Malaysian Small and Medium Enterprises

Small and medium-sized enterprises (SMEs) are widely defined as manufacturing, manufacturing related services (MRS), agriculture-based industry and employ about 200 full-time employees or 500 million RM of annual sales (Chermaine, 2013). . In addition, this term also refers to companies in the service industry, primary agriculture and ICT industries, with full-time employees of less than 75 people and annual turnover is less than 20 million RM. According to the Small Business Annual Report of 2012, small and medium enterprises account for 98.5% of Malaysia's approximately 78,000 companies, the remaining 5% are multinational companies and listed companies.

In this survey, SMEs were defined by SME Corp. The rationale behind using this definition is that Malaysian researchers or policy makers ensure consistency of standards. In addition, SMEs offer better cross-references to the classification of this SME. For example, Malaysian SMEs hire small to medium-sized enterprises from 5 to 75 full-time employees and will provide 300 million RM to 15 million RM for manufacturing and 5 to 30 full-time employees to the service sector I have defined it. 1 million to RM 3 million (SME Corp, 2016)

Small and medium enterprises (SMEs) play an important role in the Malaysian economy. Since the implementation of the New Economic Policy (1971-1990), the development of small and medium-sized enterprises has attracted a great deal of attention. Later this was highlighted in the Second Long-term Malaysia Project (1991-2000). According to a survey conducted in 1994, Malaysia has 12,000 SMEs, 88% of which are SMEs, and 12% are SMEs. These small and medium-sized enterprises employ 33% of the manufacturing industry. The importance of small and medium enterprises supporting China 's economic development can not be ignored. In addition to employment creation, small and medium enterprises play an important role in promoting the prosperity of large multinational corporations. They will strengthen the industry through creativity and innovation

Small and medium enterprises provide funds and promote economic growth, so it is an important factor in the development of industry in all developing countries. But in developing countries, SMEs have to face many problems. SMEs hire approximately 60% of the labor force in the private sector and are making an important contribution to innovation and development. It is not only to support the growth of the region and the country. Many factors have contributed to the growth of small and medium enterprises. In all of these countries, the possibility of financing is the most important factor in playing an important role in its development. The government supports small and medium-sized enterprises to obtain smooth and uninterrupted funding processes, but still time and effort is still required to develop.