Some of the facilities MATRADE gives include the following:

Tax Relief
1) Double deduction for promotion of export in services (market research, preparation of tenders, fares accommodation,  overseas office maintenance etc), The incentives are available to the entire services sector. Eligible expenses are:

- Export market research
- Preparation of tenders for supply of services
- Supply of technical information.
- Economy class air fares in respect of travel overseas by representatives of company for business purposes.
- Accommodation and sustenance expenses incurred by Malaysian businessmen going overseas for promotion of services for export,   subject to RM300 per day for accommodation and RM150 per day for sustenance.
- Cost of maintaining offices overseas for purposes of promoting the export of services.
- Feasibility studies for overseas projects identified for the purpose of tender.
- Participation in international trade or industrial exhibition in the country or overseas.
- Participation in exhibitions held in Malaysian Permanent Trade and Exhibition centres overseas.

The incentives is only granted to companies registered with the Registrar of Companies. Effective from year of assessment 2003, the incentives are extended to the following professional services that are provided by the partnership or sole proprietors registered with the Registrar of Business: -

i. legal;
ii. accounting (including taxation and management consultancy services);
iii. architectural (including town planning and landscaping services);
iv. engineering and integrated engineering (including valuation and quantity surveying); and
v. medical and dental.

2) Double deduction for promotion of Malaysian Brands (expenditure incurred on advertising of local brand); To be eligible, the local brands must satisfy the following criteria:

- The company is at least 70% Malaysian-owned.
- The brand is owned by the Company and is registered in Malaysia or overseas.
- The companay’s product must achieve export quality standards.

Eligible expenses are :

- Advertisements on the Internet where the host websites are located in Malaysia.
- Advertisements in magazines and newspapers where the magazines and newspapers are printed in Malaysia.
- Advertisements on local licensed television stations
- Advertisements in trade publications are printed in Malaysia
- Advertisements in any form in the course of sponsoring an approved international sporting event held in Malaysia
- Advertisements in any form in the course of sponsoring an approved international trade exhibition held in Malaysia Professional fees paid to   companies to promote Malaysian brand names.3) Tax exemption on the value of increased exports (equivalent to 50% of the value of increased exports );

- Exemption equivalent to 10% of increased export (30% value added)
- Exemption equivalent to 15% of increased exports (50%value added)
- Exemptions of 10% of increased exports - fruits and cut flowers
- Exemption equivalent to 50% of value of increased export - legal, accounting, engineering consultancy, architecture, marketing, business   consultancy, construction management, building management, office services, ICT, Publishing, Health,   Education, Plantation Management.

4) Double deduction on export credit insurance premiums;
Premium payments in respect of export credit insurance paid by exporters to Malaysia Export Credit Insurance Berhad (MECIB) are eligible for double deduction.

5) Single deduction for registration of patents;
Single deduction is allowed on payments for patents, trade marks and product licensing overseas.

6) Single deduction for hotel accommodation (providing hospitality);
Single deduction is allowed on payments for hotel accommodation for a maximum of three (3) nights to companies providing hospitality to potential importers invited to Malaysia as a follow-up to trade and investment missions organised by government agencies or industry
and trade associations.

7) Deduction on cost of developing websites;
The cost of developing websites is allowed an annual deduction of 20% for purpose of income tax for five years, effective year of assessment 2002.

8) Incentives to acquire a foreign company;
To expedite the participation of local investors in high technology industries and to accelerate export market penetration, a locally owned company that acquires a foreign owned company abroad is granted an annual allowance of 20% of the acquisition cost for five years if
the acquisition is for the following purpose:

i. to acquire high technology for production within the country; or
ii. to gain new export markets for local products.

For more details , please view www.matrade.gov.my

Professional Services Export Fund (PSE Fund)

For more details, please view www.matrade.gov.my/exportsupport/pse.htm

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SME Bank ( “SME Professional”)

The Malaysian government through SME Bank has created special funds through the following agencies to provide support to the Professional Services industry to enhance their financial capability.

This institution started its new function in 2005 as a developed financial institution to nurture and meet the unique needs of small and medium enterprises (SMEs). It aims to be a one-stop financial centre responding to the funding and business growth needs of Malaysia SMEs, complementing existing services of commercial banks through a comprehensive and integrated financial and business advisory services. SME Bank provides various other financial support and has drawn up a special product known as ‘SME Professional’ to enhance the competitiveness of professional entrepreneurs, through cheaper financing and advisory services, either to start-up venture or to enhance the established business.

The loans given are for both conventional and Islamic. Maximum loans range from RM500,000 to RM10,000,000 (for micro to medium business units).

The bank also gives advisory services ranging from start-ups to franchising

For details visit www.smebank.com.my or ring call centre 1-300-88-3131

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SMIDEC

The Small Medium Industry Development Corporation (SMIDEC) provides the following facilities:

1.Matching grant for business start-ups

Expenses incurred in starting up a business, including:
- Preparation of business plans,
- Related Feasibility Studies,
- Rental of incubators and business premises up to 24 months.2.Soft loan scheme for ICT adoption

i. Upgrading Engineering Design Capabilities:

- Purchase of design software (Computer Aided Design – CAD, Computer Aided Manufacturing – CAM, Computer Aided Engineering –   CAE) or subscription fee/license fee for on-line engineering design services,
- Purchase of computer hardware and related equipment
- Training cost.

ii. Purchase of Enterprise Resource Planning (ERP) software or other similar software:

- Purchase or ERP software or first year subscription to on-line ERP system , or other similar software such as Computer Integrated   Manufacturing (CIM), Enterprise Resource Management (ERM), Material Resources Planning (MRP), Supply Chain Management   (SCM) or Customer Relations Management (CRM),
- Purchase of other software for services sector such as Point of Sales System, Tracking System, Automated Store Management System   and InventoryManagement System,
- Implementation cost including system study, customisation and training,
- Purchase of server and related networking equipment.

3. Soft loan for SME – assets acquisition

i.Project Financing - covers the entire project cost items, including pre-operational expenses. Preoperational expenses include:
- Market survey and feasibility study
- Professional fees for technical expertise
- Office set-up prior to production
- Staff salary
- Advertisement and promotion cost
- Production labour cost
- Factory overhead
- Raw material costs for trial production

ii.Fixed Assets Financing - For the purchase of land and building, plant and machinery and office equipment for:
- project start-up
- existing ventures undergoing expansion, diversification or modernisation
- relocation of projects

iii.Working Capital Financing - for the purchase of raw materials, components, inventory and labor costs.

4.Matching grant for product and process improvement; Expenses related in improving and upgrading of existing products, product  design and processes including:

- Technology Feasibility Studies
- Fees for technology transfer
- Development of prototypes and system design
- Product testing
- Product registration
- Marketing and labeling
- Machine & equipment testing and calibration
- Development & designing of equipment and machinery
- Purchase of machinery and equipment related to the approved project
-- Initial patent registration/patent search/IP Protection
- Specific Project Mission for technology study ?Cleaner Production and Waste treatment Project including Energy Efficiency Audit

7. Skills for marketing Participation / Training fee for the following courses:

- Sales performance Training:
     -Professional Certified Sale Professional (CSP)
      -Professional Certified Sales Manager (CSM)
      -Professional Certified Account Manager (CAM)
- Customer Services Training:

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