ANNOUNCEMENT 19 Jan 2009In January 2009, the government of Malaysia announced a change in its trade finance instruments.
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The Malaysian government is offering assistance to Malaysian Service Providers to expand overseas. The Services Export Fund (SEF) established for this purpose has been expanded in December 2008 and January 2010. The Malaysian government sees the program as a direct response to the global economic crisis and attempts to provide domestic service exporters with more assistance when doing business overseas. The Services Export Fund is being managed by the Malaysian External Trade Development Corporation (Matrade), an agency under the Ministry of International Trade and Industry (MITI) (see "Source" for its website).
The expanded SEF covers assistance in the form of "organisation of specialised marketing and follow-up missions, and hosting of project owners and key decision makers to Malaysia by Matrade". (Matrade). The funding is available to Malaysian companies from the following sectors: healthcare, education, oil & gas, and construction sectors. Following forms of financial support are available: "1.a 50 percent reimbursable grant for the costs of preparing and submitting bids for overseas projects; 2.a 50 percent reimbursable grant for undertaking trade promotion activities overseas, such as trade fairs, trade missions, opening up of representative offices overseas, and market research; and 3. a 100 percent reimbursable grant for Malaysian service providers to undertake feasibility studies. The government assumes the Fund is mostly used for financing projects in West Asia, India, China and ASEAN.