MATRADE Welcomes Budget 2027, RM60 Million Allocation to Strengthen MSME Exports

KUALA LUMPUR, 12 OCTOBER 2026 (MONDAY) - The Malaysia External Trade Development Corporation (MATRADE) welcomes the Malaysia MADANI Budget 2027, themed “Menggapai di Langit, Mengakar di Bumi”, tabled by the Prime Minister and Finance Minister, Dato’ Seri Anwar Ibrahim, on 9 October 2026. MATRADE extends its appreciation to the Government for the RM60 million allocation to build the capability of local companies to penetrate and diversify into export markets.

The Budget comes at a time when exporters continue to navigate geopolitical uncertainty, tariffs and supply chain disruptions. MATRADE views the allocation as a timely and strategic investment to strengthen the resilience of Malaysian exporters, particularly micro, small and medium enterprises (MSMEs).

The allocation, under the Export Resilience and Market Diversification Fund, is expected to benefit more than 3,500 companies, including 60 Bumiputera companies from across the country, including Sabah and Sarawak. Through 200 export development and export promotion activities in 2027, MATRADE targets RM12 billion in export sales. As of September 2026, 10,300 MSMEs were registered with MATRADE.

MATRADE Chairman, Dato’ Seri Reezal Merican Naina Merican, said: "I would like to express my appreciation to the Government for the RM60 million allocation which continues to strengthen confidence in MATRADE to steer the national export agenda. Malaysia's double-digit export growth for the first eight months of this year reflects Malaysia's resilience amidst geopolitical uncertainties and global supply chain disruptions. Congratulations also to the management of MATRADE for their hard work that has contributed to this positive national trade performance. However, our strategic focus now is to increase the MSME participation ratio in Malaysia's export market. We must elevate MSMEs as the backbone and main driver of the nation's economy, as their every success on the global stage will bring a direct spillover effect to the economic prosperity of the people." 

MATRADE Chief Executive Officer, Dato’ Indera Abu Bakar Yusof, said: "On behalf of MATRADE, I thank the Government for this allocation and the trust given to MATRADE to continue driving the MSME export agenda. We bear this trust with full responsibility and will ensure every ringgit delivers tangible results for Malaysian exporters, especially MSMEs, through collaboration with partners and stakeholders in the export ecosystem." 

The Budget 2027 speech stated that Malaysia’s total trade reached RM2.5 trillion for the first eight months of 2026, with exports increasing by 31.2 per cent to RM1.36 trillion. Malaysia's exports remain resilient despite facing geopolitical tensions, tariffs and supply chain disruptions, a result of the country's solid export strategy, network of free trade agreements (FTAs) and expansion into new markets. However, despite strong trade and export growth, more initiatives need to be implemented to increase the contribution of MSMEs to national exports. MSMEs will continue to be the focus on MATRADE's export promotion and development programme strategies. 

MATRADE will continue to implement export strategies, including market diversification, halal, services and digitalisation through the MADANI Digital Trade Platform (MDTP). MATRADE will also continue to support MSME export development through the MATRADE Academy and the National Trade Blueprint. 

MATRADE also welcomes other measures in Budget 2027 that support MSME exports and capacity development. Among them are RM1 billion in export financing by Bank Pembangunan Malaysia Berhad (BPMB) with the total loan and financing guarantee facilities increased from RM50 billion to RM57 billion; an additional RM5 billion financing by Bank Negara Malaysia (BNM) to assist small and medium enterprises (SMEs) affected by the conflict in the Middle East; a RM10 million allocation for JOM MALAYSIA to bring rural products and high-value services to digital platforms and foreign markets; as well as a RM3 billion allocation to HRD Corp to offer three million skills training opportunities. MATRADE hopes to collaborate with relevant Agencies to enhance the capacity and export expansion of MSMEs through MATRADE programmes, including eBizLink and the MATRADE Academy. 

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 their participation through export promotion programmes. 

MATRADE once again expresses its appreciation to the Government and reaffirms its commitment to helping Malaysian MSMEs penetrate the global market.