The Government in Malaysia has played an active role in promoting exports in Malaysia. It has not moved away from a laissez faire, free enterprise approach as a matter of policy in more than three decades. The main objectives of Malaysia’s trade policies relate primarily to exports. They include improved accessibility in terms of markets for exports of primary commodities and manufactured products, the development and promotion of exports of high value added manufacturers and resource based products, expansion of trade with major trading countries, diversification of trade into non-traditional markets, strengthening of regional trade and economic cooperation within ASEAN, and the expansion of trade and investment links within the larger East Asian region.
Exports are an important source of revenue for the Malaysian economy and are one of the activities responsible for the majority of the forex that comes in the country. As a result exporters have an easier task in the country because it is already export friendly. The main cause of concern for an exporter would be in choosing a niche segment to trade.
The Malaysian Government has set up the Services Export Fund (SEF) to assist Malaysian exporters doing business overseas and to help exporters negate any effects of global financial meltdown. The SEF was subsequently expanded in December 2008 and January 2010.The Services Export Fund is being managed by the Malaysian External Trade Development Corporation (Matrade), an agency under the Ministry of International Trade and Industry (MITI).
The expanded SEF covers assistance in the form of "organization of specialized marketing and follow up missions”. The funding is available for Malaysian companies in the following sectors: healthcare, education, oil and gas and construction. The types of financial aid range from:
- a 50 percent reimbursable grant for the costs of preparing and submitting bids for overseas projects.
- a 50 percent reimbursable grant for undertaking trade promotion activities overseas, such as trade fairs, trade missions, opening up of representative offices overseas, and market research.
- a100 percent reimbursable grant for Malaysian service providers to undertake feasibility studies.
Last Updated on: 18-11-2009