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
