KUALA LUMPUR: The micro, small and medium enterprises’ (MSMEs) contribution to the national economy has not met the target set under the 12th Malaysia Plan (12MP), according to Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedick.
He said that MSMEs’ contribution to Gross Domestic Product (GDP) needs to reach 41 per cent by 2025 while their contribution to total exports must hit 15 per cent.
For 2023, MSMEs’ GDP recorded a five per cent growth, contributing 39.1 per cent or RM613.1 billion to the national GDP, while their export contribution rose to 12.2 per cent or RM152.2 billion.
“Meanwhile, cooperatives generated RM64.6 billion in revenue and held assets valued at RM165.9 billion (as at Dec 31, 2023). However, these achievements remained below target,” he said at the Majlis Amanat Menteri Pembangunan Usahawan dan Koperasi 2025 here which was also attended by Deputy Entrepreneur and Cooperatives Development Minister Datuk Seri R. Ramanan and the ministry’s secretary general Datuk Seri Khairul Dzaimee Daud.
Ewon said that as the levels of achievement remain below target, the ministry is planning several strategic measures to deliver a greater impact on the entrepreneurial sector.
On cooperatives, he said that while the RM60 billion revenue target for cooperatives was achieved ahead of schedule, the greater challenge is for the cooperative movement to maintain this achievement and increase revenue further to a more optimal level, in line with initiatives and interventions that have been implemented.
He noted that the Entrepreneur and Cooperatives Development Ministry (KUSKOP) has key targets that need to be achieved at the end of the 12MP, which concludes this year. These include raising GDP growth, exports, and MSME productivity, along with increasing cooperative revenues.
During the event, Ewon also launched the ministry’s 2025 Strategic Plan document themed “Transformation for Excellence,” focusing on three main objectives: creating a conducive ecosystem to accelerate growth and ensuring stability for the nation’s entrepreneurial sector.
To realise these objectives, Ewon said, 21 strategies, five enablers, and 196 activities, including 20 flagship programmes, and six key performance indicators (KPIs) have been outlined under the plan.
“These cover policy formulation, governance, capacity development, access to financing, and market accessibility. The programmes and projects planned will benefit 508,498 entrepreneurs and potential entrepreneurs as well as cooperatives,” he said.
Meanwhile, at a press conference later, Ewon revealed that 333,653 entrepreneurs and cooperatives received financing assistance last year, including microcredit financing, entrepreneurship grants and soft loans, totaling RM9.58 billion in 2022 and RM9.54 billion in 2023.
He also said that KUSKOP aims to provide more significant financing this year, especially with the organisation of events related to the country’s ASEAN chairmanship.
“At the same time, we will intensify efforts to scale up small businesses to medium-sized ones, targeting 5% business growth by 2027. To achieve this, we must provide the capital needed by these entrepreneurs,” he said.
Ewon also expressed gratitude to financing agencies under his ministry, including TEKUN Nasional and Amanah Ikhtiar Malaysia (AIM), which reduced their non-performing loan (NPL) rates from double digits to single digit in 2024.
“TEKUN has reduced its NPL rate from over 12 per cent to 9.8 per cent. AIM, meanwhile, achieved its best-ever performance since its establishment 28 years ago, with an NPL rate of just 0.02 per cent in 2024,” he said.
Ewon also said KUSKOP implemented a total of 204 programmes last year, benefiting almost 800,000 MSME entrepreneurs, cooperatives, social enterprises, hawkers and small traders, as well as informal entrepreneurs.
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