SME contribution to Malaysian GDP rises to 38.3%, valued at US$126.3b

  • Services and manufacturing are major contributors with combined share of 82.4%
  • SME exports increased to RM171.9 billion in 2018 from RM166.2 billion in 2017

 

SME contribution to Malaysian GDP rises to 38.3%, valued at US$126.3b

 

OVERALL performance of small and medium enterprises (SMEs) in Malaysia is on track to achieve the target of 41% to GDP by 2020 as envisaged under the Dasar Keusahawanan Nasional 2030 (DKN 2030) recently launched by the Ministry of Entrepreneur Development.

SMEs recorded a higher contribution of 38.3% to GDP in 2018 amounting to US$126.3 billion (RM521.7 billion) as compared to 37.8% amounting to US$117.9 billion (RM491.2 billion) in 2017.

Based on data released by the Department of Statistics Malaysia (DOSM) on Aug 1, SMEs registered a growth of 6.2% in 2018 (2017: 7.1%), slightly above the long-term average growth of 6.0% (2001 - 2017).

SME GDP growth continued to outperform overall GDP growth of 4.7% in 2018 (2017: 5.7%).

In terms of sectoral contribution, the services and manufacturing sectors continued to be the major sectoral contributors with a combined share of 82.4% in 2018.

SME value-added in services sector registered a strong growth of 8.1% in 2018 (2017: 7.2%), the highest pace since 2014.

The growth was driven primarily by the wholesale & retail trade, food & beverages and accommodation sub-sectors as consumer spending improved in particular during the three-month (June 1 – Aug 31, 2018) zerorisation of the Goods and Services Tax (GST) rate period.

The higher value-added growth of SMEs in the services sector was also supported by the finance, insurance, real estate and business services sub-sectors which increased by 7.6% (2017: 7.4%), as well as the transportation & storage and information & communication sub-sectors which expanded by 6.9% (2017: 6.8%).

In the manufacturing sector, value-added of SMEs expanded by 5.5% (2017: 6.8%), led by non-metallic mineral products, basic metal & fabricated metal products as well as petroleum, chemical, rubber and plastic products.

In terms of exports, SMEs showed a strong resilience by recording a growth of 3.4% in 2018 (2017: 7.2%), despite a significant slow-down in the growth of large firms at 3.6% in 2018 (2017: 17.0%).

In value terms, SME exports increased to RM171.9 billion in 2018 from RM166.2 billion in 2017, while the share to overall exports remained at 17.3% (2017: 17.3%).

The export growth momentum was supported by SMEs in the manufacturing sector, particularly in manufactured goods and chemicals products.

 
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