Article by the Cross Border Investment Division, Malaysian Investment Development Authority, MIDA

UNDERSTANDING MSBDF AND ITS SIGNIFICANCE FOR MALAYSIAN BUSINESSES

What is MSBDF?

• • The Malaysia-Singapore Third Country Business Development Fund (MSBDF) is a fund designed to support businesses or associations from both Malaysia and Singapore in jointly exploring business and investment opportunities in third countries. Administered by MIDA and Enterprise Singapore, the fund supports activities such as joint missions, joint feasibility studies and joint pilots, which require participation from both Malaysian and Singaporean entities. This collaborative initiative aims to strengthen cooperation between the private sectors of both countries, enhancing their ability to pursue business and investment opportunities abroad.

• • Both agencies serve as the implementing agencies for the MSBDF and act as a facilitator for businesses to tap into the fund and processes the applications received.

Investments that qualify for MSBDF must:

• • Provide access to new or existing technologies
• • Open new marketing channels or acquire existing ones overseas
• • Access overseas resources that support joint venture expansion or diversification

Key considerations for the MSBDF are that investments should create joint economic benefits for Malaysia and Singapore. Favorable investments include:

• • Enhancing R&D, design and engineering capabilities through new facilities, patents and specialised knowledge.
• • Improving access to overseas resources and marketing channels to boost production, export sales and services from both countries.
• • The Fund supports activities in but is not limited to the following sectors:

manufacturing, tourism, infrastructure development, construction, information technology, trading and services, green technology and digital economy which are deemed suitable by Implementing Agencies.

The activities for MSBDF consist of: –

1. 1. Joint Trade Missions

Organise and participate in joint missions to other countries to explore business and investment opportunities.

2. 2. Joint Feasibility Studies

Hire independent experts to conduct due diligence and market feasibility studies in other countries.

3. 3. Joint Pilots

Run pilot projects in the digital and green economy sectors with activities either in third countries, Singapore or Malaysia reviewed on a case-by-case basis.

Activity 1 and 2 must be conducted in third countries with exception to Activity 3. A third country means other country besides Malaysia and Singapore.

The Aims of MSBDF

1. 1. To promote economic cooperation between Malaysia and Singapore businesses in identifying business and investment opportunities.
2. 2. To identify potential business environment, leads and opportunities in third countries.
3. 3. To encourage technological innovation and technological advancements via test bedding activities to demonstrate viability and scalability of solution and/or innovate new solutions or products or services for clients.

Involvement of MASSA

The Malaysia South-South Association (MASSA) is an organisation that promotes economic cooperation among developing countries. MASSA can play a significant role in leveraging MSBDF for its members by providing:

• • Awareness and outreach by informing members about the opportunities and benefits of MSBDF.
• • Collaborative projects by encouraging joint ventures and collaborative projects between Malaysian and Singaporean businesses.

Tips for Malaysian Businesses to Apply for the MSBDF

1. 1. Ensure that the business meets the eligibility criteria set by MSBDF.
2. 2. Ensure necessary documents such as business plans, financial statements and project proposals are provided as required in the guideline and application form.
3. 3. Submit application by applying through MIDA or Enterprise Singapore. Companies must determine who will lead the activities and Lead Applicants shall submit their application based on the country they are registered in with all required documentation.
4. 4. Working closely with MIDA for guidance, feedback and support throughout the application process.
5. 5. Utilising MASSA’s network and resources for additional support and partnership opportunities.

Conclusion

The Malaysia-Singapore Business Development Fund (MSBDF) is a valuable resource for Malaysian businesses looking to expand their horizons and strengthen their ties with Singapore businesses. By leveraging the support of MIDA and MASSA, businesses can maximize their benefits from MSBDF, driving growth, innovation and collaboration in the region.

For more detailed information and assistance, businesses are encouraged to contact MIDA.