INTRODUCTION

Contribution of SMEs to Gross Domestic Product (GDP) has been realigned with the rebasing of GDP to year 2010 and was compiled based on the new SMEs definition outlined by National SME Development Council. The value added of SMEs GDP for year 2014 are presented by kind of economic activity at current and constant 2010 prices.

PERFORMANCE OF SMEs GDP

In year 2014, value added of SMEs contributed 35.9 per cent to GDP at constant 2010 prices and 35.8 per cent at current prices as depicted in Table 1. This has portrayed the importance of SMEs industry in supporting and upholding the momentum of the Malaysia’s economy.

In terms of value, SMEs GDP at constant 2010 prices stood at RM363.5 billion as against the total value of economy at RM1,012.5 billion. Meanwhile, SMEs GDP posted a value of RM396.6 billion at current prices.

DISTRIBUTION BY KIND OF ECONOMIC ACTIVITY

In 2014, Services, Manufacturing and Agriculture sectors contributed 85.6 per cent to the overall GDP as portrayed in Chart 1. From SMEs GDP perspective, the combined share of the three sectors which accounted 92.8 per cent has mirrored the nation’s economic structure.  

CONTRIBUTION BY KIND OF ECONOMIC ACTIVITY

Chart 2 shows that the contribution of SMEs to the sector’s total value added. Agriculture sector posted the highest SMEs contribution with a share of 48.6 per cent. The SMEs in this sector was supported by Rubber, oil palm, livestock and other agriculture sub-sector especially in food crops such as vegetables and fruits. In addition, SMEs for Fishing sub-sector was supported by marine fishing.

SMEs for Construction sector contributed 47.9 per cent of total value added for the sector. Specialised construction activities and residential buildings sub-sectors were the main activities in SMEs of Construction.

For Services sector, the SMEs accounted 39.4 per cent to value added of the sector. Wholesale and retail trade, real estate & business services and food & beverage and accommodation sub-sectors were the prime movers of SMEs of Services sector.

Value added of SMEs in Manufacturing sector contributed 33.9 per cent of share backed by Petroleum, chemical, rubber and plastic products sub-sector. Food, beverages and tobacco sub-sector was the second largest contributor and followed by Non-metallic mineral products, basic metal and fabricated metal products sub-sector. 

In year 2014, SMEs for Mining and Quarrying sector made-up 1.6 per cent of share to total value added of this sector. This was spearheaded by quarrying of granite and limestone.