SME DEFINITIONS

SME RESOURCES

SME Definitions

Given that there have been many developments in the economy since 2005 such as price inflation, structural changes and change in business trends, a review of the definition was undertaken in 2013 and a new SME definition was endorsed at the 14th NSDC Meeting in July 2013. The definition covers all sectors, namely services, manufacturing, agriculture, construction and mining & quarrying.

Sales turnover and number of full-time employees are the two criteria used in determining the definition with the “OR” basis as follows:

For the manufacturing sector, SMEs are defined as firms with sales turnover not exceeding RM50 million OR number of full-time employees not exceeding 200.
For the services and other sectors, SMEs are defined as firms with sales turnover not exceeding RM20 million OR number of full-time employees not exceeding 75.

Detailed definition of category, namely micro, small and medium is as follows:

Under the new definition, all SMEs must be entities registered with SSM or other equivalent bodies. It however, excludes:

Entities that are public-listed on the main board; and
Subsidiaries of:
- Publicly-listed companies on the main board;
- Multinational corporations (MNCs);
- Government-linked companies (GLCs);
- Syarikat Menteri Kewangan Diperbadankan (MKDs); and
- State-owned enterprises.

For more information, please refer to the

Guideline on New SME Definition