SMEs’ GDP grew 5.8% in 2019

by FARA AISYAH / pic by MUHD AMIN NAHARUL

THE GDP of Malaysia’s small and medium enterprises (SMEs) grew at a slower rate of 5.8% in 2019 compared to 6.2% in 2018, albeit higher than the country’s 4.3% GDP growth and non-SMEs GDP growth of 3.4% for the same period.

The value-added of SMEs at constant 2015 prices escalated to RM552.3 billion from RM522.1 billion in 2018.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said SMEs value added for the services sector registered a growth of 7.4% in 2019 compared to 8.1% in 2018.

“The growth momentum was spurred by the wholesale and retail trade, food and beverage, and accommodation subsectors which grew to 7.6%.

“Finance, insurance, real estate and business services subsectors which expanded to 7.7% has also supported the growth momentum,” he said in a statement last Thursday.

Exports of SMEs registered a growth of 2.6% to RM176.3 billion in 2019 driven by services (3.5%) and manufacturing (2%) sectors.

SMEs exports of the agriculture sector in 2019 totalled RM2.3 billion which recorded negative growth of 9.8% due to decline in exports of vegetables, fisheries, poultry, banana and other tropical fruits.

Exports of durian (fresh, frozen, pulp and paste) registered an increase of 32.2% in 2019 to RM423.7 million compared to RM320.5 million in the preceding year.

The main destinations for durians were China (61.8%), Singapore (14.8%) and Hong Kong (8.4%).

The share of SMEs exports to total exports in 2019 was 17.9% whereby 9.1% was from the services sector, while the manufacturing and agriculture sectors contributed 8.6% and 0.2% respectively.

Mohd Uzir said the number of people employed by SMEs in 2019 was 7.3 million, compared to 7.1 million in 2018.

The contribution of SMEs employment to Malaysia’s employment was 48.4%, 0.4% higher than 48% in 2018.

All sectors recorded an increase in 2019 except for the construction sector.

The services sector registered the highest share of SMEs employment comprising more than 50%.

Meanwhile, the Producer Price Index (PPI) decreased in June 2020 to 100.3 against 104.5 in the same month of the previous year.

Mohd Uzir said out of 1,063 items covered in PPI, 39.5% items recorded price increase in June 2020, 53.7% items showed a decline, while 6.8% items were unchanged.

The mining index registered the highest rate of decline at 42.5%, followed by manufacturing at 1.2%, water supply at 1.2%, and electricity and gas supply at 0.6%.

In contrast, the index of agriculture, forestry and fishing surged by 15.1%.

On a monthly basis, the PPI local production registered a marginal increase of 0.6% in June 2020 and was the first positive change for the year, supported by the index of mining (10.9%) and agriculture, forestry and fishing (10.3%).