MONDAY, MARCH 17, 2017 KUALA LUMPUR: Malaysia External Trade Development Corporation (MATRADE) have groomed an additional 51 Mid-Tier Companies (MTCs) through its high-impact capacity building initiative called Mid-Tier Companies Development Programme (MTCDP). This brings the total number of MTCs facilitated under the MTCDP to 152 since its inception in 2014.
The 51 companies are under the programme's Wave 3 cohort, which began in March and ended on November 2016. For Wave 1 and 2 (held in 2014 and 2015), there were 44 and 57 participants respectively. MATRADE in a simple ceremony celebrated the Wave 3 MTCs 'graduation' at Menara MATRADE today.
The participants came from various sectors namely Engineering Services, Information and Communication Technology, Building Material & Construction, Oil & Gas and lifestyle products (textile and fashion). Among the activities organised for the Wave 3 participants included;
- country immersions
- business meetings with potential foreign business partners, distributors and customers,
- CEO networking and leadership forum,
- export best practices working sessions with industry and regional market experts
- consultation on market intelligence
Over the years, the MTCDP has been attracting a growing number of women-owned, Bumiputera, Sabah and Sarawak companies. So far, of the 152 companies, 12 are women-owned, 31 are Bumiputera and 10 are from Sabah and Sarawak.
"The MTCDP aims to build the export capability among the local MTCs. This is crucial in sustaining Malaysia's export performance because the MTCs have a stronger capacity to export, but some may lack the know-how in exporting and may not have the right market intelligence to grow their business abroad. This is why MATRADE introduced the MTCDP," MATRADE's Chief Executive Officer Ir. Dr. Mohd Shahreen Zainooreen Madros said.
In general, MTCs represent a key driving force behind the Malaysian economy. There are approximately 10,000 MTCs in Malaysia, and despite being just 1 per cent of all Malaysian business firms, they collectively contribute 30 per cent of the country's total Gross Domestic Product (GDP) and employ over 22 per cent of the Malaysian workforce.
The export revenues of MTCs from Wave 1, 2 and 3 of MTCDP in 2016 grew by 10.4 per cent to record RM6.821 billion as compared to RM6.178 billion in 2015. Among the major export markets explored by the MTCs include ASEAN countries, United States of America, China, United Kingdom, Japan, South Korea, Australia, Sri Lanka, India and countries in West Asia.
The MTCDP targets companies with annual revenues between RM50 million to RM500 million for manufacturing companies and RM20 million to RM500 million for services companies. The programme was established in 2014 as one of the Government's high impact initiatives with an aspiration to accelerate the growth of Malaysian MTCs globally. The programme will be executed in 8 Waves until 2021.
"The MTCDP provides a springboard for MTCs to boost their performance overseas through customised facilitation for each of the MTC. We hope the programme will increase the participation of local MTCs in exports and spur Malaysia's trade for the benefit of the Malaysian economy," Dr. Mohd Shahreen mentioned.