Market Development Grant (MDG)

MARKET DEVELOPMENT GRANT (MDG) - SUPPORT INITIATIVES FOR MALAYSIAN SME COMPANIES AFFECTED BY COVID-19

What is MDG?

The Market Development Grant (MDG) is a support initiative in the form of a reimbursable grant. MDG was introduced in 2002 with the objective of assisting exporters in their efforts to promote Malaysian made products or services globally. The lifetime limit of MDG is RM300,000 and it is specifically formulated for Malaysian SME Companies, Professional Service Providers, Trade and Industry Associations, Chambers of Commerce, Professional Bodies and Co-operatives

In 2020, export initiatives under MDG was further expanded to include:

  1. Recognised international Virtual Events, including virtual trade exhibitions and virtual trade missions, where business-to-business (B2B) meetings are an integral part of these virtual events
  2. Logistics costs for shipment of product to overseas by exporters affected by COVID-19 global shutdowns
  3. Financial compensation for postponements or cancellations of Trade Promotion Events

[Note: MDG reimbursements are subject to the availability of the government funds]

What are Virtual Events?

Virtual Events for the purpose of MDG is defined as an internationally recognised trade promotion activity held on a web platform, in a virtual venue that enables business interaction between people and entities, through online interactive tools. Smart phones, tablets, laptops and computer desktops are the most common tools used for this virtual interaction.

Reimbursement on Cost of Logistics Affected By COVID-19 Pandemic

This temporary relief granted through Market Development Grant (MDG) will allow for the reimbursement of up to 30% of total logistic costs subject to a maximum of RM15,000 per shipment, including the cost of transportation, warehousing and freight. This temporary support initiative is applicable for logistics costs incurred from 18 March until 31 December 2020 or until the COVID-19 pandemic is officially declared ended by the government, whichever comes first. The company can start applying from 27 July 2020.

Financial Compensation for Postponements or Cancellations of Trade Promotion Events

The temporary expanded scope of MDG now allows SME companies to claim for reimbursements of specific expenses incurred, due to cancellations or postponements of trade promotion events, such as non-refundable participation fees, airfares and accommodations, subject to the total of all three expense components not exceeding RM25,000 per event. This temporary relief is applicable for event start 18 March to 31 December 2020. The company can start applying from 1 August 2020.

What Activities Are Eligible For Grant Funding?

Current Events

  1. Participation in International Trade Fairs or Exhibitions held locally/overseas
  2. Participation in Trade & Investment Missions (TIM) or Export Acceleration Missions (EAM)
  3. Participation in International Conferences Held Overseas
  4. Listing Fees for Made in Malaysia Products in Supermarkets or Hypermarkets or Retail Centres or Boutique Outlets Located Overseas

Virtual Events

  1. Participation in Virtual International Trade Fairs In Malaysia Or Overseas
  2. Participation In Business To Business (B2B) Meetings Related To Virtual Trade Investment Missions And Export Acceleration Missions

Logistics Cost (18 March until 31 December 2020)

  1. Logistic costs

Postponement Or Cancellations Of Trade Promotion Events (18 March until 31 December 2020)

  1. Participation in International Trade Fairs or Exhibitions held locally/overseas
  2. Participation in Trade & Investment Missions (TIM) or Export Acceleration Missions (EAM)
  3. Participation in International Conferences Held Overseas
  4. Listing Fees for Made in Malaysia Products in Supermarkets or Hypermarkets or Retail Centres or Boutique Outlets Located Overseas

Who Is Eligible To Claim For MDG? (please refer to MDG Guidelines 2020)

  1. Small And Medium Enterprises (SMEs)
  2. Professional Service Providers (Sole Proprietor Or Partnership)
  3. Trade & Industry Associations, Chambers Of Commerce Or Professional Bodies
  4. Co-operatives

How Do I Submit My New Application Of Claims Or Request For Reimbursement Of Expenses?

  1. All COMPLETED applications except for logistics and cancellation/postponement of trade promotion event MUST be SUBMITTED ONLINE through MATRADE’s website at www.matrade.gov.my/mdg/
  2. Submissions for reimbursements must be made within 30 calendar days from the last date of the promotion activity.
  3. All COMPLETED applications MUST SEND to MATRADE Headquarters in HARDCOPY, 30 calendar days from:
    1. Logistic cost - the first day of shipment (based on receipt date). For shipment dated 18 March – 27 July 2020, 30 calendar days start from 27 July 2020
    2. Cancellations/ postponements of trade promotion events - The last date of event. For event start 18 March – 1 August 2020, 30 calendar days start from 1 August 2020.

For more information, please download information as per link below:

Market Development Grant (MDG) 2020

Market Development Grant (MDG) Virtual Events 2020

Postponement or Cancellations of Trade Promotion Events

Reminder

      • All documents must be submitted online
      • Logistics cost and reimbursement for cancellation/ postponement of export promotion must be send to MATRADE Headquarters in hardcopy
      • All claim documents MUST be under:
        • Company’s name
        • If it is under the name of an individual, the name must be listed in the list of directors or shareholders or in EPF statement
      • * Submission of claim documents under names other than company or authorised individuals will not be accepted.
    • MDG Guidelines are applicable:
      1. Virtual Events - activities undertaken from 1 July 2020
      2. Logistics costs – activities undertaken from 18 March 2020 – 31 December 2020
      3. Cancellation/ postponement of export promotion - activities undertaken from 18 March 2020 – 31 December 2020

All enquiries/ submission of reports/ and application in hardcopy must be sent to:

Market Development Unit
8th Floor, East Wing, Menara MATRADE,
Jalan Sultan Haji Ahmad Shah,
50480 Kuala Lumpur, MALAYSIA
Tel: +603-6207 7593
Fax: +603-6203 7252
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Updated by Market Development Unit

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