Guidance

UK Science & Technology Network Summary: Malaysia

Updated 16 April 2026

1. Science and Technology Landscape

Malaysia is one of ASEAN’s most influential economies and a Commonwealth partner, ranked as ASEAN’s third richest economy by GDP per capita, and is expected to transition from an upper middle income to a high income economy between 2028 and 2030. (see source)  Economic performance has remained resilient, with GDP growth reaching 5.1% in 2024, projected at 4.8% in 2025 and moderating to 4.2% in 2026, reflecting cautious external conditions alongside strong domestic demand, tourism recovery under Visit Malaysia 2026, steady labour markets and moderate trade gains. (see source)

Kuala Lumpur has emerged as a leading regional innovation hub, ranking 18th globally in the 2025 Global Startup Ecosystem Report, marking Malaysia’s entry into the Top 20 Emerging Startup Ecosystems and reflecting growing entrepreneurial and venture activity. (see source)

1.1 Government policies and priorities

Malaysia’s science, technology and innovation (STI) development is anchored in a strong policy architecture led by the National Science, Technology and Innovation Policy 2021–2030 (NSTIP) (see source) and the Malaysia Science, Technology, Innovation and Economy (MySTIE) 1010 Framework (see source). Together, these frameworks link ten global science and technology drivers with ten socioeconomic drivers to deliver economic impact, improve quality of life and strengthen Malaysia’s technological self reliance. They aim to reduce dependence on foreign technology and labour, while supporting Malaysia’s ambition to become a high tech and high-income nation by 2030.

Malaysia has articulated sector specific ambitions through a suite of national technology roadmaps, including the Artificial Intelligence Roadmap 2021–2025 (see source), Electrical and Electronics Roadmap 2021–2030 (see source), National Advanced Materials Technology Roadmap 2021 – 2030 (see source), National Robotics Roadmap 2021–2030 (see source), and National Blockchain Roadmap 2021–2025 (see source). These are complemented by broader industrial transformation initiatives such as the National Policy on Industry 4.0 (Industry4WRD) (see source), which focuses on automation, smart manufacturing, digitalisation and skills development.

Despite substantial progress, STI performance remains uneven across four dimensions: the basic enabling environment, public and private investment, industrial development, and scientific capabilities. To address these gaps, the government has articulated clear targets to increase R&D intensity and expand business led research, supported through national coordination mechanisms, innovation and regulatory sandboxes, grant financing, and fiscal incentives including double tax deductions for R&D expenditure. (see source)(see source)

Malaysia offers a mature and increasingly attractive environment for international science and technology collaboration. A strong base of public research institutions, expanding industrial capabilities, improving digital and research infrastructure, and an evolving regulatory environment position Malaysia both as a testing ground for applied and market ready technologies, and as a strategic partner for policy dialogue, collaborative R&D and innovation led growth with the UK.

2. UK partnership with the country on ST&I

The UK and Malaysia share a dynamic and strategic science and innovation partnership underpinned by longstanding Commonwealth ties and converging priorities in critical and emerging technologies. Bilateral collaboration focuses on artificial intelligence, semiconductors, engineering biology, health, climate resilience and sustainable development.

Engagement is anchored by long‑standing research and innovation funding mechanisms, notably the Newton ‑Ungku Omar Fund and the International Science Partnerships Fund, through which Malaysia has been one of the UK’s most significant partners in ASEAN. These funds have supported impactful bilateral research, knowledge exchange and capacity building programmes across academia, government‑ and industry.

The relationship was further strengthened following agreement by both Prime Ministers in January 2025 to elevate UK–Malaysia bilateral relations to a strategic partnership, including a dedicated technology pillar covering artificial intelligence and digitalisation. Future collaboration aligns with Malaysia’s national S&T priorities and the UK’s Indo Pacific objectives, while reflecting Malaysia’s growing influence and leadership within ASEAN.

3. STN contacts

Poorani Krishnan

Science, Technology and Innovation Advisor, British High Commission Kuala Lumpur

Email: Poorani.Krishnan@fco.gov.uk