Background

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Background on SME Definitions

In 2005, the National SME Development Council (NSDC) approved the use of common definitions for SMEs in the manufacturing, manufacturing-related services, primary agriculture and services sectors.*** These definitions are applied by all Government Ministries and Agencies involved in SME development, as well as by the financial institutions.

The use of common definitions for SMEs will:

  • strengthen government efforts to create effective policies and support programmes for specific target ;
  • make it easier to provide technical and financial assistance to SMEs; and
  • allow for the identification of SMEs in the various categories and levels.

To view the Guidelines on "Definitions for SMEs in Malaysia", which was released by the Secretariat on 13 September 2005, please click on the link below :

*** Classification of economic activities is based on the Malaysian Standard Industrial Classification (MSIC) 2000 codes.