Market Development Grants to Go Up Four-Fold

Market development grants (MDG) will be increased four-fold to RM52.5 million this year, from RM12.34 million allocated last year.

The eligibility ceiling for the grant has been raised from RM30,000 previously to RM100,000 per company under the MDG scheme aimed at assisting small-and-medium enterprises (SME) gain market access.

The Malaysia External Trade Development Corporation (MATRADE) would introduce an online application system to make it easier for exporters to take full advantage of the scheme.

Last year, 1,300 SMEs benefited from these grants, whose total value was RM12.34 million.

New MDG Guidelines

The scheme is to provide a matching grant to assist Small and Medium Enterprises (SMEs) undertake activities for the development of export. This guideline is effective on eligible activities commence on 1st January 2012.

Definition of  SME
 For manufacturing sector, having an annual sales turnover not exceeding RM 25 million (based on the latest financial report) OR not more than 150 full-time employees (based on latest EPF Statement).

Method of Disbursement

Companies can obtain a 50% reimbursable matching grant on the approved cost of the eligible claims and activities.

 

Eligible SME companies can claim a maximum grant of RM 100,000.00 for eligible activities undertake in 2012 and subject to first come first serve basis and availability of MDG fund.

 

Eligible Activities 

a.      Participation in International Trade Fair/Exhibition Local or Overseas.

b.      Participation in Trade Investment Mission or Specialised Marketing Mission.

c.       Participation in Malaysia Export Exhibition Centre (MEEC), MATRADE. 

Claimable Expenses for SMEs 

a)   Participation in International Trade Fair/Exhibition Local or Overseas

·         Participation fee.

·         Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.

·         Two hotel rooms not exceeding RM 200 per night per room for Local International Trade Fair and RM 1,000 per night per room for Overseas Trade Fair. Claimable period of accommodation is subject to a maximum of five (5) days for the whole duration of the event and two (2) additional days before or after the event.  

·         Rental of standard booth which is limited to 18 square meters (sqm). 

·         Advertisement in official trade fair show directory. Local International Trade Fair is subject to maximum cost of RM 1,000.

b)   Participation in Trade Investment Mission or Specialised Marketing Mission

·         Participation fee

·         Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.

·         Two hotel rooms not exceeding RM 1,000 per night per room. Claimable period of accommodation covering the whole duration of the event(subject to MDG Committee approval) and two (2) additional days before or after the event.  

c)    Participation in Malaysia Export Exhibition Center (MEEC)

·         Participation fee. 

Application & Claim Procedures

·         Market Development Grant application form MDG 1/2012, can be downloaded at MATRADE website www.matrade.gov.my 

·         Completed application form must be attached together with the required supporting documents and submitted within sixty (60) days after the last date of activity.

·         It is mandatory to complete the MDG Feedback Form (MDG1A/2012).

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