MATRADE Annual Report 2020 104 MARKET DEVELOPMENT GRANT Market Development Grant (MDG) plays an important role in assisting SMEs comprising companies from manufacturing, services and trade, MSPs as well as trade and industry associations, chambers of commerce and Malaysian professional bodies to gain opportunities in penetrating export markets. The main focus of MDG is to encourage Malaysian companies to undertake export promotion activities and utilise MDG to defray promotional costs. The financial facilitation programme in the form of reimbursements for eligible export promotion programme participation which was introduced since 2002 continues to prove MATRADE's support for the country's export development. In an effort to maintain competitiveness in challenging situations during the pandemic, MATRADE carried out several improvements to its activities under the MDG programme as follows: i Participation in International Trade Fairs in Malaysia & Abroad and Virtual Overseas Business Meetings (commencing 1 July 2020); ii Payment of Logistics Costs for Delivery of Products Abroad (commencing 27 July 2020); and iii Financial Assistance for Postponement/Cancellation of Export Promotion Activities (commencing 1 August 2020). Reimbursement for all eligible activities is up to a maximum of RM300,000 for each SME. In 2020, a total of 15 outreach programmes were implemented which included briefings, seminars, information counters, live training, discussions with the business community including government agencies, and coverage through social media channels to increase awareness among Malaysian companies on this programme. Based on industry performance, the processed food industry recorded the highest percentage (13.8%) in terms of grant recipients, followed by beverages (10.7%), furniture (9.8%), pharmaceuticals, toiletries and cosmetics (5.9%) as well as agricultural produce (4.9%). A total of 1,374 companies benefited from this programme with grants amounting to RM24 million. According to the percentage of grant recipients, non-bumiputera companies comprised 82.8% while non-women owned companies, 59.5%. In terms of location, companies operating in Selangor were the highest recipients (40%), while for companies in Sabah and Sarawak, the total combined percentage was 3.1%. Ownership (%) Ownership (%) Non-Bumiputera Bumiputera Non-women Women Associations & Others 83% 16% 1% 60% 40% By Industry (%) Processed Food Beverages Furniture Pharmaceuticals, Toiletries and Cosmetics Agricultural Produce 13.83 10.7 9.83 5.9 4.88
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