Country Economic Work for Malaysia - Islamic Development Bank

member countries can be provided technical know-how and incentives be granted to
companies operating in the designated Halal Park. Further, in an effort to promote Halal
Industry and Halal supply chain, the incentives can be broadened for the logistic operators
from IDB MCs and non-MCs.
(v) Enhancing Innovation Exchange among IDB Member Countries 31
Importance of Innovation Exchange
159. The changes that the world is experiencing today are largely a result of an accelerated
pace of innovation, which can lead countries out of their “locked space” and propels them
forward, thereby increasing both their economic status as well as the quality of lives of their
citizens. The main theme of the New Economic Model initiated by the Malaysian
Government is to create innovation-led economy.
Malaysian Government’s Role in Innovation Ecosystem
160. The Government of Malaysia is an important component of the innovation
ecosystem. It has embarked on a Transformation Programme and this is already beginning to
show favourable results. The Government is aware that it has to bring ‘Innovation into
Government and Government into Innovation’. This involves every level of the public sector
– from the highest to downwards. Decision makers in government have become conversant
with innovation and are formulating frameworks, regulations and policies that support
innovation.
Formation of a New Unit in Prime Minister’s Office, called UNIK (Unit Inovasi
Khas)
161. The Malaysian Government formed a new Unit under the purview of the Prime
Minister’s Office, called UNIK (Unit Inovasi Khas). This Unit has begun identifying
solutions to address the gaps in the innovation ecosystem. The UNIK will be examining all
the areas of the ecosystem – Government, universities, the education system, funding and
skills.
Agensi Inovasi Malaysia (AIM) Act 2010
162. For Malaysia to achieve high income and advance country status, it must be able
to compete regionally and globally, which is only possible through innovation. In order
to enhance innovation and R&D, the Agensi Inovasi Malaysia (AIM) Act was passed on 21
December 2010 by the Parliament and was operationalised on 15 April 2011. The main
objective of the AIM was to design programmes and activities to enhance innovation, and
commercialize new products. As a result of the Government’s efforts, the number of
trademarks and patents registered domestically increased 55.4% during the first eight months
of 2011 compared to 14.7% in the corresponding period of 2010.
31 Sources: Special Innovation Unit (UNIK), Prime Minister’s Department; National Innovation Foundation; Tenth
Malaysia Plan; Malaysia Budget 2012; Economic Planning Unit; Ministry of Science, Technology and Innovation;
and Malaysia Technology Development Corporation (MTDC).
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