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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

Info Line: 03-2775 6204
03-2775 6157
03-2775 6306
Fax Line: 03-2775 6001
Email: info[at]smecorp[dot]gov[dot]my

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