KUALA LUMPUR, Oct 27 (Bernama) -- Adopting Full Economic Costing (FEC) could help Malaysia build a more sustainable research and development (R&D) ecosystem by enabling universities and research institutions to determine the full cost of conducting research and plan their funding needs more effectively.
Academy of Sciences Malaysia (ASM) Special Interest Group on Full Economic Costing (SIGFEC) chairperson Prof Dr Shaliza Ibrahim said the approach would help institutions to identify indirect and hidden costs that are often not covered by research grants.
She said recognising these costs would enable institutions to improve financial planning, optimise resources and diversify funding sources to ensure the sustainability of research activities.
“When we have full economic costing or FEC, we will take into consideration all the costs needed for us to implement or to carry out the research.
“When we are able to identify the hidden costs, we can plan better on how to recover them,” she told Bernama after attending the Strengthening Malaysia’s R&D Funding Sustainability: ASM-ACU Full Economic Costing Forum here today.
The forum, organised by ASM in collaboration with the Association of Commonwealth Universities (ACU), brought together policymakers, research funders, universities, research institutions and industry representatives to explore more sustainable and transparent approaches to research financing.
Shaliza said hidden research costs could also affect resources allocated for teaching and learning activities if they were not properly recognised and managed.
She said implementing FEC would help institutions identify opportunities to improve efficiency, including by reducing overhead costs, optimising manpower, improving space utilisation and managing energy consumption more effectively.
Among the strategies proposed were the phased implementation of a national FEC pilot programme, the development of standardised research costing methodologies and policy guidelines, as well as capacity-building initiatives to strengthen institutional readiness.
Meanwhile, ACU Senior Policy and Networks manager Dr William Bramwell said one of the key challenges facing Malaysia’s research funding system was the lack of clarity and consistency in costing and pricing approaches across universities.
He said Malaysia should not directly adopt an FEC model from another country but instead adapt its underlying principles to suit the local research environment.
He also highlighted the importance of an inclusive pilot programme involving universities, research institutions, industry players, funding agencies and policymakers to build a shared understanding of sustainable research financing.
ASM president and Science, Technology and Innovation (STI) advisor to the Prime Minister and the Nation Datuk Dr Tengku Mohd Azzman Shariffadeen, in his remarks, emphasised the importance of strengthening the foundations of Malaysia’s Research, Development, Innovation, Commercialisation, and Economy (RDICE) ecosystem to sustain its long-term competitiveness.
“Increasing our investment in R&D is important, but equally so is the quality and continuity of that investment.
“Full Economic Costing provides a clearer understanding of the resources required to undertake research, enabling institutions, funders and policymakers to make more informed decisions,” he said.
--BERNAMA