KUALA LUMPUR (April 30): In 2022, women owned 20% of all businesses in Malaysia, with the majority being small and medium enterprises (SMEs), according to the latest findings from the Department of Statistics Malaysia (DOSM). These results come from the Economic Census 2023, which examined businesses fully or partially owned by women.

The census, which followed national and international classification standards, showed a significant increase in women’s involvement in the country’s business landscape. The previous census, conducted in 2016, was based on data from 2015.

The census found that there were 219,015 women-owned businesses in 2022, with 185,582 classified as SMEs, making up 17% of all SMEs in Malaysia.

A majority of these businesses (93.6%) were concentrated in the services sector, followed by manufacturing (3.9%) and construction (1.8%).

The wholesale and retail trade (45%), and food and beverage (31.1%) sub-sectors dominated, collectively accounting for over 76% of women-owned businesses.

The wholesale and retail trade sector particularly benefited from the rise of e-commerce, fast-moving consumer goods, technology and fashion industries, driven by increased internet usage and growing demand for electronics, automobiles and apparel.

The information and communication sub-sector showed the highest growth, with an average annual increase of 31.8%, followed by accommodation (21.8%), and professional, scientific, and technical services (7.2%).

Women-owned businesses generated a gross output of RM136.9 billion, with the services sector contributing RM83.0 billion. This output grew by 7% annually from 2015 to 2022, driven by growth in manufacturing (13.8%), agriculture (6%) and services (5.7%).

SMEs alone accounted for RM89.3 billion in output and RM44.3 billion in value added, reflecting a steady annual growth rate of 3.7% and 4.1%, respectively.

Selangor led the country with the highest number of women-owned businesses, totalling 34,720 establishments, or 15.9% of the total. It was followed by Sabah (22,740 businesses), Kelantan (21,079 businesses), Kuala Lumpur (20,237 businesses), and Johor (19,495 businesses).

Together, these five states accounted for over half of all women-owned businesses in Malaysia.

Selangor also experienced the highest growth in women-owned businesses, with an average annual increase of 3.5% from 2015 to 2022. Johor followed with a growth rate of 2.8%.

However, Putrajaya experienced a decline of 0.8%, with only 335 businesses in 2022, down from 355 in 2015. This drop is attributed to the impact of the Covid-19 pandemic, which severely affected small businesses, leading to fewer customers, increased operational costs, and supply chain disruptions.

Women-owned businesses employed 979,812 people in 2022, with the majority (80.5%) working in the services sector. The total wages paid by these businesses amounted to RM20.5 billion, with the mining sector offering the highest average monthly salary at RM2,675.

Women in Malaysia accounted for 47.9% of the population, or 15.7 million people, in 2022. Of these, 5.8 million were employed — a labour force participation rate of 55.6%.