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Rakyat Post
6 days ago
- Business
- Rakyat Post
MSMEs Continues To Drive National Economic Growth, Contributing RM652.4 Billion In 2024
Subscribe to our FREE Micro, Small and Medium Enterprises (MSMEs) further reinforced their position as the key player in the Malaysia's economy by contributing RM652.4 billion in 2024. Official statistics from the Department of Statistics, Malaysia (DOSM) showed that MSMEs expanded by 5.8% in 2024, continued to outperform both the national GDP which grew by 5.1% and Non-MSMEs at 4.7%. This remarkable performance, in line with Malaysia's overall economic growth trajectory was largely fuelled by the construction sector which registered a double digit growth of 17.3% (2023: 5.8%). This marks the most robust growth recorded by MSMEs in the construction sector over the past decade, supported primarily by the special trades subsector, which in turn provided additional boost to the overall performance of MSMEs. As a result, MSME contribution to the national GDP increased to 39.5% in 2024, compared to 39.3% in the previous year. The encouraging performance was not only evident domestically but also reflected in MSMEs' increasing integration in the global value chains. MSME exports surged significantly by 31.3% or almost RM50 billion to reach RM196.8 billion. This highlighted a remarkable expansion compared to the 3% growth recorded in 2023 at a value of RM149.9 billion. Moreover, MSME exports grew at a faster pace than that of Non MSMEs or large firms, which grew around 7.2%. Following this extraordinary performance, the share of MSMEs to Malaysia's total exports rose substantially to 14.3% in 2024 (2023: 12%). The surge in exports momentum was anchored by the services sector which increased more than doubled its exports value, from RM33.2 billion to RM71.3 billion in 2024, primarily supported by tourism-related industries. Malaysia received a total of 38 million foreign tourists in 2024, an increase of 31.1% (2023: 29 million tourists). This positive development in the tourism industry had a substantial spillover effect on MSME exports, given that more than half of MSMEs (or 55.6%) are actively involved in tourism-related activities. The 30-day visa exemption for tourists from China and India also contributed to the boost in tourist arrivals. Zooming in to the employment aspect, MSMEs employed a total of 8.1 million workers, an increase of 3.1% or nearly 250,000 additional workforce. Thus, MSME contribution to total employment rose to 48.7% in 2024 (2023: 48.5%). Meanwhile, MSME labour productivity was at RM80,507 per worker, improved from RM78,475 registered in 2023. In anticipation of this year's economic situation, various factors and challenges are expected to impact MSME performance. These include the tariff imposition by the United States as well as the scope expansion of the Sales and Services Tax (SST). According to the Minister of Entrepreneur and Cooperatives Development, YB Datuk Ewon Benedick, the current landscape presents an opportunity for MSMEs to turn challenges into strategic business growth by reassessing the firms' supply chain structure, adopting ESG practices and enhancing digitalisation. 'Ministry of Entrepreneur and Cooperatives Development (KUSKOP) together with its agencies especially SME Corp. Malaysia are committed to developing MSMEs through implementation of targeted interventions. Scaling up of MSMEs will be the key agenda to drive growth and build firms with greater resilience against future shocks. I am positive that the good performance of MSMEs will help to achieve our target of increasing the medium-sized enterprises from 1.6% currently to 5% by 2030.' 'The robust performance in export signifies MSMEs' strengthening position in the global marketplace. Since 2022 under the SME Export Enhancement Programme, SME Corp. Malaysia has been promoting Malaysian SMEs abroad and supporting them through capacity building and financial assistance via the appointed market linkers. Under the RMK13, SME Corp. Malaysia aims to further enhance MSMEs' export through specific initiatives targeted to boost high impact sectors, internationalisation and sustainability of MSMEs. In fact, in conjunction with Malaysia's ASEAN Chairmanship this year, SME Corp. Malaysia is organising the SME Venture@ASEAN 2025 from 16 to 18 October 2025 that offers great opportunity for MSMEs to penetrate the export market particularly within the ASEAN region,' added YB Datuk Ewon Benedick. Share your thoughts with us via TRP's . Get more stories like this to your inbox by signing up for our newsletter.
The Star
6 days ago
- Business
- The Star
SME Corp targets RM1 trillion GDP contribution from MSMEs by 2030
SME Corp chief executive officer Rizal Nainy KUALA LUMPUR: The contribution of micro, small and medium enterprises (MSMEs) to the country's gross domestic product (GDP) is targeted to reach RM1 trillion by 2030, provided efforts to empower the sector are doubled under the 13th Malaysia Plan (13MP). SME Corporation Malaysia (SME Corp) chief executive officer, Rizal Nainy, said that MSMEs contributed RM652.4 billion to GDP in 2024, up from RM616.6 billion in 2023. "This annual increase of approximately RM36 billion to RM40 billion could result in an additional RM200 billion over five years if we maintain the current level of effort. "But if we double our effort, the annual increase could reach RM80 billion, contributing an additional RM400 billion over five years. Combined with the existing base of RM652.4 billion, this would bring us to the RM1 trillion mark," he told Bernama after the 2024 MSME performance press conference here today. However, he acknowledged that achieving this target requires integrated implementation and a comprehensive scaling strategy, particularly in transforming businesses from micro to small, small to medium, and eventually to large-scale enterprises. "It is easy to design, but challenging to implement. Nonetheless, more transformative initiatives will be our main focus in the 13MP," he said. Rizal noted that, in addition to capacity-building programmes and grants such as SME Go Global and Bumiputera Export Promotion initiatives, SME Corp is also actively conducting business matching programmes and organising international expos, such as SME Venture ASEAN 2025. The expo, scheduled to take place from Oct 16 to 18, is expected to gather over 300 local SMEs ready to export their products to the ASEAN region and beyond. "We will showcase MSME companies in high-value manufacturing segments, such as medical devices, electrical and electronics, halal food and beverages, cosmetics, tourism, and smart agriculture," he said. He also highlighted that increasing the participation of MSMEs in public listings will be one of the key drivers in enhancing the sector's value and competitiveness in the future economic landscape. At the press conference, MSMEs were reported to be strengthening their position as a major player in the Malaysian economy, with a contribution of RM652.4 billion in 2024. According to official statistics from the Department of Statistics Malaysia, SMEs grew by 5.8 per cent in 2024, outpacing the country's overall economic growth of approximately 5.1 per cent, and non-SMEs, which recorded a growth rate of 4.7 per cent. - Bernama
