MONDAY, 25 JUNE 2018, KUALA LUMPUR: Malaysian Consortium of Mid-Tier Companies (MCMTC) and Malaysia External Trade Development Corporation (MATRADE) are calling for more Malaysian Mid-Tier companies (MTCs), particularly the youth-owned and agriculture-based MTCs, to be more involved in exporting in the effort to create more export champions from Malaysia.
This was what transpired following the MCMTC Youth Empowerment Programme held at Kuala Lumpur today. The youth-themed event, graced by YB Tuan Haji Salahuddin Ayub, Minister of Agriculture, was the first event hosted by MCMTC targeting at MTCs managed by second-generation entrepreneurs.
According to Puan Sharimahton Mat Salleh, Deputy CEO of MATRADE, local MTCs can ready themselves in international trade by participating in exporters development programmes such as Mid-Tier Companies Development Programme (MTCDP) by MATRADE. Once export-ready, the MTCs can take part in various export promotion initiatives to penetrate a market relevant to them.
“It is crucial for MTCs to invest in technology especially those in the agricultural sector. We see a lot of potential for agri-business to succeed in the global scene but they must want to be part of the global supply chain first. Strategic collaborations with agencies in both the public and private sector is crucial to ensure they get all the support they need. Apart from that, product differentiations and clarity in the value proposition must be also given due attention,” she said.
The participation of more agricultural-based MTCs in export will help to improve trade performance, reduce trade deficit and dependant on import as well as strengthen food security.
The second-generation entrepreneurs who are youth and are running their MTCs must also be bold to transform their businesses to be on par as the other businesses around the world, especially those in the developed markets.
Mr Callum Chen, President of MCMTC said that it is also important for MTCs to instil cultures that foster collaboration, creativity and innovation to be successful in the international markets. MCMTC is actively working with MATRADE to drive the growth of Malaysian MTCs. Aside from today’s event, MCMTC also organises factory tours to selected MTCs and CEO sharing sessions highlighting real life business experiences.
The MTCDP is a high-impact customised programme for MTCs with an annual revenue of between RM50 million to RM500 million in the manufacturing sector and RM20 million to RM500 million in the services sector. Currently, a total of 42 MTCs from multiple sectors are undergoing the diagnostic phase for Wave 5 of the MTCDP.
Under the MTCDP, each MTC will undergo 9-month customised programme such as the diagnostic phase where companies identify their export strategies and go-to market route. Key elements of the programme include access to export markets, market intelligence and sessions with experts.
From 2014 to 2017, MATRADE has assisted 173 MTCs through the MTCDP. The main sectors of MTCs under MTCDP include electrical & electronics (35 MTCs), food and beverages (22), building materials and construction (20), automotive parts and components (16) and plastics products(14). In 2017, through the MTCDP, MTCs have successfully penetrated 18 new markets including USA, Australia, Saudi Arabia, Vietnam, Indonesia and Myanmar.
MCMTC is a private-led initiative aimed at facilitating the growth of Malaysian MTCs in the increasingly competitive global market through strategic alliances. Its membership is opened to eligible MTCs.