Micro, Small and Medium Enterprises (MSMEs) further reinforced their position as the key player in the Malaysia’s economy by contributing RM652.4 billion in 2024. Official statistics from the Department of Statistics, Malaysia (DOSM) showed that MSMEs expanded by 5.8% in 2024, continued to outperform both the national GDP which grew by 5.1% and Non-MSMEs at 4.7%.
This remarkable performance, in line with Malaysia’s overall economic growth trajectory was largely fuelled by the construction sector which registered a double digit growth of 17.3% (2023: 5.8%). This marks the most robust growth recorded by MSMEs in the construction sector over the past decade, supported primarily by the special trades subsector, which in turn provided additional boost to the overall performance of MSMEs. As a result, MSME contribution to the national GDP increased to 39.5% in 2024, compared to 39.3% in the previous year.
The encouraging performance was not only evident domestically but also reflected in MSMEs’ increasing integration in the global value chains. MSME exports surged significantly by 31.3% or almost RM50 billion to reach RM196.8 billion. This highlighted a remarkable expansion compared to the 3% growth recorded in 2023 at a value of RM149.9 billion. Moreover, MSME exports grew at a faster pace than that of Non MSMEs or large firms, which grew around 7.2%. Following this extraordinary performance, the share of MSMEs to Malaysia’s total exports rose substantially to 14.3% in 2024 (2023: 12%).
The surge in exports momentum was anchored by the services sector which increased more than doubled its exports value, from RM33.2 billion to RM71.3 billion in 2024, primarily supported by tourism-related industries. Malaysia received a total of 38 million foreign tourists in 2024, an increase of 31.1% (2023: 29 million tourists). This positive development in the tourism industry had a substantial spillover effect on MSME exports, given that more than half of MSMEs (or 55.6%) are actively involved in tourism-related activities. The 30-day visa exemption for tourists from China and India also contributed to the boost in tourist arrivals.
Zooming in to the employment aspect, MSMEs employed a total of 8.1 million workers, an increase of 3.1% or nearly 250,000 additional workforce. Thus, MSME contribution to total employment rose to 48.7% in 2024 (2023: 48.5%). Meanwhile, MSME labour productivity was at RM80,507 per worker, improved from RM78,475 registered in 2023. In anticipation of this year’s economic situation, various factors and challenges are expected to impact MSME performance. These include the tariff imposition by the United States as well as the scope expansion of the Sales and Services Tax (SST).
According to the Minister of Entrepreneur and Cooperatives Development, YB Datuk Ewon Benedick, the current landscape presents an opportunity for MSMEs to turn challenges into strategic business growth by reassessing the firms’ supply chain structure, adopting ESG practices and enhancing digitalisation.
“Ministry of Entrepreneur and Cooperatives Development (KUSKOP) together with its agencies especially SME Corp. Malaysia are committed to developing MSMEs through implementation of targeted interventions. Scaling up of MSMEs will be the key agenda to drive growth and build firms with greater resilience against future shocks. I am positive that the good performance of MSMEs will help to achieve our target of increasing the medium-sized enterprises from 1.6% currently to 5% by 2030.”
“The robust performance in export signifies MSMEs’ strengthening position in the global marketplace. Since 2022 under the SME Export Enhancement Programme, SME Corp. Malaysia has been promoting Malaysian SMEs abroad and supporting them through capacity building and financial assistance via the appointed market linkers. Under the RMK13, SME Corp. Malaysia aims to further enhance MSMEs’ export through specific initiatives targeted to boost high impact sectors, internationalisation and sustainability of MSMEs. In fact, in conjunction with Malaysia’s ASEAN Chairmanship this year, SME Corp. Malaysia is organising the SME Venture@ASEAN 2025 from 16 to 18 October 2025 that offers great opportunity for MSMEs to penetrate the export market particularly within the ASEAN region,” added YB Datuk Ewon Benedick.
Source: https://www.therakyatpost.com/news/2025/08/04/msmes-continues-to-drive-national-economic-growth-contributing-rm652-4-billion-in-2024/