To date the development has been uneven and internships have benefited only a small proportion of students. Closer partnerships between universities and industry could ensure quality work-based learning opportunities for students. Contract research is, however, not well developed. University-industry interactions in research and development remain limited to consulting arrangements and “troubleshooting” contracts. In the last three years, only 12% of firms surveyed in Penang have collaborated with a research institute when upgrading or acquiring a new technology.