Policy transformation from public sector agency to business entity: lesson learnt in implementing corporatisation policy by government linked research & Technology organisations in Malaysia

Abstract

Early 1990 under the 9th Malaysia Government of Malaysia (GoM) emphasised on wealth creation in order to increase the economic growth of the country. One wayis through a Corporatisation initiative, where a Public Sector Agency is transformed into business entity. As a Corporatised Business Entity, new management leadership styles and management systems need to be changed accordingly in order to implement and deliver the Corporatisation Policy effectively. In the past, majority of Public Research Institutes have been successfulin delivering their roles in developing new knowledge and technologies, solving various technicalproblems and assisting local industry to be competitive. Due to their excellence in performance, a few selected Public Research Institute have been corporatised in mid the 1990s namely MIMOS, SIRIM Berhad, MPOB etc. These new knowledge and technology based organisations have been entrusted to extend their services to stimulate market-oriented R&D and facilitate the commercialisation of new technologies. The aim of this paper is to share lessons learnt in implementing the Corporatisation Policy. In addition this paper offers a solution to overcome those shortcomings by adopting Innovation Management approaches. This innovation management approach can be adopted and implemented by the Public Sector as well. This paper can be used as a reference for other Government; mainly those from developing nations should they decide to adopt the principles of the Corporatisation initiative.