Definition of Small Medium Enterprises "SME"

During the recent period, there are many inquires on the definition of Small Medium Enterprises "SME" due to the applications of many subsidies programs. Hence, here is a quick recap on the definition of SME.

​

​Two qualifying criteria to define SME:
a. Annual sales or
b. Number of full time employees
whichever is lower.

Example:
a. Manufacturing sector, qualifying criteria to be categorized under SME are either sales turnover not exceeding RM50 million OR number of full time employees not exceeding 200.
b. Services and other sectors, qualifying criteria to be categorized under SME are either sales turnover not exceeding RM20 million OR number of full time employees not exceeding 75.

*All entities must registered with SSM or other qualifying bodies.

Who are not qualify?

• Entities that are public-listed on the main board; and
• Subsidiaries of:
  • Publicly-listed companies on the main board;
  • Multinational corporations (MNCs);
  • Government-linked companies (GLCs);
  • Syarikat Menteri Kewangan Diperbadankan (MKDs); and
  • State-owned enterprises.

Source: https://www.smecorp.gov.my/images/pdf/Guideline_New_SME_Definition_updated.pdf
Source: https://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-definition
Photo credit: https://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-definition

If you need further clarification, please do not hesitate to contact our tax team.