PUTRAJAYA, Sept 5 (Bernama) -- The number of micro, small and medium enterprises (MSMEs) in Malaysia decreased to 1,101,725 in 2023, down from 1,173,601 in 2022, partly due to their transition into larger enterprises, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He said by business size, small firms saw significant growth, with a 35.8 per cent annual increase in the number of establishments, while medium-sized firms grew by 7.9 per cent compared to 2022.
“This progress underscores the success of government initiatives aimed at scaling up MSMEs over the past year. Micro enterprises made up of 69.7 per cent of all MSMEs in 2023, small firms represented 28.5 per cent and medium-sized enterprises accounted for 1.8 per cent,” he said in a statement today.
The statement followed Ahmad Zahid’s chairing of the National Entrepreneur and MSME Development Council (MPUPK) Meeting No. 2 for 2024 in Putrajaya, also attended by federal and state ministers, Chief Secretary to the Government Shamsul Azri Abu Bakar and senior ministry officials.
The meeting also addressed Malaysia's ranking in the World Competitiveness Ranking (WCR) and its impact on MSMEs, as reported by the Malaysia Productivity Corporation (MPC).
According to the report, Malaysia's ranking dropped to 34th place in the 2024 WCR. The review identified a shortage of skilled labour and challenges in talent retention as factors affecting MSME efficiency and their ability to meet international standards.
In response, strategic improvements are underway, including partnerships with the Institute for Management Development (IMD) for insights and guidance on enhancing Malaysia’s competitiveness while micro-analyses of competitiveness indicators are being conducted to identify and address areas for improvement.
“The Ministry of Investment, Trade and Industry (MITI), through MPC, is coordinating the development of an action plan to boost national competitiveness (July-August 2024) while the National Competitiveness Committee will oversee the implementation of this plan starting in September,” Ahmad Zahid added.
The meeting also featured discussions on several key documents, including the SME Integrated Plan of Action (SMEIPA) 2023/2024, the performance of MSMEs for 2023 and situation analysis for 2024 by SME Corporation Malaysia.
The discussion also focused on entrepreneurial programs and MSME development for 2024, with 307 programs currently being implemented and an allocation of RM16.77 billion for the year, the deputy prime minister said.
He said the discussions also included strategies for the near-term development of MSMEs, such as leveraging Free Trade Agreements (FTAs) and foreign investment, promoting environmental, social and governance (ESG) principles.
They also included enhancing triple-helix cooperation between the public sector, private sector and higher education institutions (IPTA) and boosting entrepreneurial activities in Sabah and Sarawak.
The third presentation covered the paper “Fostering Access for MSMEs and Mid-Tier Companies (MTC) to Capital Markets: A 5-Year Roadmap (2024–2028)” by the Securities Commission aimed at making capital markets a more attractive and robust financing source for MSMEs and MTCs.
-- BERNAMA
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