THE 2015 Budget again shows the country is in good hands. It demonstrates responsibility in managing the current state of the economy and also the vision to ensure the sustainability of the nation’s continued well-being. Kudos to the government.
The 2015 Budget also offers much opportunity for the constructive inputs of science in order to effectively deliver many of the proposed projects. One which stands out is the proposal to develop a National Water Blueprint.
The Academy of Science has always raised this as a matter of urgency for the country. The academy, with its impressive list of fellows who are former leaders of science in the country, would be in the best position to participate in this very important exercise. In fact, the academy is already closely scrutinising the 2015 Budget to prepare the necessary support mechanisms to realise the aspirations of the government, especially those initiatives where science can make the difference.
Among the initiatives articulated in the 2015 Budget, one which also captures the attention of the scientific fraternity in the country is the proposal to rebrand Sirim (formerly known as the Standards and Industrial Research Institute of Malaysia).
Over the years, Sirim has been an important instrument of applied research and development (R&D) in the country. It has served the nation well, not only in developing new technologies for industry, but also in crafting the necessary standards of international standing for the country.
But times have changed. The world has become more competitive. There are also new entrants to the global competition. And the demands for innovation are more stringent and complex.
The manufacturing economy, for example, has also witnessed drastic change where design and innovation are prerequisites. Both have become more strategic. Not to mention the need for manufacturing to be more resource efficient and sustainable. Rebranding Sirim should aim to help rejuvenate its capability to meet the new demands of industrial R&D. Strengthening the link between Sirim and the small and medium enterprises (SMEs) is crucial. The budget’s SME Technology Penetration and Upgrading Programme is a step in the right direction.
Over the years, the role of SMEs in the economy has turned more prominent. Currently, SMEs contribute 33 per cent to gross domestic product (GDP) and the share is targeted to increase to 41 per cent by 2020. There is no doubt innovation can help realise this target.
In fact, studies in many countries have shown that SMEs are more adept at innovation than their bigger counterparts. This is especially glaring in the knowledge-based SMEs. We all know how Microsoft, Facebook and Apple all started, of course. They all had their beginnings as SMEs. Now they are all powerful global companies. But this can happen in such developed economies as the United States because of their more mature innovation ecosystem. We still have difficulties there. We need to learn from the more successful models of countries which have achieved success in SME innovation ecosystem.
Among the Asian nations, Taiwan and South Korea are two candidate countries we may want to consider. In Europe, Germany is another example. The Fraunhofer network of applied research has been the subject of much study. Its effective academy-industry linkage is cited as the key success factor of SME innovation in Germany.
Sirim may want to establish strategic partnerships to adopt and adapt some of these successful innovation models. However, at the end of the day we must eventually develop our own model, taking into account the local culture as well as our stage of development. It would not be constructive to adopt other country’s models in total. Adjustments are necessary.
It is made clear in the 2015 Budget that we as a nation are moving into an era of intensely competitive global market place. We are living in a global economy where innovation can make a difference to competitiveness. Not investing in innovation is no longer an option. It has become an imperative.
We have the resources to do it provided we put in place the right innovation ecosystem. Over the years we have implemented many instruments of innovation. They just need some fine tuning.
The SME sector is obviously the target group where innovation is most needed. And Sirim is the right technology partner for SMEs. Rebranding Sirim is, therefore, the way forward.