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).
Malaysia’s MSME GDP grew by +5.8% in 2024 (2023: +4.9%), outpacing overall Malaysia’s GDP (+5.1%) and non-MSME GDP (+4.7%). This raised the share of MSMEs GDP slightly to 39.5% (2023: 39.3%), or equivalent to RM652.4b (2023: RM616.6b). The growth was mainly driven by increased activities in the Services and Manufacturing sectors, which made up 84.7% of MSMEs’ GDP. The services sector rose albeit at a more moderate pace of +5.7% in 2024 (2023: +6.5%), supported by broad based gains across all sub-sectors, including wholesale & retail, food & beverages, and accommodation (+4.5%) as well as finance, insurance, real estate and business services (+8.4%).
According to the official findings, the MSMEs, particularly in the services, benefited from the stronger tourism activity on the back of increased tourist arrivals (and spending). Manufacturing rose by +5.0% (2023: +1.5%) thanks to the rebound in the other manufacturing sub-sector (+3.9%; 2023: -0.4%). Meanwhile, agriculture recorded a higher growth of +2.5% (2023: +0.8%). The construction sector accelerated by +17.3% (2023: +5.8), whereas mining & quarrying slowed down to +3.8% (2023: +4.4%). MSME’s exports grew sharply by +31.3% (2023: +3.0%), to RM196.8b (2023: RM149.9b), mainly led by the services sector (+114.8%) and manufacturing (+7.9%).
On the labour front, MSMEs employment grew slightly softer by +3.1% (2023: +3.5%), but higher than the national (+2.6%) and non-MSMEs’ (+2.1%) employment growth. This added +246K jobs to reach 8.1m persons (7.9m persons), or 48.7% of total employment (2023: 48.5%). SME Corp anticipates MSMEs’ GDP contribution could reach RM1tr by 2030, supported by integrated implementation and a clear scaling up strategy—from micro to small, small to medium, and ultimately to large enterprises. Key enablers include greater access to grants and alternative financing beyond traditional banks, as well as stronger efforts to promote exports and integrate MSMEs into global markets.
These steps, alongside digital adoption and skills development will be critical to unlock the full potential of the sector. Given the MSMEs tend to expand faster than the national level and the official GDP forecast of +4.0-4.8%, MBSB Research expects MSMEs to record sustained and still robust GDP growth of more than +5% this year.
The house also believes the continued growth in MSMEs will support healthy employment growth as well as supporting the growing domestic demand.
Source: https://www.businesstoday.com.my/2025/08/05/key-efforts-for-msmes-to-hit-rm1-trillion-under-13mp/