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Posted on Apr 28, 2016 in Latest Update

Revisions of the Market Development Grant (MDG) by MATRADE

 

MATRADE has made revisions to the Market Development Grant (MDG) on 1st December 2015 to enable more eligible Malaysian Small and Medium Enterprises (SMEs) to avail themselves of the MDG.

 

1)     OBJECTIVE – The Market Development Grant (MDG) is designed to assist Malaysian Small and Medium Enterprises (SMEs), Trade & Industry Associations, Chambers of Commerce & Professional Bodies in undertaking eligible export promotional activities.

 

2)     FORM OF GRANT – A reimbursable financial assistance on eligible expenses incurred in undertaking export promotional activities.

 

3)     GRANT CEILING – The maximum grant for any eligible company under the MDG program is RM 200,000.00. Any applicant that has utilised the maximum grant of RM200,000.00 since the commencement of MDG in 2002, is not eligible for consideration. This grant also will be subject to the availability of fund.

 

4)     ELIGIBILITY CRITERIA

 

  1. Small and Medium Enterprises (SMEs)
  • Incorporated under the Companies Act 1965;
  • At least 60% equity is owned by Malaysian(s);
  • Exporting products made in Malaysia or Malaysian services; and fulfilling the following criteria:

    1. Manufacturing (including agro-based):
  • Annual sales turnover not exceeding RM50 million (based on the latest Audited Financial Statement) OR
  • Full-time employees not exceeding 200 (based on the latest EPF Statement)

    2. Trading
  • Annual sales turnover not exceeding RM20 million (based on the latest Audited Financial Statement) OR
  • Full-time employees not exceeding 75 (based on the latest EPF Statement)

 

3. Services (excluding real estate, tourism, financial & insurance industry):

  • Annual sales turnover not exceeding RM20 million (based on the latest Audited Financial Statement) OR
  • Full-time employees not exceeding 75 (based on the latest EPF Statement)B. Professional Service Providers (Sole Proprietor or Partnership)
  • Incorporated under the Registration of Business Act (1956) /   Registered under the respective statutory bodies for professional services providers;
  • At least 60% equity owned by Malaysian;
  • Exporting Malaysian services; and fulfill any of the following criteria:
  1. Annual sales turnover not exceeding RM20 million (based on the latest Audited Financial Statement) OR
  2. Full-time employees not exceeding 75 (based on the latest EPF Statement)


C. Trade & Industry Associations, Chambers of Commerce & Professional Bodies

  • Registered with the Registrar of Societies (ROS) or Associated Professional Authority.

ADDITIONAL MANDATORY REQUIREMENTS:

  1. Registered with MATRADE under the Malaysia Exporters Registry (MER);
  2. An active business entity;
  3. Not a Government Linked Company (GLCs) or have Government equity (federal or state);
  4. Export promotional activities which are subsidised or sponsored by third parties (e.g Ministries or Government agencies/Trade and Industry Associations/Chambers of Commerce/Professional Bodies and Others) are not eligible for MDG;
  5. For consideration, all complete applications must be submitted online and received by MATRADE within forty (40) days from the last date of the activity. All late applications will not be considered.

THE CHANGES IN 2016 ARE AS FOLLOWS:

 

  1. a) The maximum grant amount has been increased from RM800 to RM2,000 for Trade & Investment Mission activities;
  2. b) The maximum grant amount has been increased from RM800 to RM2,000 for Specialised Marketing Mission (SMM) activities organised by other Government agencies, Trade Associations, Chambers of Commerce & Industry and professional bodies;
  3. c) Active companies that are in operation for less than a year can apply for the MDG.

 

The following information is extracted from the MDG Guidelines dated 1st December 2015:

GRANT AMOUNT

 

The table below indicates the amount of grant to be reimbursed for the eligible activities:

 

ACTIVITY AMOUNT
International Trade Fairs in Malaysia Maximum reimbursement of RM 5,000 per company per participation or the actual participation fees whichever is lower.
International Trade Fairs Overseas Maximum reimbursement of RM 15,000 per company per participation or the actual participation fees whichever is lower.
Trade & Investment Missions (MITI and Agencies) Maximum of RM 2,000 per company per participation or the actual participation fees whichever is lower.
Trade & Investment Missions organised by other Government Agencies, Chambers of Commerce Trade and Industry Associations and Professional Bodies Maximum of RM 2,000 per company per participation or the actual participation fees whichever is lower.
Specialised Marketing Missions (SMM) by MATRADE Maximum of RM 10,000 per company per participation or the actual participation fees whichever is lower.
Specialised Marketing Missions (SMM) organised by other Government Agencies, Trade Associations, Chambers of Commerce/Professional Bodies Maximum of RM 2,000 per company per participation or the actual participation fees whichever is lower.
International Conferences Overseas Maximum of RM 2,500 per company per conference or the actual participation fees whichever is lower.
Listing Fee for Made in Malaysia products in Supermarkets/   Hypermarkets/ Retail Centres Overseas Maximum of RM 20,000 per company per Supermarket/ Hypermarket/ Retail Centre per country or the actual listing fee, whichever is lower.

 

PLEASE NOTE THAT PARTICIPATION FEE INCLUDES REGISTRATION FEE, BOOTH RENTAL AND CONSTRUCTION, TRAVEL AND ACCOMMODATION.

 

 

For more information, please visit MATRADE’s websitehttp://www.matrade.gov.my/en/malaysian-exporters/services-for-exporters/exporters-development/exports-assistance or contact MATRADE MDG Unit by Telephone: +603-6207 7593, Fax: +603-6203 7252, E-mail: mdg@matrade.gov.my.

 

Please refer to the below PDF file on “Guidelines for Market Development Grant (MDG) 2016” with effective from 1st January 2016 for full details of MDG.

 

MDG_GUIDELINES_2016