SMES, mid-tier firms urged to leverage on export perks in Budget 2020

KUALA LUMPUR: The Malaysia External Trade Development Corporation (Matrade) has urged Malaysian small and medium enterprises (SMES) as well as mid-tier companies to fully leverage on the perks announced in Budget 2020 by incorporating an export plan in their business strategy or enhancing their existing export plan for 2020 and beyond.

In a statement yesterday, the national trade promotion agency highlighted incentives such the Market Development Grant with a higher claim ceiling per company of RM300,000, reimbursable grant for participation in trade fairs overseas with a higher claim ceiling of RM25,000 and an allocation of Rm50mil to encourage SMES to engage in more export promotion activities.

Chief executive officer Datuk Wan Latiff Wan Musa said the move is a strong indication of the government’s aspiration to develop more global champions among Malaysian exporters.

“Matrade is optimistic that the allocation will be a catalyst to facilitate the access of local companies to not only markets such as ASEAN, China and US but also to emerging markets too such as Central and South Asia, West Asia, Africa and Latin America.

“This is indeed great news for Malaysia’s export community and Matrade will be the engine to mobilise its resources in helping Malaysian companies realise their export sales,” he said.

Moving into 2020, Matrade will focus its export promotion activities on emerging high-value sectors, among others, aerospace, automotive, medical devices, halal, creative content, e-commerce and services, among others.

“It is imperative for us to expand Malaysia’s export capabilities in more areas other than conventional sectors like food and beverages or furniture,” Wan Latiff said.

He said this is in line with Matrade’s strategy to diversify Malaysia’s top exported products as well as championing the growth of Malaysian exporters in sustainable practices and responsible business.

“We need to develop a pool of exporters who are sustainable and responsible to respond to the growing global demands in these areas,” he said.

This move will also re-position Malaysia’s branding as a source of sustainable products and services, he said.

Wan Latiff said through various efforts in place, Matrade is hoping that Malaysia’s trade would remain at the RM1 trillion mark this year despite various economic headwinds globally.

“Come 2020, we hope the players in both the public and private sectors can form a stronger synergy to ensure Malaysia will continue to be one of the world’s most competitive nations in trade,” he added.