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Market Development Grant (MDG)

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Financial Assistance

The objective of the grant is to assist SMEs expand to overseas market. The Government through the Market Development Grant (MDG) provides grants to companies to partially defray the high cost of export promotion. Companies can obtain a 50% reimbursable matching grant on the approved cost of the eligible export promotion activities.

The scheme is to provide a matching grant to assist Small and Medium Enterprises (SMEs) undertake activities for the development of export.

Form of Grant
Companies can obtain a 50% reimbursable matching grant on the approved cost of the eligible claims and activities.

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 (based on latest EPF Statement)

Trading and services company (except for tourism, financial and insurance and property development) that meet the following conditions:

  • Having an annual sales turnover not exceeding RM 5 million (based on latest financial report) OR not more than 50 full-time employees (based on latest EPF Statement); and
  • Exporting Made in Malaysia products or services

Professional services (sole proprietor or partnership), that registered under associated Ministry or Professional Services Bodies.

Eligible Trade and Industry Associations and Professional Bodies
Trade and industry associations and professional bodies that registered under the Registrar of Society (ROS) or associated Professional Body.

Market Development Grant (MDG) Claim Capping For SMEs, Trade and Industry Association and Professional Body

A company, trade association and professional body are eligible to claim for a maximum of RM 30,000.00 per year (1 Januari – 31 Disember 2011) and subject to first come first serve basis and availability of MDG fund.

ELIGIBLE ACTIVITIES FOR SMEs

  • Participation in Local or Overseas International Trade Fair/ Exhibition.
  • Participation in Local or Overseas International Trade Fair/ Exhibition particularly for Fashion Designer.
  • Participation in Trade and Investment Mission or Specialized Marketing Mission Overseas.
  • Participation in Industry and Professional Related International Conferences Overseas. (The nature of the activity must be only for business networking or relationship purposes and it does not include training, workshop or “seminar” for acquiring skill and knowledge or product knowledge and development)
  • Participation in Malaysia Export Exhibition Centre (MEEC), MATRADE.

ELIGIBLE ACTIVITIES FOR TRADE ASSOCIATION/ PROFESSIONAL BODY 

  • Organizing International Trade Fair or Exhibition and Trade and Investment Mission Overseas.
  • Participation in International Trade Fair or Exhibition Overseas.
  • Participation in Trade and Investment or Specialize Marketing Mission Overseas.

CLAIMABLE EXPENSES FOR SMEs
a) Participation in International/ Local Trade Fair or Exhibition

  • Participation fee (if applicable).
  • Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.
  • Two hotel rooms not exceeding RM 200 per night per room for local international trade fairs and RM 1,000 per night per room for overseas trade fairs. Claimable period of accommodation is subject to a maximum of five (5) days for the whole duration of the event and two (2) additional days before or after the event.  
  • Rental of standard booth which is limited to 18 square meters (sqm). 
  • Advertisement in official trade fair show directory. For local international trade fair is subject to maximum cost of RM 1,000.

For claims related to participation in Local International Trade Fairs, organizer of the event must submit the original trade fair audited report which audited by external auditor or chartered accountant with a copy of certificate of practice of the auditor and show directory booklet within two (2) months upon completion of the event. The report must certify that the fair conducted is an international standard trade fair by fulfilling the criteria follows:

  • Minimum space occupied for the fair must be at least 1,000 sq. meters - Mandatory (gross space) and;

Any one of the criteria below:

  • 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: Companies are not eligible to claim any of the eligible expenses under MDG if any of the cost such as booth rental, airfare and accommodation is already borne by any government agency or the event organizer.

b) Participation in International/ Local Trade Fair or Exhibition particularly for Fashion Designer

  • Participation fee (if applicable).
  • Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.
  • Two hotel rooms not exceeding RM 200 per night per room for local international trade fairs and RM 1,000 per night per room for overseas trade fairs. Claimable period of accommodation is subject to a maximum of five (5) days for the whole duration of the event and two (2) additional days before or after the event.  
  • Rental of standard booth which is limited to 18 square meters (sqm). 
  • Advertisement in official trade fair show directory. For local international trade fair is subject to maximum cost of RM 1,000.
  • Runway show cost and model services. The cost does not include taxes.

c)   Participation in Trade and Investment Mission or Specialized Marketing Mission Overseas

  • Participation fee
  • Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.
  • Two hotel rooms not exceeding RM 1,000 per night per room for overseas trade fairs. Claimable period of accommodation covering the whole duration of the event (still subject to MDG Committee approval) and two (2) additional days before or after the event.

Note:

  1. Trade and Investment or Specialise Marketing Mission must be organised by any Malaysian government agency, trade association or professional body that registered in Malaysia. It is compulsory that the organiser to submit the full report of the mission within two (2) months upon completion of the activity by using the MDG report format as been stipulated in MDG guidelines. If organiser fail to submit and comply to the report requirement, will cause rejection of company application. 
  2. Company participating in the mission must submit MDG application individually and still subject to MDG guidelines and requirements.  

d) Participation in Industry and Professional Related International Conferences Overseas.

  • Participation fee (if applicable).
  • Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.
  • Two hotel rooms not exceeding RM 1,000 per night per room for overseas conferences. Claimable period of accommodation is subject to a maximum of five (5) days for the whole duration of the event and two (2) additional days before or after the event.

e) Participation in Malaysia Export Exhibition Center (MEEC) 

  • Participation fee.

CLAIMABLE EXPENSES FOR TRADE AND INDUSTRY ASSOCIATION AND PROFESSIONAL BODY

a)   Organizing International Trade Fair or Exhibition or Trade and Investment Mission or Specialized Marketing Mission Overseas.

  • Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.
  • Two hotel rooms not exceeding RM 1,000 per night per room for overseas trade fairs or trade missions. Claimable period of accommodation covering the whole duration of the event (still subject to MDG Committee approval) and two (2) additional days before or after the event. 

b)  Participation in International Trade Fair or Exhibition.

  • Participation fee (if applicable).
  • Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.
  • Two hotel rooms not exceeding RM 1,000 per night per room for overseas trade fairs. Claimable period of accommodation is subject to a maximum of five (5) days for the whole duration of the event and two (2) additional days before or after the event.  
  • Rental of standard booth which is limited to 18 square meters (sqm). 
  • Advertisement in official trade fair show directory.

c)   Participation in Trade and Investment Mission or Specialized Marketing Mission Overseas

  • Participation fee.
  • Economy class airfare for two persons. Cost include return ticket (economy), fuel surcharge and airport tax.
  • Two hotel rooms not exceeding RM 1,000 per night per room for overseas trade missions. Claimable period of accommodation covering the whole duration of the event (still subject to MDG Committee approval) and two (2) additional days before or after the event.

APPLICATION & CLAIM PROCEDURES

  • Market Development Grant application form MDG 1/2011, can be downloaded for FREE at MATRADE website. Please log on to www.matrade.gov.my 
  • MDG application and claim must be submitted within two (2) months upon completion of the activity.
  • Completed application and claim form must be attached together with the required supporting document as per checklist and claim document such as original receipt/ bank statement/ credit card statement/ telegraphic transfer note or copies of these document which certified true copy by external auditor/ chartered accountant/ authorised bank’s officer/ the issuer of the receipt together with invoices (in detail) for each claimed expenses.
  • It is mandatory to complete the MDG Evaluation Form. Fail to complete the form will cause delays in reimbursement of the grant.
  • Company must attach all supporting document required during the submission of MDG application and claim for entitlement of this grant. Delays in submitting the supporting document required will cause delays in reimbursement of the grant, whereas failure to provide the document within the stipulated period will cause rejection of the said application and claim without further notice.
  • Changes to the new eligibilities, activities and claimable expenses under market development grant (MDG) scheme are effective on 1st January 2011 and these changes are subject to MDG terms and conditions on and changes from time to time and also availability of the fund.

Enquiries

For enquiry on MDG, please contact:

MATRADE,
Market Development Grant Unit
8th Floor, Menara MATRADE,
Jalan Khidmat Usaha, Off Jalan Duta,
50480 Kuala Lumpur
Tel: 03-6207 7077
Fax: 03-6203 7252
Email: info@matrade.gov.my

Monday - Thursday:
8.00am - 5.00pm
Friday:
8.00am - 12.15pm / 2.45pm - 5.00pm

Contact Officers
Market Development Grant (MDG) Unit Officers, Exporter Development Division:-

 
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