77346
TITLE(S) Is innovation a key driver of economic growth in Malaysia? Discuss
using two or three examples
LECTURER:
Ir. Dr Khairul Fikri bin Tamrin
Other than a skilled workforce, political stability (albeit the constant fight for power
in the administration), and a favourable business environment, innovation is indeed one of the
key drivers in the economic growth of Malaysia. Malaysia has long recognized the
importance of innovation to adapt sustainable economic growth and the government has also
implemented various initiatives to advocate innovation across different sectors such as the
establishment of the Malaysian Innovation Agency, the National Science and Research
Council, and the Malaysian Global Innovation and Creativity Centre (MaGIC).
Innovation is critical in boosting productivity and creating business opportunities
which then ultimately lead to economic growth. Hence, through the initiatives mentioned
above, and a few more other initiatives that will be further discussed, Malaysia has been able
to develop its technology and innovation ecosystem which then lead to the emergence of
innovative start-ups and the growth of technology-intensive industries. Through these
initiatives as well, Malaysia has been able to attract foreign investments, such as China,
which have significantly contributed to Malaysia’s economic growth.
The emergence of the start-up sector is an example of how innovation has driven
economic growth in Malaysia. Looking back a few years ago, the Malaysian government has
implemented various initiatives to support entrepreneurship and innovation such as the
programme mentioned above, the MaGIC programme. MaGIC is an accelerator programme
in which funds, mentorship, and networking are all provided for start-ups (Malaysia Kini,
2021). Hence, through a programme like MaGIC, the start-up ecosystem in Malaysia
skyrocketed tremendously and steadily over the years with many successful technology
companies such as Grab.
Another case in point is the growth of Malaysia's high-tech manufacturing industry,
which has been fueled by technological advancements in areas such as automation, artificial
intelligence, and robots. Due to its competent workforce and favourable business climate,
Malaysia has attracted numerous international firms in fields such as electronics, medical
devices, and aerospace(Jiivittha Veno, 2020) . These firms have brought superior technology
and innovation with them, which has aided in the expansion of Malaysia's manufacturing
industry. For instance. Malaysia’s very own brand in the automotive industry, the infamous
Proton.
In its totality, these characteristics, as well as others such as a competent workforce,
political stability, and a favourable business climate, have contributed to Malaysia's economic
progress. The country has achieved great development in recent years and is primed for
future expansion.
References
Jiivittha Veno. (2020, November 20). Industry 4.0 in Malaysia. Axxis Consulting.
https://axxis-consulting.com/industry-4-0-in-malaysia/
Malaysia Kini. (2021, March 12). Accelerating innovation for economic recovery with
MaGIC’s Global Accelerator Programme; now accepting applications. Malaysiakini.
https://www.malaysiakini.com/announcement/566348
