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.
Source: SME Corp. Malaysia