MSMEs' 2025 GDP contribution target revised due to pandemic, Ukraine-Russia conflict - Ewon

01 Nov 2023 04:00pm
Datuk Ewon Benedick - BERNAMA FILE PIX
Datuk Ewon Benedick - BERNAMA FILE PIX

KUALA LUMPUR - The target contribution of micro, small and medium enterprises (MSMEs) to Malaysia’s gross domestic product (GDP) for 2025 has been revised from 45 per cent to 41 per cent after taking into account the Covid-19 pandemic’s impact on the national economy as well as the Ukraine-Russia conflict, the Entrepreneur Development and Cooperatives Ministry said.

Its minister Datuk Ewon Benedick said MSME’s contribution to the GDP continued to rise in 2022 despite the review of the target contribution for 2025.

"MSMEs’ contribution to the GDP in 2022 recorded a double-digit growth of 11.6 per cent compared to 1.3 per cent in 2021 and 5.9 per cent in 2019.

"MSMEs’ contribution in ringgit value also rose to RM580.4 million last year, which is above the pre-pandemic level of RM553.4 billion in 2019,” he said in the Dewan Rakyat in response to a question from Roslan Hashim (PN-Kulim Bandar Bahru) on the government’s commitment to increase the MSMEs’ economic contribution.

Roslan noted that in the original 12th Malaysia Plan (2021-2025), MSMEs’ target contribution to the GDP was set at 45 per cent by 2025 but this was lowered to 41 per cent in the plan’s mid-term review.

Ewon said the government is focusing on high growth, high value (HGHV) industries which are able to contribute more to the country's total exports to further raise MSME’s GDP contribution.

Additionally, he said, the launch of the New Industrial Master Plan 2030 (NIMP 2030) will be able to raise MSMEs’ competitiveness and participation in the high-growth manufacturing industry value chain domestically and internationally.

The ministry has also implemented several programmes supporting the implementation of NIMP 2030 via the Vendor Development Programme, the Programme for Enhancement of Strategic Industry and High Growth Enterprise (PRESTIGE) and the PKSlestari Programme. - BERNAMA

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