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Mid-tier companies champion Malaysia’s export

by Adrian David

PETALING JAYA, 25 JAN –  Mid-Tier Companies (MTCs) in Malaysia have emerged as global champions through signature development programmes, contributing significantly to the country’s economy.

Malaysia External Trade Development Corporation (Matrade) chairman Datuk Seri Reezal Merican Naina Merican said that the agency would intensify its effort to groom more MTCs as Malaysia’s trade performance for the third consecutive year had surpassed RM2 trillion.

The plan, he said, was to target total exports worth RM1.5 trillion for this year.

“Our total trade reached RM2.64 trillion for last year, with total exports recording RM1.43 trillion.

“These MTCs have also successfully achieved significant export growth and based on the ‘Impact Tracking Report of Mid-Tier Companies Development Programme (MTCDP)’ in 2022, the cumulative annual revenue recorded RM33.90 billion, with 61 percent or RM20.90 billion generated through exports.

“Out of this achievement, Bumiputera-status MTCs have recorded RM5.52 billion of cumulative annual revenue, with nearly 10 percent or RM0.54 billon contributed by export activities.”

“This year, MTCDP will reach its tenth year of implementation and for the first time, this new cohort will not only have participants among the MTCs, but also prioritisation is given to the ‘High Performing Medium Enterprises’ that are actively involved in exports.

“This demonstrates that Matrade is committed in grooming these enterprises in strengthening their global footprints to becoming MTCs and align alongside with the Malaysia Madani agenda as well as new ‘National Industrial
Masterplan(NIM) 2030’,” Reezal said at the ‘MTCDP Wave 8/Wave 9 Graduation and Wave 10 Kick-Off Ceremony 2024’ at the One World Hotel in Bandar Utama Damansara.

The MTCDP was introduced in 2014 as one of the government’s high-impact initiatives in the Malaysia Development Plan, aimed to accelerate the export growth of MTCs to become regional and global champions.

In line with the Madani economy and NIMP 2030, Matrade strived to create more export champions, supporting the ongoing efforts by the government in regenerating the Malaysian economy, driving the growth of new sectors while striking the balance to ensure the socio-economic inclusiveness and sustainability.

The MTCDP targets export-oriented MTCs with annual revenues between RM50 million and RM500 million for manufacturing companies, and RM20 million to RM500 million for services companies.

Reezal said that the MTCDP had played a pivotal role in empowering and guiding 323 MTCs across diverse sectors, providing tailored interventions to enhance export productivity.

This, he said, was shown through the ceremony to celebrate the accomplishment of 48 MTCs from the eighth and ninth wave of MTCDP and welcoming 25 new MTCs to a new cohort, Wave 10 in 2024.

“I commend the achievements and acknowledges the diverse composition of MTCs in this programme that contributed to the country’s economy,” he said.

Reezal added that key challenges, such as geopolitical complexity, economic uncertainty, climate change and technological progress have had a bearing on future trade.

“We cannot get away from this challenge and we need to keep going positively.

“Fortunately, Malaysia reached 82.4 percent of its projected exports under the ‘Mid-Term Review of the 12th Malaysia Plan’ for 2025.

“These figures also see us having a surplus trade worth RM214.1 billion for last year, as compared with RM256.2 billion in 2022.

“This recorded the 26th consecutive year of trade surplus since 1998,” said Reezal.
He added that the reality was that the global economic landscape was challenging and would continue to have an impact on trade performance and our exports for 2024.

“Surely we are not alone in this. The situation is also also felt by other regional markets such as China, Taiwan,
Korea and Indonesia which are also our main trading partners.

“The rest of the world is moving to a new value of trade Involving the ‘Environment, Social and Governance’ (ESG). “This are the needs and wants of big business corporations and some advance economies throughout the world.

“The same goes for some related initiatives such as green, economy, carbon credit, carbon footprint and carbon offsets,” said Reezal.

He urged stakeholders to create a conducive ecosystem – by equipping ourselves with emerging-technology tools like artificial intelligence and big data – to remain relevant, competitive and successful.

“This is the reality for us to take a quantum leap and adapt effectively with the latest version of technology.
“A strong-will is also a must for you to become export champions.

“Be bold and more resilient in taking calculated risks.

“I am confident we can as we have successfully overcome and survived the challenging Covid-19 pandemic, which caught us off-guard, to remain in business,” Reezal said.

He encouraged entrepreneurs to be goal-driven and goal-oriented as they strived to go bigger and beyond in sales, revenue, a company’s expansion and new markets.

Reezal said that the ‘The World in 2050’ economic report by Price Waterhouse Coopers listed Indonesia as the fourth largest emerging market after China, India and the United States – worth a total of US$10.5 trillion.

“Let us explore and aim our economic shift towards Indonesia with its 273 million population and rich resources; as it shifts to its new capital at Nusantara in Kalimantan – adding an emerging potential market to the Matrade’s 49 trade offices worldwide. – airtimes.my

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