A new SME definition was endorsed at the 14th NSDC Meeting in July 2013. The definition was simplified as described in this page.
New SME Definition
A business can qualify as an SME if it meets either one of the two specified criteria, namely sales turnover or full-time employees, whichever is lower.
- Manufacturing: Sales turnover not exceeding RM50 million OR full-time employees not exceeding 200 workers
- Services and other sectors: Sales turnover not exceeding RM20 million OR full-time employees not exceeding 75 workers
Details of the new definition are as follows:
|Manufacturing||Services & Other Sectors|
|Micro||Sales turnover of less than RM300,000 OR less than 5 full-time employees*||*Same as manufacturing sector|
|Small||Sales turnover from RM300,000 to less than RM15 million OR full-time employees from 5 to less than 75||Sales turnover from RM300,000 to less than RM3 million OR full-time employees from 5 to less than 30|
|Medium||Sales turnover from RM15 million to not exceeding RM50 million OR full-time employees from 75 to not exceeding 200||Sales turnover from RM3 million to not exceeding RM20 million OR full-time employees from 30 to not exceeding 75|
- If a business fulfills either one criteria across the different sizes of operation, then the smaller size will be applicable. For example if a firm’s sales turnover falls under microenterprise but employment falls under small, the business will be deemed as a microenterprise.
For a more in-depth definition, please refer to the Guideline on New SME Definition.
Source: SME Corp. Malaysia
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