Factsheet on new sme definition in Malaysia

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New definition of SMEs in Malaysia. Started January 2014. Percentage of SMEs in other countries and guiding principles in determining the new definition.

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Factsheet on new sme definition in Malaysia

  1. 1. FACTSHEET ON NEW SME DEFINITION Current SME Definition (adopted since 2005) Introduction  New SME Definition was endorsed by the National SME Development Council (NSDC) on 11 July 2013.  Covers all sectors including construction and mining & quarrying.  Adopted top-down and bottom-up approaches i.e technical analysis, global benchmarking and stakeholder engagements with industry associations, M&A, regulators and financial institutions to derive the definition.  Expected to raise the share of SMEs to total establishments from 97.3% currently to 98.5%.  Only business entities registered with SSM or equivalent are defined as SMEs. Comparison of SME Definition Criteria Used Across Countries Manufacturing & MRS: Sales turnover: < RM25 mil OR Full-time employees: < 150 Services & Agriculture: Sales turnover: < RM5 mil OR Full-time employees: < 50 Guiding Principles in Determining the New Definition New SME Definition (Effective from 1 Jan 2014)  For the manufacturing sector, SMEs are defined as firms with sales turnover not exceeding RM50 million or number of full-time employees not exceeding 200  For the services and other sectors, SMEs are defined as firms with sales turnover not exceeding RM20 million or number of full-time employees not exceeding 75 Economics and Policy Planning Division, SME Corp. Malaysia 16 October 2013

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