Definition of SMEs:
On 25 October 2013, SME Corporation Malaysia (SMEcorp) informed SMA that The National SME Development Council had announced a new definition for SMEs effective 1 January 2014.
This review of the definition is part of the proposals under the SME Masterplan to ensure that the definition remains relevant as the Plan is rolled out. The definition across the various sizes of establishment namely micro, small and medium has also been adjusted upward accordingly. For example, in the case of microenterprises, which make up close to 80% of the total SMEs, the definition has been standardised across all sectors. Under the new definition, microenterprises are firms with sales turnover of less than RM300,000 or 5 workers.
The new definiton is expected to result in more firms being classified as SMEs, particularly from the services sector to facilitate the country’s transformation to a high income nation through the initiatives under the SME Masterplan. As a result of the change in definition, the share of SMEs to total establishments is expected to increase from 97.3% currrently, to 98.5%.
New SME Definition effective 1 January 2014:
For more information on New SME Definition, please log on to:
Posted Date: 25 Oct 2007