Latest news with #MarketDevelopmentGrant
New Straits Times
06-08-2025
- Business
- New Straits Times
Malaysia approves RM11.6bil in furniture investments
KUALA LUMPUR: Malaysia has approved a total of 1,533 furniture-related projects with a combined investment value of RM11.62 billion as of March this year, according to the Malaysian Investment Development Authority (MIDA) Deputy Investment, Trade and Industry Minister Liew Chin Tong. He noted that 62 per cent of these investments were domestic, while the remaining 38 per cent came from foreign sources. To support the industry's international reach, Liew said the Ministry of Investment, Trade and Industry (MITI), via the Malaysia External Trade Development Corporation (Matrade), continues to offer the Market Development Grant (MDG) to eligible Malaysian companies engaging in international trade promotion. "For overseas trade promotion activities, MATRADE provides up to RM25,000, while for locally held international trade events, RM5,000 is available," he said during a special chamber session in the Dewan Rakyat today. He was responding to a question from Tan Hong Pin (PH–Bakri) on the development of long-term, realistic and flexible policies for the furniture industry. Liew also revealed that 314 furniture companies have benefitted from the MDG so far, with a total of 4,148 applications approved — the highest among all sectors. These grants have disbursed RM12.25 million to companies in the furniture industry, contributing to RM1.46 billion in export sales between January 2021 and 30 July 2025. Addressing industry concerns over market disruption by foreign firms, Liew said the government acknowledges the issue. "While there are currently no restrictions on foreign investments in Malaysia's furniture sector, the government, through MIDA, is shifting its approach and will no longer promote labour-intensive foreign investments in this space," he said. He added that all MIDA offices abroad would be notified that the sector has reached a mature and globally competitive stage, and thus no longer requires foreign investment.
The Sun
05-08-2025
- Business
- The Sun
Malaysia approves RM11.62 bln in furniture projects as of March 2025
KUALA LUMPUR: A total of 1,533 furniture projects worth RM11.62 billion have been approved as of March this year, according to Deputy Minister of Investment, Trade and Industry Liew Chin Tong. He revealed that 62% of these investments were domestic, while 38% came from foreign sources. The government continues to support the industry through the Market Development Grant (MDG), administered by MATRADE. Eligible companies receive RM25,000 for overseas trade promotions and RM5,000 for local events. Liew noted that 314 furniture firms have benefited from the MDG, with 4,148 applications approved—the highest among all sectors. 'From January 2021 to July 2025, MDG-assisted furniture companies generated RM1.46 billion in export sales,' he said during a Dewan Rakyat session. The grants disbursed to the sector total RM12.25 million. Addressing concerns about foreign competition, Liew stated that while Malaysia imposes no restrictions on furniture sector investments, MIDA will no longer actively encourage foreign participation, particularly in labour-intensive projects. 'Malaysia's furniture industry is already globally competitive, and we aim to prioritise local growth,' he added. - Bernama
The Star
01-08-2025
- Business
- The Star
ACCIM calls for enhanced tax incentives to boost Malaysian exports
PETALING JAYA: While praising the government's efforts to lower tariffs, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCIM) urged for increased tax incentives and grants to support exporters and businesses. Its president, Datuk Ng Yih Pyng, said the Allowance for Increased Exports (AIE) should be widened and increased as part of this reduction in tariff. 'Currently, an allowance equal to 10% of the value of increased exports, deductible against 70% of statutory income,' he said in a statement on Friday (Aug 1). He said that the government should also increase the lifetime cap of the Market Development Grant to RM500,000, while raising the per-claim ceiling to RM35,000 for international trade fairs and exhibitions, and RM10,000 for locally held trade fairs and exhibitions. He claimed that the current limits of RM5,000 for local and RM25,000 for overseas reimbursement were not enough. However, he also mentioned that he supports the Investment, Trade and Industry Ministry to help exporters address the current tariffs by improving their efficiency and productivity. At the same time, he also agrees to explore further government support for businesses, particularly those in small and medium enterprises, to adapt to the new baseline tariff rate. Its minister, Tengku Datuk Seri Zafrul Abdul Aziz, said they would continue to work closely with stakeholders to maximise the opportunities from this development, including the strong momentum in approved investments, driven by ongoing infrastructure projects, a consistent realisation rate of over 85% for approved investments, as well as catalytic national development initiatives, in a statement on Friday. 'We remain committed to defending Malaysia's trade interests while fostering mutually beneficial partnerships with key economies, including the United States. Malaysia will also continue to pursue its industrial reform and strategic trade diversification initiatives to support the nation's growth,' he said.
The Star
08-07-2025
- Business
- The Star
FMM seeks swift diplomatic and domestic interventions to counter US tariff impact
Federation of Malaysian Manufacturing (FMM) president Tan Sri Soh Thian Lai KUALA LUMPUR: The Federation of Malaysian Manufacturing (FMM) has called on the government to intensify its diplomatic and policy response following the United States' announcement of a 25 per cent blanket tariff on Malaysian exports. Its president, Tan Sri Soh Thian Lai, said these efforts must be escalated to secure an immediate deferral of the Aug 1, 2025, implementation and work toward a longer-term exemption or rollback. He said the newly announced 25 per cent blanket tariff, if implemented as scheduled, is expected to intensify these pressures across the board, particularly for companies operating on thin margins or bound by long-term supply contracts. "Malaysia's case must be urgently elevated at the highest levels of US policymaking, supported by strong data and strategic positioning that highlight our value to US supply chains. "At the same time, domestic countermeasures must be rolled out to support affected industries, including targeted financial relief, strengthened export promotion, and fast-tracked structural reforms to enhance cost efficiency and competitiveness," said Soh in a statement today. To support exporters in weathering current shocks and repositioning for growth, he recommended enhancing export facilitation by increasing the Market Development Grant ceiling, removing the Malaysia External Trade Development Corporation (MATRADE) administrative fees for trade missions led by associations, and providing targeted incentives for branding, certification, and digital market access. Soh noted that Malaysia must drive productivity-led growth by accelerating Industry 4.0 adoption through tax incentives, digitalisation grants for small and medium entrepreneurs (SMEs), and low-interest financing for technology upgrades. "These incentives must be backed by workforce upskilling programmes and inclusive access to government support funds, ensuring all firms can participate in the transition. "In addition, foreign worker levy collections should be redirected into dedicated funds to support apprenticeship schemes and high-tech investment," he said. Soh highlighted that Malaysia should lead efforts under its ASEAN chairmanship to establish a regional ASEAN Supply Chain Coordination Council. He said that this will ensure cohesive regional responses to global trade shocks, reduce overreliance on external supply chains and enhance intra-ASEAN production linkages, policy alignment, and supply chain resilience. "At the strategic level, Malaysia must actively expand its trade architecture by accelerating the conclusion of the Malaysia-European Union Free Trade Agreement and intensifying negotiations with new and emerging markets, including in Africa, Latin America, and the Middle East. "A broader and more diversified trade base is essential to reduce reliance on any single export destination and reinforce Malaysia's global competitiveness amid continued external shocks," Soh emphasised. The federation also urges the government to review and reform the Sales and Service Tax (SST) structure by introducing a business-to-business (B2B) service tax exemption for licensed manufacturers, automatically applied upon provision of a valid sales tax licence number. He said the long-term solution must be the creation of a tax framework that fully removes the tax-on-tax element and restores neutrality across the manufacturing supply chain. - Bernama
The Sun
08-07-2025
- Business
- The Sun
FMM urges diplomatic push and domestic reforms to counter US tariffs
KUALA LUMPUR: The Federation of Malaysian Manufacturing (FMM) has urged the government to ramp up diplomatic efforts and introduce domestic policy measures to counter the impact of new US tariffs on Malaysian exports. The US recently announced a 25 per cent blanket tariff set to take effect on Aug 1, 2025, raising concerns for local manufacturers. FMM president Tan Sri Soh Thian Lai stressed the need for immediate intervention to delay the tariff implementation and secure long-term exemptions. He warned that the new levy would strain businesses, particularly those with tight margins or fixed supply contracts. 'Malaysia's case must be urgently elevated at the highest levels of US policymaking, supported by strong data and strategic positioning that highlight our value to US supply chains,' Soh said. Domestically, he proposed financial relief for affected industries, enhanced export promotion, and structural reforms to boost competitiveness. Key recommendations include raising the Market Development Grant ceiling, waiving MATRADE fees for trade missions, and offering incentives for branding and digital market access. Soh also emphasised the need for productivity-driven growth through Industry 4.0 adoption, supported by tax incentives and digitalisation grants for SMEs. Workforce upskilling and reinvestment of foreign worker levies into apprenticeship schemes were also highlighted as crucial steps. On a regional level, he suggested leveraging Malaysia's ASEAN chairmanship to form a Supply Chain Coordination Council, strengthening intra-ASEAN trade resilience. Additionally, accelerating free trade agreements with the EU and emerging markets was deemed vital to diversify Malaysia's trade base. The FMM further called for a review of the SST structure, proposing B2B service tax exemptions for licensed manufacturers to ease supply chain costs. - Bernama
