BRING MALAYSIA’S SMEs TO THE NEXT LEVEL
Small Medium Enterprise (SMEs) are the key driver of employment and economic growth of Malaysia and almost 99% of total business establishments in Malaysia are SMEs.
Its is important to enable Malaysian SMEs to move towards digitalization to continue accelerating the Digital Economy.
Performance & Impact
Malaysia’s SME industry has grown substantially over the years. Here are the end-of-the-year figures for 2018.
Source : Department of Statistics, Malaysia
17.3%
CONTRIBUTION OF SMEs ON EXPORTS
3.4% Annual Growth of SMEs on Exports38.3%
CONTRIBUTION OF SMEs ON GDP
6.2% Annual Growth of SMEs on GDP66.2%
SME EMPLOYMENT
3.2% Annual Growth of SMEs on EmploymentSME by Size and Sector
The Statistics Department said today Malaysia’s small and medium enterprises (SMEs) contribution to the country’s gross domestic product (GDP) rose to 38.3% in 2018 from 37.8% in 2017, led by expansion in the services and manufacturing sectors and as SMEs exports grew.
Source : Economic Census 2016 : Profile of Small and Medium Enterprises, Department of Statistics Malaysia
89.2%
SERVICES
5.3%
MANUFACTURING
4.3%
CONSTRUCTION
1.1%
AGRICULTURE
0.1%
MINING & QUARRYING
SME Business Digitalisation Grant
Learn how the government support SMEs to adopt digitalisation measures for their business operations
LEARN MORE
100 Go Digital
Find out step by step approach to move higher up on the business digitalisation journey
LEARN MOREDigital Enhancement Centres (DEC)
Stay tuned on our efforts to facilitate access specifically for SMEs to improve on finance and capacity building
COMING SOONImportant Announcement
Update of MSC malaysia Status Tax Incentive
Background
- We refer to the announcement by the Government of Malaysia on 12 June 2018, “Malaysia’s Commitment in International Tax Standard“, and the subsequent announcement by MDEC on 28 December 2018, titled “Important Update and Changes on MSC Malaysia BOG 5“.
- As stated in the aforesaid announcements, the identified tax incentives of Malaysia will need to be reviewed and amended to be consistent with the international standards, which also include the MSC Malaysia Bill of Guarantee (BOG) 5 (Tax Exemption).
- In accordance with the above exercise, the grant of MSC Malaysia Status and its incentives, including extension of income tax exemption period, or adding new MSC Malaysia Qualifying Activities, has been put on hold since 1 July 2018.
Changes to BOG 5 (Tax Exemption)
- Previously, the tax exemption for MSC Malaysia Status was granted for the income derived from MSC Malaysia Approved Activities. Moving forward, the tax exemption will be granted for income derived from either services activities (Services Incentive) and/or intellectual property (IP Incentive).
Status Update: Approval of MSC Malaysia Status Services Incentive (Non-IP)
- The MSC Malaysia Status Services Incentive has been approved by the Government and will be regulated under the new Income Tax (Exemption) (No. 10) Order 2018 [P.U.(A) 389/2018], which was gazetted on 31 December 2018.
- As for the MSC Malaysia Status IP Incentive, the policy is still under review process by the Government. MDEC will be releasing further information in due course.
Application of MSC Malaysia Status Services Incentive (Non-IP)
- Applications for MSC Malaysia Status Services Incentive can be made starting from 2nd April 2019.
- For more details about the eligibility criteria, and qualifying promoted activities and conditions, please refer to detailed Application Guidelines here.
- Application Forms can be downloaded from here and the completed application is to be forwarded to [email protected].
- For further enquiries, please contact MDEC Client Contact Centre (CliC) at 1-800-88-8338 (within Malaysia) or +603 8315 3000 (overseas) or email at [email protected]
FAQs
- For frequently asked questions, please refer here.