Micro Enterprises

Definition of Micro Enterprises (MEs)

Sectors i) Annual Sales ii) No. of Full time

Turnover or Employees

Manufacturing, Manufacturing-Related Services, & Less than RM250,000 Less than 5

Agro-based Industries OR

Services, Primary Agriculture, Information & Less than RM200,000 Less than 5
Communication Technology (ICT) OR

Profile of SMEs
Based on the Census of Establishments & Enterprises 2005 by the Department of Statistics Malaysia, out of
the 548,267 SMEs established in Malaysia, 435,324 (78.7%) business establishments were contributed
by the Micro Enterprises (MEs). The MEs involved in all three main sectors in Malaysia, namely:

 Services – 381, 585 MEs (87.7%)

 Agriculture – 31, 838 MEs (7.3%)
 Manufacturing – 21, 516 MEs (4.9%)

Financial Assistance for MEs

1. General Key Features of Micro Financing (MF) are:

Who Is Eligible? Micro Enterprises ; and Self employed individuals.

Loan Size Ranges from RM500 to RM50,000
Purpose of Working Capital or Capital Expenditure
Financing
Loan Tenure Varies from 1 month to 10 years
Collateral No collateral requirement
Requirement
Loan Application Minimum (as simple as 2 pages)
Loan Minimal documents, such as Identity Card, proof of business (i.e. business
Documentation registration/ license/permit), proof of income

2. The Agencies Providing MF Schemes are:

a. Amanah Ikhtiar Malaysia (AIM)
b. TEKUN Nasional (TEKUN)
c. Skim Pembiayaan Mikro by Bank Negara Malaysia channeled through 10 Participating
Financial Institutions (FIs)
i. Agrobank
ii. Bank Rakyat
iii. Bank Simpanan Nasional (BSN)
 iv. Alliance Bank
v. AmBank
vi. CIMB Bank
vii. EONCAP Islamic Bank
viii. Public Bank
ix. United Overseas Bank
x. Maybank
 SPM is offered at more than 2,600 branches and affiliates / agents;
 A National Microfinance Logo to provide prominent identity and create
greater awareness on microfinance;
 Branches of FIs that offer microfinance displayed the logo;
 MF customers are encouraged to display the logo at their business
premises;
 The 9 FIs will determine the interest or profit rate to be charged and
applications are subject to the normal credit approval process of the
participating FIs.

Please click here to download the comparative table on pembiayaan mikro products features

Programmes for MEs

 Basic entrepreneurial trainings are made available by Institut Keusahawanan Negara (INSKEN);
GIATMARA; and INFRA.
 Several Entrepreneurial Development programmes also made available by Lembaga Koko Malaysia
and Lembaga Getah Malaysia;
 Technopreneur Development and management support by Multimedia Development Corporation;
 Hand holding programme for companies involved in agriculture and agro-based industry by Ministry
of Agriculture and Agro Based Industries; and
 Conversion programme to promote entrepreneurship among technical students and graduates by
Ministry of Rural and Regional Development.
 For marketing programmes, MEs are invited to participate in exposition programmes such as Gerak
Usahawan and Satu Daerah Satu Industri. These events provide opportunity for MEs to promote
their products and services to the general public.
 For physical infrastructure programme, the Government through the local authorities have been
providing hawker centres, designated location for night market and continuous beautification
projects to improve existing business premises.
 For MEs involve in the tourism sector, financial assistance have been provided from the
improvement of home-stay which is becoming an increasingly popular holiday destination.
Women Entrepreneurs

Profile of SMEs

Based on the Census of Establishments & Enterprises 2005 by the Department of Statistics Malaysia, a total
of 82,911 business establishments were owned by the women entrepreneurs.

Sector %

Services 89.5

Manufacturing 7.5

Agriculture 3

This statistics show that compared with their male counterparts, the involvement of women in business is
still very low. This should be seen as an opportunity for more women to come forth and explore businesses
as a way of earning additional family income and more importantly as a career choice.

Programmes for WEs

The Malaysian Government has embarked on developing capacity building initiatives through various
Ministries and agencies to create, promote and nurture more women entrepreneurs, in line with the Fourth
Thrust of the National Key Result Area (NKRA), which is to develop 4,000 women entrepreneurs by the year
2012.

There are various Programmes made available for the women entrepreneurs by respective Ministries and
Agencies, among others are:

 SME Corp. Malaysia - Skills Upgrading Programme;

 MATRADE - Women Exporters Development Programme (WEDP);
 National Entrepreneurship Institute (INSKEN) - Entrepreneur training programmes;
 Women Development Department under the Ministry of Women, Family and Community
Development;
 AmanahIkhtiar Malaysia (AIM) - Program KewanganMikro Bandar;
 GIATMARA – Program PembentukanUsahawan