Kuala lumpur: Malaysia's micro, small and medium enterprise (MSME) sector remains resilient as the sector's gross domestic product (GDP) grew by 5.7 per cent to almost RM690 billion in 2025. Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong said the growth outpaced the country's economic growth of 5.2 per cent despite global uncertainties including geopolitical tensions.
According to BERNAMA News Agency, the contribution of MSMEs to the country's GDP increased to 39.7 per cent in 2025 compared to 39.5 per cent the previous year, based on statistics from the Department of Statistics Malaysia (DOSM). Almost 1.3 million MSMEs now account for 96 per cent of all businesses in Malaysia.
Sim noted that geopolitical crises, wars, tariffs, rising energy costs, and economic slowdowns in trading partners have affected the Malaysian economy since last year. However, the economy continues to record stable growth amidst these challenges, as mentioned at the SME Corporation Malaysia's 2025 MSME Performance media conference.
The minister highlighted that more than 77 per cent of MSMEs still consist of micro enterprises, while only 1.1 per cent are in the medium category. The main challenge is to help more local businesses scale up and penetrate the global market.
MSME exports grew by 10.5 per cent to RM214.5 billion in 2025, surpassing the country's overall export growth of 5.9 per cent. The government plans to boost support for MSMEs by increasing funding allocations from RM50 billion to RM60 billion this year.
Additionally, an SME Stabilisation Relief Fund (SRF) of RM5 billion and the Power Up 10K initiative with RM15 billion in financing have been implemented to enhance the productivity and capacity of MSMEs. At the event, Sim also launched the Quick Guidebook on the Use of FTAs by SME Corporation Malaysia and witnessed the exchange of memorandum of understanding documents between SME Corporation Malaysia, Malaysia-China Chamber of Commerce (MCCC), and the Small and Medium Enterprises Association (SAMENTA).