The Mid-Tier Companies Development Programme (MTCDP) was established in 2014 to help local mid-tier companies (MTCs) in Malaysia to accelerate their export growth and to strengthen their core business functions. Only 50 high-performing MTCs will be selected per year to participate in this 9-month programme. MTCs in Malaysia are defined as companies with annual revenues between RM50 million to RM500 million in the manufacturing sector and between RM20 million to RM500 million in other sectors.
Mid-Tier companies and their contribution to Malaysia
MTCs represent a key driving force behind the Malaysian economy. There are approximately 10,000 MTCs in Malaysia, and despite being just 1% of all Malaysian firms, they collectively contribute ~30% of the country’s GDP and employ over 22% of the workforce. MATRADE is committed to their success, and the MTCDP programme is geared towards accelerating their growth and expansion into new markets.
This is a programme for high-performing MTCs. As a result, MTCs must meet the following robust & stringent criteria to qualify for the programme:
List of National Key Economic Areas (NKEA) or MITI High Impact Sectors:
- Business and professional services
- Chemical products
- Electrical and electronics
- Financial services
- Food and beverage
- Forestry and paper
- Healthcare services
- Hospitality and tourism
- Information and communications
- Machinery and equipment
- Medical devices
- Oil and gas
- Plantation (incl. palm oil and rubber)
- Textiles and apparels
- Transport equipment
- Transportation and logistical services
Programme Benefits – Helping Mid-Tier Companies Expand Globally
The Government of Malaysia and MATRADE recognize the importance of Malaysia’s MTCs and have established the MTCDP with the objective of helping MTCs grow their business internationally through a customized programme via these 4 activities:
1. Broaden MTCs’ reach into high potential markets
- Expand MTCs’ business network (potential business partners, distributors, or customers) through country immersion visits, expert advice and MATRADE’s international network
- Help MTCs to identify and manage their distributors and business partners
2. Provide tailored business advice to MTCs
- Advise MTCs on export challenges, supported by practical tools and guidance from international advisors and industry experts
- Help MTCs to get relevant market or industry intelligence
3. Provide access to funding to MTCs
- Facilitate introductions to local, international financial institutions or private investors as needed
4. Facilitate introductions to new technology
- Assist MTCs in exploring new technologies and product innovations based on research, international trends and practical experience
- Introduce MTCs to potential technology partners as needed
MATRADE’s expectations from participating companies
MTCs participating in the programme must be:
- Willing to bear ancillary expenses - e.g., travel expenses for any promotional events overseas. Consultation costs for 2014 participants will be borne entirely by MATRADE
- Fully committed, with the CEO and senior management dedicating about 1 day/month to the programme over the course of 9 months
- Willing to share company-specific information (with non-disclosure agreement in place), engage deeply on action plan, and adopt recommendations from MTC programme advisors to accelerate growth and increase your business performance
Mid-Tier Ramp-up Programme
The Mid-Tier Ramp-Up Programme is a new program started in 2016. It is actually a two-year extension programme for MTCs who have graduated from MTCDP. During the two years, MTCs will continue to receive customised assistance to further enhance their market access and export capabilities. The export target set for MTCs in the Mid-Tier Ramp-Up Programme is a 50 percent increase in export sales by 2023.
Other than serving as a conduit for continuing export support, the Mid-Tier Ramp-Up Programme also monitors and tracks the progress and development of MTCs. This helps MATRADE to tweak and re-evaluate the effectiveness of support assistance rendered. Former graduates of MTCDP are also automatically enrolled as members of an alumni, called the CEO Club. The CEO Club is an informal avenue for MTCs to network, exchange ideas and share possible solutions on common issues. The first CEO Club meeting was held on May 31, 2016.
Benefits of being in the programme:
Mid-Tier Ramp-Up Programme will help MTCs to:
- Secure effective distribution channels in the marketplace;
- Intensify market deepening in high potential markets (e.g. through strategic partnerships, acquisition of companies or new business start-ups); and
- Collectively penetrate new markets through the pooling and sharing of costs and resources, which can mutually elevate and improve visibility of Malaysian businesses in foreign markets.
Who can apply?
As it is an extension of the MTCDP, only graduates of MTCDP are eligible to apply.