Special Highlights - · PDF filespecial highlights Economic Census 2016: ... n 2005, following...

CHAPTER 1 THE MALAYSIAN ECONOMYspecial highlights Economic Census 2016: Profile of SMEs

n 2005, following the directive from the National SME Development Council (NSDC), the Department of Statistics, Malaysia (DOSM) conducted the first census on SMEs in Malaysia. The first census entitled ‘Baseline Census of Establishments and Enterprises 2005’ was for the reference year 2003. Subsequently the second census on SMEs named the ‘Economic Census

2011: Profile of Small and Medium Enterprises’ was conducted for the reference year 2010. The Economic Census 2016: Profile of SMEs for the reference year 2015 was officially released on 29 September 2017. This latest Census was undertaken by DOSM during the period of April until November 2016.

Special HighlightsEconomic Census 2016: Profile of SMEs

I

SME ANNUAL REPORT 2016/17 SME ANNUAL REPORT 2016/17

Similar to the previous census, the latest release of the Economic Census 2016 covered establishments and firms in the country’s key economic sectors which were based on the Malaysia Standard Industrial Classification (MSIC) 2008 Ver 1.0; namely manufacturing, services, agriculture, construction as well as mining & quarrying sectors.The main source of information for the frame was from the Companies Commission of Malaysia (SSM). Apart from the SSM, information on the frame was also updated from other sources such as from Malaysian Investment Development Authority (MIDA), Ministry of Agriculture and Agro-Based Industry (MOA), Construction Industry Development Board, Malaysia (CIDB), Minerals & Geosciences Department, Malaysia (JMG), Department of Electricity and Gas Supply, various businesses and trade associations, newspaper advertisements and websites.

The Census was also conducted on an establishment basis whereby an establishment is defined as ‘an economic unit that is engaged in one activity, under a single legal entity and operating in a single physical location’. Each establishment was assigned an industry classification based on its principal activity and not to that of its parent company.

Entrepreneurs in the agriculture sector which were registered with the MOA or other Government agencies for the purpose of receiving aid were not covered in this Census.

Data on distributive trade including wholesale trade, retail trade & motor vehicles for reference year 2015 were estimated using data from the Census of Distributive Trade undertaken in 2014 for reference year 2013.

Main Findings from the 2016 CensusIn the newly-released Economic Census 2016, the classification of SMEs used was based on the new definition of SMEs which came into effect on 1 January 2014. The Census revealed that there were altogether 907,065 SMEs operating in Malaysia in 2015, which represent 98.5% of the total establishments of 920,624 firms.

Taking into consideration the new definition of SMEs, the number of SMEs covered in the Economic Census 2011 has been revised to 638,790 SMEs in 2010, as compared to 645,136 SMEs recorded in the earlier publication. Thus, there has been an increment of more than 260,000 establishments, registering an average growth rate of 7.3% per annum from year 2010 until 2015. The increase in the number of SMEs in the latest Census was partly due to a comprehensive Business Register which is known as Establishment Enterprise (EE) Frame. The frame was updated to take into account new establishments and to record any changes in the status of the establishments such as closed down, not in operation, change in activities and location or postal addresses.

EC 2011 - published(Reference Year 2010)

EC 2011 - revised(Reference Year 2010)

EC 2016 (Reference Year 2015)

SMEs Large Firms Total SMEs Large

Firms Total SMEs Large Firms Total

No. of establishment 645,136 17,803 662,939 638,790 9,470 648,260 907,065 13,559 920,624

% share to total establishment

97.3 2.7 100.0 98.5 1.5 100.0 98.5 1.5 100.0

Table 1: Number of Establishments and Percentage Share to Total Establishment of SMEs and Large Firms

Source: Economic Census 2011 and Economic Census 2016, Department of Statistics, Malaysia

110


SMEs by Economic Sector

Looking across key economic sectors, SMEs are highly concentrated in the services sector, which accounted for 89.2% (809,126 firms) of total SME establishments. Meanwhile, about 5.3% of SMEs (47,698) are involved in the manufacturing sector, followed by 4.3% (39,158) in the construction sector, 1.1% (10,218) in the agriculture sector with the remaining 0.1% (865) in the mining & quarrying sector.

111

EC 2011 (Reference Year 2010) EC 2016 (Reference Year 2015)

Total SMEs% of

SMEs to total

% of SMEs

to total SMEs

Total SMEs% of

SMEs to total

% of SMEs

to total SMEs

Services 577,133 570,775 88.0 89.4 818,311 809,126 87.9 89.2

Manufacturing 39,669 38,553 5.9 6.0 49,101 47,698 5.2 5.3

Construction 22,140 21,331 3.3 3.3 40,558 39,158 4.3 4.3

Agriculture 8,829 7,726 1.2 1.2 11,628 10,218 1.1 1.1

Mining & Quarrying 489 405 0.1 0.1 1,026 865 0.1 0.1

No. of establishment 648,260 638,790 98.5 100.0 920,624 907,065 98.5 100.0

Table 2: Number of Establishments by Sector and Percentage Share to Total SMEs and Establishments

Note: Figures may not necessarily add up due to rounding

Source: Economic Census 2011 (revised) and Economic Census 2016, Department of Statistics, Malaysia

In the services sector, majority of SMEs are predominantly in the distributive trade sub-sector (wholesale & retail trade services) including repair of motor vehicles & motorcycles, followed by food & beverages services and transportation & storages services (refer to Chart 1).

The Census revealed that there were altogether 907,065 SMEs operating in Malaysia in 2015, which represent 98.5% of the total establishments of 920,624 firms

“

”


Chart 1: Percentage Share of SMEs in Services Sector by Sub-sector (%)

Source: Economic Census 2016, Department of Statistics, Malaysia

In the manufacturing sector, most SMEs are concentrated in the textiles & wearing apparel, food & beverages products, fabricated metal and machinery & equipment sub-sectors (refer to Chart 2).

Chart 2: Percentage Share of SMEs in the Manufacturing Sector by Sub-sector (%)


In the construction sector, SMEs were mainly involved in the special trades sub-sector, forming about 38.2% of total establishments in the sector (refer to Chart 3). Special trades refer to the construction of parts of buildings such as plumbing installation, concrete works and plastering, without full responsibility for the entire project.

12.8

84.3

91.7

49.5

31.011.6

82.4

72.2

50.4

32.08.4

45.5

34.2

55.1

76.7

10.1

38.5

42.4

65.6

79.8

60.051.2

20.4

6.6 5.6 4.2

12.0

50.0

40.0

30.0

20.0

10.0

0.0

Wholesale &Retail Trade

Food &Beverages

Transportation& Storage

PersonalServices

ProfessionalServices

Others

Textiles &WearingApparel

Food &Beverages

FabricatedMetal

Products

Machinery& Equipment

Printing Furniture Rubber &Plastic

Products

Non-metalicMineral

Products

WoodProducts

Electrical &Electronics

Others

18.2 17.4

11.1 9.9

6.75.2 5.1 4.2 3.6 3.6

14.9

0.0

4.0

8.0

12.0

16.0

20.0

38.2

19.923.4

18.6

Special Trades Civil Engineering ResidentialBuildings

Non-residentialBuildings

0.0

10.0

20.0

30.0

40.0

50.0

Crops Livestock Fisheries

67.8

14.011.5

6.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Forestry &Logging

Quarrying Mineral Mining Petroleum &Natural Gas

0.0

20.0

40.0

60.0

80.0

100.0

74.2

15.510.3

EC 2011 EC 2016 Services

Micro Small Medium

Manufacturing Agriculture Construction Mining &Quarrying

0.010.020.030.040.050.060.070.080.090.0

100.02.7

20.2

77.1 76.5 80.2

18.3

48.4

5.3 11.9 12.322.0

40.543.4

52.9

46.347.6 44.2

25.1

21.2

2.3 1.5

Services92.7%

Manufacturing5.1%

Mining & Quarrying0.01%

Construction1.4% Agriculture

0.8%

32.1

20.8 22.118.0

47.6

62.5 75.0

66.0

14.5

25.4

76.172.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Overall

Others1

Financing via online platform (crowdfunding platform)

Co-operatives

Grants or financing from Government

Suppliers/trade credit/angels/NGOs

Friends or relatives

Banks/DFIs/microcredit institutions

Internal funds/shareholders/personal savingsMicro Small Medium

Debt consolidation/refinancing

Improvement or upgrade production process

R&D, acquire another business and others

Purchase or renting machinery/equipment/vehicles/computer software & hardware and land/building

Working capital

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

EC 2011

Did not use ICT in business Used ICT in business

EC 2016

Did not useinternet inbusiness,

43.9%Used internetin business,

43.9%

Did not usewebsite inbusiness,

77.2%

Used websitein business,

22.8%

51.5%

48.5%36.1%

63.9%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

2.2 1.5 1.1 0.9

Promotion & Marketing

Overseas exposition and exhibition

Press release wire

Events sponsorship

Local exposition and axhibition

Marketing agent

Advertisement

Search engine optimisation

Flyers, catalogues etc.

Social networking website

Not applicable

83.8

11.0

7.9

6.6

6.25.3

%

%

%

%

%

% share tototal SMEs

%

%

300.0

250.0

200.0

150.0

100.0

50.0

0.0Overall Micro Small Medium

%

112

60.051.2

20.4

6.6 5.6 4.2

12.0

50.0

40.0

30.0

20.0

10.0

0.0


Food &Beverages


PersonalServices


Others

%


In the agriculture sector, more than two-third of the SMEs were in the crops sub-sector (refer to Chart 4). Meanwhile, about 25.5% were involved in livestock and fisheries activities while the remaining 6.7% were made up of SMEs in the forestry & logging sub-sector.

Chart 3: Percentage Share of SMEs in Construction Sector by Sub-sector (%)


12.8

84.3

91.7

49.5

31.011.6

82.4

72.2

50.4

32.08.4

45.5

34.2

55.1

76.7

10.1

38.5

42.4

65.6

79.8

60.051.2

20.4

6.6 5.6 4.2

12.0

50.0

40.0

30.0

20.0

10.0

0.0


Food &Beverages


PersonalServices


Others


Food &Beverages

FabricatedMetal

Products



Products

Non-metalicMineral

Products

WoodProducts


Others

18.2 17.4

11.1 9.9

6.75.2 5.1 4.2 3.6 3.6

14.9

0.0

4.0

8.0

12.0

16.0

20.0

38.2

19.923.4

18.6



0.0

10.0

20.0

30.0

40.0

50.0


67.8

14.011.5

6.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Forestry &Logging


0.0

20.0

40.0

60.0

80.0

100.0

74.2

15.510.3


Micro Small Medium


0.010.020.030.040.050.060.070.080.090.0

100.02.7

20.2

77.1 76.5 80.2

18.3

48.4

5.3 11.9 12.322.0

40.543.4

52.9

46.347.6 44.2

25.1

21.2

2.3 1.5

Services92.7%

Manufacturing5.1%



0.8%

32.1

20.8 22.118.0

47.6

62.5 75.0

66.0

14.5

25.4

76.172.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Overall

Others1


Co-operatives










Working capital

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

EC 2011


EC 2016



43.9%


77.2%


22.8%

51.5%

48.5%36.1%

63.9%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

2.2 1.5 1.1 0.9



Press release wire

Events sponsorship


Marketing agent

Advertisement




Not applicable

83.8

11.0

7.9

6.6

6.25.3

%

%

%

%

%


%

%

300.0

250.0

200.0

150.0

100.0

50.0


%

In the mining & quarrying sector, almost three-quarter of the SMEs involved in the quarrying business (refer to Chart 5). Quarrying refers to the stone extraction from the earth as well as works related to rough cutting, shaping, grinding and crushing of the stones.

Chart 4: Percentage Share of SMEs in the Agriculture Sector by Sub-sector (%)


12.8

84.3

91.7

49.5

31.011.6

82.4

72.2

50.4

32.08.4

45.5

34.2

55.1

76.7

10.1

38.5

42.4

65.6

79.8

60.051.2

20.4

6.6 5.6 4.2

12.0

50.0

40.0

30.0

20.0

10.0

0.0


Food &Beverages


PersonalServices


Others


Food &Beverages

FabricatedMetal

Products



Products

Non-metalicMineral

Products

WoodProducts


Others

18.2 17.4

11.1 9.9

6.75.2 5.1 4.2 3.6 3.6

14.9

0.0

4.0

8.0

12.0

16.0

20.0

38.2

19.923.4

18.6



0.0

10.0

20.0

30.0

40.0

50.0


67.8

14.011.5

6.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Forestry &Logging


0.0

20.0

40.0

60.0

80.0

100.0

74.2

15.510.3


Micro Small Medium


0.010.020.030.040.050.060.070.080.090.0

100.02.7

20.2

77.1 76.5 80.2

18.3

48.4

5.3 11.9 12.322.0

40.543.4

52.9

46.347.6 44.2

25.1

21.2

2.3 1.5

Services92.7%

Manufacturing5.1%



0.8%

32.1

20.8 22.118.0

47.6

62.5 75.0

66.0

14.5

25.4

76.172.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Overall

Others1


Co-operatives










Working capital

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

EC 2011


EC 2016



43.9%


77.2%


22.8%

51.5%

48.5%36.1%

63.9%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

2.2 1.5 1.1 0.9



Press release wire

Events sponsorship


Marketing agent

Advertisement




Not applicable

83.8

11.0

7.9

6.6

6.25.3

%

%

%

%

%


%

%

300.0

250.0

200.0

150.0

100.0

50.0


%

113


Chart 5: Percentage Share of SMEs in Mining & Quarrying Sector by Sub-sector (%)


114

12.8

84.3

91.7

49.5

31.011.6

82.4

72.2

50.4

32.08.4

45.5

34.2

55.1

76.7

10.1

38.5

42.4

65.6

79.8

60.051.2

20.4

6.6 5.6 4.2

12.0

50.0

40.0

30.0

20.0

10.0

0.0


Food &Beverages


PersonalServices


Others


Food &Beverages

FabricatedMetal

Products



Products

Non-metalicMineral

Products

WoodProducts


Others

18.2 17.4

11.1 9.9

6.75.2 5.1 4.2 3.6 3.6

14.9

0.0

4.0

8.0

12.0

16.0

20.0

38.2

19.923.4

18.6



0.0

10.0

20.0

30.0

40.0

50.0


67.8

14.011.5

6.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Forestry &Logging


0.0

20.0

40.0

60.0

80.0

100.0

74.2

15.510.3


Micro Small Medium


0.010.020.030.040.050.060.070.080.090.0

100.02.7

20.2

77.1 76.5 80.2

18.3

48.4

5.3 11.9 12.322.0

40.543.4

52.9

46.347.6 44.2

25.1

21.2

2.3 1.5

Services92.7%

Manufacturing5.1%



0.8%

32.1

20.8 22.118.0

47.6

62.5 75.0

66.0

14.5

25.4

76.172.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Overall

Others1


Co-operatives










Working capital

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

EC 2011


EC 2016



43.9%


77.2%


22.8%

51.5%

48.5%36.1%

63.9%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

2.2 1.5 1.1 0.9



Press release wire

Events sponsorship


Marketing agent

Advertisement




Not applicable

83.8

11.0

7.9

6.6

6.25.3

%

%

%

%

%


%

%

300.0

250.0

200.0

150.0

100.0

50.0


%

SMEs by Firm Size

In terms of size, majority of the SMEs were microenterprises, constituting 76.5% of total SMEs in Malaysia (2010: 77.1%). Meanwhile, small-sized SMEs formed 21.2% of the total SME establishments and the balance 2.3% were medium-sized SMEs. Comparing the structure of these SMEs in 2010 until 2015, microenterprises grew by 40.8% in terms of number of establishments, small-sized firms grew by 49.4% and medium-sized firms grew by 21.5%. Microenterprises, which are mostly business operators with less than five full-time employees, were predominant across the services sector. Meanwhile, large proportion of SMEs in the manufacturing, construction and agriculture sectors were well-balanced across microenterprises and small-sized firms, with only small portion were medium-sized firms. On the other hand, more than half of the SMEs in the mining & quarrying sector was made up of small-sized firms.

EC 2011 (Reference Year 2010) EC 2016 (Reference Year 2015)

Micro Small Medium Total Micro Small Medium Total

No. of establishment 492,814 129,016 16,960 638,790 693,670 192,783 20,612 907,065

% share to total SMEs 77.1 20.2 2.7 100.0 76.5 21.2 2.3 100.0

% share to total establishment

76.0 19.9 2.6 98.5 75.3 20.9 2.2 98.5

Table 3: Number of Establishments and Percentage Share of SMEs by Firm Size




115

Chart 6: Percentage Share of SMEs by Sector and Size (%)

12.8

84.3

91.7

49.5

31.011.6

82.4

72.2

50.4

32.08.4

45.5

34.2

55.1

76.7

10.1

38.5

42.4

65.6

79.8

60.051.2

20.4

6.6 5.6 4.2

12.0

50.0

40.0

30.0

20.0

10.0

0.0


Food &Beverages


PersonalServices


Others


Food &Beverages

FabricatedMetal

Products



Products

Non-metalicMineral

Products

WoodProducts


Others

18.2 17.4

11.1 9.9

6.75.2 5.1 4.2 3.6 3.6

14.9

0.0

4.0

8.0

12.0

16.0

20.0

38.2

19.923.4

18.6



0.0

10.0

20.0

30.0

40.0

50.0


67.8

14.011.5

6.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Forestry &Logging


0.0

20.0

40.0

60.0

80.0

100.0

74.2

15.510.3


Micro Small Medium


0.010.020.030.040.050.060.070.080.090.0

100.02.7

20.2

77.1 76.5 80.2

18.3

48.4

5.3 11.9 12.322.0

40.543.4

52.9

46.347.6 44.2

25.1

21.2

2.3 1.5

Services92.7%

Manufacturing5.1%



0.8%

32.1

20.8 22.118.0

47.6

62.5 75.0

66.0

14.5

25.4

76.172.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Overall

Others1


Co-operatives










Working capital

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

EC 2011


EC 2016



43.9%


77.2%


22.8%

51.5%

48.5%36.1%

63.9%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

2.2 1.5 1.1 0.9



Press release wire

Events sponsorship


Marketing agent

Advertisement




Not applicable

83.8

11.0

7.9

6.6

6.25.3

%

%

%

%

%


%

%

300.0

250.0

200.0

150.0

100.0

50.0


%

In terms of legal status of SMEs, the proportion of sole proprietors (individual entrepreneurs) and partnership firms had declined over the years since 2010 to 2015. Of significance, the share of private limited companies had increased to 28.5% in 2015 from 19.8% in 2010.

SMEs by Legal Status

In terms of the growth rate of establishments, sole proprietors recorded a double-digit growth of 25.0% between 2010 until 2015. Meanwhile, partnership recorded a smaller increase of 10.5% during the same period.

Similarly, other legal organisations grew much higher in terms of the establishment as it increased by 140.4% to 32,369 firms in 2015 (2010: 13,466 firms). Other legal organisations include public limited companies, co-operatives, public corporations and private non-profit organisations.

Private limited companies recorded a growth as high as 104.9%, that is from 126,359 firms in 2010 to 258,965 firms in 2015.




SMEs by Geographical Location

Findings of the Economic Census 2016 showed a major increase in the shares of SMEs in Kuala Lumpur and Pulau Pinang as compared with the shares recorded in 2010 based on Economic Census 2011. There was also higher number of SMEs recorded in Johor, Selangor and Melaka.

116

EC 2011(Reference Year 2010)


No. of establishment


No. of establishment

% share to total SMEs

Sole Proprietor 443,901 69.5 554,900 61.2

Partnership 55,064 8.6 60,831 6.7

Private Limited 126,359 19.8 258,965 28.5

Others 13,466 2.1 32,369 3.6

Total SMEs 638,790 100.0 907,065 100.0

Table 4: SMEs by Legal Status


Klang Valley (Selangor and Kuala Lumpur) accounted for more than one-third of the total SMEs.

States that recorded the highest increase in terms of percentage share of SMEs were Kuala Lumpur (+1.6 percentage points) and Pulau Pinang (+1.1 percentage points).

Generally, more than 60% of SMEs are mainly concentrated in the top five States namely Selangor (19.8%), Kuala Lumpur (14.7%), Johor (10.8%), Perak (8.3%) and Pulau Pinang (7.4%).


117



Percentage pointincrease / decrease

Selangor 19.7 19.8 + 0.1

WP Kuala Lumpur 13.1 14.7 + 1.6

Johor 10.6 10.8 + 0.2

Perak 9.1 8.3 - 0.8

Pulau Pinang 6.3 7.4 + 1.1

Sarawak 6.8 6.7 - 0.1

Sabah 6.4 6.2 - 0.2

Kedah 5.6 5.4 - 0.2

Kelantan 5.9 5.1 - 0.8

Pahang 4.5 4.1 - 0.4

Negeri Sembilan 3.9 3.6 - 0.3

Melaka 3.4 3.5 + 0.1

Terengganu 3.5 3.2 - 0.3

Perlis 0.8 0.8 0.0

WP Labuan 0.3 0.3 0.0

WP Putrajaya 0.1 0.1 0.0

Total SMEs 100.0 100.0

Table 5: Percentage Share of SMEs by State in 2015 vis-a-vis 2010 (%)



Chart 7: Percentage Share of SMEs by State (%)


Women-owned SMEs

By definition, women-owned SMEs are firms of which women hold at least 51% of the equity, or the CEOs are women that own at least 10% of the equity. In 2015, women-owned SMEs accounted for 186,930 firms or about 20.6% of total SMEs in Malaysia (2010: 127,429 firms). There was an increase of 46.7%, from the one recorded in 2010. In terms of breakdown by sectors, majority 92.7% of women-owned are SMEs engaged in the services sector, followed by the manufacturing sector (5.1%). Women however are less involved in the construction, agriculture as well as mining & quarrying sectors.

Chart 8: Distribution of Women-owned SMEs by Sector (%)

118

Perlis0.8%

5.1%

3.2%

4.1%

6.2%

0.3%

6.7%

10.8%

7.4%

5.4%

8.3%

19.8%

14.7%

0.1%

3.6%

3.5%

Pulau Pinang

Kedah

Perak

Selangor

WP Kuala Lumpur

WP PutrajayaNegeri Sembilan

Melaka

Johor

Pahang

Terengganu

Kelantan

WP Labuan

Sarawak

Sabah

Services92.7%

Manufacturing5.1%



0.8%




119

SME Access to Financing

Similar to the previous Census, findings of the latest Economic Census 2016 showed that majority of SMEs (72.8%) obtained financing access through internally generated funds, personal saving or from shareholders to finance their business operations (refer to Chart 9).

Table 6: Number of Establishments of Women-owned SMEs by Sector


The key source of funding for microenterprises was from their own internal funds (76.1%). For the case of medium-sized and small-sized firms, majority of 66.0% and 47.6% respectively managed to secure financing from financial institutions which include commercial banks, development financial institutions and microcredit organisations.

More than three-quarter (79.8%) of SMEs financing was meant for working capital (refer to Chart 10). The financing needs were similar across all sizes, except for medium-sized firm, whereby they required more financing for purchasing or renting of equipment, machinery, vehicles, computer software, land and buildings.



Services 116,714 173,323

Manufacturing 8,792 9,519

Construction 1,331 2,570

Agriculture 562 1,498

Mining & Quarrying 30 20

Total Women SMEs 127,429 186,930


Chart 9: Access to Financing (%)

Note: 1) Data excludes wholesale & retail trade sub-sector2) Establishments can choose more than one answer and the percentages can exceed 100%1Others include financing from leasing/factoring/venture capitals/credit companies/licensed money lenders/pawnshops and pawnbrokers including Ar-Rahnu


Note: 1) Data excludes wholesale & retail trade sub-sector2) Establishments can choose more than one answer and the percentages can exceed 100%


Chart 10: Purpose of Financing (%)

120

12.8

84.3

91.7

49.5

31.011.6

82.4

72.2

50.4

32.08.4

45.5

34.2

55.1

76.7

10.1

38.5

42.4

65.6

79.8

60.051.2

20.4

6.6 5.6 4.2

12.0

50.0

40.0

30.0

20.0

10.0

0.0


Food &Beverages


PersonalServices


Others


Food &Beverages

FabricatedMetal

Products



Products

Non-metalicMineral

Products

WoodProducts


Others

18.2 17.4

11.1 9.9

6.75.2 5.1 4.2 3.6 3.6

14.9

0.0

4.0

8.0

12.0

16.0

20.0

38.2

19.923.4

18.6



0.0

10.0

20.0

30.0

40.0

50.0


67.8

14.011.5

6.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Forestry &Logging


0.0

20.0

40.0

60.0

80.0

100.0

74.2

15.510.3


Micro Small Medium


0.010.020.030.040.050.060.070.080.090.0

100.02.7

20.2

77.1 76.5 80.2

18.3

48.4

5.3 11.9 12.322.0

40.543.4

52.9

46.347.6 44.2

25.1

21.2

2.3 1.5

Services92.7%

Manufacturing5.1%



0.8%

32.1

20.8 22.118.0

47.6

62.5 75.0

66.0

14.5

25.4

76.172.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Overall

Others1


Co-operatives










Working capital

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

EC 2011


EC 2016



43.9%


77.2%


22.8%

51.5%

48.5%36.1%

63.9%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

2.2 1.5 1.1 0.9



Press release wire

Events sponsorship


Marketing agent

Advertisement




Not applicable

83.8

11.0

7.9

6.6

6.25.3

%

%

%

%

%


%

%

300.0

250.0

200.0

150.0

100.0

50.0


%

12.8

84.3

91.7

49.5

31.011.6

82.4

72.2

50.4

32.08.4

45.5

34.2

55.1

76.7

10.1

38.5

42.4

65.6

79.8

60.051.2

20.4

6.6 5.6 4.2

12.0

50.0

40.0

30.0

20.0

10.0

0.0


Food &Beverages


PersonalServices


Others


Food &Beverages

FabricatedMetal

Products



Products

Non-metalicMineral

Products

WoodProducts


Others

18.2 17.4

11.1 9.9

6.75.2 5.1 4.2 3.6 3.6

14.9

0.0

4.0

8.0

12.0

16.0

20.0

38.2

19.923.4

18.6



0.0

10.0

20.0

30.0

40.0

50.0


67.8

14.011.5

6.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Forestry &Logging


0.0

20.0

40.0

60.0

80.0

100.0

74.2

15.510.3


Micro Small Medium


0.010.020.030.040.050.060.070.080.090.0

100.02.7

20.2

77.1 76.5 80.2

18.3

48.4

5.3 11.9 12.322.0

40.543.4

52.9

46.347.6 44.2

25.1

21.2

2.3 1.5

Services92.7%

Manufacturing5.1%



0.8%

32.1

20.8 22.118.0

47.6

62.5 75.0

66.0

14.5

25.4

76.172.8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

Overall

Others1


Co-operatives










Working capital

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

EC 2011


EC 2016



43.9%


77.2%


22.8%

51.5%

48.5%36.1%

63.9%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

130.0

2.2 1.5 1.1 0.9



Press release wire

Events sponsorship


Marketing agent

Advertisement




Not applicable

83.8

11.0

7.9

6.6

6.25.3

%

%

%

%

%


%

%

300.0

250.0

200.0

150.0

100.0

50.0


%


121

Promotion and Marketing Activities of SMEs

The Census revealed that about 16.4% of SMEs undertook some form of marketing and promotion activities whereby most of SMEs utilised social networking platform to market their products or services. The other types of medium used were mostly through printed materials such as flyers and catalogues, followed by search engine optimisation, advertisement and marketing agents. Nevertheless, majority of SMEs (83.6%) still did not undertake any promotional or marketing activities to enhance their businesses.

Chart 11: Promotion and Marketing Activities of SMEs (%)

83.6%11.0%

Socialnetworking

website

6.6%Search engineoptimisation

Advertisement6.2% 5.3%

Marketingagent

Local expositionand exhibition

2.2% 1.5%

sponsorship

Press releasewire

1.1% 0.9%Overseas

exposition andexhibition

Not applicable

Flyers,catalogues etc.

7.9%


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Note: 1) Data excludes wholesale & retail trade sub-sector2) Establishments can choose more than one answer and the percentages can exceed 100%


*The SME Annual Report 2016/17 was published on 29 September 2017, but the data used in this section has been updated on 12 October 2017 based on latest release of the Economic Census 2016: Profile of SMEs by the Department of Statistics, Malaysia

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