00:00What can we have at the end of the journey in 2030 as we sit here?
00:06Under the Kerangka Economy Medani, we talk about lifting the ceiling and lifting the floor.
00:10Lifting the ceiling first because we need to induce better quantity and quality of industries that exist in Malaysia.
00:19Things that actually create better spillover effects to the economy
00:24that our own local players begin to connect in a better form
00:28and grow our own local players in a state that they can then look at branching out and competing on
00:36a global scale.
00:36And if we are able to do that, we are able then to lift the floor
00:41because better industries, better quality jobs come into play,
00:45which means better pay and better lifestyles for people in Malaysia.
00:50So in this government, what we've actually articulated is we've been quite clear
00:55in rolling out what are the kinds of industries that we want in Malaysia.
00:59We put it out there in terms of our new industrial master plan.
01:03We put it out there in terms of national semiconductor strategy.
01:06And we put it out there in terms of the netter ambition that we actually have.
01:10And these are industry shaping directionality that we're putting out to the market.
01:16So everybody's crystal clear.
01:17This is what Malaysia wants.
01:19We actually want to transition, as we said, in Rancangan Malaysia ke-13, RMK 13,
01:25that we want things to move from made in Malaysia to made by Malaysia
01:30because we need to do better at value capture in the country.
01:34And if we get better value capture, naturally, the capability of our own people to earn is better.
01:41So where does R&D fit in all these things?
01:44And what is the government trying to induce on this side in order to make Malaysia much more competitive?
01:52So if you look at today, plus or minus, our R&D spend in the country is about RM18 billion.
02:001% of GDP.
02:02This is 2022 numbers.
02:04So if you reflect the same number today, it should be already nearly RM20 billion.
02:09The problem that we're having is that the type of R&D that's actually done in Malaysia
02:13is not necessarily the types that are facilitating local capture in the country.
02:20Our own local firms owning enough IP.
02:23Our own local firms actually competing and building outside and integrating in that value chain.
02:30So what does the government then try to do?
02:32What we want to do is actually to make sure that we provide a capital market
02:37that can help support the development of local firms along the way by providing capital.
02:45So what capital has been actually provided?
02:47Because not all capital has to be provided by government.
02:50Some of it, we actually have institutions that have the capacity to invest.
02:55So under our GEAR UP program, you all will know that we have worked together with our GLICs
03:03and they have committed an additional RM120 billion on top of their normal RM400, RM500 billion
03:09over five years to be reinvested back in Malaysia.
03:12And really to help spur the movement of our economy into the play.
03:17And in that instance, what have they done?
03:19They've created sub-funds.
03:20Under a co-op, they have Dana Printis.
03:23Dana Printis helps fund venture capital in Malaysia.
03:27We have Dana Pemacu, which helps growth capital in Malaysia
03:32so that local firms have people who are prepared to put money into play.
03:37Then at the same time, we've got Kazanah in their Dana Impact,
03:41Jelawang Capital, and they've put money inside it.
03:44And if we add that one up all together, between all the Dana and Jelawang Capital,
03:49we're talking about plus or minus RM10 billion.
03:51That was actually curated and put into the play in the last two years.
03:59So what the government is trying to do is make available capital.
04:02But on top of making available capital, what it's also trying to do
04:06is to bring seasoned players that understand how to invest
04:11and to work with people in the market
04:14so that they have the capacity to be guided to make their business successful.
04:19And that's why they are the people.
04:26You
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