Business Demography
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Business Demography
Overview
The
enterprise birth rate rose to 7.5 per cent in 2024, led
by the Services sector at 7.8 per cent
The
business demography statistics present an analysis of the life cycle of
enterprises from their inception and business operations to closure, as well as
the duration for which enterprises are able to survive before ceasing activities.
This publication provides key parameters, namely the number of active enterprises,
births, deaths and survival rates. The enterprises covered in this publication
are business entities registered with the Companies Commission of Malaysia
(CCM) under the Registration of Companies (ROC).
The
number of active enterprises reached its highest level in 2024 with 734,089
enterprises, dominated by the Services sector with 583,270 (79.5%). The number
of enterprise births in 2024 increased to 55,376, with
the birth rate strengthening to 7.5 per cent,
surpassing 7.3 per cent in 2023. The highest birth rate was recorded in the
Services sector at 7.8 per cent, followed by the Construction and Mining &
quarrying sectors, each at 6.8 per cent. Notably, within the Services sector,
the Food & beverages (13.8%), Arts, entertainment & recreation (12.6%)
and Information & communication (11.5%) sub-sectors recorded the highest
enterprise birth rates.
Furthermore,
the number of enterprise deaths in 2024 amounted to 28,924, as compared to
33,077 enterprise in the previous year. Consequently, the enterprise death rate
declined to 3.9 per cent from 4.7 per cent in 2023. The highest death rate was
recorded in the Mining & quarrying sector at 5.1 per cent, with the Mineral
mining & quarrying sub-sector recording a rate of 5.2 per cent, while the
Petroleum & natural gas sub-sector stood at 4.6 per cent. The Services
sector ranked second with a death rate of 4.0 per cent, followed by the Agriculture
sector at 3.9 per cent.
The survival rate of enterprise births in 2019 and still operating in 2024
was 69.9 per cent. This five-year survival rate was
higher as compared to the 2018–2023 rate of 66.5 per cent and the 2017-2022 rate
of 66.1 per cent. The Construction sector recorded the highest rate at 72.8 per
cent, followed by the Manufacturing sector at 70.3 per cent and the Services
sector at 69.8 per cent. The top sub-sector with the highest five-year survival rate in each sector was Residential
buildings at 76.8 per cent in the Construction sector, while Transport
equipment, other manufacturing & repair stood at 73.2 per cent in the Manufacturing
sector. Meanwhile, eight sub-sectors recorded survival rates exceeding the
overall level of Services sector, with Private health & social work
sub-sector recording the highest survival rate at 79.2 per cent.
Looking into state-level business demography, four states recorded
enterprise birth rates exceeding the national
level, namely W.P. Putrajaya (9.7%), Johor (9.2%), W.P.
Kuala Lumpur (7.8%) and Selangor (7.7%). On the other hand, Perlis registered
the highest enterprise death rate in 2024 at 4.7 per cent, with Kelantan and
W.P. Putrajaya recording 4.6 per cent and 4.5 per cent respectively. At the
same time, W.P. Labuan registered the highest five-year survival rate at 77.8
per cent, followed by Sarawak (77.3%) and Perak (76.2%). Eleven states recorded
a five-year survival rate above the national rate of 69.9 per cent.
ASEAN-Malaysia 2025 Chairmanship: The Department of Statistics Malaysia
(DOSM) will chair the 15th ASEAN Community Statistical System
Committee (ACSS15) which aims to strengthen the statistical cooperation towards
sustainable regional development.
Malaysia, for the first
time, ranked as number one (1) globally in the biennial Open Data Inventory
(ODIN) 2024/25 report released by Open Data Watch (ODW), surpassing 197 other
countries. This achievement marks a significant leap from its 67th
position in the ODIN 2022/23 assessment.
The Government of Malaysia has declared October 20th as
National Statistics Day (MyStats Day), with the theme 'Statistics is the Essence of Life'. Meanwhile,
the Fourth World Statistics Day was celebrated on 20th October 2025,
with the theme ‘Driving Change with Quality Statistics and Data for Everyone’.
OpenDOSM NextGen is a medium that provides data catalogue and
visualisations to facilitate users' analysis and can be accessed through https://open.dosm.gov.my.
Released by:
DEPARTMENT OF STATISTICS MALAYSIA
28 OCTOBER 2025
Press Statement
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