Abstract
Malaysia encourages science and technology policy under the slogan "Change into a fully industrialized country by the year 20202. Its economy is undergoing remarkable growth and it is increased at the rate of more than 8% a year for the last seven years. The industrial products has been a major export of the country since 1987, and the rate reached 71% in 1993. Though they recognize the development of science and technology as one of the most crucial factors to achieve their goal, it was not long ago before science and technology policy was launched in Malaysia. Ministry of Science, Technology and the Environment sets out the major policies; doubling R&D investment up to 1.6% of GDP by 2000, strengthening market driven R&D, developing technology in the private sector, and looking for talent. For the present, they are struggling to build up a close connection between the public institutes and the private sector and to overcome the shortage of engineers.