A TOTAL of 51 mid-tier companies have been selected to participate in Wave 3 of Mid-tier Companies Development (MTCD) programme this year.
It covers 16 major industries, including food and beverages, furniture products, oil and gas as well as information and communication technology, according to the Economic Report 2016/2017.
Currently, more than 40 mid-tier companies have completed the three-month diagnostic phase with series of activities that include an online survey on export readiness, interviews with senior management and one-on-one clinics with industry experts.
The MTCD programme was established in 2014 with the aim to unlock export potential and offer customised support to mid-tier companies.
The programme is expected to generate about RM6 billion in gross national income and RM6 billion in exports by 2020.
It assists companies to penetrate into new markets through networking with potential advisers, business partners and distributors; get access to funding; utilise new technology to accelerate innovation, as well as obtain personalised business advice from international management consultants and gather market intelligence.
More than 100 mid-tier companies participated in the Wave 1 (2014) and Wave 2 (2015) of the programme, 77 of which were assisted to venture into new markets, such as China, Indonesia, the United Arab Emirates, Saudi Arabia, Australia and Myanmar through business matching, said the report.
“Upon successful completion of the programme, the exports of mid-tier companies increased 36.7 per cent from RM4.15 billion to RM5.67 billion last year,” it said.
Mid-tier companies are defined as companies with annual revenue between RM50 million and RM500 million for the manufacturing sector and between RM20 million and RM500 million for services sector.
Apart from being an exporting company, these firms are also required to record a cumulative average growth rate of above five per cent for five years and involved in high impact industries.