Sme in Malaysia

Introduction - Small and Medium Enterprises (SMEs)

Small and Medium Enterprises (SMEs) was first approved for adoption by National SME Development Council on 9 June 2005. According to the SME CORP MALAYSIA Official Website, Malaysia adopted a common definition of SMEs to facilitate identification of SMEs in the various sectors and subsectors. This has facilitated the Government to formulate effective development policies, support programmes as well as provision of technical and financial assistance. (SME CORP MALAYSIA Official Website, 2012). Unfortunately, there is no common definition of small and medium enterprises (SMEs) in Malaysia.

Small and Medium Enterprises (SMEs) are divided into two main categories which is manufacturing (including agro-based and manufacturing-related services), and services -primary agriculture and information and communication technology (ICT). SMEs can be divided into three categories which is micro-enterprise, small enterprise, and medium enterprise. An enterprise is considered an SME in each of the respective sectors based on the Annual Sales Turnover or Number of Full-Time Employees. (SME CORP MALAYSIA Official Website, 2012)

Small and Medium Enterprises (SMEs) is an enterprise with categories for defines micro, small, and medium enterprise in manufacturing including agro-based and manufacturing related services (MRS). Micro-enterprise is enterprise with full-time employees of less than five or with annual sales turnover of less than RM 250, 000. Whereby, a small enterprise is an enterprise with full-time employees of between 51 and 150 or with annual sales turnover of between RM250, 000 and less than RM10 million. On the other hand, medium enterprise is an enterprise with full-time employees of between 51 and 150 or with annual sales turnover of between RM10 million and Rm25 million. (SME CORP MALAYSIA Official Website, 2012)

Besides that, Small and Medium Enterprises (SMEs) also an enterprise with categories for defines...