Definition of SMEs

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.

An enterprise is considered an SME in each of the respective sectors based on the Annual Sales Turnover or Number of Full-Time Employees as shown in the table below.

Micro-enterprise Small enterprise Medium enterprise
Manufacturing, Manufacturing-Related Services and Agro-based industries Sales turnover of less than RM250,000 OR full time employess less than 5 Sales turnover between RM250,000 and less than RM10 million OR full time employees between 5 and 50 Sales turnover between RM10 million and RM25 million OR full time employees between 51 and 150
Services, Primary Agriculture and Information & Communication Technology (ICT) Sales turnover of less than RM200,000 OR full time employees less than 5 Sales turnover between RM200,000 and less than RM1 million OR full time employees between 5 and 19 Sales turnover between RM1 million and RM5 million OR full time employees between 20 and 50


Category of SMEs

Manufacturing, Manufacturing-Related Services and Agro-based industries

"Small and medium enterprises in the manufacturing, manufacturing related services and agro-based industries are enterprises with full-time employees not exceeding 150 OR with annual sales turnover not exceeding RM25 million"

Services, Primary Agriculture and Information & Communication Technology (ICT)

"Small and medium enterprises in the services, primary agriculture
and Information & Communication Technology (ICT) sectors are enterprises
with full-time employees not exceeding 50 OR with
annual sales turnover not exceeding RM5 million"