KUALA LUMPUR: The Malaysia External Trade Development Corporation (Matrade) is optimistic that the 2018 Budget will provide the right impetus to increase the local companies’ participation in international trade.
In tabling the Budget today, Prime Minister Datuk Seri Najib Razak announced that a total of RM150 million had been allocated to Matrade, Malaysian Investment Development Authority and SME Corp towards the goal.
These funds will be channeled to enhance each firms’ market expansion through export promotion activities, inclusive of the Market Development Grant (MDG).
“These export promotion activities will be focused in key markets where Malaysia has Free Trade Agreements (FTA) with and markets with high demand for Malaysian exports especially in sectors such as furniture, electrical and electronics, information, communication and technology, oil and gas, food and beverage and construction, among others,” Matrade said in a statement.
In providing financial support for Malaysian companies, RM200 million of credit facility for export will also be provided by EXIM Bank to local small and medium enterprises (SMEs) and RM1 billion for credit insurance for companies.
The loan facility amounting to RM100 million with 70 per cent-government surety to encourage automation among the local furniture companies will definitely boost production for export.
In addition, 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.
“It is imperative that the Malaysian exporters community continue to receive strong support from the Malaysian Government through both export promotion and exporters development activities,” said Matrade chief executive officer Dr. Mohd Shahreen Zainooreen Madros in the statement.
“The share of exports in Malaysia’s Gross Domestic Products (GDP) currently stands at 67.7 per cent, 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,” he added.
Matrade will continue to develop strategies that take into consideration the change of global economic landscape in maintaining Malaysia’s healthy trade growth.
The strategies will be based on opportunities gained through 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 its business,” Shahreen said.
Malaysia has seen its trade growing almost every month this year up to August 2017, with the exception of January and June.
The total trade had breached the RM1 trillion mark in July this year as opposed to September last year.
The trade surplus has also been healthy, increasing to RM60.84 billion for the first eight months of the year. In the same period last year, it stood at RM52.47 billion.
The full-year surplus is expected to be slightly higher this year compared to RM88.15 billion in the whole of 2016.