State-Level Productivity Intervention Survey

Provide grants that help companies adopt new technologies, automate processes, and invest in R&D to reduce upfront costs and encourage firms to invest in innovation.

Offer low-interest loans or government-guaranteed financing through commercial banks to encourage financial institutions to lend to businesses that may lack sufficient collateral.

Provide tax deductions, credits, or accelerated depreciation for investments in innovation and digital technologies to lower the effective cost of innovation investments.

Establish investment funds jointly financed by government and private investors to provide equity financing for businesses with high growth potential.

Support companies that have moved beyond startup stage but are not yet large enterprises to help successful digital firms scale domestically and internationally.

Universities should work directly with companies such as Microsoft; AWS; Google; Nvidia; Intel; Infineon; Grab & PETRONAS Digital etc. to ensure graduates learn relevant skills

Lessons from S Korea, Taiwan, and China. Malaysia could provide grants and tax breaks etc. 

The state government could focus on moving up the value chain into Chip design; AI model development & Automation & AI etc. to create high-paying jobs that retain talent.

Brain drain is often economic. Government cannot directly force companies to pay more but could provide differential treatment to attract talents.

To identify strategic fields: AI/ Machine Learning/ Data Science/ Cybersecurity/ Robotics/ Semiconductor design/ Cloud Computing so as to create a pipeline of talent in high demand/ strategic sectors.

Malaysia's R&D spending remains lower than leading innovation economies to attract and retain talented researchers at home.

Many transformation projects fail because leaders do not fully understand digital technologies.

Many businesses hesitate because of security concerns. Businesses are more likely to adopt AI when they trust the technology and the regulatory environment

Many AI tools are designed for larger markets and may not fit Malaysian needs. This creates solutions that are more relevant and affordable.

The government can be a major catalyst. When citizens and businesses see successful government use cases, confidence and adoption increase.

Many initiatives involve multiple ministries, agencies, state governments, and industry bodies. This measure could reduce overlap, clarify accountability and accelerate decision-making.

Like Singapore's GoBusiness platform and South Korea's integrated e-government systems. This could potentially result in shorter approval timelines, better transparency and reduce administrative costs.