Revised Definition for SMEs

As many of you are aware of, SMEs enjoy various benefits including easy access to finances and soft loans, and sometimes financial guarantee for expansion and working capital. Since 2014, there was a revised definition for Small and Medium Enterprises (SMEs). You may use this definition to check for your eligibility for SME development programmes or any government grant or assistance.

Definition for SMEs:

• Manufacturing sector

1. Sales turnover not exceeding RM5o million; OR
2.  Full-time employees not exceeding 200 workers.

• Services and other sectors

1. Sales turnover not exceeding RM20 million; OR
2. Full-time employees not exceeding 75 workers.

Sources: Bank Negara Malaysia Website

Read more at: http://www.smebank.com.my/corporate-info/sme-definition/

Qualifying Criteria

• Sales turnover means total revenue.
• Full-time employees mean all paid workers (local, foreign and contract workers) working for at least 6 hours a day and 20 days a month; or at least 120 hours a month. Full-time employees DOES NOT include working proprietors, business partners and unpaid family members or friends work for the business and do not receive regular wages.
• If a business exceeds the threshold criteria for 2 consecutive years, it can no longer be deemed as a SME.