MSMEs generate over 8 million jobs

Malaysia's Micro, Small, and Medium Enterprises (MSMEs) have shown significant growth with government support, recording an RM870 million increase in sales and RM6.8 billion in export sales last year. Minister of Entrepreneur Development and Cooperatives, Steven Sim Chee Keong, announced that 344 entrepreneurship and development programs for MSMEs were allocated RM31.3 billion in the past year. These initiatives successfully created 6,600 new entrepreneurs, improved business management for 50,000 MSMEs, and facilitated the digitalization of operations for 8,000 MSMEs.

The government's commitment continues this year with plans for over 300 MSME development programs, backed by a RM60 billion allocation. These programs will cover financing, human capital development, market access, infrastructure, and the adoption of technology and innovation. The initiatives align with the ministry's ABCD framework: Productivity Leap, Simplified Bureaucracy, Capital Access, and Market Access.

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Our aspiration is not just to see MSMEs continue to do business, but to help more Malaysian MSMEs move to the next level, from small enterprises to high-value companies, from the local market to international markets, and from being technology users to creators of value and innovation.

Minister Sim emphasized that the growth of MSMEs is vital for a stronger national economy, creating more job opportunities and improving citizens' well-being. The aim is not only to sustain MSME businesses but to elevate them to higher value, expand their reach from local to international markets, and transform them from technology users to creators of value and innovation.

In recognition of International MSME Day 2026, Sim acknowledged the millions of Malaysians who rely on MSMEs for their livelihood. Despite global challenges like supply chain disruptions and geopolitical uncertainty, MSMEs remain the backbone of the people's economy. They contribute nearly 40% to Malaysia's Gross Domestic Product (GDP) and provide over eight million jobs, representing almost half of the nation's workforce. The Madani government remains dedicated to reinforcing the support ecosystem for these enterprises.

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Although the world today faces various challenges, including rising operational costs due to the Global Supply Chain Crisis (GSC) and geopolitical uncertainty, the MSME sector remains the backbone of the people's economy, contributing nearly 40 percent to Malaysia's Gross Domestic Product (GDP) and providing over eight million job opportunities, equivalent to almost half of the nation's workforce.