MSMEs Records 11.6% GDP Growth In 2022, Contributes RM580.4 Billion To Economy

Micro, Small and Medium Enterprises (MSMEs) recorded a remarkable Gross Domestic Product (GDP) growth in 2022 with a double-digit growth of 11.6%, a significant increase compared to 1.3% in 2021. Contribution of MSMEs to national GDP also increased to 38.4% compared to 37.4% in 2021.

Based on data released by the Department of Statistics, Malaysia (DOSM), growth of MSMEs also outpaced the overall GDP growth at 8.7% (2021: 3.3%). As a result, MSME contribution to the national economy increased from RM520.0 billion in 2021 to RM580.4 billion in 2022. The performance was announced during the Press Conference on MSME Performance 2022 by YB Datuk Ewon Benedick, Minister of Entrepreneur and Cooperatives Development at Bangi Resort Hotel today.

MSME exports continued to soar with an increase of RM20.2 billion to RM144.5 billion compared to RM124.3 billion in 2021. However, the contribution of MSMEs to total exports decreased to 10.5% in 2022 compared to 11.4% in 2021 as exports by large companies and multinationals grew at a faster rate.

In terms of labour market, MSMEs employed a total of 7.59 million workers in 2022 which is an increase of 3.8% with contribution of MSMEs to total employment rose to 48.2% in 2022 (2021: 47.8%). Meanwhile, MSME labour productivity has also improved with a value of RM76,433 per employee compared to RM71,089 per employee in the previous year.

According to YB Datuk Ewon Benedick, “In an effort to increase the growth of MSMEs to be more resilient and sustainable, the Ministry of Entrepreneur and Cooperatives Development (MECD) through its agency SME Corp. Malaysia will stay committed to strengthen the implementation of MSME development programmes in a targetted manner. To date, there are 225 MSME development programmes that are being implemented by 12 Ministries, 56 Agencies and 7 State Governments with an allocation of RM10.6 billion.”

Among the strategies and initiatives involving MSMEs are the internationalisation of local MSMEs, attracting more investors to finance MSMEs, increase the digitalisation matching grant of RM100 million to facilitate digitalisation of MSMEs and an increased allocation of RM400 million for micro financing under agencies including SME Corp. Malaysia and TEKUN Nasional which are agencies under KUSKOP.”

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