Robust growth in exports, tourism-linked services, and employment reinforces MSMEs’ role in driving national progress
Malaysia’s Micro, Small, and Medium Enterprises (MSMEs) continue to demonstrate their vital role in powering the national economy, recording a total contribution of RM652.4 billion to the country’s Gross Domestic Product (GDP) in 2024. According to official data released by the Department of Statistics Malaysia (DOSM), MSMEs expanded by 5.8%—outpacing the country’s overall GDP growth of 5.1% and that of non-MSMEs at 4.7%.
A key growth driver was the construction sector, which surged by 17.3% in 2024—the highest rate recorded by MSMEs in this segment in a decade. This was largely propelled by specialised trades, helping to push the MSME share of GDP up to 39.5%, an improvement from 39.3% the previous year.
Export and Employment Gains Strengthen MSME Resilience
Beyond domestic performance, Malaysia’s MSMEs made a strong mark on the international stage, with exports rising by 31.3%, adding nearly RM50 billion to reach RM196.8 billion. This leap outpaced the growth of larger firms (7.2%) and elevated MSMEs’ share of national exports from 12% in 2023 to 14.3% in 2024.
Much of this export momentum came from the services sector, particularly in tourism-related industries, which more than doubled their export value from RM33.2 billion to RM71.3 billion. Malaysia welcomed 38 million international tourists in 2024, a 31.1% increase from the previous year, supported in part by visa exemptions for visitors from China and India.
Tourism’s positive ripple effect was clear, with over 55.6% of MSMEs actively engaged in tourism-linked sectors. These businesses were well-positioned to capitalise on the rebound in travel and hospitality.
Meanwhile, the MSME sector employed a total of 8.1 million people, reflecting a 3.1% increase or nearly 250,000 new jobs. MSMEs now account for 48.7% of total employment in Malaysia. Labour productivity also saw improvement, rising to RM80,507 per worker, up from RM78,475 in 2023.
Preparing for Future Challenges and Strategic Growth
Looking ahead, Malaysian MSMEs are expected to face several challenges, including countervailing tariffs imposed by the United States and the expansion of the Sales and Services Tax (SST). These developments, while testing, also present opportunities for transformation.
According to YB Datuk Ewon Benedick, Minister of Entrepreneur and Cooperatives Development, firms can respond strategically by restructuring supply chains, adopting environmental, social and governance (ESG) standards, and advancing digitalisation.
“The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) and its agencies, especially SME Corp. Malaysia, are committed to supporting MSMEs through targeted interventions,” said Datuk Ewon. “Scaling up businesses will be key to ensuring sustainable growth and resilience against future economic shocks.”
He noted that the Ministry aims to increase the proportion of medium-sized enterprises from 1.6% to 5% by 2030, in line with the objectives set out under the 13th Malaysia Plan (RMK13).
Regional Opportunities and Export Empowerment
The Minister also highlighted that the SME Export Enhancement Programme, launched in 2022, has strengthened Malaysian MSMEs’ global competitiveness through capacity building, financial support, and access to market linkers.
As Malaysia chairs ASEAN in 2025, SME Corp. will host SME Venture@ASEAN 2025 from 16–18 October, providing entrepreneurs with opportunities to explore new export markets across the region—particularly in high-impact and sustainable sectors.
“The strong export performance clearly signals MSMEs’ growing international competitiveness,” said Datuk Ewon. “With the right ecosystem and support, they are well positioned to penetrate new markets and drive inclusive, resilient economic growth.”
For more information on SME Corp. Malaysia and ongoing MSME development initiatives, visit www.smecorp.gov.my.
