Roles of MATRADE In Assisting Malaysian Companies SMEs

Roles of MATRADE In Assisting Malaysian Companies (SMEs) to Export Market Presented by: Rosli Mat Hassim Exporters Advisory Unit The Time to Export is Now Malaysia External Trade Development Corporation

VISION Positioning Malaysia as a globally competitive trading nation MISSION Promoting Malaysia’s enterprises to the world The Time to Export is Now Malaysia External Trade Development Corporation

GLOBAL NETWORK 11 2 9 12 13 3 1 16 14 15 27 26 24 17 25 34 33 4 18 28 5 21 23 44 30 29 10 32 41 22 37 38 36 35 31 42 43 40 39 19 47 45 20 7 6 8 35 Trade Offices 11 Marketing Offices 46 Los Angeles New York 3 Miami 4 Mexico City 5 Santiago 6 Sao Paulo 7 Buenos Aires 8 The Hague 9 Lagos 10 London 11 Paris 12 Milan 13 Frankfurt 14 Moscow 15 Warsaw 16 Istanbul 17 Cairo 18 Nairobi 19 Johannesburg 20 Doha 21 Dubai 22 Mumbai 23 Almaty 1 24 2 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Tashkent Budapest Kiev Jeddah Chennai Yangon Guangzhou Shanghai Chengdu Beijing Seoul Bangkok Ho Chi Minh City Hanoi Manila Taipei Hong Kong Osaka Tokyo Phnom Penh Jakarta Melbourne Medan

SUMMARY OF MATRADES OFFICES BY REGION Eastern Europe 6 West Asia 3 North East Asia North America 10 Western Europe 3 5 Central Asia 1 ASEAN 6 4 23 South Asia Latin America Africa 1 4 Australasia 1 35 Trade Offices 11 Marketing Offices Asia

OUR GLOBAL OFFICES OFFER Export Facilitation & Trade Advisory Services Links Key Industry Players & Government Bodies Trade Leads & Market Intelligence Business Matching Arrangement with International Buyers, Implementing Export Promotion Services

REGIONAL OFFICES Kota Kinabalu (Sabah) Eastern Regional Office (Kuala Terengganu) Northern Regional Office (Penang) Kuching (Sarawak) Southern Regional Office (Johor) 5 Regional Offices

OUR REGIONAL OFFICES OFFER Business Consultations & Advisory Services for Malaysian Companies Promotion of MATRADE’s Events to Malaysian Exporters Identifying High-Potential Malaysian Exporters Market Information on Export Market Requirements & Opportunities

Exporters Development Seminars, Workshops & Briefings Dialogue with industry associations and Malaysian exporters The Time to Export is Now Exporters Hand-Holding Programmes Market Development Grand (MDG) Services Export Fund (SEF) Malaysia External Trade Development Corporation

What is e. TRADE Programme? e. TRADE Assistance An initiative under the Digital Malaysia to accelerate exports through participation in leading international online marketplaces. MATRADE is the implementation agency. Financial Incentive to the approved companies in e-voucher or reimbursement form Advisory Services related to the e. TRADE e-marketplaces Training and Online Assistance

What is the Eligibility Criteria to participate in e. TRADE Programme? 1 Exporting Malaysian products, brands and/or services 2 At least 60% Malaysian equity 3 Incorporated under the Companies Act 1965 / Companies Act 2016, Registration of Business 1956 / Registration of Limited Liability Partnership 2012 / Akta Koperasi 1993

e-Marketplaces under e. TRADE Programme B 2 C B 2 B Global US Global Singapore Thailand Indonesia Local Global (Halal Products & Services) China

Expenses covered under the e. TRADE Incentives

How do I participate in e. TRADE Programme? Provide e-Voucher & Sign-up with e. Marketplace Register & list products on e. Marketplace 3 Receive Status of Application 1 4 FOR ALIBABA. COM, DAGANGHALAL. COM & ALADDINSTREET. COM (e-VOUCHER) 2 Apply www. matrade. gov. my/en/etrade OTHER e-MARKETPLACES (REIMBURSEMENT) 3 Register & list products on e-Marketplace & 4 Claim for reimbursement from MATRADE

HELPING YOU GROW AND SUCCEED INTERNATIONALLY MID-TIER COMPANIES DEVELOPMENT PROGRAMME

IMPORTANCE OF MID-TIER COMPANIES Mid-Tier Companies (MTCs) in Malaysia are defined as: Manufacturing sectors Annual revenues between RM 50 mill – RM 500 mill Service sectors Annual revenues between RM 20 mill – RM 500 mill 15

Introduction to the MTCDP 152 MTCs have been involved in the last 3 years Food and Beverages Pharmaceuticals, Toiletries & Cosmetics Industrial Electrical & Electronic Products Consumer Electrical & Electronic Products Gifts, Souvenirs and Jewellery Services and Franchises Chemicals, Minerals & Alloys Agricultural Produce Plastic Products Building Construction Materials & Hardware Automotive, Parts & Components Oil & Gas AGP 16

CRITERIA FOR SELECTING MTCs Qualitative MTCs in Malaysia with average annual revenues of RM 50 -500 million (manufacturing) or RM 20 -500 million (services) Quantitative The programme is designed to help the best and highest potential MTCs in Malaysia ▪ Growth momentum ▪ ▪ Positive growth in 3 of the past 5 years; >5% CAGR for the past 5 years Involved in NKEA or MITI High Impact sectors At least 60% Malaysian ownership (for listed companies, traceable ownership of Top 20 shareholders) Currently exporting Not a subsidiary of a company with revenues of more than RM 500 million Innovative, sustainable and scalable business model 17

Key elements and activities of the MTCDP The MTCDP offers many tools and interventions across 9 months to help you boost your export performance Key Objectives Diagnostic ▪ 3 months Define export strategy 6 months ▪ ▪ Implement ▪ Outcomes Understand your company: Value proposition, products, vision, … Identify the current situation in terms of exports as well as their plans moving forward ▪ Define the export plan and priorities for you, taking the required strategic decisions Establish the programme plan specific to you, with emphasis on the match making ▪ Identify tangible business opportunities and plan for immersion visits, if needed Reinforce the export readiness and specific capabilities (B 2 B Marketing and Sales, B 2 C Marketing and Branding, Digital, Distributor Management ▪ ▪ ▪ Prioritization of key export challenges faced by the MTC Hypothesis of programme interventions suitable for you Clearly defined export strategy – Priority countries of focus – Route-to-market strategy for priority countries 6 month action plan for MTCDP Business matchmaking with partners in priority countries Application of functional best practices (e. g. distributor management tool) Introductions to investors Introductions to potential tech partners 18

Key elements and activities of the MTCDP Various activities are available throughout programme implementation Country immersions & 1 business networking 1 -2 visits to priority export market(s) with field visits, expert discussions, introductions & networking with potential partners Export market intelligence Access to proprietary knowledge; e. g. : ▪ Industry & market insights ▪ Benchmarks ▪ MATRADE’s business information system Export best practices 8 - 9 group workshops led by experts on best practices for export (e. g. distributors) with practical how-to guide (e. g. how to select distributors) 4 Export tools Access to proprietary tools to drive growth; e. g. ▪ Marketing spend allocation ▪ Market database (China, Indonesia) 2 3 5 Investor events Tech partner 2 events with local and regional investors, PE, financing institutions Technology partner matchmaking (e. g. for product enhancement) 6 match-making 7 CEO networking & Leader-ship forums 3 CEO forums on leadership required to manage a global business Working sessions with senior management team to review and Bi-monthly 8 working sessions develop international growth plan 19

KEY REQUIREMENTS TO JOIN THE PROGRAMME What we ask of participating MTCS Be fully committed and driven to grow, with CEO and senior 1 management dedicating ~1 day/month to the programme over the course of 9 months. Be willing to share selected company information only relevant for the MTCDP programme (e. g. export revenue in markets), and engage deeply on 2 action plans and adopt recommendations from MTC programme (Nondisclosure agreements can be signed upon request) Be willing to invest a little, e. g. personal travel expenses and promotional 3 costs for any promotional events overseas, while the consultation costs for Wave 3 participants will be borne entirely by MATRADE Note : If you officially withdraw from the programme mid-way after being accepted, you may be subjected to cover some programme cost 20

MTCDP PROCESS APPLICATION Interested MTCs will only need to go through 3 simple procedures to participate in the MTCDP 1 Application of interested MTCs 2 MTC applications are vetted and tabled to the Working Committee 3 Independent audit will be done on successful candidate 21

5 For further information and to express interest in participation, please contact: 22

SERVICES EXPORT FUND What is SEF? The Services Export Fund (SEF) is a scheme to provide assistance to Malaysian Service Providers (MSPs) to undertake activities to expand venture into the international market. Trade and Industry Associations, Chambers of Commerce and Associated Professional Bodies are also eligible for Activity 1 – 4. ØExpand export of services. Objective ØBrand MSPs as internationally competitive, competent and reliable by increasing the awareness of their expertise in the international market. ØSecuring projects overseas by undertaking feasibility studies and other related studies which will enable Malaysian companies to have competitive edge. 23

Eligibility Criteria 4. Not a Government Linked Majority Owned Company A. Malaysian Service Providers (MSPs) must be: 5. Registered with MATRADE under the Malaysia Exporters Registry (MER) 1. Incorporated under the Malaysian Companies Act 1965 OR Malaysian professionals, registered with respective professional authorities in Malaysia 6. Entity is exporting Malaysian services / ready to export B. Trade & Industry Associations, Chambers of Commerce & Professional Bodies: Only for Activity (1 – 4) Note: Activity for SEF Application/ Claim must be in line with the activity stated in the entity establishment document 2. At least 60% Malaysian equity owned 1. Registered with the Registrar of Society (ROS) or Associated Professional Authority. 3. In operation at least 1 year www. matrade. gov. my I communication@matrade. gov. my I T: +603 6207 7077 I Follow us on @matrade and MATRADE HQ

SEF – GRANT Ø Grant by MATRADE Ø Soft loan by MIDF Ø Maximum amount RM 5 million per company (2015 – 2020) Grant • 50% reimbursable grant for 5 Activities Activity 1 (RM 50, 000) Activity 2 (RM 50, 000) Ø Speaker in International Conference / Seminar and participation in services industry related Ø Rendering services for projects undertaken overseas. Ø Presentation to potential client. competitions. Ø Travelling expenses for tender bidding. Ø Preparation of prototype, system customization / localization. Ø Procuring commercial intelligence / market reports. Activity 3 (RM 150, 000) • Setting up office overseas. Activity 4 (RM 1, 000) • Logistic cost (port to port) Activity 5 (RM 3, 000) • Feasibility study.

SEF – SOFT LOAN Soft Loan by MIDF Ø 2% interest rate Ø Up to 90% margin of financing Ø Repayment period between 1 – 5 years Activity 6 (RM 2 million) Ø Cost incurred in preparation and submission of project proposals for overseas projects. Activity 7 (RM 5 million) Ø Expenses related to raising bank guarantee or performance bond to execute overseas project. Activity 9 (RM 150, 000) Ø Remaining 50% on eligible expenses for setting up office overseas for the initial twelve (12) month. Activity 10 (RM 5 million) Ø Mobilisation costs. Activity 8 (RM 5 million) Ø Collateral in issuance of bank guarantee or performance bond.

Bumiputera, Women and Youth Programme (BWYEDP) MATRADE Exporters Development Programme towards the creation of a competitive exporter 1 To increase export sales for companies. 2 To tap opportunities in international markets. 3 KPI : Increase by 20 markets Business Matching www. matrade. gov. my % in export sales and penetrate 2 new International Market Exposure Networking Linkages to Industry Malaysia Trade Development Corporation | Malaysia External Trade. External Development Corporation | 27

Benefits 3 years hand-holding programme Customised BUSINESS COACHING International BUSINESS EXPOSURE number of Bumiputera, Women and Youth exporters Business OPPORTUNITIES And Market Entry Complimentary participation in MEEC Annual intake Complimentary seating in EXPORT TRAINING 28 28

Selection Criteria Programme BEDP WEDP YEDP Equity 51 % CEO/ Managing Director Bumiputera Women Youth Industry/ Sector “High value added & Knowledge Based Industries” “Soft Export” (Art, Music, Fashion and Design) Operation : i. atleast 3 years and ; Additional ii. dominate the domestic market 20 -40 years old Operation : at least 3 years & presence in the domestic market Document required : i. Company Profile/ Company Brochures; ii. Form 9 – Perakuan Pemerbadanan Syarikat Sendirian iii. Latest Form Of Annual Return of Company Having A Share Capital (include Form 24 & Form 49) iv. EPF Statement v. Audit Report of Account 3 Last Year 29 29

MARKET DEVELOPMENT GRANT 30

MARKET DEVELOPMENT UNIT Market Development Grant Objective Form of Grant Ceiling To assist SMEs, Trade & Industry Associations, Chambers of Commerce & Professional Bodies in undertaking export promotional activities. A reimbursable grant on the eligible expenses. Maximum RM 200, 000 per company (since the commencement in 2002)

ELIGIBLE CRITERIA Incorporated under Companies Act 1965 MANUFACTURING (including agro-based) TRADING SERVICES (excluding real estate) >60% equity owned by Malaysian(s) Annual sales turnover NOT exceeding RM 50 million Made in Malaysia products or services Full time employees NOT exceeding 200 Annual sales turnover NOT exceeding RM 20 million Full time employees NOT exceeding 75

ELIGIBLE CRITERIA PROFESSIONAL SERVICE PROVIDERS (Sole Proprietor or Partnership ) Incorporated under Registration of Business Act 1956 or Registered under the respective statutory bodies for professional service providers >60% equity owned by Malaysian(s) Annual sales turnover NOT exceeding RM 20 million TRADE & INDUSTRY ASSOCIATIONS, CHAMBERS OF COMMERCE & PROFESSIONAL BODIES Exporting Malaysian services Full time employees NOT exceeding 75 Registered • Registrar of Society (ROS) • Associated Professional Authority

ADDITIONAL ELIGIBLE CRITERIA • Previous – incorporated less than one year • Latest – must be incorporated more than ONE year • Previous – N/A • Latest – Company must update their company’s details in MER before proceed to the application process Company’s eligibility Updating company’s detail via MER

ELIGIBLE ACTIVITIES • International Trade Fairs in Malaysia & Overseas; • EXCEPT Consumer fairs (B 2 C)/ festival fairs or similar events • Grant Amount, • Local = Max. RM 5, 000 • Overseas = Max. RM 15, 000 • Trade & Investment Missions and Export Acceleration Missions • Grant amount, • Organised & Jointly Organised with MATRADE = Max. RM 10, 000, • NOT jointly Organised with MATRADE = Max. RM 2, 000 • International Conferences Overseas; • Related to the promotion of exports of the industry or professional services. • Grant amount = Max. RM 2, 500 • Listing Fees for Made in Malaysia products in Supermarkets/ Hypermarkets/ Retail Centres Overseas; • LIMITED TO one Supermarket/ Hypermarket/ Retail Centre per country • Grant amount = Max. RM 20, 000.

ELIGIBLE EXPENSES Listing Fees Participation Fees/ Booth Rental Booth Construction/ Enhancement Accommodation Air Fares Land Transportation (to ASEAN Countries)

HOW TO APPLY?

How To Join Us for all the Exporters Development, Exporters Hand-Holding and Trade Promotion Programmes organised by MATRADE?

Please register as MATRADE Member! • registration is FOC • no annual / subscription fees • easy registration (do it online – visit www. matrade. gov. my)

• • Visit www. matrade. gov. my Click Online Applications Click Register As MATRADE member Click Registration Forms

Requirements for MATRADE Member Application 1) Supporting Documents • Copy of ROC (Form 9) / ROB (Form D) / ROS • Corporate Information 2) Answer Export Readiness Assessment Tool (ERAT)

BUSINESS INFORMATION CENTRE (BIC) your Trade Information corridor

BIC OPERATING HOURS MONDAY THURSDAY FRIDAY : : 9. 00 AM – 5. 00 PM 9. 00 AM – 12. 15 PM 2. 45 PM – 5. 00 PM CLOSED EVERY SATURDAYS, SUNDAYS & PUBLIC HOLIDAYS

BIC CHARGES MATRADE MEMBERS = Free Of Charge BIC MEMBERS = RM 100. 00/YEAR DAILY MEMBERSHIPS = RM 20. 00 FREE for academies, students, government officers and pensioner

COLLECTION FOR REFERENCE 7. DESIGN COLLECTION 1. TRADE STATISTICS Eg. Furniture - Physical products Eg. GTA Connect (online & physical copy) 6. PERIODICALS 2. MARKET INTTELIGENCE & BUSINESS NEWS Eg. Annual Trade Reportmagazine / bulletin) Eg. Euro Monitor, Nexis. com (online) COLLECTION 3. COUNTRY & COMPANY PROFILES Eg. EIU. com (online) 5. TARIFF Eg. tariff finder(online) 4. TRADE DIRECTORIES Eg. Online Compass (online) www. matrade. gov. my I communication@matrade. gov. my I T: +603 6207 7077 I Follow us on @matrade and MATRADE HQ

The Time to Export is Now Malaysia External Trade Development Corporation

MATRADE Your Link To World Market www. matrade. gov. my @matrade MATRADE HQ The Time to Export is Now MATRADE Malaysia External Trade Development Corporation