Malaysia’s MSMEs Record Strong Growth, Contribute RM690 Billion to Economy

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KUALA LUMPUR, 1 August 2026 (The Capital Post) – Malaysia’s micro, small and medium enterprises (MSMEs) recorded strong performance in 2025, with their contribution to the national economy increasing to RM690 billion, surpassing overall economic growth, according to the Ministry of Entrepreneur Development and Cooperatives (KUSKOP).

Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong attended the MSME Performance 2025 Media Conference held at Kuala Lumpur Sentral, where the latest industry performance data was presented.

Based on official statistics from the Department of Statistics Malaysia (DOSM), MSMEs recorded a growth of 5.7 per cent in 2025, exceeding Malaysia’s economic growth of 5.2 per cent. Their contribution to the country’s Gross Domestic Product (GDP) also increased to 39.7 per cent.

The MSME sector also recorded positive export growth, increasing by 10.5 per cent to RM214.5 billion, reflecting the resilience and competitiveness of Malaysian businesses in adapting to changing global market conditions.

Steven said KUSKOP would continue strengthening MSME scaling initiatives through the Power Up 10K programme, supported by RM15 billion in financing, to help entrepreneurs improve productivity, expand their businesses and develop more innovative companies capable of competing globally.

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The event also saw SME Corp. Malaysia launching the Quick Guide on Utilising FTAs by SMEs, a practical guide designed to help MSMEs leverage Malaysia’s 17 Free Trade Agreements (FTAs).

The guide provides guidance for businesses to identify suitable FTAs, understand Rules of Origin requirements, and utilise tariff facilities and international market access opportunities.

Also present were KUSKOP Deputy Secretary-General (Policy and Monitoring) Tuan Haji Rahman Mohd Din; Deputy Secretary-General (Entrepreneurial Development) Datuk Saidatu Akhma Hassan; SME Corp. Malaysia Chairman Dato’ Teng Chang Khim; SME Corp. Malaysia Chief Executive Officer Rizal Dato’ Nainy; as well as senior officials from KUSKOP and its agencies.

According to a post on the official Facebook page of Kementerian Pembangunan Usahawan dan Koperasi, the ministry remains committed to empowering MSMEs through strategic initiatives aimed at strengthening business growth and competitiveness. – The Capital Post