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Oleh/By		:	DATO' SERI DR. 
			MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	JW MARRIOT HOTEL, KUALA LUMPUR 
Tarikh/Date 	: 	02/11/98 
Tajuk/Title  	: 	THE DINNER SPEECH HOSTED BY THE 
			ACADEMY OF SCIENCES MALAYSIA 


        "SCIENCE AND TECHNOLOGY -- THE FOUNDATION  TO OUR
              ECONOMIC GROWTH AND PROSPERITY "   
  
       I  am  honoured  to  be  given this  opportunity  to
  address  a  community  of eminent  Malaysian  scientists,
  engineers  and  technologists, a community  which  is  of
  utmost  importance  in the next phase  of  the  country's
  development and growth.
  
  2.    Science, engineering and technology (S.E.T) have  a
  pivotal  role in the development of our economy.   It  is
  through S.E.T that the Government will expect the  growth
  of the economy to be facilitated.
  
  3.    The  emergence  of a new global economic  order  --
  unrestricted  by geographical and political  barriers  --
  will  result in greater integration of the world economy.
  Knowledge, skills, information and investment funds  will
  move   around  freely.   Properly  utilised   these   new
  freedoms  will  bring  about great  prosperity  for  all.
  However  we  have seen how the sudden pull out  of  funds
  can  result in the destruction of economies at  a  faster
  rate  than  the  build-up.  And so the  infatuation  with
  Science,  Engineering and Technology must be  accompanied
  by  an  even greater adherence to morality and the higher
  human values.
  
  4.    Today  while there is a great deal of pressure  for
  the  opening  up  of countries and markets  to  everyone,
  there  is not that much pressure for science, engineering
  and  technology to be made available to every country and
  everyone.   In  fact the pressure to protect intellectual
  property  is  greater today than at any time in  history.
  The  machinery of international institution and those  of
  powerful  national Governments are mobilised  to  protect
  intellectual property rights as never before.
  
  5.    There seem to be something wrong in this.   Why  is
  it  that while markets cannot be protected, markets which
  may  be  the  sole asset of poor countries,  intellectual
  properties must be protected at all costs.
  
  6.    A  choice must be made here.  If we want to protect
  intellectual property then we must also protect  markets.
  Alternatively   we   should   insist   on   markets   and
  intellectual property to be equally free for everyone.
  
  7.    Science, Engineering and Technology are the results
  of  studies  and  research.  Although  research  seem  to
  imply some mysterious inborn intelligence it is really  a
  matter   of   money  and  manpower.  Today  sophisticated
  research  laboratories can be set up by  anyone  but  the
  cost  is  prohibitive.  The personnel  are  again  easily
  available if one is prepared to pay them.
  
  8.    Again here we see the impact of globalisation. Good
  researchers can be recruited from any country to work  in
  any  other  country.  There is no such thing as  national
  loyalty   any  more.   If  the  right  pay  is   offered,
  researchers would be easily employed from any country  in
  the world.
  
  9.     Since  poor  countries  have  neither  the  costly
  laboratories  nor  have they the ability  to  offer  good
  pay,  they  usually lose their researchers to the  richer
  countries.   The loss in most cases is permanent  as  the
  researchers are often offered citizenship as well.   This
  brain drain is very costly to the poor countries as  they
  will  have  to  pay royalty for the results  of  research
  carried out by their own nationals in other countries.
  
  10.   Research  today  is much more methodical  and  much
  less  dependent on individual genius.  All that is needed
  is   fixing   the  objective  and  making  a  series   of
  modification  to  a  product  in  order  to  improve  the
  results.   The  method  is the  same  whether  it  be  in
  physics,  chemistry, biotechology or whatever. Eventually
  something  worthwhile  would be discovered  or  invented.
  This  way almost everyday something new is discovered  or
  developed.
  
  11.   Besides  original  research  there  are  plenty  of
  opportunities   for   applied  research.   The   original
  discovery  or  invention may be done by someone  else  in
  some  other  country but the application of  the  results
  can  be done elsewhere, including in developing countries
  too  poor  to  conduct original research.   The  cost  of
  applied  research may also be high but  there  are  ample
  possibilities for low-cost applications.
  
  12.    Merely   by  catering  to  local  conditions   for
  applications   developed  in  the  developed   countries,
  numerous   modifications  can  be  made   and   patented.
  Although  royalty  may have to be paid for  the  original
  research,  at  least  there will be  ownership  of  local
  applied  research results.  Since most  of  the  original
  and  applied  research are being done  in  the  temperate
  climate,  application in the warm humid climates  of  the
  tropics  can  be studied and developed in these  regions.
  Tropicalisation is almost a science of its  own  and  the
  scientists  in  the  tropical countries  have  the  whole
  country   as   a  laboratory  for  testing  in   tropical
  condition.
  
  13.   Then  there  are cultural and religious  needs  and
  injunctions  to  be looked into.  Muslims  in  particular
  require   certain  facilities  and  conditions   in   the
  products  they  use.   Muslim and non-Muslim  researchers
  can  look  into  modifications to suit Muslim  needs  and
  requirements.
  
  14.   Malaysia is a developing country and has inadequate
  funds  for  research, original or applied.   The  royalty
  paid  by  Malaysia  for imported technologies  yearly  is
  very  high.   This is of course a drain  on  our  foreign
  exchange  earnings.  At this time of economic turmoil  we
  cannot   afford  this  outflow  of  funds.    We   should
  therefore  develop  our  own technology  and  engineering
  innovations.   It  will  not  only  reduce  the  cost  of
  technology  but  we  may even be able  to  export  it  to
  reverse  the flow of royalties paid.  Malaysia  would  do
  well  to  spend  money  on research,  especially  applied
  research.   The economic recovery can be speeded  up  and
  we may emerge from the turmoil stronger.
  
  15.   The Seventh Malaysia Plan promotes a shift  in  the
  national development strategy, from one that used  to  be
  input-driven  towards  one that  is  productivity-driven.
  This   strategy  is  further  emphasised  in  the  Second
  Industrial  Master Plan.  For growth to improve  further,
  the  contributions  from technical progress  need  to  be
  enhanced.    The  Government  has  therefore   emphasised
  research  and  development as well  as  accelerating  the
  application  of  information technology, particularly  in
  the  development of the Multimedia Super Corridor  (MSC).
  It  is  envisaged that these improvements  will  lead  to
  increased   productivity  and  enable  the   economy   to
  generate  an output at a higher rate of growth  vis-a-vis
  resources availability and utilisation.
  
  16.   The realisation that productivity driven growth  is
  very  much  dependent on the S.E.T strengths, R&D  inputs
  and  the  capability  of  the people,  has  prompted  the
  Government  to  invest  in  S.E.T.   The  Government   of
  Malaysia    has    allocated    RM1    billion    through
  Intensification Research in Priority Area (IRPA)  in  the
  Seventh Malaysia Plan for the development of S.E.T.  This
  is  an  acknowledgment by the Government that  our  long-
  term  economic growth will be dependent on the  increased
  use  of  knowledge,  technology, and  skills  to  enhance
  industrial  productivity and competitiveness as  well  as
  to improve the standard of living.
  
  17.    To   realise  our  goals  of  ensuring  continuous
  scientific  and technological development to support  and
  sustain   high  economic  growth,  accelerate  industrial
  development  and  build a society that is  scientifically
  and  technologically  advanced as  envisioned  in  Vision
  2020,  the Government has put in place a S.E.T management
  system  that  is  aimed at harnessing  the  creation  and
  innovations  in  science  and  technology  for   economic
  growth and development.
  
  18.   The  S.E.T management system is created to  satisfy
  three  main  objectives, namely to  stimulate  scientific
  curiosity,  to  develop new products and  processes,  and
  applications  and  to  realise  the  social  benefits  of
  science and technology.
  
  19.   There  are three components of the S.E.T management
  system: the policy, infrastructure and finance.
  
  20.   The  National  Science and  Technology  Policy  was
  formulated  to promote the use of science and  technology
  in  economic  development and improving  the  quality  of
  life  of  all  Malaysians.  It focuses on  upgrading  R&D
  capacity  and  capabilities  as  well  as  improving  the
  scientific,     educational    and     other     relevant
  infrastructure.   The  task  of  driving  scientific  and
  technological  development  in  this  country  is   being
  shouldered   by  the  National  Council  for   Scientific
  Research and Development.
  
  21.   Within our S.E.T management system, we have created
  institutions  at various levels to ensure that  there  is
  sufficient  capacity, capability and financial  resources
  to  undertake  S.E.T programmes.  Our national  education
  system  is designed to provide trained manpower in S.E.T.
  The  various  science, technical and  vocational  schools
  across  the  country  are meant to produce  knowledgeable
  and educated workers for the S.E.T system.
  
  22.    The   Government  has  also  established   various
  institutions  to ensure that the S.E.T management  system
  delivers  its  result  for the  benefit  of  the  nation.
  MIMOS,  Technology  Parks,  Kulim  Hi-Tech  Park,  MIGHT,
  MINDS,   BAKSA,   the   various  research   institutions,
  universities  and  the Academy of Sciences  Malaysia  are
  parts  of  the  S.E.T delivery system.   To  finance  the
  commercialisation  of  R&D  results  the  Government  has
  established  Malaysian Technology Development Corporation
  (MTDC).   MTDC  functions  as a  catalyst  in  developing
  venture capital and transfer of technology in Malaysia.
  
  23.  The Government is not hesitant to invest in R&D.  We
  have  made  a  fairly large sum of money available.   But
  administering  the fund is very complex.   Administrators
  find   it   difficult  to  invest  Government  funds   in
  something  that cannot be quantified in the usual  manner
  and   the  results  of  which  i.e.  the  return  on  the
  investments,  are  not  so tangible.   The  risk  on  the
  investment appears high simply became the results  cannot
  be   guaranteed and the usefulness of the result in terms
  of application cannot be properly assessed.
  
  24.   It is especially difficult to assess the value  and
  the  returns  on  basic research.  Such research  is  not
  directed  towards  application.  In  many  instances  the
  applications  will  need research by other  institutions.
  Yet  we  know  that  in  many advanced  countries,  basic
  research  has brought about huge returns for  the  nation
  due  to  applications devised by commercial organisations
  and their own applied research facilities.
  
  25.   It  is  therefore important for those in charge  of
  disbursing  Government  funds  for  research  to  acquire
  expertise  in evaluating research projects and to  accept
  a  long payback period.  Indeed in some cases we have  to
  accept  that  we  should  do research  for  the  sake  of
  research  without  knowing the possible  returns  on  the
  capital  outlay.  There should not be too  much  of  this
  kind  of research of course.  But a certain amount should
  be allocated for this.
  
  26.   I  understand that there are a number  of  research
  facilities   which  are  hardly  utilised.    While   the
  equipments  are  provided for, there is a  reluctance  to
  employ  research or to allocate funds for research  work.
  This  is  indeed unfortunate.  The institution  concerned
  should  make  a  study  of the facilities  available  and
  determine  how to utilise them more fully.  If  we  don't
  have  enough researchers we should be willing  to  employ
  foreign  personnel.  There is of course a risk of leakage
  but  it  is  a risk we have to take.  After all developed
  countries  take  all  kinds of  risks  and  have  clearly
  profited from them.
  
  27.   The  latest effort by the Malaysian  Government  to
  strengthen  the  country's  economic  position   is   the
  establishment  of  the Multimedia Super  Corridor  (MSC).
  Through   MSC,   Malaysia  will  compete   in   the   new
  information  era.   An  explosive  array  of  innovations
  centering  around telecommunications and informatics  has
  produced  a  revolution in information technology  (I.T).
  I.T  will  reorientate global commerce and  redefine  the
  workplace.   It  will have a serious implication  on  the
  labour  market  as  demand  will  be  on  more  knowledge
  workers.
  
  28.   The Government realises that investment in  I.T  is
  important  as it is the central nervous system that  will
  sensitise  all the other sectors of S.E.T.  Through  I.T.
  the  potential  of  other technologies can  be  realised,
  creating subrevolutions in other areas.
  
  29.   Malaysia's technology agenda remains very broad but
  focuses   on   the   need  to  enhance   efficiency   and
  effectiveness of our industry.  The Government  has  long
  recognised  the  importance  of  technology  in   poverty
  eradication and ameliorating environmental problems.   In
  poverty   eradication,  relevant  technologies   can   be
  diffused  into the target groups or community to  improve
  agriculture  practises,  increase  food  production   and
  provide   better  health  care  services  and  population
  planning.   For  environmental  problems,  not  only  are
  there  new  technologies, but even existing ones  can  be
  modified  to  improve energy efficiency,  exploration  of
  new  forms  of  energy, better forms  of  transportation,
  effective   management  of  waste  and  new  methods   of
  fertilisation.
  
  30.   For  the past 41 years since independence, Malaysia
  has   made   rapid  technological  evolution.    From   a
  predominantly  agriculture nation,  we  have  transformed
  ourselves  into an industrialising nation.  In  preparing
  the  nation  for the next phase of growth, the Government
  is  putting  in  place  the  fundamentals  necessary  for
  launching the country into the information age.
  
  31.   For  us  to succeed further, mastering of  Science,
  Engineering and Technology is of paramount importance.
  
  32.   The  Government remains committed towards promoting
  S.E.T.    We  have  formulated  the  policy,  built   the
  infrastructure  and  allocated the  financial  resources.
  But  beyond  that we need the scientific  and  industrial
  community  to push it further.  To innovate  and  create;
  to  continuously challenge old thinking with  new  ideas;
  to  continuously  search  for  new  knowledge  and  solve
  problems.   We have to strive for excellence and  in  the
  process  transform Malaysia into one of the world players
  in science and technology.
  
  33.   Scientists and researchers should capitalise on the
  Government   layout  infrastructure  and  facilities   to
  deliver  their  results.  Over the years, our  scientists
  have  achieved major breakthroughs in various  fields  of
  S.E.T.   It will be for the benefit of all of us  if  the
  Academy   of   Sciences  Malaysia  could  take   up   the
  initiative to document all these breakthroughs.  Although
  these  breakthroughs  are  sporadic,  it  indicates  that
  Malaysia  possesses  scientists and researchers  who  are
  capable of performing high level research.
  
  34.    Having  said  that,  I  challenge  the   Malaysian
  scientific community to produce a Nobel Laureate  by  the
  Year 2020.
  
  35.   I  am  very  happy  to note  from  the  President's
  Address  that the Academy of Sciences Malaysia  has  been
  very  active  at  various fronts in  promoting  S.E.T  in
  Malaysia.   I congratulate the Academy for adopting  such
  a  proactive  stand on various issues of S.E.T  faced  by
  the  country.   The Government of Malaysia will  continue
  to  seek  opinions and suggestions from  the  Academy  on
  issues of S.E.T.
  
  36.   The  Academy of Sciences Malaysia as the apex  body
  of   science  and  technology  in  Malaysia  has  a  very
  important  role to play.  It should provide the  platform
  for  scientists  to channel their inputs and  views  into
  the  national  development process and at the  same  time
  provide  coordination  and direction  to  the  scientific
  community.   This  is  the kind of  leadership  that  the
  Academy should play.
  
  37.   The Academy must prepare itself to play an advisory
  role  on  S.E.T to the Government as well as the  private
  sector.   The  Government is always appreciative  of  the
  fact  that  we  can  bounce off ideas with  the  relevant
  individuals and institutions to ensure that our  policies
  and  plans  meet the desired objectives.  The  Government
  too   is  open  to  constructive  criticisms.  Criticisms
  should  not  be an end but a beginning in  a  search  for
  better  solutions.  In the area of S.E.T, the  Government
  expects the Academy to assume this role.

 



 
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