A strong brand image is the only asset a company can develop that cannot be copied. Companies must thus make serious commitment to investing in developing a brand strategy for their products and services. Promotion is a vital element of branding. Companies should work with agencies that can provide professional advise on how to develop, promote and manage the brands in order to ensure that the brand is well positioned in the market and contribute to developing the image of the country as a reliable supplier of quality brands.

Brands are assets that require investment to nurture and develop. It requires a change in the mind set of top management about what building a brand really involves. Apart from the registration of a name or logo it also requires a promise to deliver what has been communicated to the consumer, consistency in the quality of products and services offered as well as an assurance of availability of supply to the market.

We have to capitalize on the country's reputation as a supplier of quality products by branding our products and services for export in order to create an identity for Malaysian goods and services. In a highly competitive market we need to develop strong brands to build consumer loyalty and preferences for Malaysian products and services. This is even more urgent now as numerous attractive alternative products are competing for the buyer's attention a process further enhanced with developments in ICT and the internet..

Recognised brands provide long term security and growth to a company as they will provide competitive differentiation, fetch premium prices, lead to higher sales volume and security of demand.

1. Objective
The objective of the Brand Promotion Grant (BPG) is to develop and promote in the international market, brand names owned by Malaysian companies for products and services originating from Malaysia.

2. Selection of Brands
The Brand Promotion Grant will only be granted to eligible brands identified to be assisted by the Brand Grant Approval Committee. Evaluation of brands to be selected for the grant will be based on several considerations including:-

• Branding Strategy and Plan.
  
• Business and Marketing Plan.
  
• Resources invested by the company on branding and its commitment to the branding programme.
  
• Activities undertaken to promote the brand.
  
• Trend in overall sales and exports over past 3 years.
  
• Market share both local and overseas markets.
  
• Potential for the brand to further expand in the international market.
  
• How the brand will help project Malaysia's image as supplier of quality products and services.
  

3. Form of Grant
Companies can apply for either one of the following forms of grant:-

SMEs

• 100% reimbursable grant of up to a (Maximum of RM1 million per company per brand.
  
• A combination of 100% and 50% reimbursable grants. (Maximum grant of RM 2 million per company per brand).

  Non SMEs

• 50% reimbursable grant of up to a (Maximum of RM2 million per company per brand.

  Definition of SME

  For 100% reimbursable grant (SME):-
  

• Manufacturing company's - annual sales turnover must not exceed RM25 million or with not more than 150 full time employees.
  
• Services sectors enterprises - annual sales turnover not exceeding RM5 million or with full time employees not exceeding 50.
  

To encourage companies to promote the brand overseas, not more than 10% of the total grant approved should be spent on branding activities of the brand in the domestic market.

4. Eligibility Criteria
To be eligible for the grant companies must fulfill the following conditions:-

• Incorporated 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 filed for the trademark registration in one of the markets.
  
• Annual sales turnover of not more than RM 250 million (based on the latest financial report).
• Growth in export sales of the brand over the last 3 (three) years.
  
• Products/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:-

• Resources invested on branding and company's commitment to the branding programme.
  
• Promotion programmes and activities undertaken by company to promote brand.
  
• Indication of market penetration and consumer acceptance (e.g. share of market) both local and overseas.
  
• Trend in overall sales and export growth.
  
• Awards and recognitions received.
  
• International quality certifications obtained such as HACCP, ISO or Quality Improvement Programme, GMP or approved the use of the 'Malaysia's Best' quality seal.
  
  

5. Branding and Marketing Plans
Companies interested in applying for the grant must submit the following document and information:-

(a) 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.
  
• 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.

(b) 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.
  

(c) Corporate profile, organisational structure, profile of management and branding team.

6. Eligible Expenses
The grant will cover the cost of developing and promoting only one brand per company. Companies can apply for the grant for any of the following expenses involved in brand development and promotion:-

• 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 trademark works for other targeted markets (excluding renewal of trademark and patent).
  - Brand Training

• 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 RM 50,000.00)

• Brand Research such as:
  - Brand Audit
  - Brand Tracking
  
  
  Note:- Expenses listed are only a guide. Not all activities may be relevant to the company. Companies should apply for the grant only for expenses relevant to the branding plan.
  

7. Application Procedure
Companies are encouraged to apply for the grant at least three months before undertaking the activity for which the grant is required. Grant approved is based on the projected spending over the next 2 years.

Application for the grant is made using the application form BPG (1/08) which is available free of charge at MATRADE or can be downloaded from MATRADE's website at www.matrade.gov.my

All supporting documents that companies must provide when applying for the grant are described in the BPG application form and the checklist attached to the form. Companies are advised to submit all the relevant documents when applying for the BPG.

Companies are encouraged to submit all claims for the grant within 3 months of undertaking the activity. Claims must be accompanied with original receipts and invoices or copies certified by external auditors with relevant supporting documentary evidence related to the implementation of the activities concerned or work undertaken for making claims.

MATRADE has the right to use the brand names of the BPG recipients in any promotion activities by MATRADE in promoting Malaysian brands at any time.

8. Contractual Obligation and Reporting
Companies approved the grant will be required to:-

(a) Sign a Letter of Acceptance with MATRADE indicating that if the company fails to fulfill 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.

(b) Submit quarterly report based on the format as in Annex 1 or progress report based on the implementation milestone (whichever is earlier) of the activities implemented for which the grant is disbursed.

9. ENQUIRIES

For enquiries on the BPG, companies can contact:-

Chief Executive Officer
Malaysia External Trade Development Corporation
(MATRADE)
Export Facilitation Division
9th Floor, Menara MATRADE
Jalan Khidmat Usaha, Off Jalan Duta
50480 Kuala Lumpur

Tel: 03-6207 7077
Fax: 03-6203 7251
(Attn.: Mr. Zakaria Kamaruddin/ Ms. Norbilah Hussein/ Ms. Amilatun Fazlina Zakaria/ Ms. Aida Zureen Arifin/ Mr. Norazly Basarian/ Mr. Abdul Latif Nordin)

E-mail: zak@matrade.gov.my / ruslaina@matrade.gov.my/ norbilah@matrade.gov.my / amilatun@matrade.gov.my / aidaz@matrade.gov.my / alatif@matrade.gov.my / norazly@matrade.gov.my

• FAQ
  
  
• Download BPG Application Form
  
  
• Download Checklist
  
  
• BPG Quarterly Reporting Format