THERE has been a 16.9% reduction in the number of micro-sized enterprises, from 923,667 enterprises in 2022 to 767,421 last year.
On the other hand, small-sized enterprises increased by 35.8%, and medium-sized enterprises increased by 7.9%.
Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick said this indicates that Malaysian micro, small and medium enterprises (MSMEs) have scaled up.
He noted that MSMEs achieved a growth of 5%, contributing RM613.1 billion in 2023 to Malaysia’s GDP, as reported by the Department of Statistics Malaysia (DOSM).
“We (the ministry) together with its agencies especially SME Corp are highly committed to implement initiatives to boost MSMEs development in Malaysia further.
“These include encouraging MSMEs participation in the domestic and global supply chain, enhancing their capacity for internationalisation and providing inclusive financing opportunities,” he said during a press conference at the MSME 2023 overall contribution announcement today.
Ewon said the efforts to promote the adoption of environmental, social and governance (ESG) practices in business operations and to intensify entrepreneurship activities in Sabah and Sarawak will continue.
Moreover, he mentioned that MSMEs continued to outperform the overall economy, which expanded by only 3.6% last year.
“As a result, the contribution of MSMEs to the overall economy increased from 38.6% in 2022 to 39.1% in 2023.
“MSMEs demonstrated stronger performance, showcasing their resilience and vital role as key drivers of growth and stability,” he added.
Ewon said MSME exports totalled RM152.2 billion, expanding by 4.5% during the year (2022: 17.2%) despite a challenging external environment.
This led to an increase in MSMEs’ export contribution, from 10.6% in 2022 to 12.2% in 2023.
“The export growth momentum was largely driven by the ongoing expansion in the services sector, especially in tourism-related industries and the agriculture sector,” he said.
Ewon also said in today’s evolving business landscape, the productivity of businesses can be elevated if MSMEs invest in technology, talent and sustainable practices.
Also present were Entrepreneur and Cooperatives Development Deputy Minister Datuk Ramanan Ramakrishnan, SME Corp chairman Rizal Nainy and DOSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin. - The Malaysia Reserve
