INNOVATION IS KEY TO MALAYSIA'S LONG-TERM PROSPERITY

KUALA LUMPUR, April 19 (Bernama) -- Innovation is the key to Malaysia's
long-term prosperity but presents a growing challenge, says the World Bank
Senior Economist for Malaysia, Philip Schellekens.

He said Malaysia can unleash its potential by focusing on improving
innovation capabilities and ensuring firms have sufficient access to talent,
technology and finance.

"It also includes enhancing the driving force of innovation, by promoting
and protecting the process of competition," Schellekens said in his presentation
after the launch of the World Bank's second edition of the Malaysia Economic
Monitor, "Growth Through Innovation", here today.

Others, he said include, amplifying the impact of innovation by
concentrating efforts on promising product niches and economic activity in
geographical clusters.

Schellekens, who is also the principal author of the Malaysia Economic
Monitor report, said by encouraging businesses beyond the high technology
sector to engage in innovation, broad sectors of the Malaysian economy can gain
a much-needed competitive advantage.

For this to happen, he explained, sources for innovation need to be
energised.

"Multiple market failures, as well as imperfections in the enabling
environment, hold back Malaysia's innovation potential.

"The experience of countries around the world suggests that, if implemented
well, the right combination of policies can make a big difference in unleashing
a country's innovation potential," he said.

According to Schellekens, facilitating innovation will require close
cooperation between the government and business and the success of
innovation-led growth, will depend on the private sector itself.

To be successful, he said any strategy aimed at facilitating innovation,
would need to be both comprehensive and well-sequenced.

"Innovation strategies also need to reach out to a wide spectrum of
players," he added.

-- BERNAMA