PERFORMANCE OF SMEs GDP
Malaysia’s SMEs GDP recorded a strong growth for 2017 at 7.2 per cent as compared to 5.2 per cent recorded in 2016. This performance exceeded Malaysia’s GDP and Non SMEs which registered 5.9 per cent and 5.1 per cent respectively as shown in Exhibit 1. The contribution of SMEs GDP to Malaysia’s GDP increased to 37.1 per cent from 36.6 per cent in the previous year.
Value added of SMEs at constant prices 2010 was RM435.1 billion as compared to RM405.8 billion in 2016. In nominal terms, SMEs GDP recorded RM512.8 billion in 2017 (2016: RM463.5 billion).
SMEs value added for Services sector registered a growth of 7.3 per cent as compared to 6.5 per cent in 2016 as shown in Chart 1. The growth momentum was accelerated by Wholesale & retail trade, food & beverage and accommodation subsector which grew to 7.5 per cent (2016: 6.8%) attributed by retail and motor vehicle segments. Moreover, the growth of Finance, insurance, real estate and business services subsector increased at 7.4 per cent (2016: 5.9%) and Transportation & storage and information & communication subsector which expanded to 6.8 per cent (2016: 5.9%) has supported the growth momentum.
In Manufacturing sector, value added of SMEs rose to 6.8 per cent (2016: 4.8%) led by Food, beverages and tobacco subsector which registered a double-digit growth of 11.0 per cent (2016: 2.9%). Furthermore, Non-metallic mineral products, basic metal & fabricated metal products grew 6.1 per cent from 6.2 per cent in previous year driven by Basic metal. Meanwhile, Petroleum, chemical, rubber & plastic products recorded a slower growth at 4.3 per cent (2016: 5.4%).
The value added of SMEs Agriculture sector rebounded to 7.3 per cent from a negative 1.9 per cent in the previous year. This was attributed by Rubber, oil palm, livestock & other agriculture subsector which expanded to 10.3 per cent (2016: -2.6%) following an increase in production of rubber and oil palm.
SMEs in Construction sector recorded a slower growth of 6.6 per cent (2016: 6.8%) with a value added of RM25.3 billion in 2017. This was due to the moderation in Specialised construction activities and Civil engineering. In addition, slower growth in Residential buildings has pulled down the overall performance of this sector. Meanwhile, value added of SMEs in Mining & quarrying sector grew 8.9 per cent from 8.2 per cent in 2016.
COMPOSITION BY KIND OF ECONOMIC ACTIVITY
SMEs activities are dominated by Services which contributed 59.7 per cent and Manufacturing sectors with a share of 21.5 per cent as depicted in Chart 2. The Agriculture sector contributed 11.2 per cent to SMEs GDP followed by the Construction and Mining & quarrying sectors which contributed 5.8 per cent and 0.4 per cent respectively.
CONTRIBUTION OF SMEs GDP BY KIND OF ECONOMIC ACTIVITY
From the perspective of SMEs GDP contribution by kind of economic activity, all sectors recorded a higher contribution in 2017 except for Construction sector. SMEs GDP led by the Agriculture sector with a share of 50.7 per cent sustained from 2016 as portrayed in Chart 3. This contribution was impelled by Rubber, oil palm, livestock and other agriculture subsector.
The contribution of SMEs GDP in Construction sector posted 47.1 per cent from 47.2 per cent in the preceding year. This was reflected by the lower contribution in Civil engineering activities.
SMEs GDP of Services sector expanded to 40.6 per cent as compared to 40.2 per cent in 2016 which was dominated by Wholesale & retail trade, food & beverage and accommodation subsector. Subsequently, Finance, insurance, real estate and business services subsector has also supported the Services sector.
SMEs GDP in Manufacturing sector recorded a marginal increase to 34.6 per cent (2016: 34.4%) attributed by Food, beverages and tobacco products. In addition, Non-metallic mineral products, basic metal & fabricated metal products also contributed towards the increment of SMEs GDP contribution in this sector. Meanwhile, the SMEs GDP in Mining & quarrying sector recorded a share of 1.9 per cent (2016: 1.8%) mainly in quarrying of granite, sand and stone.
SMEs exports increased RM12.3 billion (2017: 7.9%) to RM167.4 billion in 2017 which was supported by expansion in Services (2017: 6.7%), Manufacturing (2017: 7.8%) and Agriculture (2017: 48.1%) sectors. In terms of contribution, the share of SMEs exports to total exports registered 17.3 per cent in 2017 (Share 2016: 18.6%) where 8.7 per cent was from the Services sector, 8.2 per cent Manufacturing sector and 0.4 per cent Agriculture sector.
The contribution of SMEs employment to total employment increased from 65.3 per cent in 2016 to 66.0 per cent in 2017 (Chart 4). The expansion was propelled by the higher performance of SMEs employment which outpaced the momentum of national employment.
The largest contributor to the SMEs employment was the Services sector. Manufacturing was the second largest contributor followed by Agriculture, Construction and Mining & quarrying.
Statistics on SMEs are important in measuring the performance of small and medium scale firms for assisting the government in future developments on SMEs. Furthermore, these statistics are relevant since SMEs formed as the backbone in supporting the overall economy.
DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
3 August 2018
Ho Mei Kei
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : mkho[at]dosm.gov.my