Manufacturing sector: sales turnover not exceeding RM50 million OR number of full-time employees not exceeding 200.
Services and other sectors: sales turnover not exceeding RM20 million OR number of full-time employees not exceeding 75
Full time employees: Including all paid workers working for at least 6 hours a day and 20 days a month; or at least 120 hours a month (including foreign and contract workers)
The word ‘OR’ means a business will only need to satisfy either one of the criteria: sales turnover or number of employees
If a business exceeds the threshold for 2 consecutive years (base on financial year) then it is no longer an SME
Similarly, a business that is previously large can become an SME if it fulfils the qualifying criteria for 2 consecutive years
