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Definitions for Small and Medium Enterprises in Malaysia

3.2.4 A medium enterprise in manufacturing (including agro-based) and MRS is


an enterprise with full-time employees of between 51 and 150 or with
annual sales turnover of between RM10 million and RM25 million.

3.3 Services (including ICT)

General Definition

3.3.1 A small and medium enterprise in services is an enterprise with full-time


employees not exceeding 50 or annual sales turnover not exceeding RM5
million.

Specific Definitions

4.1 A micro enterprise in services is an enterprise with full-time employees of


less than 5 or with annual sales turnover of less than RM200,000;

4.2 A small enterprise in services is an enterprise with full-time employees of


between 5 and 19 or with annual sales turnover of between RM200,000
and less than RM1million; and

3.3.4 A medium enterprise in services is an enterprise with full-time employees


of between 20 and 50 or with annual sales turnover of between RM1
million and RM5 million.

3.4 The table below summarises the approved SME definitions based on number of
full-time employees:

Primary Agriculture Manufacturing Services Sector


Sector (including Agro- (including ICT)
Based) & MRS
Size
Micro Less than 5 employees Less than 5 employees Less than 5 employees

Small Between 5 & 19 Between 5 & 50 Between 5 & 19


employees employees employees
Medium Between 20 & 50 Between 51 & 150 Between 20 & 50
employees employees employees

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Definitions for Small and Medium Enterprises in Malaysia

3.5 The table below summarises the approved SME definitions based on annual
sales turnover:

Primary Agriculture Manufacturing Services Sector


Sector (including Agro- (including ICT)
Based) & MRS
Size
Micro Less than RM200,000 Less than RM250,000 Less than RM200,000

Small Between RM200,000 & Between RM250,000 & Between RM200,000 &
less than RM1 million less than RM10 million less than RM1 million

Medium Between RM1 million & Between RM10 million Between RM1 million &
RM5 million & RM25 million RM5 million

4. APPLICATION OF APPROVED SME DEFINITIONS

4.3 The approved definitions are to be adopted by all the relevant stakeholders
dealing with SMEs. These include Ministries and Agencies at Federal and State
levels (including Statutory Bodies and local authorities), as well as financial
institutions.

4.4 The scope of application should, among others, encompass data collection;
formulation of SME policies and programmes; and identification of eligibility status
for SME financial assistance and support programmes. However, additional
eligibility requirements can be applied based on specific development objectives
of respective stakeholders.

4.5 For purposes of data collection, all relevant Ministries, Government Agencies and
financial institutions should maintain data on companies and businesses based
on both annual sales turnover and number of full-time employees.

4.3.1 However, stakeholders that are unable to collect and maintain data based
on both criteria should notify the Secretariat on the criteria used, that is,
either annual sales turnover, or number of full-time employees.

4.4 All stakeholders involved in SME development are required to harmonise their
data collection procedures based on the size and sectoral classifications above.
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