Budget 2018
KUALA LUMPUR: The Malaysia External Trade Development Corporation (Matrade) said the 2018 Budget provided the right impetus to increase the participation of Malaysian companies in international trade.
Matrade Chief Executive Officer Dr Mohd Shahreen Zainooreen Madros said the budget would support the trade promotion agency’s continuous efforts in strengthening Malaysia’s trade balance.
“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 said in response to the 2018 Budget unveiled by Prime Minister Datuk Seri Najib Tun Razak in Parliament today.
The budget of RM150 million allocated for Matrade, Malaysian Investment Development Authority (MIDA) and SME Corp would be channeled to enhance companies’ market expansion through export promotion activities including for the market development grant.
“These export promotion activities will be focused in key markets where Malaysia has Free Trade Agreements 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, construction and others,” said Matrade.
In providing financial support for Malaysian companies, the budget also announced a RM200 million credit facility for export, to be provided by EXIM Bank to small and medium enterprises (SMEs) and a RM1 billion credit insurance for companies.
Matrade also said the loan facility amounting to RM100 million, with 70 per cent government surety to encourage automation among local furniture companies, would definitely boost production for export.
It said the budget would also be utilised to enhance the development of Malaysian companies through programmes such as Go-Ex, Bumiputera-Women and Youth Exporters Development Programme, Mid-Tier Companies Development Programme and eTRADE Programme.
Matrade is the trade promotion arm of the Ministry of International Trade and Industry (MITI). — Bernama