MSMEs’ GDP Grew to 1% in 2021: DoSM

Malaysia’s economy regain his momentum in 2021, where the country has transitioned to Phase 4 of the National Recovery Plan and inter-state travel restrictions were lifted. the gradual recovery will enable intrapreneurs to pick up business momentum, thus fueling Malaysia’s economic recovery. Nevertheless, Malaysia’s economic performance in 2021 is still lower than pre-pandemic levels in 2019. Subsequently, the share of micro, small and medium enterprises (MSMEs) In terms of gross domestic product (GDP), exports and employment remain to decline in 2021.

Malaysia’s MSMEs GDP in 2021 grew to 1% (2020:-7.3%), which was slower than Malaysia’s GDP. The same trend was seen since 2020 according to the time series of Malaysia’s GDP and that of MSMEs.

The contribution of MSMEs to GDP decline to 37.4% In 2021 with a value added of RM518.1 billion as compared to 38.1% (Value added: RM512.9 billion) in the previous year. Just services and manufacturing sectors up whole is position as the main contributions of MSMEs’ GDP activities, which both sectors represent more than 80% of MSMEs’ GDP. Furthermore, MSMEs’ GDP Registered RM572.6 billion in nominal terms this year.

MSMEs value-added for the manufacturing sector rebounded to 8.5% from a decrease of 2.9% in the preceding year. This favorable performance was driven by a positive growth in all sub sectors, which was reflected in a strong growth particularly in petroleum chemical rubber and plastic products, which search by 14.4% (2020: 3.2%). Meanwhile, the food, beverages and tobacco also strengthened to 4.6% as compared to the previous year (2020: 1.9%)

likewise the value added of Ms ME in agricultural sector expanded to 1.9% from – 0.7% in the preceding year. The performance was supported by the rubber, palm-oil, livestock and other agriculture subsector which flourished to 2.5% in 2021 (2020:1%). On the other hand the fishing subsector continued to record negative growth this year.

Nevertheless, value-added of MSMEs in the mining and quarrying sector control 3.1% (2020: -8.1%) while the construction sector narrowed 4.6% from – 15.4% in the previous year.

Moreover, MSMEs in the services sector recorded a smaller decrease of 1.2% as against to – 9% in the preceding year. The decline was influenced by the 5.8% drop in finance, insurance, real estate and business services subsector (2020: -10.3%). Besides that, transportation and storage and information and communication subsector registered and expansion of 2.9% (2020: -11.2%).

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