TOPIC : 3

BUSINESS OWNERSHIP AND

SUPPORT SYSTEM

DIBENTANG OLEH :

DR MAZURA BINTI MANSOR

POLITEKNIK SULTAN IDRIS
SHAH
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 CHAPTER IN TOPIC :

3.1 Identify the types of business ownership in Malaysia

a. Sole Proprietorship
b. Partnership
c. Company
3.2 Discuss the registration procedures of business ownership
3.3 Discuss the entrepreneurship support system
3.3.1 Identify the business support agencies:
a. Financial
b. Marketing
c. Technical
d. Training
e. Research and development

CLO & CLUSTER ASSESSMENT

CLO1 - • Product Pitching (1) 35%
Propose the value proposition of • T1,T2,T3
entrepreneurial idea using Business Model • SLT (CHAP3) : 8 hours (F2F)
Canvas (A3, CLS 3b)
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 CHAPTER 3:
BUSINESS OWNERSHIP AND 1.TYPES OF BUSINESS
SUPPORT SYSTEM OWNERSHIP

Upon completing this course,

students should be able to: 2. REGISTRATION
1. Identify the types of business PROCEDURES
ownership in Malaysia. 3. ezBiz ONLINE
REGISTRATION PAGE
2. Discuss the registration
procedures of business
ownership.
4. SUPPORT
3. Discuss the entrepreneurship SYSTEM
support system.

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TYPES OF BUSINESS OWNERSHIP IN
MALAYSIA

TYPES OF
3.1 BUSINESS
OWNERSHIP IN
MALAYSI
A
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5
BUSINESS OWNERSHIP & SUPPORT
SYSTEM
 WHAT IS A BUSINESS?
01 Business includes every form of trade,
commerce, craftsmanship, calling,
profession or other activity carried on for
the purposes of gain, but does not include
any office or employment or any charitable
undertaking or any occupation specified in
the schedule under the provisions of the
Business Registration Act 1956

02 Business that may be registered under this

act is a business operating in West
Malaysia which includes Peninsular
Malaysia and the Federal Territory. 5
TASK/ ASSIGNMENT:

Which provision or ACT is

applied for the business
registered in EAST
MALAYSIA (Sabah and
Sarawak)?
https://fiholic.com/how-to-register-business-in-kuching-
sarawak-step-by-step-guide/

https://www.sabah.gov.my/cms/?q=en/content/e-form-
licensing
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TYPES OF BUSINESS OWNERSHIP IN
MALAYSIA

TYPES OF
BUSINESS
OWNERSHIP

SOLE PARTNERSHIP COMPANIES

PROPRIETORS
HIP

GENERAL PRIVATE
PARTNERSH LIMITED
IP COMPANY

LIMITED PUBLIC
LIABILITY LIMITED
PARTNERSH COMPANY 7
IP 6
 1. SOLE
PROPRIETORSHIP
 Business owned (and usually operated) by ONE
PERSON
 MOST POPULAR form of business organization –
72.2% of business ownership in Malaysia
 Attractive form of legal status for a new business
EXAMPLE :
• Tailors  Simplest business structure with minimal legal
• Beauty salons requirements under the Business Registration Act
• Restaurants 1956 and the Procedures of Businesses
• Mini market Registration 1957
 Can have a large number of employees.

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ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP

01 SOLE
PROPRIETORSHIPS 02 03
ADVANTAGES DISADVANTAGES
• Ease of formation. • Unlimited liability.

• Total independence in decision making / • Lack of continuity.

freedom of choice complete control.
• Lack of experience and ability.
• Full and total responsibility.
• Incurs all loses.
• Retaining all business profits.
• Limited access to funds.
• No requirement for authorization and disclose
of financial reports. • Limited skills.

• Taxation advantage. • Long working hours.

• Fewer legal restrictions. • Relative difficulty in obtaining long term

financing.
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 2. PARTNERSHIP

• Owned by at least two or more individuals , MAXIMUM

of 20 persons.
• Formed under the Business Registration Act 1956 and
the Procedures of Business Registration 1957
• The owner of business are called partners. Each partner
contributes money, labour or skills and each partner
shares the profit as well as the losses of the business.
• A partnership agreement is usually drawn up by legal
counsel - clearly outlines the financial and managerial
EXAMPLE : contributions of each partner and the roles of partners in
•
•
ABC Ventures
Adik & Abang Enterprise
the partnership.
• Audit firms
• Legal firms
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TYPES OF BUSINESS OWNERSHIP IN
MALAYSIA

“
TYPES OF
PARTNERSHIP
#2 Limited Liability Partnership (LLP)
#1 General Partnership
• Be formed by professionals such as lawyers, doctors,
• chartered accountants and company secretaries for the
Unlimited Liability for debts
• purpose of carrying on their professional practice.
General partner manages
company, receives salary and
LLP is featured with protection of limited liability to its
shares company’s profits or • partners
losses
An LLP has the legal status of body corporate which is
•
capable of suing and being sued in its own name

• LLP offers flexibility in terms of its formation, maintenance

and termination

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ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP

01 02 PARTNERSHIP
03
ADVANTAGES DISADVANTAGES
• Increase in resources for capital. • Unlimited liability.

• Distribution and sharing of business risks. • Limited life span.

• Direct rewards. • Lack of continuity.

• Taxation advantage. • Shared profits.

• Combined talents and business acumen. • Shared control.

• Ease of formation. • Conflict.

• Ability to specialize.

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 3. COMPANIES

• The business structures for companies are

separate legal entities and offer protection for its
owners – the company’s liabilities are separated
from its directors and shareholders.
• They are registered under the Companies Act
2016.
• Two types of company –
EXAMPLE :
1. private limited (Sdn Bhd) and
• Kemboja Sdn Bhd 2. public limited (Bhd)
• Maxis Berhad
• Tenaga Nasional Berhad (TNB)
• Syarikat ABC Sdn Bhd
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TYPES OF BUSINESS OWNERSHIP IN
MALAYSIA

i Private Limited ( S d n B h d ) Company

• Company limited by shares

• Owned by a group of people ( 2 or more – not >50 )

• “Limited” – separate entity/has own legal identity

• Owners/shareholders will elect the BOD – responsible for establishing the

general policies, appoint president.

• Name ends with ‘Sendirian Berhad’ or ‘Private Limited’ with its

abbreviation ‘Sdn.Bhd.’ or ‘Pt.Ltd.’

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TYPES OF BUSINESS OWNERSHIP IN
MALAYSIA

ii Public Limited (Bhd) Company

• Company limited by shares

• Owned by a group of people ( 7 or more – no max. limit )

• Source their capital by selling shares to public

• “Public” – shares can be easily purchased/sold by investors

• Can be listed or unlisted in on the stock exchange

• Name ends with ‘Berhad’ or ‘Limited’ with its abbreviation ‘Bhd.’ or ‘Ltd.’

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ADVANTAGES AND DISADVANTAGES OF EACH OF ENTREPRENEURIAL OWNERSHIP
01 02
ADVANTAGES
• Limited Liability - Limited to the capital
contributed/investment.
• Ease of Ownership Transfer.
• Perpetual life- Not dependent upon the ages
or resignation of members.
• Greater Access to Capital
• Easily acquired by exchanging shares
ownership
• Loan
• Public Limited Co – increase capital
through issuance of bonds.
• Management Expertise - Have BOD.
03 COMPANIES
DISADVANTAGES
• More difficult & costly to form
• High set up cost
• Cost included charge to authorized capital,
professional fee, filing charges, printing of
Memorandum of Articles and Articles of Association,
shares certificate, company seal.
• High taxation.
• For private limited company, have limited members.
• For private limited company, they have lack of freedom
in transferring ownership – subject to BOD’s approval.
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REGISTRATION PROCEDURE FOR BUSINESS
OWNERSHIP

3.2
REGISTRATION
PROCEDURE FOR
BUSINESS
OWNERSHIP
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BUSINESS OWNERSHIP & SUPPORT
SYSTEM
REGISTRATION PROCEDURE FOR BUSINESS

Road Map
OWNERSHIP

registration

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GUIDELINES FOR
REGISTRATION
OF A BUSINESS

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 Register SSM online vs offline

• The company registration can be done through online via Ezbiz

Online services at ezbiz.ssm.com.my,
• or manually at any SSM counter in Malaysia.
• For first-timers, you should be visiting the SSM counter for the
registration. You can consult the officer directly at the counter if
you have any question. It is also recommended to apply for the
Ezbiz Online services at the counter so that you can renew or
modify your business details through the online system later on.
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 Why should I register my business (online or physical) with SSM?

• The business will become a legally registered entity

• It will boost your customer’s confidence level
• It also facilitates users to verify business information
• The business details submitted will assist the government to
support any development of the business community and
prospect.
• Only legally registered businesses will be able to apply for
Malaysia Payment Gateway, like eGHL, iPay88, and more.
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Simple steps to get your company registered
under Suruhanjaya Syarikat Malaysia (SSM)
• First, brainstorm at least three company names.
• Then, check the company name availability.
• After that, complete the form “BORANG PNA 42” to register for
a Company Trade Name and the form “BORANG A” to register
your Company.
• Head to SSM Head Office and submit the two forms.
• Remember to bring along your Identity Card (IC) and RM70 for
company registration fees and business info print-out.
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 #1. Brainstorm Company Names (at least 3 names)

• It is recommended to get a trade name rather than your own personal name for your business. A
company trade name will look more professional. You will need at least three name suggestions
to be written down on the form “Borang PNA 42”, although only one will be approved for each
company. A company name should be:
• Remarkable,
• Easy to remember, &
• Relevant to your business
~ Trade/Business name
• There are differences between a business name and a commercial trade name. A business/trade name is
the official name of the person or entity that owns the company. It is your business’s legal name. You use
your business name on government forms and applications.
~ Commercial trade name
• On the other hand, the commercial trade name is different from a business’s legal name. Business owners
can use a commercial trade name for advertising and sales purposes. The commercial trade name is the
name the public sees, like on a signboard and on your e-Commerce store. It is recommended to use a 23
similar term for both business name and commercial trade name to avoid confusion.
#2. Check Company Name availability

• Save your name search fee by checking the name availability with SSM
online system.
• With a brief view of registered company names at SSM registry of
companies, you will have a better idea to decide your new company
name.
• This move will avoid using identical existing registered names and
minimize the possibility of being rejected by SSM.
• It also will save you from incurring possible additional charges payable
to SSM.

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#2. Check Company Name availability (cont.)

SSM Company Name Search Online System

• Visit to www.ssm-einfo.my
• Click on the icon stating “Register“
• Fill in the “Registration Form“, then submit
• Log in with your username & password
• Under Company & Business Information, click on the icon “Search“
• Enter your desired company name in the box “By Name“
• DONE! Name search result from SSM will be displayed!
• If your desired name has already been taken, it will be listed down in a table.
The search result will be empty if your desired name has not yet been
registered with SSM.
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 #3. Complete the form “BORANG PNA 42” to register a Company Trade Name

• https://www.ssm.com.my/Pages/Services/Registration-of-Business-(ROB)/Forms/Bor
ang%20PNA%2042_0.pdf
(Download link)
• A business name represents the identity of the business carried out.
• A business name can be categorized into two types according to
Guidelines For New Business Registration:
i. Personal name as stated on the identity card is not required to apply for approval of the
business name. For example, Ruslan bin Mohamed, Siow Ah Thai or, Ramasamy a/l
Mutusamy.
ii. Trade Name is the name of the proposed business and must obtain prior approval from the
Registrar of Business at Suruhanjaya Syarikat Malaysia. For example, Kedai Dobi Mewah,
Lucky Star Catering, or ABS Unggul Enterprise.
• For Trade Name registration, you need to fill in the top three desired names for
your company in the first section of Borang PNA 42, followed by the type or 27
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#4. Complete the form “BORANG A” to register your Company

• https://www.ssm.com.my/Pages/Services/Registration-of-Business-(ROB)/Form
s/Borang%20A_0.pdf
(Download link)
• Fill in the details required. The previous form will need to be attached to this
form “BORANG A” if you are registering for a Trade Name.
• Some important notes:
i. The starting date of your business “TARIKH MULA BERNIAGA” have to be before
the day of registration or on the day itself.
ii. Under type of business/ “Jenis perniagaan yang dijalankan (Sesuai dengan
nama perniagaan yang dicadangkan)”, make sure you have a name which is
relevant to the products or services that you provided.
iii. For Business Codes, please visit or download this spreadsheet. 28

Business Codes Link 28

#5. Submit the two forms to SSM Head Office

• The owner (and all partners) needs to be present at the counter for
registration.
• Requirements:
i. The owner must be a Malaysian Citizen or Permanent Resident of
Malaysia.
ii. The owner must be aged between 18 years and above.
iii. Only owner/partner allowed making an application.
• Bring the two completed forms to the counter for a manual quick check
if everything is filled in correctly. Get your Number for Registration
purpose. Don’t forget to bring your identity card (IC) along.
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#5. Submit the two forms to SSM Head Office (cont.)

• Registration Fees
i. Sole proprietorship using personal name as stated on the identity
card: RM30.00
ii. Sole proprietorship or partnership using trade name: RM60.00
iii. Registration of branches: RM5.00 for each branch
iv. Business Information Print-out: RM10.00
• The Business Registration Certificate can be obtained within 1 hour
after payment. The whole process will consume 1 – 2 hours.

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 General Information

• Register the business not later than thirty (30) days from the date of
commencement of business.
• A new business registration may valid for a period of one (1) year and does not
exceed five (5) years on each registration.
• The nature of the registered business should not contravene any laws or likely to be
used for unlawful purposes or any purpose prejudicial to or incompatible with the
security of the Federation, public order or morality.
• A person who carries on business without registering a business commits an offence
under the ROBA 1956 and if found guilty be fined not exceeding RM50,000.00 or
imprisonment for a term not exceeding two (2) years or both.
• Even though businesses have been registered with SSM, business owners are
responsible to obtain licenses, permits or approval letters from other relevant
authorities in order to operate their businesses.
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 SAMPLE OF FORM D
(CERTIFICATE OF REGISTRATION)

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 SAMPLE OF E FORM
(CERTIFICATE OF RENEWAL REGISTRATION)

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 GUIDELINES FOR
REGISTRATION OF
A SDN BHD COMPANY

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 How to Register Sdn Bhd Company Online in Malaysia (STEP-BY-STEP
PROCEDURE)

1. Account registration on MyCoID portal

2. Account activation at SSM counter
3. MyCoID portal login credentials received through email upon account activation
4. Company name search on the Direct Incorporation Application on MyCoID portal
homepage
5. Other information under Name Search
6. Super Form to clarify your proposed company name
7. Business code selection and description
8. Directors and shareholders information
9. Application submission
10. Make the payment of RM1,000 as an incorporation fee (before tax) and get a
transaction receipt. 35
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11. Notice of Registration as proof of incorporation received through email
What is Sdn Bhd company?

• SDN BHD, the abbreviation of Sendirian Berhad, is a private company

limited by shares which is the most common company registration
type in Malaysia.
• In light of the Companies Act 2016, only 1 director and 1 shareholder
is required to form a Sdn Bhd company, instead of 2 directors.
• Thus, you can register a Sdn Bhd company without other business
partners, acting as the sole director and sole shareholder for the
company.
• There can be only up to 50 shareholders in a Sdn Bhd company.

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Eligibility to form a Sdn Bhd company

• At least 1 director who resides in Malaysia and 1

shareholder. The director and shareholder can be the same
person. The director should be:
i. 18 years old and above
ii. residing in Malaysia
iii. not disqualified under Section 198 of Companies Act
2016

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COMPANY REGISTRATION (sample)

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REGISTRATION PROCEDURE FOR BUSINESS
OWNERSHIP

VISIT
http://www.ssm.com.my/
HERE

smart

fun
pro

global
open
team

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TASK/ ASSIGNMENT:

Browse ezBiz Online

website and register your
own or group/partnership
business

https://ezbiz.ssm.com.my/

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BUSINESS SUPPORT SYSTEM

BUSINESS
3.3 SUPPORT
SYSTEM

41

ENTREPRENEURIAL NETWORKING AND SUPPORTING

AGENCIES
 3.3 ENTREPRENEURSHIP SUPPORT SYSTEM

• Is an aid in terms of financial and technical

services by the government and other
private agencies.
• Entrepreneur will be able to carry out his
business smoothly with the support from
these agencies.

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 3.3.1 BUSINESS SUPPORT AGENCIES
1. FINANCIAL
• Financial credits
• Fixed assets financing
• Establishing factory
• Buying office equipment, machinery etc
4. TRAINING
• To train entrepreneurs obtain
necessary skills
• Build entrepreneur’s confidence
and give encouragement
3. TECHNICAL
2. MARKETING
• Entrepreneurs increase technical knowledge by
• Support services in marketing attending educational courses
distribution • Exposed to the latest production methods and
• To help entrepreneur market his systematic management
product locally and • Several different scheme such as development of
internationally product quality using technology
5. RESEARCH AND DEVELOPMENT
• Helps entrepreneur to carry out research
• Research and analysis will be performed include
project possibilities, marketing research and
research on technology
• Helps entrepreneur to increase efficiency and as
well as better quality products
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TASK/ ASSIGNMENT:

1. Each group of students will

have to gather information and
latest support or facilities
offered by the agencies
according to the types of
support given.
2. Each group will have to compile
and present their findings to the
class. 44
 AGENCIES FINANCIAL SUPPORT

Majlis Amanah Rakyat (MARA) Financing for Bumiputera entrepreneurs in various business
sectors or halal industries

Amanah Ikhtiar Malaysia (AIM) Providing finance to poor household to enable them to
undertake viable economic activity to upgrade their
household income

SME Bank Providing financing or business development advice for start-

up or microbusiness

Malaysian Industrial Development Finance Berhad Providing fixed asset financing to manufacturers in Malaysia
(MIDF)

Agro Bank Gives financial assistance and equipment to agriculture-

related industries.
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 AGENCIES FINANCIAL SUPPORT

Ministry of Youth and Sports Providing alternatives access to the young entrepreneurs in
obtaining finance to start their new business as well as for the
needs of their existing business
- Young Entrepreneur Fund ( YEF)

Yayasan TEKUN Malaysia Providing micro financing and support services toward
entrepreneurial development

MICRO FINANCING:
• There are 3 development financial institutions namely Bank Pertanian
Malaysia Berhad (Agrobank), Bank Kerjasama Rakyat Malaysia Berhad
and Bank Simpanan Nasional, involved in micro financing
• And also, a total of 7 banking institutions namely Alliance Bank Malaysia
Berhad, AmBank (M) Berhad, CIMB Bank Berhad, Public Bank Berhad,
Malayan Banking Berhad, United Overseas Bank (Malaysia) Bhd and
Bank Muamalat Malaysia Berhad 46
 AGENCIES MARKETING SUPPORT

Federal Agriculture Marketing Authority Market agriculture products locally and abroad.
(FAMA)

Malaysian External Trade Development Expose the entrepreneur to available business

Corporation (MATRADE) opportunity

Ministry of International Trade Industry In charge of affairs related to foreign trade, high
(MITI) technology, environmental protection and industrial
location, energy, and other areas.

Pernas Edar Sdn Bhd To promote food market that involve bumiputra
entrepreneur
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 AGENCIES TECHNICAL SUPPORT

SIRIM Berhad To innovate and develop processes, products and

technologies for industry and provide technical services for
industry and the public

MARDI To conduct research, transfer and promote MARDI’s

technology in the field of food, agriculture and agro based
industries to target group, especially in the public sector and
producer such as farmer and traditional breeders

MARA Develop bumiputera technopreneurs in the field of high

technology through cooperation of strategic partners

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 AGENCIES TECHNICAL SUPPORT

Palm Oil Research Industry Malaysia Develops quality products using the latest
(PORIM) technological advancement.

Forest Research Institute of Malaysia Promotes sustainable management and the optimal
(FRIM) use of forest resources by generating knowledge
and technology through research, development,
and applications.

Malaysian Institute of Microelectronic Promotes innovation in information technology.

System (MIMOS) Strives to be a premier applied research centre in
frontier technologies.
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 AGENCIES TRAINING SUPPORT

Majlis Amanah Rakyat (MARA) Provides training and guidance to SME entrepreneurs so
that they are highly skilled in their area of interest

Malaysian Entrepreneurship Development Centre Plans and implements entrepreneurship development

(MEDEC) programmes such as training, educations, research, and
consultancy

Perbadanan Usahawan Nasional Berhad (PUNB) Offer courses related to entrepreneurship skills such as
awareness and motivation, development management,
operations monitoring skills, and corporate governance

Malaysian Agriculture Research and Development Provide training and consulting services of the highest
Institute (MARDI) quality to clients locally, nationally, and regionally in
agriculture and food
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 AGENCIES TRAINING SUPPORT
Malaysian Digital Economy Corporation Develop, coordinate, and promote Malaysia’s digital economy,
information and communications technology (ICT) industry,
and the extensive use of ICT in Malaysia

Malaysian External Trade Development Corporation Organize seminar and workshops to guide new exporters and
(MATRADE) update existing exporters on trade developments and business
opportunities in international markets

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 AGENCIES RESEARCH & DEVELOPMENT SUPPORT
Malaysian Agriculture Research and Carries out research on the output of agricultural
Development Institute (MARDI) products, improves the quality of agricultural products,
produces new seeds for farmers.

Rubber Research Institute Malaysia Carries out research on the quality of rubber and
(RRIM) produces new rubber-based products.

Malaysian Palm Oil Board (MPOB) Carries out research on products from the output of
palm oil, spreads over the market of palm oil, and
improves the quality of palm oil.

Standard and Industrial Research Focus on discovering and developing new technologies
Institutes of Malaysia (SIRIM) Berhad to enable industries to move up the value chain.
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LET’S
PLAY

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