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MSMEs made up 48.7% of total employment in Malaysia in 2024, while labour productivity improved across all sectors, new data from DOSM has revealed.
Malaysia’s micro, small and medium enterprises (MSMEs) continued to play a crucial role in the country’s economy in 2024, according to the Department of Statistics Malaysia (DOSM). These businesses contributed RM652.4bn in value added to the national economy, making up 39.5% of GDP, a 5.8% increase from the year before.
This growth slightly outpaced the country’s overall GDP growth of 5.1% and was largely fuelled by strong performances in the services and manufacturing sectors, supported by a rebound in tourism and consumer activity.
GDP contribution grew 5.8%, led by services and manufacturing
The gross domestic product (GDP) of MSMEs increased by 5.8% in 2024 to RM652.4bn. This made up 39.5% of Malaysia’s total GDP, compared to 4.9% growth in MSMEs’ GDP in 2023.
According to Dato’ Sri Dr Mohd Uzir Mahidin, Chief Statistician, the expansion was largely supported by the services and manufacturing sectors, which together contributed 84.7% of MSMEs’ total GDP. The remaining sectors were agriculture (8.7%), construction (5.0%), and mining and quarrying (0.5%).
Within the services sector, growth was recorded at 5.7%, driven by:
- Wholesale & retail trade, food & beverages, and accommodation (4.5%)
- Finance, insurance, real estate & business services (8.4%)
- Transportation & storage, and information & communication (8.6%)
The manufacturing sector grew by 5.0%, an increase from 1.5% in 2023. Key sub-sectors contributing to this growth included non-metallic mineral products, basic metal & fabricated metal products (8.1%), food, beverages and tobacco (5.3%), as well as other manufacturing (3.9%).
In the agriculture sector, MSMEs recorded value-added growth of 2.5%, following a marginal increase of 0.8% in 2023. The construction sector recorded significant growth of 17.3%, while mining & quarrying expanded by 3.8%.
MSMEs’ exports up 31.3%, driven by services and manufacturing
MSME exports increased by 31.3% in 2024 to RM196.8bn. This growth was mainly supported by the services sector, which grew by 114.8%, and the manufacturing sector, which grew by 7.9%. In total, MSMEs accounted for 14.3% of Malaysia’s total exports.
Manufacturing exports by MSMEs rose to RM122.0bn, an increase from RM113.1bn in 2023. The top categories included miscellaneous manufactured articles, machinery & transport equipment, and manufactured goods. The main export destinations were Singapore (16.0%), China (13.6%), and the United States (12.3%).
Exports from MSMEs in the services sector rose from RM33.2bn in 2023 to RM71.3bn in 2024. The increase was mainly due to higher travel-related exports, supported by the rise in international tourist arrivals from 29.0mn to 38.0mn. Other contributors included business services & telecommunication, computer & information services.
In contrast, MSME exports in the agriculture sector fell by 4.9% to RM3.5bn, a decrease from RM3.7bn the year before. The decline was attributed to lower exports of durians, pineapples, ornamental fish and poultry, which together dropped from RM1.8bn in 2023 to RM1.4bn in 2024.
Sectoral breakdown of MSME employment
Employment among MSMEs in Malaysia continued to rise in 2024, though at a slower pace. The number of employed persons grew by 3.1% to 8.10mn, compared to 3.5% in 2023. MSMEs made up 48.7% of total employment in the country, an increase from 48.5% the year before.
By sector, agriculture-related MSMEs employed 800,000 people, contributing 42.3% of total employment in the sector. This was a marginal increase of 0.6% from the previous year.
In the mining & quarrying sector, MSMEs employed 21,000 people, or 28.0% of the sector's workforce. This marked a growth of 1.8%.
Manufacturing-related MSMEs employed 1.31mn people, up 2.7% from the previous year. They made up 46.2% of total employment in the sector.
In construction, MSMEs accounted for 48.1% of total sector employment, with 678,000 people employed. This represented a 0.4% year-on-year increase.
The services sector remained the largest contributor to MSME employment. The number of employed persons in this sector grew by 4.0% to 5.29mn, making up 50.8% of total employment in the sector. This was mainly driven by wholesale & retail trade, food & beverage, and accommodation activities.
Labour productivity up in all sectors
Apart from construction, which recorded the highest increase in productivity at 16.8%, other sectors also showed improvements:
- Manufacturing: 2.2%
- Mining & quarrying: 2.0%
- Agriculture: 1.9%
- Services: 1.6%
“MSMEs' labour productivity, as measured by value added per employment improved by 2.6 per cent, reaching RM80,507 per person (2023: RM78,475 per person),” said Dr Uzir.
Revisions made to historical data
DOSM noted that revisions were made to MSME GDP and labour productivity data for 2022 and 2023, based on updated company annual reports, profiles from the Economic Census 2023, and secondary data from relevant agencies. Export data was revised only for the year 2023.
These updates were made in line with international statistical standards to enhance the reliability, comparability and timeliness of the data.
Lead image / DOSM infographic
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