Defining SMEs

Defining Small and Medium Enterprises (SMEs)

Malaysian SMEs can be grouped into three categories : Micro, Small, or Medium.

These groupings are decided based on

  • EITHER the numbers of people a business employs
  • OR on the total sales or revenue generated by a business in a year.

I. Number of Employees

Based on the number of full-time employees:

  Primary Agriculture Manufacturing (including Agro-Based) & MRS* Services Sector (including ICT**)
Micro Less than 5 employees Less than 5 employees Less than 5 employees
Small Between 5 & 19 employees Between 5 & 50 employees Between 5 & 19 employees
Medium Between 20 & 50 employees Between 51 & 150 employees Between 20 & 50 employees

*MRS: Manufacturing-Related Services
**ICT: Information and Communications Technology

II. Annual Sales Turnover

Based on annual sales turnover:

  Primary Agriculture Manufacturing (including Agro-Based) & MRS* Services Sector (including ICT**)
Micro Less than RM200,000 Less than RM250,000 Less than RM200,000
Small Between RM200,000 & less than RM1 million Between RM250,000 & less than RM10 million Between RM200,000 & less than RM1 million
Medium Between RM1 million & RM5 million Between RM10 million & RM25 million Between RM1 million & RM5 million

*MRS: Manufacturing-Related Services
**ICT: Information and Communications Technology

Background on SME Definitions

In 2005, the National SME Development Council (NSDC) approved the use of common definitions for SMEs in the manufacturing, manufacturing-related services, primary agriculture and services sectors.*** These definitions are applied by all Government Ministries and Agencies involved in SME development, as well as by the financial institutions.

The use of common definitions for SMEs will:

  • strengthen government efforts to create effective policies and support programmes for specific target;
  • make it easier to provide technical and financial assistance to SMEs; and
  • allow for the identification of SMEs in the various categories and levels.

To view the Guidelines on "Definitions for SMEs in Malaysia", which was released by the Secretariat to National SME Development Council, Bank Negara Malaysia on 13 September 2005, please click on the link below:

Download SME Definitions

*** Classification of economic activities is based on the Malaysian Standard Industrial Classification (MSIC) 2000 codes.

Source : SMEinfo by Bank Negara Malaysia 
Share this:
  • Print
  • email
  • RSS
  • Digg
  • del.icio.us
  • Ping.fm
  • Yahoo! Buzz
  • Live
  • Google Bookmarks
  • Google Buzz
  • Reddit
  • Orkut
  • Posterous
  • Tumblr
  • Plurk
  • MySpace
  • LinkedIn
  • Twitter
  • Facebook