The contribution to the gross domestic product (GDP) by micro, small and medium enterprises (MSMEs) grew by 5% in 2023, with a value-added of RM613.1 billion and contributing 39.1% to Malaysia’s economy, according to the Department of Statistics Malaysia (DOSM).
MSMEs’ growth has surpassed Malaysia’s GDP growth of 3.6% in 2023.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said that the services and manufacturing sectors are the main contributors, which comprises 84.8% of the MSMEs’ GDP.
“The agriculture sector contributed 9.1% to MSMEs’ GDP, followed by the construction (4.5%) and mining and quarrying (0.5%) sectors,” he said in a statement.
Mohd Uzir said the services sector increased 6.5% in 2023 from 17.2% in the preceding year.
“The performance was supported by steady growth in the main sub-sectors, namely wholesale and retail trade, food and beverages and accommodation (5.7%), finance, insurance, real estate and business services (6.3%) and transportation and storage and information and communication (10.6%).
The manufacturing sector recorded a growth of 1.5% (2022: 6%) and was influenced by positive growth in food, beverages and tobacco (5%) and non-metallic mineral products, basic metal and fabricated metal products (5.3) sub-sectors.
The value added of MSMES in the agriculture sector increased 1.3% in 2023, higher than the 0.9% growth in the preceding year.
The performance was supported by the rubber, oil palm, livestock & other agriculture (1.8%) and fishing (0.5%) sub-sectors.
Meanwhile, MSMEs’ value added of construction, mining and quarrying sectors also expanded by 5.8% (2022: 5%) and 4.9% (2022: 10.7%), respectively.
On another note, Mohd Uzir said exports of MSMEs stood at RM152.2 billion with a growth of 4.5% in 2023, slower than the 17.2% recorded in the preceding year.
He said MSMEs’ employment continued to register an increase, albeit at a slower annual growth of 3.5% compared to 3.8% in 2022, to record a total of 7.86 million persons from 7.59 million persons in 2022.
“Accordingly, the contribution of MSMEs employment to Malaysia’s employment in 2023 was 48.5%, which grew 0.3 percentage points from 48.2% in 2022,” he said.
— BERNAMA
