Micro Enterprises


Definition of Micro Enterprises (MEs)

Sectors i) Annual Sales Turnover or ii) No. of Full time Employees
Manufacturing, Manufacturing-Related Services, & Agro-based Industries Less than RM250,000 OR Less than 5
Services, Primary Agriculture, Information & Communication Technology (ICT) Less than RM200,000 OR Less than 5

Profile of SMEs
Based on the Census of Establishments & Enterprises 2005 by the Department of Statistics Malaysia, out of the 548,267 SMEs established in Malaysia, 435,324 (78.7%) business establishments were contributed by the Micro Enterprises (MEs). The MEs involved in all three main sectors in Malaysia, namely:

  • Services – 381, 585 MEs (87.7%)
  • Agriculture – 31, 838 MEs (7.3%)
  • Manufacturing – 21, 516 MEs (4.9%)

Financial Assistance for MEs

  1. General Key Features of Micro Financing (MF) are:

    Who Is Eligible? Micro Enterprises ; and Self employed individuals.
    Loan Size Ranges from RM500 to RM50,000
    Purpose of Financing Working Capital or Capital Expenditure
    Loan Tenure Varies from 1 month to 10 years
    Collateral Requirement No collateral requirement
    Loan Application Minimum (as simple as 2 pages)
    Loan Documentation Minimal documents, such as Identity Card, proof of business (i.e. business registration/ license/permit), proof of income

  2. The Agencies Providing MF Schemes are:
    1. Amanah Ikhtiar Malaysia (AIM)
    2. TEKUN Nasional (TEKUN)
    3. Skim Pembiayaan Mikro by Bank Negara Malaysia channeled through 10 Participating Financial Institutions (FIs)
      1. Agrobank
      2. Bank Rakyat
      3. Bank Simpanan Nasional (BSN)
      4. Alliance Bank
      5. AmBank
      6. CIMB Bank
      7. EONCAP Islamic Bank
      8. Public Bank
      9. United Overseas Bank
      10. Maybank
        • SPM is offered at more than 2,600 branches and affiliates / agents;
        • A National Microfinance Logo to provide prominent identity and create greater awareness on microfinance;
        • Branches of FIs that offer microfinance displayed the logo;
        • MF customers are encouraged to display the logo at their business premises;
        • The 9 FIs will determine the interest or profit rate to be charged and applications are subject to the normal credit approval process of the participating FIs.

Please click here to download the comparative table on pembiayaan mikro products features

Programmes for MEs

  • Basic entrepreneurial trainings are made available by Institut Keusahawanan Negara (INSKEN); GIATMARA; and INFRA.
  • Several Entrepreneurial Development programmes also made available by Lembaga Koko Malaysia and Lembaga Getah Malaysia;
  • Technopreneur Development and management support by Multimedia Development Corporation;
  • Hand holding programme for companies involved in agriculture and agro-based industry by Ministry of Agriculture and Agro Based Industries; and
  • Conversion programme to promote entrepreneurship among technical students and graduates by Ministry of Rural and Regional Development.
  • For marketing programmes, MEs are invited to participate in exposition programmes such as Gerak Usahawan and Satu Daerah Satu Industri. These events provide opportunity for MEs to promote their products and services to the general public.
  • For physical infrastructure programme, the Government through the local authorities have been providing hawker centres, designated location for night market and continuous beautification projects to improve existing business premises.
  • For MEs involve in the tourism sector, financial assistance have been provided from the improvement of home-stay which is becoming an increasingly popular holiday destination.


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