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SMEs’ contribution to GDP rises to 38.9 pct in 2019 — DOSM

Malaysia’s Small and Medium Enterprises’ (SMEs) contribution to the gross domestic product (GDP) increased to 38.9% in 2019 from 38.3% in 2018, according to the Department of Statistics Malaysia (DOSM).

It said the SMEs’ GDP for the year 2019 grew 5.8% as compared with 6.2% in the preceding year.

“The value added of SMEs at constant 2015 prices escalated to RM552.3 billion from RM522.1 billion in 2018,” it said in a statement today.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said SMEs value added for the services sector registered a growth of 7.4% against 8.1% in 2018.

He said the growth momentum was spurred by wholesale and retail trade, food and beverages and the accommodation sub – sectors, which grew to 7.6%.

“Finance, insurance, real estate and business services sub-sectors, which expanded to 7.7%, also supported the growth momentum,” he said.

He said in the manufacturing sector, the value added of SMEs moderated to 4.5% led by petroleum, chemical, rubber and plastics products, with a growth of 4.3%.

Furthermore, he said, both non-metallic mineral products, basic metal and fabricated metal products and food, beverages and tobacco sub-sectors registered a slower growth momentum at 4.9% and 3.2% respectively.

Meanwhile, he said, the value added of SMEs in agriculture sector rose to 2.3% after registering 0.3% in the preceding year, due to stronger growth of the rubber, oil palm, livestock and other agriculture sub-sectors at 3.5% as compared with 0.7% in 2018.

He said the value added of SMEs in the mining and quarrying sector increased to 4.7% while the construction sector grew moderately by 0.1%.

Mohd Uzir said SMEs registered an export growth of 2.6% to RM176.3 billion in 2019 driven by services (3.5%) and manufacturing (2%).

He said exports of durian, including fresh, frozen, pulp and paste, registered an increase of 32.2% in 2019 to RM423.7 million from RM320.5 million in the preceding year, with the main destinations being China (61.8%), Singapore (14.8%) and Hong Kong (8.4%).

However, he said, exports of the agriculture sector decreased 9.8% to RM2.3 billion due to the decline in exports of vegetables, fisheries, poultry, banana and other tropical fruits.

He said exports of SMEs in the manufacturing sector comprised miscellaneous manufactured articles, food, crude materials, inedible and manufactured goods.

Singapore remained as the main destination for SMEs exports of the manufacturing sector, which constituted 18.4%, followed by China (9.3%) and the US (7.5%).

SMEs’ exports in the services sector increased to RM89.3 billion, from RM86.3 billion in the previous year, led by travel, other business services and transport activities.

He added that the share of SMEs’ exports to total exports in 2019 was 17.9%, whereby 9.1% was from the services sector, while the manufacturing and agriculture sectors contributed 8.6% and 0.2% respectively.