1. Market Development Grant (MDG)
a. Objective
The scheme is to provide a matching grant to assist Small and Medium Enterprises (SMEs) undertake promotion activities for the development of export markets.
b. Eligibility
- Incorporated under the Companies Act 1965
- At least 60% equity held by Malaysians
- For professional services (such as accountants, engineers and architects), partnerships and sole proprietors are also eligible
- For manufacturing and agricultural 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
- For services sector, having an annual sales turnover not exceeding RM 5 million (based on the latest financial report) or not more than 50 full-time employees
- For trading companies, having annual sales turnover of at least RM 10 million or export sales of at least RM3 million. (Women owned enterprise are exempted from this condition), and
- Exporting Made In Malaysia products especially those manufactured by SMEs, and
- Not more than 20% of the company’s annual sales is derived from trading in primary commodities
c. Form of Assistance
Companies can obtain a 50% reimbursable matching grant on the approved cost of the eligible activities. The grant is available for one or more of the eligible activities.
d. Eligible Activities
- Participation in International Trade Fairs
- Participation in Trade And Investment Mission
- Participation in Specialized Marketing Mission
- Participation in In-Store Promotion Overseas
- Participation in Industry and Professional Related International Conferences Overseas
- Participation in meetings related to negotiations on Mutual Recognition Agreement (MRA), Free Trade Agreement (FTA), ASEAN, World Trade Organization (WTO) and other market access negotiations by representatives of Trade and Industry Associations and Professional Bodies.
- Preparation of Promotional Materials to develop export markets
- Initial cost of setting up office overseas for purpose of:
- Promoting exports of Malaysian product and services
- Seeking opportunity for outsourcing and subcontracting business
- To undertake research on the market
- To undertake and monitor implementation of projects and contracts
- Promotional activities undertaken with Hypermarkets and Retail Outlets overseas
- Participation in Overseas International Tenders
- Overseas cost of conducting Export Market Research for the purpose of:
- Selecting new markets for new products or existing products
- Gathering information on existing export market
- For Women Owned Enterprise, additional eligible activities are:
- Participation in Malaysia Export Exhibition Centre (MEEC) at MATRADE
- Participation in Export Training seminars and workshops held locally.
e. Scope of Funding
Participation in International Trade Fairs
- Participation fee.
- Economy class airfare for one person. Cost does not include items such as visa fees, excess baggage and insurance premium.
- One hotel room not exceeding RM200 per night for local international trade fairs and RM750 per night for overseas fairs. Payment will cover the duration of the event and two days before or after the event.
- Construction and enhancement of standard booth or shared cost of construction on group basis. Construction and enhancement of booth cost is limited to 50% of the eligible booth rental cost.
- Interpreter services for non-English speaking countries, maximum cost of RM800 for the duration of the international trade fair.
- Shipment of exhibits and promotional materials. Cost does not include items such as import duties, bank guarantee and surcharge.
- For local international trade fair sending of samples and promotional materials is subject to a maximum cost of RM2,000.
- Standard advertisement in trade fair show directory. For local international trade fair subject to maximum cost of RM 500.
For claims related to participation in Local International Trade Fair, company must submit a copy of the event report from the fair organizer, which has been certified by an external auditor. The report must certify that the fair has fulfilled the criteria of an international trade fair, as follows:
- Minimum space occupied for the fair must be at least 1000 sq meters gross, and
- At least 10% of visitors must be foreign visitors, or
- At least 20% net space is rented to foreign exhibitors, or
- At least 20% of exhibitors are foreign exhibitors.
Participation in Trade and Investment Missions and Specialized Marketing Missions
- Participation fee
- Economy class airfare for one person. Cost does not include items such as visa fees, excess baggage and insurance premium.
- One hotel room not exceeding RM750 per night. Payment will cover the duration of the event and two days before or after the event
Participation in In-store Promotion Overseas
- Economy class airfare for one person. Cost does not include items such as visa fees, excess baggage and insurance premium.
- One hotel room not exceeding RM750 per night for overseas fairs. Payment will cover the duration of the event and two days before or after the event.
- Women entrepreneurs are eligible for 2 hotel rooms.
- Interpreter services for non-English speaking countries, maximum of cost of RM800 for the duration of the promotion.
- Shipment of exhibits and promotional materials.
Participation in Industry Related International Conferences Overseas
- Participation or registration fee.
- Economy class airfare for one person. Cost does not include items such as visa fees, excess baggage and insurance premium.
- One hotel room not exceeding RM750 per night. Payment will cover the duration of the conference and two days before or after the conference
Participation in meetings related to negotiations on Mutual Recognition Agreement (MRA), Free Trade Agreement (FTA), ASEAN, World Trade Organization (WTO) and other market access negotiations by representatives of Trade and Industry Associations and Professional Bodies
- Economy class airfare for on person
- One hotel room not exceeding RM750 per night covering the duration of the meeting and two days before or after the meeting
- Preparation of Promotional Materials
Companies are eligible for a maximum grant of RM15,000 for preparation of export promotion materials.
Cost incurred in relation to the production of promotional materials such as brochures, catalogues, flyers, banners, posters and CD-ROM. Eligible expenses include:
- For printed materials
- Design concept
- Finished Artwork
- Color separation
- Printing
- Re-printing (For Trade fairs or Trade mission only)
Cost incurred in relation to the production of promotional materials such as brochures, catalogues, flyers, banners, posters and CD-ROM.
Companies must use the services of local printing and CD-ROM companies to benefit from this grant.
Cost incurred in relation to the production of promotional materials such as brochures, catalogues, flyers, banners, posters and CD-ROM.
Production of CD ROM and Video can be considered for MDG only if it is part of the company’s participation in trade fairs or trade missions. Eligible expenses include:
- Content of text, audio, video, photography, graphic, animation, etc.
- Design
- Development
- Replication and Production
- CD-ROM packaging
Companies must use the services of local printing and CD-ROM companies to benefit from this grant.
- Initial Cost of Setting Up Office Overseas
Companies are eligible for a maximum grant of RM50,000 per office or the initial Three (3) months set up cost of the office (which ever is earlier). Eligible expenses are:
- Rental of office and;
- Utilities (water/electricity)
- Promotional activities undertaken with Hypermarkets and Retail Stores Overseas
Companies are eligible for a maximum grant of RM30,000 per activity. Eligible expenses are:
- Listing fee and;
- Joint Advertising and Promotion
- Participation in International tenders overseas
Expenses incurred for purchase of international tender documents for supply of Malaysian products or services.
- Export Market Research
Companies are eligible for a maximum grant of RM30,000 per export market study conducted overseas. Eligible expenses are:
- Research fees
- Cost of publication of initial report
- For Women Owned Enterprise, additional eligible expenses:
Participation in Malaysia Export Exhibition Center (MEEC) Eligible expenses are:
- Participation fees
- Cost of transport of exhibits
- Participation in local Export Training Seminars/ workshops
f. Further Information
For further information please contact:
Malaysian External Trade Development Corporation (MATRADE)
Market Development Unit
8th Floor, Menara MATRADE,
Jalan Khidmat Usaha,
Off Jalan Duta,
50480 Kuala Lumpur
Tel: 603-6207 7593
Fax: 603-6203 7252
E-mail: info@matrade.gov.my
Website: http://www.matrade.gov.my
2. Brand Promotion Grant (BPG)
a. Objectives
The objective of the Brand Promotion Grant (BPG) is to develop and promote in the international market, brand names owned by Malaysian companies for products and services originating from Malaysia.
b. Selection of Brands
The Brand Promotion Grant will only be granted to eligible brands identified to be assisted by the Brand Grant Approval Committee. Evaluation of brands to be selected for the grant will be based on several considerations including:-
- Branding Strategy and Plan.
- Business and Marketing Plan.
- Resources invested by the company on branding and its commitment to the branding programme.
- Activities undertaken to promote the brand.
- Trend in overall sales and exports over past 3 years.
- Market share both local and overseas markets.
- Potential for the brand to further expand in the international market.
- How the brand will help project Malaysia’s image as supplier of quality products and services.
c. Eligibility
- Incorporated under the Companies Act 1965.
- At least 60% equity is owned by Malaysians.
- Company owns the brand and is the registered approved owner of the trademark.
- For the Brand Promotion Grant focus market, company must own the trademark or at least have filed for the trademark registration in one of the markets.
- Annual sales turnover of not more than RM 250 million (based on the latest financial report).
- For 100% reimbursable grant:-
- Manufacturing company’s – annual sales turnover must not exceed RM25 million or with not more than 150 full time employees.
- Services sectors enterprises – annual sales turnover not exceeding RM5 million or with full time employees not exceeding 50.
- Product/services are already exported with at least 20% of the sales from export.
- For companies that do not meet the 20% export condition, the application may be considered based on the export potential and commitment of the company to develop the brand into an international brand. Factors to be considered:-
- Resources invested on branding and company’s commitment to the branding programme.
- Promotion programmes and activities undertaken by company to promote brand.
- Indication of market penetration and consumer acceptance (e.g. share of market) both local and overseas.
- Trend in overall sales and export growth.
- Awards and recognitions received.
- International quality certifications obtained such as HACCP, ISO or Quality Improvement Programme, GMP or approved the use of the ‘Malaysia’s Best’ quality seal.
- Products/services should originate from Malaysia. For products manufactured offshore, the brand can be considered if the company undertakes value-added activities in Malaysia such as research and development, designing, packaging, marketing, distribution and invoicing.
d. Form of Assistance
Companies can apply for either one of the following forms of grant:-
- A 100% reimbursable grant for the development and promotion of brand subject to maximum grant of RM 1 million. Small and Medium-Sized Enterprises are eligible to apply for the 100% reimbursable grant.
For the 100% reimbursable grant, only up to a maximum 10% of total grant approved will be disbursed in the form of “advance payment”, while the remaining 90% of grant approved will be disbursed as 100% reimbursable grant. Advance payment will only be considered for all initial work related to development of branding plan.
- A 50% reimbursable grant for non-SMEs subject to maximum grant of RM 2 million per company.
- A 100% reimbursable grant and a 50% reimbursable grant for Small and Medium Enterprises (SMEs) only. (Maximum grant of RM 2 million per company).
To encourage companies to promote the brand overseas, not more than 10% of the total grant approved should be spent on promotion of the brand in the domestic market.
e. Scope of Funding
The grant will cover the cost of developing and promoting only one brand per company. Companies can apply for the grant for any of the following expenses involved in brand development and promotion:-
- Branding/Marketing Strategy Consultancy (subject to maximum limit of not more than 10% of grant approved) such as:
- Brand Strategy, creation and development
- Marketing strategy and implementation
- Media Strategy
- Brand Communication Strategy
- Brand Management System
- Brand Manual & Information System
- Brand Development
- Logo design and redesign
- Packaging design and redesign
- Intellectual property matters, including registration and
- Trademark works for other targeted markets (excluding renewal of trademark and patent).
- Brand Promotion
- Customer relationship management system to monitor brand
- Advertising and Promotion (maximum 50% of grant approved)
- Enhancement of Brand Website (maximum grant RM50,000.00)
- Brand Research
- Brand Audit
- Brand Tracking
f. Further Information
For further information please contact:
Malaysia External Trade Development Corporation (MATRADE)
Unit Promotion Grant
9th Floor, Menara Matrade
Jalan Khidmat Usaha,
Tel : 03 6207 7537
Fax : 03 6203 7251
Email : info@matrade.gov.my
Website : www.matrade.gov.my
