WORLD TRADE  
ORGANIZATION  G/SCM/N/186/MYS 
17 July 2009 
 (09-3526) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the  
GATT 1994 and Article 25 of the Agreement on  
Subsidies and Countervailing Measures  
 
MALAYSIA 
  
 The following notification, dated 14 July 2009, is being circulated at the request of the 
Delegation of Malaysia.    
_______________ 
 
 
 Pursuant to Article XVI: 1 of the GA TT 1994 and Article 25 of the SCM Agreement, 
Malaysia submits herewith our new and full noti fication for the fiscal year 2007 – 2009.  In 
accordance with Article 25.7 of the SCM Agreement,  the notification of the measures concerned does 
not prejudge either their legal status, effects or  nature under GATT 1994 and the SCM Agreement.   
 G/SCM/N/186/MYS 
Page 2  
 
  TABLE OF CONTENTS 
 
  Page
 
SMIDEC ......................................................................................................................... ........................3  
I. MATCHING GRANT FOR SMALL MEDIUM ENTERPRISES (SMES) ........................3  
II. GRANT FOR ENHANCING MARKETING SKILLS OF SMALL MEDIUM 
ENTERPRISES (SMES) ..........................................................................................................4  
MIDA .......................................................................................................................... ...........................5  
I. PIONEER STATUS................................................................................................................. .5 
II. INVESTMENT TAX ALLOWANCE.....................................................................................6  
 
   G/SCM/N/186/MYS 
 Page 3 
 
 
  SMIDEC 
I. MATCHING GRANT FOR SMALL MEDIUM ENTERPRISES (SMES) 
1. Title of the programme  
 
• Matching Grant for Business Start-Ups 
• Matching Grant for Product and Process Improvement 
• Matching Grant for Certification and Quality Management Systems 
• Matching Grant for Enhancing Product Packaging 
• Matching Grant for Development a nd Promotion of Halal Products 
 2. Period covered by the notification
 
  1 January 2007 - 31 December 2009.  
 
 
3. Policy objective and/or purpose  
  The policy objective stated below follow in  sequence the title of the programme:   
 
• To assist SMEs to start-up businesses 
• To assist SMEs to improve and upgrade of existing products, product design and processes 
upgrading 
• To assist SMEs to obtain certification and quality management system 
• To assist SMEs to acquire and improve product packaging, design and labelling in order to 
enable companies to enhance product appearance and comply with market requirements 
• To assist SMEs to develop and prom ote Halal products (food and non-food) 
 4. Background and authority
 
  Ministry of Finance.    
5. Legislation under which it is granted
 
  No specific legislation but through budget announcement.    6. Form of the subsidy
 
 
 Matching grant.    7. To whom and how the subsidy is provided
 
 
 Subsidy is provided for eligible SMEs incorpor ated in Malaysia.  Assistance is given in the 
form of a matching grant where 50 per cent of the a pproved project cost is borne by the Government 
and the remainder by the applicant.    8. Amount of the subsidy
 
 
 N/A.   G/SCM/N/186/MYS 
Page 4  
 
  9. Duration of the subsidy
 
  This is an on-going programme.    10. Statistical data permitting an assessment of the trade effects
 
 
 N/A.    
II. GRANT FOR ENHANCING MARKETING SKILLS OF SMALL MEDIUM 
ENTERPRISES (SMES) 
1. Title of the subsidy programme
 
  Grant for enhancing marketing skills of SMEs.    2. Period covered by the notification
 
 
 1 January 2007 – 31 December 2009.    3. Policy objective and / or purpose of the subsidy
 
  To assist SMEs to enhance their employees' marketing skills through short-term courses in 
areas such as marketing strategies and planning, pricing, distribution, development of brand, 
merchandising and customer services.    4. Authority for the subsidy
 
 
 Ministry of Finance.   
 5. Legislation under which it is granted
 
  No specific legislation but through budget announcement.    
6. Form of the subsidy
 
  Grant.    
7. To whom and how the subsidy in provided
 
  Assistance is given in the form of a grant wher e 80 per cent of the cost of training is borne by 
the Government and the remainder by the SMEs.    8. Amount of the subsidy
 
 
 N/A.    9. Duration of the subsidy and / or any time limit attached to it
 
 
 This is an on-going programme.   
 10. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N/A.    G/SCM/N/186/MYS 
 Page 5 
 
 
  MIDA 
I. PIONEER STATUS 
1. Title of the programme  
  Pioneer Status.   
 
2. Period covered by the notification
 
  1 January 2007 - 31 December 2009.    
3. Policy objective and/or purpose
 
  To encourage investments in promoted produc ts/activities in the manufacturing, agriculture, 
tourism (including hotel) and approved services sector s that can contribute to the future growth and 
development of the economy. 
 
4 Background and authority
 
  The Pioneer Status incentive is provided for under the Promotion of Investment Act, 1986.  
Minister of Finance and Minister of Internati onal Trade and Industry are the authorities under this 
Act.   
 
5. Legislation under which it is granted
 
  Promotion of Investment Act, 1986.    
6. Form of the subsidy
 
  Income tax exemption.    7. To whom and how the assistance is provided
 
 
 To both local and foreign investors for approved promoted products/activities in the 
manufacturing, agriculture, tourism (including hot el) and approved services sectors.  A company 
granted Pioneer Status will enjoy a partial/full tax exemption from corporate income tax.   
 8. Amount of the subsidy
 
 
 N/A.    9. Duration of the subsidy
 
  This is an on-going programme.   
 
10. Statistical data permitting an assessment of the trade effects
 
  N/A.   G/SCM/N/186/MYS 
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  II. INVESTMENT TAX ALLOWANCE 
1. Title of the programme
 
  Investment Tax Allowance.    
2. Period covered by the notification
 
  1 January 2007 - 31 December 2009.    3. Policy objective and/or purpose
 
 
 To encourage investments in promoted produc ts/activities in the manufacturing, agriculture, 
tourism (including hotel) and approved services sector s that can contribute to the future growth and 
development of the economy.    
4. Background and authority
 
  The Investment Tax Allowance incentive is pr ovided for under the Promotion of Investment 
Act, 1986. Minister of Finance and Minister of International Trade and Industry are the authorities 
under this Act.    
5. Legislation under which it is granted
 
  Promotion of Investment Act, 1986.    6. Form of the subsidy
 
 
 Investment Tax Allowance is based on the amount  of qualifying capital expenditure incurred.   
 7. To whom and how the assistance is provided
 
  To both local and foreign investors for approved promoted products/activities in the 
manufacturing, agriculture, tourism (including hot el) and approved services sectors.  A company 
granted Investment Tax Allowance can offset this  allowance against the statutory income for each 
year of assessment.    8. Amount of the subsidy
 
 
 N/A.    9. Duration of the subsidy
 
  This is an on-going programme.   
 
10. Statistical data permitting an assessment of the trade effects
 
  N/A.    
 
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