MEDC’s mission: Increasing MSMEs GDP’s contribution and exports

22 October 2024

KUALA LUMPUR: The Ministry of Entrepreneur Development and Cooperatives is committed to increasing Malaysia's Gross Domestic Product (GDP) contribution from micro, small, and medium enterprises (MSMEs) to 41% by 2025.

Currently, this contribution stands at 39.1%, with a value-added of RM613.1 billion, up from 38.6% or RM584.1 billion in 2022. In 2023, MSMEs recorded a GDP growth of 5.0%, outpacing Malaysia's overall GDP growth of 3.6%.

Additionally, the ministry aims to enhance the share of MSMEs in total exports to 15% by 2025, an increase from the current 12.2%. In 2023, MSME exports grew by 4.5%, contributing RM152.2 billion in value added. This marks an improvement from 2022, when MSME exports grew by 10.5%, with a value-added of RM144.5 billion.

Datuk Ewon Benedick Minister of Entrepreneur and Cooperative Development said this at The Rethinq Entrepreneurship Thought Leadership Forum, here today.

According to him, concurrently, efforts are being made to raise the revenue of cooperatives by RM73 billion in 2030, as stated by the Malaysian Cooperative Policy 2030. The co-operative movement recorded 4 a revenue of RM64.6 billion last year (2022: RM45.5 billion), exceeding the target of RM60 billion set by the 12th Malaysia Plan.

Co-operatives will continue to focus on its high performance, through various entrepreneurship and business activities that beneficial for its members’ well-being and prosperity, he said adding that MECD remained focus to assist MSMEs and co-operatives to grow and create a strong ecosystem for them to prosper.

According to him, his Ministry recognises that entrepreneurship extends far beyond merely starting businesses; it embodies a mindset that can be applied across diverse sectors. This includes corporate innovation, social entrepreneurship, and intrapreneurship within established organizations. The emphasis is on cultivating resilience, adaptability, and the capacity to navigate uncertainty.

According to him, a primary focus has shifted towards building enduring companies—those that can evolve and thrive amid changing circumstances. Entrepreneurship is essential in driving innovation, creating jobs, and fostering economic diversification. It transcends the act of launching businesses; it is about nurturing a culture of continuous growth and adaptability.

“Entrepreneurs are, at their core, problem-solvers. They identify gaps and opportunities within the market, and with the right mindset and resources, they transform these insights into ventures that positively impact society. The significance of entrepreneurship in empowering individuals to contribute to national development cannot be overstated,” he said.

He added that entrepreneurs are the backbone of the economy, driving innovation, creating jobs, and fueling economic growth. Under the National Entrepreneurship Policy (NEP) 2030, Micro, MSMEs and cooperatives are well-positioned to make significant contributions to the nation’s GDP, exports, and overall employment, he emphasised.

About the event, he stated that Rethinq is more than just an event; it is a call to question and challenge conventional approaches to entrepreneurship.

By reimagining strategies for entrepreneurial education and support, more innovative and sustainable ventures can be created.

This forum aims to reshape the dialogue surrounding entrepreneurship—encompassing everything from how to educate future entrepreneurs to how to structure support systems and funding models.

Representatives from a diverse array of stakeholders involved in entrepreneurial development across Malaysia will be participating in the event.

Ewon expressed his hope that the outcomes of the programme will not only spark meaningful conversations about accelerating the creation of sustainable businesses but also strengthen networks and collaborations.