Matrade CEO Dr Mohd Shahreen Zainooreen Madros
KUALA LUMPUR: Malaysia External Trade Development Corp (Matrade) is confident that Budget 2018 will increase the participation of Malaysian companies in international trade and strengthen the country's external trade performance.
A budget of RM150mil allocated to Matrade, Malaysian Investment Development Autority (Mida) and SME Corp will go towards export promotion activities, such as the Market Development Grant (MDG), it said in a press statement.
These promotion activities will be focused in markets where Malaysia has free trade agreements and in markets with high demand for Malaysian exports.
Exim Bank will provide RM200mil credit facility for export to local SMEs and RM1bil will be allocated for credit insurance for companies.
Further, Matrade said a RM100mil loan facility with 70% government surety to encourage the automation of operation in local furniture companies will boost production.
The budget will also be utilised to enhance the development of Malaysian companies through programmes such as Go-Ex, Bumiputera, Women and Youth Exporters Development Programme (BWYEDP), Mid-Tier Companies Development Programme (MTCDP) and eTRADE Programme.
“The share of exports in Malaysia’s Gross Domestic Products (GDP) currently stands at 67.7%, indicating external trade’s importance to Malaysia’s economy. As such the support to ramp up export-based programmes will ensure we get to sustain Malaysia’s competitiveness globally,” said Matrade CEO Dr Mohd Shahreen Zainooreen Madros.
However, Matrade added that its initiatives will be complemented by zero-cost programmes in order to facilitate more Malaysian businesses venturing abroad without depending on budget allocation.
Matrade's strategy moving forward will centred on digitalisation, Industry 4.0, Big Data and technological advancement.
“In embracing 2018, Matrade encourages more players from service-oriented and high-technology industries such as aerospace, creative sector and engineering services to internationalise their business.
"This will be the determinant that diversifies Malaysia‘s capability, beyond traditional industries such as Food & Beverages,” said Shahreen.
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