Kuala lumpur: The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) is targeting to increase the number of medium-sized firms to five per cent of the country’s total micro, small, and medium enterprises (MSMEs) by 2030 from 1.6 per cent currently. Its Minister, Datuk Ewon Benedick, said KUSKOP will continue to develop MSMEs by implementing targeted interventions.

According to BERNAMA News Agency, the minister emphasized the importance of scaling up MSMEs to ensure long-term business sustainability. This strategy aims to create more resilient MSMEs capable of withstanding future challenges. Datuk Ewon Benedick described the initiative as ambitious and challenging, noting that several new initiatives have been identified to drive this agenda. These include boosting MSME participation in high value-added activities, disruptive business models, and the global value chain, as well as increasing the number of MSME board listings.

He further highlighted that although achieving these targets may be challenging, it is not impossible. Over the past two years, from 2023 to 2025, findings from the 2025 MSME survey indicate that 8.5 per cent of firms have formalized their businesses, while 7.3 per cent of MSMEs have successfully scaled up into larger entities. The MSMEs that have managed to scale up possess strong competitive advantages, including involvement in high-impact industries, exporting to international markets, supplying through business-to-business arrangements, and adopting environmental, social, and governance (ESG) practices in their operations.

At the press conference, it was noted that MSMEs continue to strengthen their position as key players in the Malaysian economy, contributing RM652.4 billion in 2024. The Department of Statistics Malaysia recently disclosed that MSMEs’ gross domestic product (GDP) expanded by 5.8 per cent in 2024, outperforming the country’s GDP growth of around 5.1 per cent, as well as non-MSMEs’ 4.7 per cent growth.