Country rakes in RM652bil last year via MSMEs
KUALA LUMPUR: Some RM652.4bil was contributed to the national economy by the micro, small and medium enterprises (MSMEs) sector last year, reinforcing its position as a key player in the Malaysian economy, says Datuk Ewon Benedick.
Citing figures from the Statistics Department, the Entrepreneur and Cooperatives Development Minister said MSMEs’ gross domestic product grew by 5.8% last year, continuing to outperform the national GDP, which grew by 5.1% and non-MSMEs at 4.7%.
According to Ewon, this was largely fuelled by the construction sector, which registered a double-digit growth of 17.3%.
“This marks the most robust growth recorded by MSMEs in the construction sector over the past decade, supported primarily by the special trades sector,” he said at a press briefing held at SME Corporation Malaysia (SME Corp) here to announce the performance of MSMEs in 2024.
During the session, Ewon said MSME exports also surged by 31.3%, or by almost RM50bil, to RM196.8bil.
“This is remarkable compared with the 3% growth recorded in 2023, with a value of RM149.9bil,” he said.
MSME exports, Ewon said, also grew at a faster pace compared with non-MSMEs or large firms.
He said the surge in the momentum of exports was anchored by the services sector, which increased from RM33.2bil to RM71.3bil in 2024, primarily supported by tourism-related industries.
According to the minister, Malaysia received a total of 38 million foreign tourists in 2024, an increase of 31.1% compared with the previous year.
“This had a substantial spillover effect on MSME exports, given that more than half of MSMEs are actively involved in tourism-related activities.
“The 30-day visa exemption for tourists from China and India also contributed to the surge in tourist arrivals,” Ewon said.
On the employment aspect, he said MSMEs employed 8.1 million workers last year, contributing to 48.7% of total employment in 2024.
MSME labour productivity, meanwhile, was at RM80,507 per worker, up from the RM78,475 recorded in 2023.
Ewon urged MSMEs to leverage various free trade agreements signed by Malaysia to improve their potential in the global supply chain.
“FTAs not only open access to new and broader markets but also offer an advantage through reduced tariffs and import duties, alongside improving cross-border trade cooperation,” he said, adding that the ministry will also strengthen regional economic cooperation.
Moving forward, Ewon said the ministry will carry out targeted intervention programmes to develop MSMEs.
“We have also aimed to increase the number of medium-sized enterprises from being only 1.6% at present to 5% by 2030,” Ewon said.
He stressed that the continuous development of MSMEs will continue being the government’s priority throughout the 13th Malaysia Plan.
“The ministry, SME Corp and our agencies will remain committed and responsive towards efforts in ensuring the national entrepreneur ecosystem will always be improved,” the minister said.
Also present at the briefing were SME Corp chairman Tan Sri Bernard Dompok, Deputy Entrepreneur and Cooperatives Development Minister Datuk Seri R. Ramanan, ministry secretary-general Datuk Seri Khairul Dzaimee Daud, SME Corp chief executive officer Rizal Nainy and Statistics Department chief statistician Datuk Seri Mohd Uzir Mahidin.
