Micro, Small and Medium Enterprises (MSMEs) achieved remarkable double-digit GDP growth of 11.6% in 2022 – a significant increase compared to the 1.3% growth in 2021. MSMEs’ contribution to the country’s GDP also rose to 38.4%, up from 37.4% in 2021.
According to the Department of Statistics Malaysia (DOSM), MSMEs’ growth in 2022 surpassed the overall GDP growth rate of 8.7% (compared to 3.3% in 2021). This increased their contribution to the national economy from RM520.0 billion in 2021 to RM580.4 billion in 2022. Datuk Ewon Benedick, the Minister of Entrepreneur Development and Cooperatives, made this announcement during the MSME 2022 Performance Media Session at Bangi Resort Hotel yesterday.
The statistic also showed MSMEs’ exports continued to rise, reaching RM144.5 billion in 2022, compared to RM124.3 billion in 2021. However, the percentage contribution to total exports declined to 10.5% in 2022, compared to 11.4% in 2021 – due to higher growth rates of exports by large companies and multinationals.
In terms of the job market, MSMEs employed approximately 7.59 million workers in 2022 alone – marking a 3.8% increase. MSMEs’ contribution to total employment reached 48.2% in 2022 (compared to 47.8% in 2021). Additionally, workers’ productivity in MSMEs improved, with each worker producing RM76,433, compared to RM71,089 in the previous year.
Datuk Ewon Benedick also stated that the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) is dedicated to fostering sustainable and resilient MSMEs growth through SME Corp. Malaysia. They will remain committed to enhancing targeted MSMEs development programs. Currently, 225 programs are actively implemented by 12 ministries, 56 agencies, and 7 state governments, with an allocation of RM10.6 billion.
“KUSKOP will continue its commitment to empower MSMEs to remain competitive, enabling them to penetrate broader international markets. This goal is in line with the aspirations of the MADANI Malaysian Economic Framework recently announced by the Prime Minister. As such, MSMEs need to start thinking globally to ensure that their products and services meet market demands, standards, production capacity, and future timelines,” he said.
“The government’s structured and supportive policies, along with various stimulus packages, have aided MSMEs in recovering from the COVID-19 impact. The momentum of MSMEs’ recovery and development is expected to strengthen further in 2023, with a focus on MSMEs under the MADANI Malaysian Economic Framework. Some strategies include internationalising local MSMEs, attracting more investors for financing, providing RM100 million digitalisation grant, and increasing the RM400 million allocation for microloans through agencies like SME Corp. Malaysia and TEKUN Nasional under KUSKOP,” he explained.
Collaboration with various ministries, agencies, and industries will continue to enable KUSKOP to fulfil its responsibility of developing a comprehensive entrepreneurial ecosystem more effectively in supporting progressive and sustainable MSMEs’ development. SME Corp. Malaysia, under KUSKOP, will prioritize programs involving the internationalisation of MSMEs to enhance their contribution to GDP and the country’s export value.
Furthermore, KUSKOP will continue collaborating with various ministries, agencies, and industries to fulfil its responsibility of developing a comprehensive entrepreneurial ecosystem more effectively in supporting progressive and sustainable MSMEs’ development. Meanwhile, SME Corp. Malaysia will prioritise programs to internationalise MSMEs – enhancing their contribution to GDP and the country’s export value.