SMEs' contribution to GDP rose to 38.9%

  • SME
  • Wednesday, 29 Jul 2020

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said SMEs value added for the services sector registered a growth of 7.4 per cent against 8.1 per cent in 2018.

KUALA LUMPUR: Malaysia’s Small and Medium Enterprises’ (SMEs) contribution to the gross domestic product (GDP) increased to 38.9 per cent in 2019 from 38.3 per cent in 2018, according to the Department of Statistics Malaysia (DOSM).

It said the SMEs’ GDP for the year 2019 grew 5.8 per cent as compared with 6.2 per cent in the preceding year.

"The value added of SMEs at constant 2015 prices escalated to RM552.3 billion from RM522.1 billion in 2018,” it said in a statement today.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said SMEs value added for the services sector registered a growth of 7.4 per cent against 8.1 per cent in 2018.

He said the growth momentum was spurred by wholesale and retail trade, food and beverages and the accommodation sub-sectors, which grew to 7.6 per cent.

"Finance, insurance, real estate and business services sub-sectors, which expanded to 7.7 per cent, also supported the growth momentum,” he said.

He said in the manufacturing sector, the value added of SMEs moderated to 4.5 per cent led by petroleum, chemical, rubber and plastics products, with a growth of 4.3 per cent.

Furthermore, he said, both non-metallic mineral products, basic metal and fabricated metal products and food, beverages and tobacco sub-sectors registered a slower growth momentum at 4.9 per cent and 3.2 per cent respectively.

Meanwhile, he said, the value added of SMEs in agriculture sector rose to 2.3 per cent after registering 0.3 per cent in the preceding year, due to stronger growth of the rubber, oil palm, livestock and other agriculture

sub-sectors at 3.5 per cent as compared with 0.7 per cent in 2018.

He said the value added of SMEs in the mining and quarrying sector increased to 4.7 per cent while the construction sector grew moderately by 0.1 per cent.

Mohd Uzir said SMEs registered an export growth of 2.6 per cent to RM176.3 billion in 2019 driven by services (3.5 per cent) and manufacturing (two per cent).

He said exports of durian, including fresh, frozen, pulp and paste, registered an increase of 32.2 per cent in 2019 to RM423.7 million from RM320.5 million in the preceding year, with the main destinations being China (61.8 per cent), Singapore (14.8 per cent) and Hong Kong (8.4 per cent).

However, he said, exports of the agriculture sector decreased 9.8 per cent to RM2.3 billion due to the decline in exports of vegetables, fisheries, poultry, banana and other tropical fruits.

He said exports of SMEs in the manufacturing sector comprised miscellaneous manufactured articles, food, crude materials, inedible and manufactured goods.

Singapore remained as the main destination for SMEs exports of the manufacturing sector, which constituted 18.4 per cent, followed by China (9.3 per cent) and the US (7.5 per cent).

SMEs’ exports in the services sector increased to RM89.3 billion, from RM86.3 billion in the previous year, led by travel, other business services and transport activities.

He added that the share of SMEs’ exports to total exports in 2019 was 17.9 per cent, whereby 9.1 per cent was from the services sector, while the manufacturing and agriculture sectors contributed 8.6 per cent and 0.2 per cent respectively. - Bernama

TAGS: DOSM, SMEs, GDP, Mohd Uzir Mahidin, China, durian exports
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