The Ministry of Science, Technology and Innovation (MOSTI) together with the Ministry of Finance (MOF) recently launched the Adoption of Local R&D Products and Services (MySTI) in Government Procurement initiative to boost the growth of local industries based on technology and innovation.
MySTI provides a platform that includes a logo certification program and an inventory of products and services that have been developed through local R&D activities. More information about this initiative can be found at www.mysti.gov.my. Eligible products and services that receive MySTI logo certification will be given priority in government procurement. This program will be implemented on a pilot basis for 2 years starting 26 June 2023, involving 10 ministries.
Local technopreneurs and researchers often voice the challenge of participating and competing in government procurement. They are forced to choose a “boomerang strategy,” which is to market their products abroad first to prove their effectiveness before being accepted in the local market.
Through the MySTI initiative, local technopreneurs will be given priority to market their R&D products and services in government procurement. The program is designed to:
- Increase competitiveness, create employment opportunities and enhance the capabilities of local technology companies through access to government procurement;
- Stimulate innovation and recognize local talent in the fields of science, technology and innovation (STI);
- Promote the use of local innovation, especially in government procurement to reduce dependence on imported products;
- Help local technopreneurs attract investors through performance and track record in government contracts; and
- Support the recovery and growth of the country's economy.
Government procurement is a large and stable market, capable of improving the well-being of the people. General government final consumption expenditure (% of GDP) in Malaysia is reported to be 11.59% in 2022. Government support through the MySTI public procurement policy can contribute to the national development agenda to become a sustainable and technology- and innovation-based nation. The Madani government, which prioritizes creativity (“Daya Cipta”), is committed to being an early adopter of local innovation, in line with best practices in developed countries.
Local technology companies should be given the opportunity to prove the effectiveness and efficiency of their products and services through government procurement, thus building a strong track record in the country. This will increase investor and buyer confidence internationally. With this policy, the government can align needs with local technology and innovation development through continuous improvement, adaptation and optimization (kaizen).
The MySTI initiative also complements the Malaysian government’s decision to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 countries, namely Australia, Brunei, Chile, Japan, Canada, Mexico, New Zealand, Peru, Singapore and Vietnam. The CPTPP provides access to government procurement to member countries, subject to agreed exemptions. MySTI acts as a “double-edged sword” that strengthens the competitiveness of the local technology industry in the domestic market while preparing them to seize market opportunities in other CPTPP member countries.
As of 18 October 2023, the Malaysian Research Accelerator for Technology and Innovation (MRANTI) as the implementing agency has received over 500 applications for MySTI logo certification. Of these, 50 products and services have been approved to use the logo and are being actively promoted for procurement in 10 pilot ministries.
A variety of local technology products and services are available for use in various public service and industrial sectors, including categories such as Technology & Smart Systems, Medicine & Healthcare, and Smart Cities & Transportation. More information is available in Figure 1.
For further enquiries, please contact:
More Information on MySTI Logo Marking:
MySTI Secretariat, MRANTI
Malaysian Research Accelerator for Technology & Innovation (MRANTI)
Tel: +603-8998 2020
Email: info@mysti.gov.my
Website: www.mysti.gov.my
More Information on MySTI Fund:
MySTI Fund Secretariat, MTDC
Malaysian Technology Development Corporation (MTDC)
Tel: +603-2172 6000
Email: mysti@mtdc.com.my
Website: www.mtdc.com.my/mysti/