Definition Of Sme In Malaysia

Malaysia is a central coordinating agency under the ministry of international trade and industry malaysia that formulates overall policies and strategies for small and medium enterprises smes and coordinates the implementation of sme development programmes across all related ministries and agencies.

Definition of sme in malaysia. 1 1 presently there is no common definition of small and medium enterprises smes in malaysia. Manufacturing including agro based and manufacturing related services. Background definition and characteristics of sme in malaysia sme small and medium enterprise plays a major role in the malaysian economy. Sales turnover not exceeding rm50 million or full time employees not exceeding 200 workers.

Since 2005 a common definition for smes endorsed by the national sme development council nsdc 1has been adopted across ministries and agencies financial institutions and regulators involved in sme development programmes. The strong sme growth in malaysia can be largely attributed to the new definition for smes which has its one off effect to the growth and promotion of smes in the country. Given that there have been many developments in the economy since 2005 such as price inflation structural changes and change in business trends a review of the definition was undertaken in 2013 and an sme definition was endorsed at the 14th nsdc meeting in july 2013. Sme is defined as a company resident in malaysia which has a paid up capital of rm2 5 million or less and is not related to any company with paid up capital of more than rm2 5 million annual sales turnover not more than rm5 million.

Malaysian government targets to raise smes contribution to gdp to 41 and the share of the country s exports from smes to 23 by 2020. Sme corporation malaysia sme corp. Malaysia is a central coordinating agency that formulates overall policies and strategies for smes and coordinates the implementation of sme development programmes across all related ministries and agencies. The definition is as follows.

Malaysia is a central coordinating agency under the ministry of international trade and industry malaysia that formulates overall policies and strategies for small and medium enterprises smes and coordinates the implementation of sme development programmes across all related ministries and agencies. In addition present definitions focus mainly on smes in the manufacturing sector. The development of smes has received much attention since the implementation of the new economic policy 1971 1990. Sme corporation malaysia sme corp.

3 definition by ministry of human resources.