KUALA LUMPUR: Small and medium enterprises (SMEs), which account for more than a third of the country's economy, recorded stronger growth compared with the national gross domestic product (GDP) in 2016.
The Statistics Department said on Thursday SMEs recorded GDP growth of 5.2% compared with the national GDP of 4.2%, reflecting the importance of SMEs in boosting national eceonomic growth.
Notably, the contribution of SMEs GDP to the Malaysia GDP increased steadily to 36.6% from 36.3% in 2015.
“In 2016, value added of SMEs at constant 2010 prices was RM405.5bil (2015: RM385.6bil). In nominal terms, SMEs
GDP registered a value of RM463.2bil, an increment of RM34.2bil compared to 2015,” it said.
SMEs contribution to economy
In 2016, all sectors registered a higher contribution of SMEs value added with the exception of construction sector.
SMEs GDP led the agriculture sector with a share of 50.7%, up 1.7% from 2015 due to the rubber, oil palm, livestock and other agriculture sub-sector especially in oil palm segment.
However, contribution of SMEs GDP in construction dipped to 47.2% from 47.5% in 2015. This was due to lower contribution by all sub-sectors except specialised construction activities.
The SMEs GDP share of services sector expanded further 40.2% compared to 39.9% in 2015. The contribution was dominated by finance, insurance, real estate and business services sub-sector.
This was underpinned by the wholesale & retail trade, food & beverages and accommodation sub-sector also supported this sector particularly in retail and vehicles segments.
The share of SMEs value added for manufacturing sector increased slightly to 34.4% (2015: 34.3%) due to petroleum, chemical, rubber and plastic products.
The SMEs GDP in mining & quarrying sector recorded a share of 1.8% mainly in quarrying of granite and limestone.
SME sectors value add performance
In terms of value added, the services sector under the SMEs grew at a slower pace of 6.4% verus 6.6% in 2015.
Underpinning the growth momentum was finance, insurance, real estate and business services sub-sector which expanded 5.9% (2015: 5.5%) -- driven mainly by insurance and business services segments.
As for the manufacturing sector, the value added of SMEs rose at a slower pace of 4.8% (2015: 6%) led by food, beverages and tobacco sub-sector which increased 2.8% (2015: 2.6%).
Petroleum, chemical, rubber & plastic products moderated to 5.4% (2015: 6.1%) due to chemicals and rubber products.
Value added of SMEs in the construction sector grew slower at 6.8% (2015: 7.6%) underpinned by specialised construction activities and civil engineering sub-sectors. The decline was due to a contraction in non-residential buildings.
The department said the value added of SMEs in mining & quarrying sector grew at a slower pace of 8.2% from 8.9% in 2015.
In the agriculture sector, value added of SMEs fell 1.7% as compared to 2% in the previous year. This was attributed by rubber, oil palm, livestock & other agriculture sub-sector which contracted to 2.4% (2015: 3.0%) following a decline in production of rubber and oil palm.
The department said services and manufacturing sectors maintained its stronghold as the prominent economic activities in Malaysia for both SMEs GDP and Malaysia GDP. The combined share from the two sectors represented more than 70% of the economy.
Agriculture sector was the third largest contributor for SMEs GDP with a share of 11.2% instead of mining & quarrying sector for Malaysia GDP.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
