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GUIDELINES FOR MARKET
DEVELOPMENT GRANT (MDG)
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Objective
The scheme is to provide a matching grant to
assist Small and Medium Enterprises (SMEs) undertake
promotion activities for the development of export markets.
Eligible SMEs
To qualify for the Market Development Grant (MDG),
Small and Medium Enterprises (SMEs) must be:
- Incorporated under the Companies Act 1965
- At least 60% equity held by Malaysians
- For manufacturing and agricultural sector,
having an annual sales turnover not exceeding RM
25 million (based on the latest financial
report) OR not more than 150 full-time
employees
- For trading companies that meet the
following additional conditions:
- Having annual sales turnover of at least RM
10 million OR export sales
of at least RM3 million. (Women
owned enterprise are exempted from this condition),
and
- Exporting Made In Malaysia products especially
those manufactured by SMEs, and
- Not more than 20% of the company's annual sales
is derived from trading in primary commodities.
For description of primary commodities, please refer
to Annex A of MDG Application form.
| Note:
Status of SME will be checked anually based on
financial accounts, EPF statement, Form 24 and
49. Companies must notify the MDG Secretariat
if there are any changes to particulars that effect
SME status. For detail application criteria, please
refer to application form MDG Rev 1/08. |
Form of Grant
Companies can obtain a 50% reimbursable
matching grant on the approved cost of the eligible
activities. The grant is available for one or more of
the eligible activities.
Eligible Activities
The followings activities are eligible for MDG:
1. Participation in International Trade Fairs
2. Participation in Trade And Investment Mission
3. Participation in Specialized Marketing Mission
4. Participation in In-Store Promotion Overseas
5. Participation in Industry and Professional Related
International Conferences Overseas
Note
(i): For participation in the same
International Trade Fairs, and Industry
and Professional Related Conference Overseas,
companies are eligible to apply for MDG for up
to three(3) repeat participation.
For Local International Trade Fairs, Trade
and Investment Mission, Specialized Marketing
Mission and In Store Promotion there is no
limit on repeat participation for MDG.
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Note: Trade and Industry Associations and
Professional Bodies are eligible to apply for
MDG for the expenses of one secretarial staff
for participating in overseas trade fairs and
missions organized by the Associations and Professional
Bodies. Eligible expenses are cost of air fare
(economy class), standard hotel room subject to
the same limits extended to SMEs.
6. Participation in meetings related to negotiations
on Mutual Recognition Agreement (MRA), Free Trade
Agreement (FTA), ASEAN, World Trade Organization (WTO)
and other market access negotiations by representatives
of Trade and Industry Associations and Professional
Bodies
7. Preparation of Promotional Materials to develop
export markets
8. Initial cost of setting up office overseas for
purpose of:
i. Selecting new markets for new products or existing
products
ii. Gathering information on existing export market
12. For Women Owned Enterprise, additional eligible
activities for MDG are:
- Participation in Malaysia Export Exhibition Centre
(MEEC) at MATRADE
- Participation in Export Training seminars and
workshops held locally.
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Definition of Women
Owned Enterprise:
For a 100% owned Malaysian company:
- A minimum of 51%
of the equity must be held by the woman/ women;
or
- In the case where
the majority equity is not held by the woman
/women ;
i. In the largest single shareholder must
be a women and the company is run and managed
by a women; or
ii. The MD/CEO is a woman and has a minimum
equity of 10% in the company
For 60% Malaysian owned
company:
- A minimum of 51%
of the local equity must be held by the woman/women
and the company is run and managed by a woman;
or
- The MD/CEO must be a woman and she must
hold a minimum of 10% in the company
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Claimable Expenses
1. Participation in International Trade Fairs
- Participation fee.
- Economy class airfare for one person. Cost does
not include items such as visa fees, excess baggage
and insurance premium.
- Women Owned Enterprise are eligible for two economy
class airfare, with the condition that at least one
participant must be a woman participant.
- One hotel room not exceeding RM200
per night for local international trade fairs and
RM1,000 per night for overseas fairs.
Payment will cover the duration of the event and two
days before or after the event. Women Owned Enterprise
are eligible for 2 hotel rooms.
- Rental of standard booth which is limited to:
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- 18 sqm for small products
- 36 sqm for big items like furniture
and machinery equipment
- 72 sqm for furniture items only
for local international trade fair (effective
from 1st July 2007)
- Construction and enhancement of standard booth or
shared cost of construction on group basis. Construction
and enhancement of booth cost is limited to 50% of
the eligible booth rental cost.
- Interpreter services for non-English speaking countries,
maximum cost of RM1,000 for the duration
of the international trade fair.
- Shipment of exhibits and promotional materials.
Cost does not include items such as import duties,
bank guarantee and surcharge.
- For local international trade fair sending of samples
and promotional materials is subject to a maximum
cost of RM2,000.
- Standard advertisement in trade fair show directory.
For local international trade fair subject to maximum
cost of RM 500.
For claims related to participation in Local
International Trade Fair, company must submit a
copy of the event report from the fair organizer,
which has been certified by an external auditor. The
report must certify that the fair has fulfilled the
criteria of an international trade fair, as follows:
- minimum space occupied for the fair must be at
least 1000 sq meters gross, and
- at least 10% of visitors must be foreign visitors,
or
- at least 20% net space is rented to foreign exhibitors,
or
- at least 20% of exhibitors are foreign exhibitors.
| Note
(ii): Companies are not eligible for
the grant if 50% of the cost of eligible expenses
is already born by the organizer or sponsor
e.g booth rental, airfare and accommodation
(package) |
2. Participation in Trade and Investment Missions
and Specialized Marketing Missions
- Participation fee
- Economy class airfare for one person. Cost does
not include items such as visa fees, excess baggage
and insurance premium.
- One hotel room not exceeding RM1,000
per night. Payment will cover the duration of the
event and two days before or after the event
| Note
(iii): Trade and Investment Missions
organized to promote exports of Malaysian made
products and services by Government Agencies,
Trade and Industry Associations and Professional
Bodies are eligible for MDG. The trade mission
programme must be submitted to MATRADE at least
one month before the event for approval of the
programme. Once approved, companies participating
in the programme must apply for MDG individually
and will be subjected to the qualifying criteria
for MDG. |
3. Participation in In-store Promotion Overseas
- Economy class airfare for one person. Cost does
not include items such as visa fees, excess baggage
and insurance premium.
- One hotel room not exceeding RM1,000
per night for overseas fairs. Payment will cover the
duration of the event and two days before or after
the event.
- Women entrepreneurs are eligible for 2 hotel rooms.
- Interpreter services for non-English speaking countries,
maximum of cost of RM1,000 for the duration
of the promotion.
- Shipment of exhibits and promotional materials.
4. Participation in Industry Related International
Conferences Overseas
- Participation or registration fee.
- Economy class airfare for one person. Cost does
not include items such as visa fees, excess baggage
and insurance premium.
- One hotel room not exceeding RM1,000
per night. Payment will cover the duration of the
conference and two days before or after the conference
5. Participation in meetings related to negotiations
on Mutual Recognition Agreement (MRA), Free Trade Agreement
(FTA), ASEAN, World Trade Organization (WTO) and other
market access negotiations by representatives of Trade
and Industry Associations and Professional Bodies
- Economy class airfare for on person
- One hotel room not exceeding RM1,000
per night covering the duration of the meeting and
two days before or after the meeting
6. Preparation of Promotional Materials
- Companies are eligible for a maximum grant of RM30,000
for preparation of export promotion materials. (Effective
from 1st March 2008)
- Cost incurred in relation to the production of promotional
materials such as brochures, catalogues, flyers, banners,
posters and CD-ROM.
Eligible expenses include:
For printed materials:-
- Design concept
- Finished Artwork
- Colour separation
- Printing
- Re-printing (For Trade fairs or Trade mission
only)
- Cost incurred in relation to the production of promotional
materials such as brochures, catalogues, flyers, banners,
posters and CD-ROM.
- Companies must use the services of local printing
and CD-ROM companies to benefit from this grant.
- Cost incurred in relation to the production of promotional
materials such as brochures, catalogues, flyers, banners,
posters and CD-ROM.
- Production of CD ROM and Video can be considered
for MDG only if it is part of the company's participation
in trade fairs or trade missions.
- Content of text, audio, video, photography,
graphic, animation, etc.
- Design
- Development
- Replication and Production
CD-ROM packaging
- Companies must use the services of local printing
and CD-ROM companies to benefit from this grant.
| Note
(iv): Application for the grant
must be one month before the printing or production
of material. The approval of the claim is subject
to the acceptance of the promotional materials
by the MDG Approval Committee. Companies that
have utilized the maximum grant of RM15,000
prior to 1st Jun 2006, are not eligible to apply
for MDG for this activity.Companies that have
utilized the maximum grant of RM30,000 are not
eligible to apply for MDG for this activity. |
7. Initial Cost of Setting Up Office Overseas.
Companies are eligible for a maximum grant of
RM100,000 per office or the initial Six (6)
months set up cost of the office (which ever is earlier)
Eligible expenses are:
- Rental of office and;
- Utilities (water/electricity)
- Salaries of support staff excluding allowance and
bonuses
| Note
(v): For repeat application,
office must be set up in a new city or country. |
8. Promotional activities undertaken with Hypermarkets
and Retail Stores Overseas
Companies are eligible for a maximum grant of RM30,000
per activity.
Eligible expenses are:
- Listing fee and;
- Joint Advertising and Promotion
| Note
(vi): For repeat applications,
promotional activities must be in a different
hypermarket or retail store. For promotion
activities with the same hypermarket or
retail store it must be in a different
location. |
9. Participation in International tenders overseas
Expenses incurred for purchase of international tender
documents for supply of Malaysian products or services.
10. Export Market Research
Companies are eligible for a maximum grant of RM30,000
per export market study conducted overseas.
Eligible expenses are:
- Research fees
- Cost of publication of initial report
| Note
(vii): Application for the grant
must be made one month before undertaking the
activity. |
11. For Women Owned Enterprise, additional eligible
expenses:
- Participation in Malaysia Export Exhibition Center
(MEEC)
Eligible expenses are:
- Participation fees
- Cost of transport of exhibits
- Participation in local Export Training Seminars/
Workshops
Eligible expenses are:
- Participation fees
MDG Application & Claim Procedure
- Application for the grant is made using the application
form MDG 1/08 which is available free
of charge at MATRADE or can be downloaded from MATRADE's
website: www.matrade.gov.my/exportsupport/mdg.htm.
All companies are encourage to apply for MDG at
least one month before undertaking the activity.
This is to ascertain if the activity is eligible for
the grant.
- Claims for reimbursement for all
eligible activities must be submitted within (2)
two months of completion of the activity with the
invoices and original receipts or copies certified
by External Auditors.
- All application and claim supporting documents that
companies must provide when applying for the grant
is described in the MDG application form and the checklist
attached to the form. Companies are advised to submit
all the relevant documents when applying for MDG.
For further clarifications please contact:-
MATRADE
Market Development Grant Unit
8th Floor, East Wing,
Menara MATRADE,
Jalan Khidmat Usaha,
Off Jalan Duta,
50480 Kuala Lumpur,
MALAYSIA
Tel: 603-6207 7077
Fax: 603-6203 7252
E-mail: info@matrade.gov.my
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