Definitions for Small and Medium Enterprises in Malaysia
DEFINITIONS FOR SMALL AND MEDIUM ENTERPRISES IN MALAYSIA
(Approved for Adoption by National SME Development Council on 9 June 2005)
Issued by: Secretariat to National SME Development Council Bank Negara Malaysia 13 September 2005
CONTENTS
Page 1. Rationale for Standard Definitions for Small and Medium Enterprises
2
2. Coverage of Definitions for SMEs in Malaysia
2
3. Approved SME Definitions
3
4. Application of Approved SME Definitions 5. Usage of Common Identifier
6 7
6. Secretariat to National SME Development Council
7
Appendix 1: National SME Development Council Appendix 2: Classification of Economic Activities Across Sectors Based on MSIC 2000
Definitions for Small and Medium Enterprises in Malaysia
1. RATIONALE
FOR
STANDARD
DEFINITIONS FOR SMALL AND MEDIUM
ENTERPRISES 1.1 Presently, there is no common definition of small and medium enterprises (SMEs) in Malaysia. Different Agencies define SMEs based on their own criteria, usually benchmarking against annual sales turnover, number of full-time employees or shareholders’ funds. In addition, present definitions focus mainly on SMEs in the manufacturing sector. 1.2 The establishment and adoption of standard definitions for SMEs will facilitate better identification of SMEs across sectors, thus enabling more effective formulation of SME policies and implementation of SME development programmes, and provision of technical and financial assistance. It will also allow better monitoring of SME performance and their contribution to the economy. 1.3 The National SME Development Council has, on 9 June 2005, approved the common definitions of SMEs across economic sectors, for adoption by all Government Ministries and Agencies involved in SME development, as well as financial institutions. Details on the Council are provided in Appendix 1.
2. COVERAGE OF DEFINITIONS FOR SMEs IN MALAYSIA 2.1 For wider coverage and applicability, definitions of SMEs will be based on
(Approved for Adoption by National SME Development Council on 9 June 2005)
Issued by: Secretariat to National SME Development Council Bank Negara Malaysia 13 September 2005
CONTENTS
Page 1. Rationale for Standard Definitions for Small and Medium Enterprises
2
2. Coverage of Definitions for SMEs in Malaysia
2
3. Approved SME Definitions
3
4. Application of Approved SME Definitions 5. Usage of Common Identifier
6 7
6. Secretariat to National SME Development Council
7
Appendix 1: National SME Development Council Appendix 2: Classification of Economic Activities Across Sectors Based on MSIC 2000
Definitions for Small and Medium Enterprises in Malaysia
1. RATIONALE
FOR
STANDARD
DEFINITIONS FOR SMALL AND MEDIUM
ENTERPRISES 1.1 Presently, there is no common definition of small and medium enterprises (SMEs) in Malaysia. Different Agencies define SMEs based on their own criteria, usually benchmarking against annual sales turnover, number of full-time employees or shareholders’ funds. In addition, present definitions focus mainly on SMEs in the manufacturing sector. 1.2 The establishment and adoption of standard definitions for SMEs will facilitate better identification of SMEs across sectors, thus enabling more effective formulation of SME policies and implementation of SME development programmes, and provision of technical and financial assistance. It will also allow better monitoring of SME performance and their contribution to the economy. 1.3 The National SME Development Council has, on 9 June 2005, approved the common definitions of SMEs across economic sectors, for adoption by all Government Ministries and Agencies involved in SME development, as well as financial institutions. Details on the Council are provided in Appendix 1.
2. COVERAGE OF DEFINITIONS FOR SMEs IN MALAYSIA 2.1 For wider coverage and applicability, definitions of SMEs will be based on