Micro, Small & Medium Enterprises (MSMEs) Performance 

Overview

MSMEs’ GDP grew by 5.7 per cent, contributing 39.7 per cent in 2025

The Malaysia’s MSMEs GDP grew by 5.7 per cent exceeded Malaysia’s overall GDP of 5.2 per cent. The value added generated by MSMEs increased to RM689.8 billion as compared to RM652.8 billion in 2024, representing 39.7 per cent of Malaysia’s GDP. 

The Services and Manufacturing sectors remained the main contributors to MSMEs’ GDP, collectively accounting for 84.5 per cent. This was followed by Agriculture (8.4%), Construction (5.3%) and Mining & quarrying (0.5%) sectors.

The Exports of MSMEs in 2025 increased by 10.5 per cent to RM214.5 billion as compared to 29.5 per cent in 2024. The increase was supported by the Manufacturing and Services sectors, which grew by 8.8 per cent and 14.0 per cent, respectively. MSMEs’ exports accounted for 14.7 per cent of the total exports in 2025.

MSMEs' employment continued to increase in 2025, albeit at a slower growth of 1.5 per cent, reaching a total of 8.09 million persons (2024: 7.97 million persons). Consequently, the contribution of MSMEs to Malaysia’s total employment in 2025 was 48.7 per cent, an increase from 48.5 per cent in the previous year. 

MSMEs' labour productivity which measured by value added per employment improved by 4.1 per cent in 2025, to register a value of RM85,299 per person (2024: RM81,931 per person). All sector recorded a growth in labour productivity with the highest growth of MSMEs' labour productivity was recorded in the Construction sector (10.8%), followed by the Manufacturing (4.8%), Mining & quarrying (4.7%), Services (3.5%) and Agriculture (2.1%) sectors.
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