One of the ways in which the Government facilitates the Malaysian services providers is by creating market opportunities through trade agreements. The Government encourages and assists them to export their services regionally and internationally. Support and facilitation are given for:

  • Export
  • Investment
  • Financing
  • Capacity Building

The Malaysian External Trade Development Corporation (MATRADE) and the Malaysian Investment Development Authority (MIDA) work in collaboration with all parties involved in developing and promoting the Malaysian services industry.



MATRADE, the national export promotion agency, undertakes various activities to promote the export of services. If you are a service provider  interested in knowing how to gain presence globally, here are some events/activities that may interest you:


(a) Malaysia Services  Exhibition (MSE)

The Malaysia Services Exhibition (MSE) is a series of iconic trade exhibitions organised by the Malaysia External Trade Development Corporation (MATRADE)to showcase and promote the best of Malaysian services overseas. The MSE aims  to:

  • promote Malaysian services providers in the international markets;
  • brand Malaysian services through the showcasing of capability and achievements of Malaysian companies; and
  • provide a platform for Malaysian services providers to network and forge strategic alliances with potential clients or partners in the services industry.

Apart from promoting and branding, MSE also carries out activities such as one-to-one business meetings and seminars as well as roundtable discussions with potential key decision makers and business owners.


(b) Specialised Marketing Missions

This overseas mission  aims to explore and identify trade opportunities for selected products and services. Apart from generating potential sales, these missions also afford opportunities to Malaysian services providers to establish business networks. Individual business meetings are arranged between the Malaysian delegation and local businessmen, besides visits to related business organisations and companies.


(c) Trade Fair

MATRADE is the official organisation that manages Malaysia's participation in international trade fairs overseas. Trade fairs serve as a good starting point for companies wanting to promote the services they haveto offer to potential foreign companies. MATRADE provides assistance in obtaining space reservations, stand designs and its construction, pre-event publicity and the scheduling of business meetings with foreign services companies.


(d) Malaysia Export Exhibition Centre (MEEC)

The Malaysia Export Exhibition Centre or MEEC is a permanent display centre of 4,500 sq meters exclusively designed to showcase and promote various Malaysian products and services. It is located at the second floor of Menara MATRADE, Kuala Lumpur.

The exhibition centre allows trade visitors to view a wide selection of products and services from over 500 Malaysian companies, covering 30 industries. The rapidly growing service sector is represented by industries such as oil and gas, construction, business services, healthcare and education.

As an exhibition centre showcasing Malaysian products and services, MEEC is an excellent international venue for Malaysian suppliers and potential buyers from around the globe to meet and source high quality Malaysian products and services.


(d) Incoming Buying Mission

The Incoming Buying Mission (IBM) has proven to bean effective platform for Malaysian exporters and international buyers to meet and explore new business opportunities. The programme not only serves as a venue for local companies especially the SMEs, to promote and market their products and services but  also provides them with the opportunity to obtain direct feedback from potential importers on potential markets overseas.


Incoming Trade Delegation

MATRADE is the focal point for visits by foreign trade delegations. Apart from business briefings, individual business meetings are held between Malaysian businesses and participants of foreign trade delegations.



MIDA provides incentives for investment in selected services sub-sectors.

These are in the form of duty/tax exemptions or tax allowances and include:

  • Pioneer Status - partial or full income tax exemption for a period of 5 or 10 years
  • Investment Tax Allowance (ITA) of 60% or 100% on qualifying capital  expenditure for a period of 5 or 10 years
  • Exemption from import duty and sales tax on imported machinery, equipment, materials, components, spare parts/replacement parts andconsumables
  • Expatriate post consideration

The services activities eligible for incentives are :

  • Hotel and tourism
  • Logistics
  • Healthcare travel (private hospitals and ambulatory care centres)
  • Education (international / private schools and technical, vocational and science training institutions)
  • Environmental management including renewable energy, energy efficiency, recycling and waste management
  • Regional operations such as operational headquarters (OHQ), international procurement centres (IPC) and regional distribution centres (RDC)
  • Business and other support services such as R&D,testing and design activities.

From July 2012, a RM1 billion Domestic Investment Strategic Fund has been established. The fund managed by MIDA is for Malaysian–owned companies in targeted industries  to encourage them to shift to high value-added, high technology, knowledge intensive and innovation-based industries.



The Government  provides assistance either in the form of soft loans and/or grants. These programmes are targeted to assist the small and medium enterprises (SMEs) to build business capability, capacity and productivity that would go into building global champions.

The main ministries/agencies entrusted with assisting the SMEs include:

  • Bank Negara Malaysia (BNM)
  • Ministry of Rural and Regional Development (MRRD)
  • Ministry of Industrial Development Sabah
  • Ministry of Industrial Development Sarawak
  • Ministry of Science, Technology and Innovation (MOSTI)
  • Ministry of Domestic Trade, Cooperative and Consumerism (MDTCC)
  • SME Corp. Malaysia
  • SME Bank
  • Malaysia External Trade Development Corporation (MATRADE)
  • Malaysian Investment Development Authority (MIDA)
  • Bank Pembangunan Malaysia Berhad (BPMB)
  • Amanah Ikhtiar Malaysia (AIM)
  • Export-Import Bank Malaysia Berhad (EXIM Bank)
  • Malaysia Debt Ventures Berhad (MDV)
  • Malaysian Venture Capital Management Berhad (MAVCAP)
  • Tabung Ekonomi Kumpulan Usaha (TEKUN)
  • Malaysian Biotechnology Corporation Bhd (MBC)
  • Malaysian Technology Development Corporation Sdn Bhd (MTDC)
  • MIMOS Berhad (MIMOS)
  • Multimedia Development Corporation (MDeC)
  • Bank Kerjasama Rakyat Malaysia Berhad (BKRMB)
  • Perbadanan Nasional Berhad (PNS)
  • Perbadanan Usahawan Nasional Berhad (PUNB)
  • Credit Guarantee Corporation Malaysia Berhad (CGC)
  • Perbadanan Usahawan Nasional Berhad (PUNB)
  • Malaysian Industrial Development Finance Berhad (MIDF)
  • Bank Pertanian Malaysia Berhad (AGRO Bank)
  • Majlis Amanah Rakyat (MARA)
  • Cradle Fund Sdn. Bhd.

Here are some of the financial assistance programmes available for the services sector:

(a) The Soft Loan Scheme for SMEs (SLSME)

  • Managed by MIDF, this scheme provides financial assistance to existing and new start-up SMEs in project,fixed assets and working capital.The sectors that qualify are from the various sub-sectors in manufacturing, manufacturing-related services and services (excluding insurance and financial services).
  • Financing is up to a maximum of RM5million for the purchase of land and building, as well as machinery and equipment and up to RM3million for working capital.

(b) Market Development Grant (MDG)

  • The MDG is a scheme introduced to assist the small and medium enterprises (SMEs) in manufacturing, agro-based and trading, services providers, cooperatives and trade & industry associations/chambers of commerce & professional bodies in undertaking export promotional activities.
  • Applicants can request for a reimbursable grant on eligible export promotional activities undertaken. The value of the grant reimbursed will be determined by MATRADE based on locations and type of export promotional activities undertaken, with a grant ceiling of RM100, 000 per applicant in 2012.

Capacity Building

Capacity building is an indispensable component to ensure the development of services providers, particularly the SMEs.

The Small and Medium Enterprises Corporation (SME Corp) is the core agency to assist Malaysian SMEs build capacity as they face a more competitive environment and become bigger entities that have the capacity to export services.

There is a wide range of programmes in place to help Malaysian firms to undertake activities such as business development and rebranding.

The SME capacity building programmes cover:

  • skills upgrading;
  • brand awareness; and
  • advisory & technical support.

Such programmes include Business Acceleration Programmes (BAP), Enrichment and Enhancement (E2), 1-InnoCERT, or SCORE (diagnostic tool used to rate and enhance competition).

For more information on capacity building for SMEs, please visit www.smeinfo.com.my.

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