As for EXIM Bank, SME are those with intention to do business abroad or already having business abroad or expanding their business abroad. Once certified, they will go through the normal banking processes for loan application before being eligible for loan and tax incentives only.

Definition of SMEs

The definition of SMEs is based on two criteria:

• The total sales turnover/revenue of a business in a year; OR
• The number of full time employees of a business

Generally, SMEs in Malaysia are defined as follows:

• Manufacturing sector: Sales turnover not exceeding RM50 million OR full-time employees not exceeding 200 workers
• Services and other sectors: Sales turnover not exceeding RM20 million OR full-time employees not exceeding 75 workers

Definition by Size or Operation

• Microenterprises across all sectors: Sales turnover of less than RM300,000 OR less than five (5) full-time employees.
• Table 1 summarises the definition for the small and medium categories for the respective sectors.

*The Guideline for the New SME Definition issued by SME CORP. Malaysia is available for download.