Women-led businesses—at least 51% owned, managed, and controlled by women—are growing in Malaysia, with micro and small women-owned enterprises (MSWEs) now making up 21% of all SMEs, according to a study released on Tuesday by Strive Malaysia.
This amounts to around 241,767 women-led enterprises, which contribute significantly to the SME sector, representing 97.4% of all businesses in the country.
While this progress is promising, a gender gap remains. Malaysia aims to achieve a 60% female labor force participation rate (LFPR) by 2033. Currently, female LFPR stands at 56.3%, compared to 82.9% for men.
The study highlights three significant challenges facing women entrepreneurs, with time poverty emerging as the most pressing—97% of respondents reported difficulty balancing business, childcare, and household duties. These challenges are often tied to traditional gender expectations, where caregiving responsibilities disproportionately fall on women.
While more than 80% of MSWEs recognize the benefits of digital literacy and actively use platforms like Facebook, Instagram, and TikTok to search for information, many still primarily use these tools for personal use rather than for business growth.
This points to a disconnect between digital familiarity and entrepreneurial application.
Additionally, only half of the respondents felt confident in their financial knowledge, which was often limited to tracking income and basic expenses. Many did not understand broader financial concepts, such as market dynamics or applying for funding.
Notably, 78% strongly needed more explicit guidance from financial institutions—particularly on loan management, available grants, and market insights.
“This insightful report has played a key role in shaping targeted interventions designed to meet the specific needs of women-owned and women-led businesses,” the statement added.
“We offer free tools like a self-assessment platform, skill-building training, microlearning resources, and mentorship through Strivers’ Hub—a digital one-stop platform designed to support small businesses, especially women entrepreneurs,” said < Li Yang Lau, Program Officer at Strive Malaysia.
The statement noted that both government and private sectors are taking steps to empower women. In Budget 2025, the Malaysian Government allocated nearly MYR 470 million (USD 107 million) to support women-led businesses.
In 2024, the Ministry of Human Resources, through TalentCorp, launched Wanita MyWira to boost women’s economic participation.
“As the agency leading national talent strategies, we’re committed to helping women at every stage—from re-entering the workforce to taking on leadership roles,” said Natasha Alias, Head of Wanita MyWira at TalentCorp.
She explained that Wanita MyWira supports students, returning professionals, entrepreneurs, and women leaders through advocacy, skills training, and employer partnerships, creating real opportunities for sustainable careers.
“In 2025, we’ll scale up our efforts by promoting tax incentives through the Career Comeback Program (CCP), encouraging DEI practices at universities, and working with industries to create more job openings for women,” she added.
“With tax incentives under the Career Comeback Program (CCP) in Budget 2024 and 2025, we’re helping both women and employers build a stronger, more inclusive workforce,” said Natasha Alias of TalentCorp.
TalentCorp is also working on the Gender Action Lab Report to promote workplace gender equality, aligning with UN Women’s Empowerment Principles.
Dr. Teoh Ai Ni from Khazanah Research Institute highlighted the role of women in agrifood, noting that while their contributions are growing, many still face gender-based challenges, such as stereotypes, unpaid care work, and limited access to resources.
Thanks to digital tools and tech in agriculture, more women now have opportunities to thrive as agrifood producers. Still, closing the gender gap in access to resources and care responsibilities remains key.
As Malaysia moves toward a 60% female labor force participation by 2033, women-led SMEs, public-private partnerships, and inclusive policies are helping reshape the economy with empathy, innovation, and resilience.
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