KUALA LUMPUR – The government will continue to assist Mid-Tier Companies (MTCs) to strengthen their core business functions and accelerate export growth through various initiatives.
The Ministry of Finance said the initiatives included the establishment of Mid-Tier Companies Development Programme (MTCDP) in 2014, aimed at unlocking export potential while offering customised support to MTCs
“The programme is assisting MTCs to penetrate new markets through networking with potential advisors, business partners and distributors.
“It also helps them to utilise new technology to boost innovation, growth and development,” the ministry said in its Economic Report 2016/ 2017, released today.
The ministry expected MTCDP to generate RM6 billion each in Gross National Income and in exports, respectively, by 2020.
An MTC should be 60 per cent Malaysian-owned and not a subsidiary of a company, with annual revenue between RM50 million and RM500 million (for companies in the manufacturing sector) and between RM20 million and RM500 million for those in the services sector.
Apart from being an exporting company, an MTC is required to record cumulative average growth rate above five per cent for five years and be involved in high impact industries.
The ministry said this year, 51 MTCs from 16 major industries have been selected to participate in Wave 3 of the MTCDP.
“Currently, more than 40 MTCs have completed the three-month diagnostic phase comprising series of activities that include an online survey on export readiness, interviews with senior management and one-on-one clinics with industry experts,” said the ministry.
Over the past two years, more than 100 companies have participated in the Wave 1 (2014) and Wave 2 (2015) of the MTCDP.
To date, the MTCDP had assisted 77 companies venture into new markets such as China, Indonesia, United Arab Emirates, Saudi Arabia, Australia and Myanmar through business matching. – BERNAMA