Defining Small and Medium Enterprises (SMEs)
Malaysian SMEs can be grouped into three categories : Micro, Small, or Medium.
These groupings are decided based on EITHER
- the numbers of people a business employs OR
- on the total sales or revenue generated by a business in a year.
I. Number of Employees
Based on the number of full-time employees :
| Primary Agriculture | Manufacturing (including Agro-Based) & MRS* | Services Sector (including ICT**) | |
| Micro | Less than 5 employees | Less than 5 employees | Less than 5 employees |
| Small | Between 5 & 19 employees | Between 5 & 50 employees | Between 5 & 19 employees |
| Medium | Between 20 & 50 employees | Between 51 & 150 employees | Between 20 & 50 employees |
*MRS : Manufacturing-Related Services
** ICT : Information and Communications Technology
II. Annual Sales Turnover
Based on annual sales turnover :
| Primary Agriculture | Manufacturing (including Agro-Based) & MRS* | Services Sector (including ICT**) | |
| Micro | Less than RM200,000 | Less than RM250,000 | Less than RM200,000 |
| Small | Between RM200,000 & less than RM1 million | Between RM250,000 & less than RM10 million | Between RM200,000 & less than RM1 million |
| Medium | Between RM1 million & RM5 million | Between RM10 million & RM25 million | Between RM1 million & RM5 million |
*MRS : Manufacturing-Related Services
** ICT : Information and Communications Technology






