By Professor Dato Dr Ahmad Ibrahim
Malaysia stands at a pivotal juncture. As the nation crafts its 13th Malaysia Plan (13MP), it confronts the end of an era of economic playbook. Fossil fuels face decline as the pressures to decarbonise heat up. Palm oil’s expansion plans look remote as labour pains continue to haunt the sector. Natural rubber, the other world commodity, is already breathing its last. In this volatile landscape, the 13MP must be less a five-year roadmap and more a radical manifesto for reimagination. It must acknowledge that economic resilience is now inseparable from technological sovereignty, ecological stewardship, and strategic diplomacy. The global market is no longer the same.
The guessing game has started on the imperative pillars for the 13MP? Many are calling to turbocharge the tech transition, moving beyond the assembly lines. There are signs that AI and semiconductors will anchor the E&E sector. Malaysia must refuse to remain a “glorified factory floor.” The Plan should create a National Semiconductor Strategy targeting design, advanced packaging, and niche materials including silicon carbide for EVs. We must plan to partner with global leaders (TSMC, Intel) for knowledge transfer, not just investment. Also launch a National AI Mission with sovereign cloud infrastructure, open datasets for startups, and AI upskilling for 500,000 workers by 2030. And mandate AI adoption in public services (predictive healthcare). The call to embed circular economy principles in E&E is growing louder. This is by incentivizing semiconductor recycling and critical metals recovery. Turn e-waste into economic value.
Palm oil is another economic baby struggling to sustain. Earlier the crop replaced natural rubber as crop of choice, but now faces almost similar challenges. It is only surviving because 80% of palm oil end up as food. The world will continue to demand more food. Palm oil’s survival hinges on radical transparency. As one of the most taxed oil crop, it is time to support the crop on sustainability and labour justice. Reward growers with verified zero-deforestation, fair wages, and use of digital in their operation. Position Malaysia as a bioeconomy hub. Catalyze R&D into palm oil derivatives for biofuels, bioplastics, and pharmaceuticals—divorcing revenue from edible oils alone. Not to mention harnessing the economic potential of the industry’s massive biomass.
There is news that nuclear energy may be reconsidered in the Plan, a wise move. The climate crisis demands Malaysia mature its nuclear debate. No more taboo. There is the call to establish a Nuclear Energy Development Authority (2025), tasked with public education, site selection studies, and SMR (Small Modular Reactor) feasibility assessments. Also pilot ASEAN’s First SMR Project by 2035 as a regional clean baseload power model. And partner with South Korea (KEPCO) or Canada (SNC-Lavalin) for science and technology diplomacy. Science diplomacy is seen by many as Malaysia’s unplayed ace.
In a world fractured by US-China tech rivalry, Malaysia’s neutrality is an asset. The 13MP must elevate science diplomacy as core statecraft. There are moves to establish ASEAN Centre for Science Diplomacy. Good to create an ASEAN Tech Accord, and lead a regional pact for semiconductor supply chain resilience, data governance standards, and joint R&D in agritech/clean energy. Become a global testbed for climate tech. Offer Malaysia as a living lab for tropical decarbonization solutions—from mangrove-carbon projects to heat-tolerant solar panels—attracting EU/Japanese partnerships. On talent bridging, create “Diaspora Science Networks” to connect global Malaysian scientists with home institutions. Offer tax incentives for repatriation projects.
Science diplomacy isn’t optional. Malaysia’s traditional industries are under siege. Palm oil faces EUDR tariffs. Oil revenues are peaking. Semiconductors risk being disrupted by AI-driven automation elsewhere. Science diplomacy solves three critical gaps; access, influence and security. By collaborating with MIT on nuclear safety or CERN on materials science bypasses decades of R&D costs. Setting ASEAN AI ethics standards positions Malaysia as a rule-maker, not rule-taker. On security, partnerships in green tech and food innovation hedge against climate-driven instability.
Malaysia’s plans often falter on implementation. The 13MP must include: A Ministry of Future Industries (MoFI): Consolidate fragmented tech/energy/industrial policies under one roof with cross-ministerial authority. And outcome-based budgeting by allocating 30% of ministry funding to KPIs like patent filings, carbon reduction per GDP, and FDI in R&D. The Stakes are not about GDP targets. It’s about survival in a world where nations without technological agency become economic colonies. Malaysia has the talent, geography, and institutional memory to pivot. But the 13MP must reject incrementalism and embrace three truths: Tech dominance is the new oil wealth. Sustainability is the price of market access. Diplomacy must be weaponized for knowledge. Malaysia’s choice is stark: lead the Global South’s green-digital transition or become a footnote in Asia’s economic revolution. The 13th Plan must be Malaysia’s moon shot—or its epitaph.
The author is affiliated with the Tan Sri Omar Centre for STI Policy Studies at UCSI University and is an associate fellow at the Ungku Aziz Centre for Development Studies, Universiti Malaya.