Languages: Others

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:

sme def


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


Source: SME Corp. Malaysia


SME Corporation Malaysia,
Level 6, SME 1, Block B 
Platinum Sentral
Jalan Stesen Sentral 2
Kuala Lumpur Sentral
50470 Kuala Lumpur.

General Line: 03-2775 6000
Fax Line: 03-2775 6001
Info Line: 1-300-30-6000
Email: info[at]smecorp[dot]gov[dot]my

Feedback Form



miti icon MIDA matrade edit 1
MPC edit MIDF edit SME Bank edit
hdc edit1 MSI edit Mai edit





SME in Malaysia

SME Perfomance & Outlook

SME Masterplan

SME Policiess


Business Guides

Success Stories

Business Directory

Business Ethics