Malaysian MSME GDP growth hits 5.7% in 2025, outpacing broader economy

Small business sector value added rose to RM689.8 billion, accounting for nearly 40% of national output and supporting upgraded growth forecasts.

By Handelsavisen Newsroom · Automated 2026-07-30 14:12 UTC · 1 min read

Malaysia’s micro, small and medium enterprises (MSMEs) drove economic expansion in 2025, with the sector’s gross domestic product growing 5.7% year-on-year.

The performance outpaced the broader economy, underscoring the resilience of the country’s small business backbone amid global headwinds.

7% of Malaysia’s total GDP, maintaining its status as a critical engine of national economic activity.

According to the Department of Small and Medium Enterprises (DosM), value added by the MSME sector increased to RM689.8 billion in 2025, up from RM652.8 billion in 2024.

The segment now accounts for 39.7% of Malaysia’s total GDP, maintaining its status as a critical engine of national economic activity.

The robust figures from the MSME sector provide empirical support for recent upward revisions to Malaysia’s growth outlook.

OCBC Research recently upgraded its 2026 GDP growth forecast for Malaysia to 5.2% from 4.4%, citing strong domestic demand and export momentum.