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News & Events

[ 26-08-2013 ]
Boost for SMEs with enhanced qualifying threshold

The government today announced a new definition of small medium enterprises (SMEs), which should see an increase in the number of such firms and  facilitate the country's transformation into a high income nation.

In making the announcement, Prime Minister Datuk Seri Najib Razak, who is also Finance Minister, said the new definition is effective from Jan 1, 2014.

Speaking after the National SME Development Council meeting today, he said the proposal to enhance the qualifying threshold for annual turnover and number of workers for all SME sectors had been approved.   

For the services sector, he said the value threshold was also raised, with SMEs defined as firms with annual sales not exceeding RM20 million (RM5 million or less, now) or not more than 75 workers (less than 50 workers currently).

Also, Najib said micro enterprises are firms with annual sales of less than RM300,000 or fewer than five workers.

"The review is right for the present, in view of the changing economy, and the new definition means the number of firms classified as SMEs will increase. The percentage of SMEs covered will increase to 98.5 per cent, up from 97.3 per cent at present," he told a media conference.

Najib had earlier chaired the meeting of the 14th National SME Development Council at Bangunan Perdana Putra. Also present was the Chief Secretary to the Governmen,t Tan Sri Dr Ali Hamsa, Bank Negara Malaysia Governor, Tan Sri Zeti Akhtar Aziz and the chief executive of SME Corp, Datuk Hafsah Hashim.