The Malaysia External Trade Development Corporation (MATRADE) has welcomed the RM60 million allocation under Budget 2027 to strengthen the export capabilities of Malaysian micro, small and medium enterprises (MSMEs), helping local businesses enter new markets and diversify their exports.
Announced under the Malaysia MADANI Budget 2027, themed Menggapai di Langit, Mengakar di Bumi, the funding comes as exporters navigate geopolitical uncertainty, tariffs and global supply chain disruptions.
MATRADE views the allocation under the Export Resilience and Market Diversification Fund as a strategic investment in the resilience of Malaysian exporters, particularly MSMEs.
The fund is expected to benefit more than 3,500 companies, including 60 Bumiputera companies from across Malaysia, including Sabah and Sarawak. Through 200 export development and promotion activities in 2027, MATRADE aims to generate RM12 billion in export sales.
As of September 2026, 10,300 MSMEs were registered with MATRADE.
MATRADE Prioritises MSME Participation in Global Trade
MATRADE Chairman Dato’ Seri Reezal Merican Naina Merican said the allocation reflected the Government’s continued confidence in the agency’s role in advancing Malaysia’s export agenda.
Malaysia recorded double-digit export growth in the first eight months of 2026 despite geopolitical uncertainty and global supply chain disruptions. Reezal said the next priority was to increase MSME participation in the country’s export market.
He emphasised that MSMEs remained the backbone of the national economy, with their success in international markets capable of generating wider economic benefits for Malaysians.
MATRADE Chief Executive Officer Dato’ Indera Abu Bakar Yusof also expressed appreciation for the allocation, pledging that the agency would ensure the funding delivered tangible results for Malaysian exporters, particularly MSMEs.
He added that MATRADE would work with partners and stakeholders across the export ecosystem to strengthen support for local companies.
Malaysia’s Exports Reach RM1.36 Trillion
Budget 2027 highlighted Malaysia’s resilient trade performance, with total trade reaching RM2.5 trillion in the first eight months of 2026. Exports rose by 31.2% to RM1.36 trillion over the same period.
MATRADE attributed the country’s export resilience to its export strategy, network of free trade agreements (FTAs) and efforts to expand into new markets.
However, the agency noted that further initiatives were needed to increase the contribution of MSMEs to national exports. These businesses will remain a central focus of its export development and promotion programmes.
Its strategies include market diversification, halal exports, services and digitalisation through the MADANI Digital Trade Platform (MDTP). MATRADE will also continue supporting MSME export development through the MATRADE Academy and National Trade Blueprint.
Budget 2027 Introduces More Financing and Training Support
Beyond the RM60 million allocation, MATRADE welcomed several other Budget 2027 measures aimed at improving MSME financing, market access and business capabilities.
These include:
- RM1 billion in export financing from Bank Pembangunan Malaysia Berhad (BPMB), alongside an increase in total loan and financing guarantee facilities from RM50 billion to RM57 billion.
- An additional RM5 billion in financing from Bank Negara Malaysia (BNM) to assist small and medium enterprises affected by the conflict in the Middle East.
- RM10 million for JOM MALAYSIA, supporting the placement of rural products and high-value services on digital platforms and in foreign markets.
- RM3 billion for HRD Corp to provide three million skills training opportunities.
MATRADE hopes to collaborate with the relevant agencies to strengthen MSME capabilities and support export expansion through its programmes, including eBizLink and the MATRADE Academy.
Tax Incentives to Encourage International Trade Participation
The extension of tax incentives for international trade exhibitions until the Year of Assessment 2030 is also expected to encourage more MSMEs to participate in international trade promotion activities.
MATRADE will continue to support companies through its export promotion programmes, helping them access international markets and establish new business connections.
The agency reaffirmed its commitment to helping Malaysian MSMEs expand their global presence, diversify export markets and contribute more significantly to the country’s trade performance.
