1. What is the objective of the Brand Promotion Grant (BPG)?
2. What are the forms of BPG offered by the Government?
3. How will MATRADE reimburse the grant?
4. How soon can a company undertake the proposed activities upon approval?
5. What is the time line for approval of BPG?
6. Is there any fee for processing the application of BPG.
7. What are the eligibility criteria for BPG?
8. Can Trading companies apply for BPG?
9. What are the eligible expenses covered under BPG?
10. Can BPG be spent on the promotion of brand names in the domestic market?
11. Can a company apply BPG for more than one brand?
12. Can a Subsidiary company of a Holding company apply for BPG?
14. Is there a closing date for BPG application?
15. Can company change the focus market for BPG after the company been approved?
16. What are the documents that need to be submitted during the claim submission?
17. Does MATRADE set any quota on the sectors for BPG Approval?
18. Can companies that approved Market Development Grant apply BPG?
19. Can companies that approved BPG claim for double deduction?
20. Can companies outsource the production and apply for BPG?
21. Are companies allowed to claim expenses incurred before the approval date of BPG?
22. What is the difference between a brand and a trademark?
23. Can an overseas bought over brand be considered for the BPG fund?
24.
25. If a company has been approved BPG, what is the time frame for the utilisation of the fund?
26. What happens to the unutilised grant if the company is unable to spend all the money within the two-year time frame? Can the time line (expiry date) for the BPG be extended?
27. Is there any specific industry that MATRADE targets to promote?
28. How to apply for BPG?
29. What are the relevant documents and information companies must submit when applying for the grant?
   
1.

What is the objective of the Brand Promotion Grant (BPG)? 

 

The objective of the BPG is to develop and promote brand names owned by Malaysian companies for products and services originating from Malaysia in the international market.

2. What are the forms of BPG offered by the Government?
   
  The grant is in three forms. Companies can apply for either one of the following forms of BPG :-
   
  SMEs
 
  • 100% reimbursable grant up to a ( maximum grant of RM1 million per company per brand ).
 
  • A combination of 100% and 50% reimbursable grants. ( maximum grant of RM2 million per company per brand ).
   
  Non SMEs
 
  • 50% reimbursable grants of up to a ( maximum of RM2 million per company per brand ).
 

3. How will MATRADE reimburse the grant?
 
The grant is a reimbursable grant. Therefore, a company has to spend first and then it will be reimbursed based on claims submitted by the company up to the total grant approved.

4. How soon can a company undertake the proposed activities upon approval?
  A company can undertake the proposed activities right after the company has been approved for the grant.

5.  What is the time line for approval of BPG?
 
The time line for processing the application until the BPG is approved is between 1-3 months depending on the submission by the company whether all the information required is complete. The approval for the BPG is decided by the Brand Grant Committees members.

6. Is there any fee for processing the application of BPG.
 
There is no processing fee for the application of BPG. However, company is advised to register as a MATRADE member before applying for the grant. The registration to become MATRADE member is free.

7. What are the eligibility criteria for BPG?
  To qualify for BPG, companies must meet the following criteria:-
 
  • Incorporated in Malaysia 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 filled for the trademark registration in one of the markets.
 
  • Annual sales turnover of not more than RM250 million ( based on the latest financial report ).
 
  • Growth in export sales of the brand over the last 3 (three) years.
 
  • Product/services should manufacture in 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.
 
  • 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 :-
      (i)     Resources invested on branding and company’s commitment to the branding programme.
      (ii)    Promotion programmes and activities undertaken by company to promote their brand.
      (iii)   Indication of market penetration and consumer acceptance (e.g. share of market) both local and overseas.
      (iv)   Trend in overall sales and export growth.
      (v)   Awards and recognitions received.
      (vi)  International quality certifications obtained such as HACCP, ISO or Quality Improvement Programme, GMP or approved the use of the ‘ Malaysia ’s Best’ quality seal. 
 

8. Can Trading companies apply for BPG?
 
Trading companies which own the brand names for the product/services can apply for BPG subject to eligibility criteria as stated in Q7 above.

9. What are the eligible expenses covered under BPG?
     
  The eligible expenses covered under BPG include:-
     
 
  • 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
      * Please provide the profile of the expert to be engaged to undertake the branding plan/strategy)
 
  • Brand Development such as:
    • Logo design and redesign
    • Packaging design and redesign
    • Intellectual property matters, including registration and trade mark works for other targeted markets (excluding renewal of trademark and patent).
 
  • Brand Promotion such as:
    • Customer relationship management system to monitor brand
    • Advertising and Promotion (maximum 50% of grant approved)
    • Enhancement of Brand Website (maximum grant of RM 50,000.00)
 
  • Brand Research such as:
    • Brand Audit
    • Brand Tracking
   

10. Can BPG be spent on the promotion of brand names in the domestic market?
 
The objective of the BPG is to develop and promote Malaysian brand names in the international markets. To create awareness of the brand in the local market, not more than 10% of the total grant approved can be spent on promotion of the brand in the domestic market.

11. Can a company apply BPG for more than one brand?
 
The grant only covers the cost of developing and promoting for one brand per company. For company who owns more than one brand, it should select only one brand name that has potential for export, to be promoted using the BPG fund.

12. Can a Subsidiary company of a Holding company apply for BPG?
 
A subsidiary of a holding company can apply for BPG if it meets the eligibility criteria as listed in Q7 above. In cases where the brand is owned by the holding company (named A), but the manufacturing of the product and the promotion/marketing of the brand is done by its subsidiary company (named B, which does not own the brand), then company B (subsidiary company) is eligible to apply for the BPG using company A’s brand (holding company).

13. Is there a closing date for BPG application?
  There is no closing date for company to submit the application as long as the BPG fund is still available.

14. Can company change the focus market for BPG after the company been approved?
  Company need to submit the request to MATRADE and to state the reasons for the change.

15. What are the documents that need to be submitted during the claim submission?
 
Claims must be accompanied with original receipts and invoices or copies certified by external auditors, together with the relevant supporting documentary evidence related to the implementation of the activities concerned or work undertaken.

16. Does MATRADE set any quota on the sectors for BPG Approval?
 
MATRADE do not set any quota on the sectors for BPG approval. However, companies that apply for BPG must meet all the eligibility criteria for BPG and the products/services must be exported.

17. Can companies that approved Market Development Grant apply BPG?
 
Companies that are already approved the MDG can apply BPG as long as the companies fulfil BPG criteria. However, companies are not allowed to claim on the same activity/expenses for both grants (MDG and BPG).

18. Can companies that approved BPG claim for double deduction?
  For the expenses that have been approved the BPG, company is not allowed to claim double deduction incentive for the same expenses.

19. Can companies that apply BPG focus their markets to the whole world?
 
Companies that apply BPG need to focus on selected markets in order to see the impact of the utilisation of the grant at the end of the 2 year programme.

20. Can companies outsource the production and apply for BPG?
 
Companies are encouraged to outsource their production in order to reduce cost such as cost of production, etc. However, 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.

21. Are companies allowed to claim expenses incurred before the approval date of BPG?
  No, only activities undertaken and expenses incurred after the approval date of BPG will be reimbursed (subject to approved activities).

22. What is the difference between a brand and a trademark?
 

A brand is a name or symbol used to identify a seller's goods or services, and to differentiate them from those of competitors.

A trademark is brand that has been registered. Registration of a brand gives the registered owner of the mark exclusive rights to use the mark in the course of trade in the goods or services for which the trademark has been granted.

23.   Can an overseas bought over brand be considered for the BPG fund?
  Yes, a foreign bought over brand can be considered if the brand has been acquired by a Malaysian company for at least 5 years.

24.
The company had just been set up a few months ago. There are no export sales at the moment but overseas companies are already showing interest in doing business with us. Can we use the BPG fund to better promote our newly started company?
 
Firstly, the company needs to fulfil the BPG criteria. As the company is still new and has no export sales, it is advisable for the company to opt for other assistance namely MDG (subject to terms and condition) or other grants provided by other government agencies.

25. If a company has been approved BPG, what is the time frame for the utilisation of the fund?
 
The fund is to be utilised within a two-year period effective from the date of approval of BPG. For example, if a company is approved BPG on 1 January 2005, the fund must be utilised latest by 31 December 2006.

26.  What happens to the unutilised grant if the company is unable to spend all the money within the two-year time frame? Can the time line (expiry date) for the BPG be extended?
 
Company can submit a request to MATRADE for an extension. The company needs to highlight the reasons for extention. The approval is subject to the Grant Committee decision.

27. Is company required to sign a contract when the BPG is approved?
 

A company that has been approved the grant is required to sign a Letter of Acceptance with MATRADE indicating that if the company fails to fulfil its obligation in implementing the branding plan, MATRADE has the right to cancel the approval of the brand promotion grant and seek reimbursement of the grant already disbursed.

28. How to apply for BPG?
 
Companies can apply for BPG using the application form BPG (1/08) which is available free of charge at MATRADE office or it can be downloaded from MATRADE’s website at www.matrade.gov.my

29. What are the relevant documents and information companies must submit when applying for the grant?
 

  (a) Completed BPG Application Form.
  (b)

Branding Strategy and Marketing Plans:

Companies are required to submit the following documents when applying for the BPG :-

(i) Comprehensive proposal for the development and promotion of the brand including:-

  • Background of the brand, the brand concept, its values, current market position.
  • Measures already undertaken to develop and promote brand.
  • Detailed costing on the activities for which the grant is required. (Detail breakdown on Expenses for Branding).
  • Detailed schedules of implementation of branding activities to be undertaken.
  • Proposed performance report on the implementation of the branding activities including milestones and key performance indicators.
  • How the brand will benefit the company and country’s image.
  • Resources allocated to the brand development and promotion strategy.
  • Key Performance Indicators to measure the brand performance based on intended marketing strategies

(ii) Business and Marketing Plans for 2 years outlining:-

  • Target markets.
  • Marketing strategies to penetrate the target markets.
  • Brand Communication Plan.
  • Allocation of company’s financial resources to implement the plans. 
  • Current and projected sales both locally and overseas of the brand.
(iii) Corporate profile, organisational structure, profile of management and branding team.

(iii) Form 9 - Certificate of Incorporation.

(iv) Memorandum and Articles of Association.

(v) Form 24 – Return of Allotment of Shares.

(vi) Form 49 – Return Giving Particulars In Register Of Directors, Managers & Secretaries & Change of Particulars.

(vii) Copy of :-

  • Manufacturing Licence from Ministry of International Trade and Industry [MITI]  or           
  • Business Licence from Local Government or Local Authority or               
  • Approval of Incentives by MITI/MSC Status from Multimedia Development Corporation (MDC) or
  • Professional Practicing Certificate for Services Sector

(viii) Copies of Company’s Audited Account for the past 3 years.

(ix) Latest EPF Statement.

(x) Product Brochure/Details on the services provided by company.

(xi)Trademark Certificate.