In Malaysia, small and medium enterprises are the backbone of the country’s economy, contributing more than a third of the GDP.
While small and medium enterprises tend to focus more on the domestic market, it’s important to expand globally as well to reach new and diversified customers.
Business owners can look to government agency Malaysia External Trade Development Corporation (MATRADE), which provide various grants and resources to help local businesses establish their presence in foreign markets.
Marketing Development Grant
The Marketing Development Grant (MDG) provides businesses with funds to cover expenses when participating in export promotion activities locally and abroad.
Business owners are entitled to receive the grant for the following activities:
| Types of activities | Maximum grant amount |
| Participation in physical or virtual International Trade Fairs | Malaysia: RM5,000 |
| Overseas: RM15,000 | |
| Participation in physical or virtual Trade and Investment Missions (TIM) or Export Acceleration Mission (EAM) | Organised or jointly organised with MATRADE: RM10,000 |
| Not organised or jointly organised with MATRADE: RM2,000 | |
| Participation in International Conferences abroad | RM2,500 |
| Listing fees for Malaysian-made products in supermarkets, hypermarkets, retail and boutique outlets overseas | RM20,000 |
Source: MATRADE
The grant is given in the form of reimbursements and businesses can submit an application via MATRADE’s website within 30 days after the last date of the event.
Companies that are eligible for the grant include small-and-medium enterprises, professional service providers, trade and industry associations, chambers of commerce and professional bodies and cooperatives.
Services Export Fund
The Services Export Fund (SEF) is a grant which reimburses companies for costs incurred when they want to take things further and carry out expansion and exploration activities overseas. This may include conducting presentations with potential clients abroad and establishing a commercial office overseas.
The ceiling amount of reimbursements varies depending on the type of activities conducted overseas.
| Types of activities | Reimbursement |
| Travel and accommodation costs as a participant in an international competition | RM 50,000 |
| Travel and accommodation costs for tenders and/or the cost of purchasing tender documents for overseas projects | RM 50,000 |
| Travel and accommodation costs to meet/ network/ make presentations to potential clients and explore potential business and projects | RM 100,000 |
| Travel and accommodation costs in providing services for contracted projects carried out abroad | RM100,000 |
| Cost of conducting feasibility studies for international projects abroad | RM1,000,000 |
| Cost of establishing a commercial office abroad | RM200,000 |
| Cost of obtaining commercial intelligence/market reports to evaluate business opportunities in international markets | RM50,000 |
| Cost of developing a prototype/ system adaptation/ localization for an overseas project | RM50,000 |
| Travel costs, accommodation and participation fees in international training programs held domestically/abroad (physical/virtual) related to company services | RM50,000 |
| Cost of obtaining international certification in export services | RM100,000 |
| Software rental/subscription costs and/or machine/equipment rental costs | RM200,000 |
| Logistics costs involved in the delivery of Malaysian products and/or equipment overseas for overseas projects | RM350,000 |
Source: MATRADE
To apply for the grant, company owners need to register as a member of the Malaysia External Trade Development Corporation (MATRADE) and subscribe to the MyExport service, an online service for people to receive trade and market information.
eTrade Programme 2.0
The eTrade Programme 2.0 is a follow up to the eTrade Programme, which aims to enhance export activities through participation in cross-border e-commerce platforms.
Companies that qualify for the programme will receive the following financial incentives for their efforts in establishing their presence in cross-border e-commerce platforms.
| Types of activities | Incentives |
| Onboarding any cross-border e-commerce platform or multiple platforms | RM5,000 per company |
| Undertaking any digital marketing activities and/or attending eCommerce training programmes | RM20,000 per company |
Source: MATRADE
To be eligible, you need to be registered with the Companies Commission of Malaysia or Suruhanjaya Syarikat Malaysia (SSM) and are small-and-medium enterprises. Cooperatives registered with the Cooperative Societies Commission or Suruhanjaya Koperasi Malaysia (SKM) may also apply.
The programme is open only to trading and manufacturing companies that have a Malaysian ownership of at least 60% and sell locally-made products. The companies must also be registered with MATRADE and its MyExport services and has undertaken the Exporters Readiness Assessment Test (ERAT).
Mid-Tier Companies Development Programme
Aside from grants, businesses can also tap into other resources to expand globally by participating in the Mid-Tier Companies Development Programme (MTCDP).
The programme is created for mid-tier businesses, which are defined as companies that generate an annual revenue of RM50 million to RM500 million in the manufacturing sector and RM20 million to RM500 million in other sectors.
By participating in the programme, businesses get access to MATRADE’s global network, market intelligence, funding and new technology.
After graduating from the MTCDP, business owners can join the Mid-Tier Ramp Up Programme, which is a two-year extension programme from MTCDP to continue receiving support for export and trade activities.
New Exporters Development Programme
The New Exporters Development Programme aims to expedite export readiness of three specialised population groups including women, youth and bumiputera (Malays or indigenous peoples) entrepreneurs.
As the programme is targeted to help businesses that are new to export trade, participants can expect customised business coaching and hand-holding support by experts in the industry to master the basics of the trade.
Other notable benefits include free exhibition space allocation at the Malaysia Export Exhibition Centre in Kuala Lumpur for one year and opportunities for selected participants to promote their products or services at international trade fairs.
Companies that are eligible for the programme include small-and-medium enterprises registered under Companies Act 1965 as a Private Limited Company or Sendirian Berhad (Sdn Bhd), which have been in operation for at least three years in Malaysia.
Courses And Guides To Expand Globally
The export industry can be a challenging territory for businesses as it involves legal policies, trade documentation and special export procedures in specific countries.
Business owners can participate in virtual and physical workshops conducted by MATRADE through the Exporters Training Programme for a fee of RM20 to RM1,000, depending on the workshop.
Besides, entrepreneurs can also access free informative resources on MATRADE’s website such as guides on export trade, free trade agreements, learning from other exporters’ successes and the Export Readiness Assessment Tool (ERAT).
Kickstart Your Expansion Plans Overseas
If you’re considering growing your business overseas, a business banking account allows you to manage your transactions more conveniently including international fund transfers. Oftentimes, business owners who want to expand overseas would also want to establish a business banking relationship in the location where they’re expanding in, which could lead to opportunities to access loans and other facilities. Explore cross-border business solutions with OCBC Business Banking.
Read Also: Guide To Business Banking Accounts In Malaysia
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