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Last Update: July 9, 2008

Definition of SMEs

Generally, SMEs are defined into two broad categories:
1. Manufacturing, Manufacturing-Related Services and Agro-based industries
"Small and medium enterprises in the manufacturing, manufacturing related services and agro-based industries are enterprises with full-time employees not exceeding 150 OR with annual sales turnover not exceeding RM25 million"
2. Services, Primary Agriculture and Information & Communication Technology (ICT)
"Small and medium enterprises in the services, primary agriculture and Information & Communication Technology (ICT) sectors are enterprises with full-time employees not exceeding 50 OR with annual sales turnover not exceeding RM5 million"

In summary, detailed definition of SMEs by size are:
Category Micro-enterprise Small enterprise Medium enterprise
1. Manufacturing, Manufacturing-Related Services and Agro-based industries Sales turnover of less than RM250,000 OR full time employess less than 5 Sales turnover between RM250,000 and less than RM10 million OR full time employees between 5 and 50 Sales turnover between RM10 million and RM25 million OR full time employees between 51 and 150
2. Services, Primary Agriculture and Information & Communication Technology (ICT) Sales turnover of less than RM200,000 OR full time employees less than 5 Sales turnover between RM200,000 and less than RM1 million OR full time employees between 5 and 19 Sales turnover between RM1 million and RM5 million OR full time employees between 20 and 50

 

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