By Dr Abdul Rahman Hamdan (rahman@might.org.my)
As seen in history, technology has always become the cornerstone of a nation’s economic growth. Technology plays a significant role in the rise of new empires and political control by the world’s superpowers. With the advent of digitisation of the global economy, small nations such as Malaysia will be more exposed and vulnerable to any supply chain disruption of the world economy and trade, more than ever in history. Malaysia is a trading nation, and its economy relies heavily on exports and imports of essential trades. This makes the country heavily dependent on the global supply chain for its economic growth and sustainability. The lessons learned from the COVID-19 pandemic show that the government needs to be sovereign in specific strategic sectors, such as food and healthcare, for example. The nation could not afford to depend on another country regarding matters related to its security and well-being. Being too dependent on another foreign country for some of these strategic areas would make the country vulnerable and open to unnecessary interference from foreign countries.
As Malaysia navigates the complexities of a rapidly evolving global technology landscape, the concept of technology sovereignty is becoming more critical for Malaysia’s economic resilience and national security. Technology sovereignty, in simple terms, refers to a nation’s ability to exercise control over its own technological infrastructure and innovation processes without relying on foreign entities. It is about the nation’s capability to develop, deploy and regulate technologies that align with its economic and security needs.
Why Technology Sovereignty Matters
Even though Malaysia is a trading nation and relies heavily on exports of imports to sustain its economic growth, the COVID-19 pandemic exposes the vulnerability of the nation’s ability to sustain itself in the event of a collapse in the global supply chain in key strategic areas such as food and healthcare.
Global Overview
Due to the COVID-19 pandemic, technological sovereignty is becoming more important in most countries and the European Union (EU). The EU defines technology sovereignty as the “Ability to develop, use and protect technologies vital to the EU’s citizens and businesses.” The EU focuses on technology sovereignty as it wants to avoid being dependent on foreign expertise and imports, while at the same time, promote EU leadership and strategic autonomy. Other key objectives are to protect EU citizens’ control over their data and to support the growth of EU high-technology companies. The European Sovereignty Index, developed by the European Council on Foreign Relations (ECFR), measures the contribution of EU member states to European sovereignty across various domains, including technology, defence, energy and economics. The index highlights strengths, weaknesses and the need for improved collective action. Below is the European Sovereignty Index (Figure 1) based on the countries in the EU and how they rank with each other.
A Sovereignty Index is a composite measure designed to assess a nation’s ability to maintain independence and control over its affairs across various dimensions, including political, economic, security, technological, health and environmental factors. This index typically aggregates multiple indicators to provide a holistic view of a nation’s sovereignty and can help identify strengths and vulnerabilities.
The Sovereignty Index is not just a tool, but a strategic asset for Malaysia. It provides a comprehensive framework to assess and enhance its independence and resilience in the face of global challenges. By understanding and addressing the factors contributing to sovereignty, Malaysia can secure its future as a self-determined and thriving nation.
Conclusion
The path will not be easy, as there will be challenges if Malaysia wants to achieve technology sovereignty. However, with the impending ‘smart future’ where almost everything will be technologically-driven, this road must be taken, and taken wisely.
To successfully build technology sovereignty, the country must develop and adopt a comprehensive strategic framework that encompasses heavy investment in R&D and encourages more public-private partnerships in technology development. While the challenge to achieve technology sovereignty is immense, the potential rewards to the nation would be impactful and meaningful. With the right policies and strategic approaches to this, Malaysia can protect itself from internal and external threats and at the same time create a more prosperous future for its citizens.
