The effect of export incentives to export activities in Malaysia

This article focus on government export incentives for Malaysian small and medium-sized enterprises (SMES) which are involved in export activities. More specifically, the study attempts to examine the association among government export incentives and the increased in export activities of the Malaysian SMES.The data was collected by mailing 3000 questionnaires to the selected SMES.Three hundred firms responded by returning the questionnaires.Only 250 were complete and use in the analysis.The findings clearly indicate, the increase in exporting activities of SMES are associated with export incentives provided by the Malaysian government such as, tax exemptions on the value of increased exports, Industrial Building Allowance(IBA), Duties and Sales Tax exemption, and Export Financing Facilities.