Malaysia’s micro, small, and medium enterprises delivered RM652.4 billion to the national economy in 2024, posting growth rates that outstripped both large corporations and the country’s headline figures.
Official data from the Department of Statistics Malaysia shows these enterprises expanded by 5.8 percent, compared to 5.1 percent for the broader economy and 4.7 percent for non-MSME companies. Construction work provided the primary catalyst, with activities in this sector jumping 17.3 percent. This is the best performance MSMEs have recorded in construction over ten years.
Specialist trades within construction drove much of this expansion, according to ministry officials who briefed media at SME Corporation Malaysia headquarters. The construction boom helped push the MSME share of national output to 39.5 percent from 39.3 percent a year earlier.
Export figures reveal MSME companies generated RM196.8 billion in foreign sales, representing a significant acceleration from the 3 percent expansion recorded in 2023 to 31.3 percent growth throughout 2024. The services sector drove most of this export boom, with foreign currency earnings jumping from RM33.2 billion to RM71.3 billion as travel restrictions eased worldwide.
The country saw 38 million foreign visitors last year, representing a growth of 31.1 percent compared to 2023. Hotels, restaurants, and retail shops benefited from this surge in arrivals. Tourism-related companies make up over half the MSME sector. Business owners in these industries experienced revenue growth after the government introduced 30-day visa exemptions for Chinese and Indian travelers, both key source markets for Malaysia’s tourism industry.
Business entertainment and gaming represent another aspect of Malaysia’s diversified economy, with operations ranging from Genting’s established Highland resort to international online platforms serving local players. Players in Malaysia can access these gambling sites using familiar payment methods such as GrabPay, Touch ‘n Go, DuitNow, and FPX bank transfers.
Employment statistics show 8.1 million workers found jobs within MSME companies during 2024, accounting for 48.7 percent of the nation’s total workforce. Each MSME worker generated RM80,507 in output during 2024, up from RM78,475 the year before as businesses found ways to operate more efficiently.
According to Ewon, businesses have opportunities through Malaysia’s international trade agreements, but few companies take advantage of them. These pacts reduce import costs and export barriers while streamlining administrative processes. Most small business owners don’t realize these deals exist or understand what they could gain from using them.
Officials target expanding medium-sized companies within the MSME framework from the current 1.6 percent to 5 percent by 2030. Survey data suggests movement toward this objective, with 8.5 percent of businesses formalizing their structures and 7.3 percent advancing to larger operational categories.
Source: https://nasilemaktech.com/small-businesses-power-malaysias-economic-engine-with-record-rm652bn-output/?utm_source=Newswav&utm_medium=Website