MTC.COM.MY

BACKGROUND

This facility shall provide a common platform for PFG members to showcase, promote and market their products to potential buyers in Poland as well as neighbouring countries within the Eastern European region.

EXPECTED OUTCOME

The expected outcome from the Project is as below:

• Gain direct market access into the Polish market at minimal cost; and
• Have a permanent display to showcase Malaysian timber products to potential agents and buyers in and around Poland.

DURATION OF THE PROJECT

The duration of the Project is one year with an option to renew/extend into the second year (1+1 year).

LOCATION
The location of the warehouse display facility should be easily accessed and situated in and/or around Warsaw, Poland.

TOTAL SPACE OFFERED
The initial overall space is 200 sqm (m2). However, this may increase should there be good response from the PFG members.

PRODUCTS TO BE DISPLAYED / PROMOTED

The range of products is exclusively confined to those of the PFG members as mentioned below:

• Flooring;
• Doors and door frames; and
• Outdoor / garden furniture and its accessories such as decking, lattice, pergola, etc.

However, it is important to note that all products to be promoted must be made in Malaysia and/or finished in Malaysia with imported parts and components.

FLOOR LAYOUT

The overall space would be divided according to the product sectors covered by the PFGs. However, more space would be allotted for bulky items such as outdoor / garden furniture. MTC would occupy a small area for its operation office in Poland. The tentative floor layout of the Project is as below:

SERVICES OFFERED BY MTC

A full time Market Consultant based in Poland who would provide marketing and promotional services to participating PFG members free of charge. A MTC staff would also be assigned as the Project coordinator and provide liaison with Participants, market consultant and service providers.

ESTIMATED COST
The estimated total cost incurred for the Project would be shared between MTC and the Participants. For the first year of the Project, MTC would provide the following financial incentives:

• 100% of total cost incurred for tenancy agreement’s security deposits and legal fees, etc;
• 100% of total cost incurred for renovation works, hire of labour, building and construction materials, etc;
• 50% of total cost incurred for monthly rental and its utilities such as electricity consumption, telephone and internet usage for the first 6 months of the Project; and
• 25% of total cost incurred for monthly rental and its utilities such as electricity consumption, telephone and internet usage for the next 6 months of the Project.

As for the Participants, they are expected to bear the estimated total expenses for the first year of the Project as follows:

• 50% of total cost incurred for monthly rental and its utilities such as electricity consumption, telephone and internet usage for the first 6 months of the Project;
• 75% of total cost incurred for monthly rental and its utilities such as electricity consumption, telephone and internet usage for the next 6 months of the Project; and
• 100% of total cost incurred for the shipping and local ground handling of product samples including custom duties and VAT. The total cost will be divided based on Participant’s total volume i.e. cubic metres (m3) of samples. This exercise could be carried out twice a year.

Despite this, Participants may proceed to send their samples directly to Poland on their own from time to time.

PARTICIPANTS

The Project is open to all Malaysian wood-based companies that meet the following criteria:

• The participating company (refer to as “Participant”) must be a current member of one of the six national timber associations i.e. Malaysian Wood Industries Association (MWIA), Timber Exporters Association Malaysia (TEAM), Malaysian Wood Mouldings and Joinery Council (MWMJC), Malaysian Panel-products Manufacturers’ Association (MPMA), Malaysian Furniture Industry Council (MFIC) and Association of Bumiputra Timber and Furniture Entrepreneurs (PEKA);
• The Participant must be a member of one of the three MTC’s Product Focus Groups (PFGs) i.e. PFG for Doors, PFG for Flooring and PFG for Outdoor furniture and its accessories; and
• The Participant must be a member of the Suppliers’ Group for Eastern Europe (SGEE).

The initial number of Participants taking part in this project is between 2-3 companies from each product focus group (Total: between 6-9 companies). These would form the core Participants for the Project. However, the number of Participants may increase should there be good response from the PFG members.

MTC’S MARKET DEVELOPMENT FUND

A Market Development Fund may be introduced in the second year of the Project with the agreement from all Participants. A small percentage of the Participants’ export receipts on sales generated from this Project would be levied. This percentage would be determined and agreed by all Participants and all monies collected would be channeled to the fund. A small committee would be formed to manage this fund.

WORKING COMMITTEE

A Working Committee (WC) shall be set up to oversee the Project.

For more information, please contact:
Ms. Jennyfer Lee
Trade Promotional & Marketing Division
Malaysian Timber Council
Tel: +03-92811999 (ext. 133)
Fax: +03-92828999
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it