Posted on : 13-05-2016 | By : sabah today | In : National Business
KUALA LUMPUR — The Malaysia External Trade Development Corporation (Matrade) is on track to increase the export value of local mid-tier companies (MTCs) to RM15 billion by 2021 via the Mid-Tier Companies Development Programme (MTCDP).
Last year, the export value of the 101 MTCs under the MTCDP’s Wave 1 and 2 Programmes reached RM5.67 billion, up by RM1.52 billion from the RM4.15 billion in 2014, said Matrade’s Senior Director Strategic Planning Division, Wan Latiff Wan Musa.
“This year, we will see a better performance in exports as we recruited 54 local MTCs for the MTCDP’s Wave 3 Programme on April 1.
“We are also confident that upon completion of the programme, export revenue generated by the 54 MTCs would increase by eight per cent next year, up from the current RM1.2 billion,” he told Bernama yesterday.
Established in 2014, the MTCDP is a nine-month programme hosted by Matrade to help local MTCs from various sectors accelerate their export growth and strengthen their core business functions.
The programme will be implemented in eight waves over eight years and is expected to create 21,000 high-income jobs by 2021.
On the MTCDP, Wan Latiff said Matrade would diagnose, provide capacity building training such as product branding or new technology adoption to the participating companies.
He said Matrade would also facilitate those companies, ready to venture into new markets, by arranging business matching opportunities and holding seminars for them.
“After completing the nine-month programme, the companies will be absorbed into another programme called ‘Ramp-Up’,” he added.
The “Ramp-Up” is a two-year programme targeted at sustaining the growth momentum of the MTCs, further deepen their linkages in the international markets and help them grow to become future Malaysian Multinational Companies (MNCs).
“During the period, we will guide them on how to do business marketing and export promotions,” Wan Latiff said.
He also said that the programme would also enable the MTCs to cope with the higher demand from the other 11 Trans-Pacific Partnership (TPP) nations once the agreement came into effect.
“When their exports grow, it means their capacity has increased and can cope with demand from TPP markets,” he added.
The other 11 TPP countries are the United States, Japan, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.
MTCs are companies with an annual revenue of between RM50 million to RM500 million in the manufacturing sector and between RM20 million to RM500 million in other sectors.
They contribute 30 per cent to the country’s gross domestic product (GDP) and represent 22 per cent of the workforce despite only making up about one per cent of all establishments in Malaysia.
Currently, there are about 9,900 mid-tier companies in Malaysia.