STARTUPS · CLOSURES · SURVIVAL · MALAYSIA

Is the business ecosystem expanding, churning or surviving?

The latest DOSM Business Demography signals enterprise formation, closure and five-year survival — a different lens from market size or establishment density.

LATEST RELEASE · 29 SEP 2026755,342 active enterprises

Reference year 2025. Active enterprises increased 2.9% from 2024, while both enterprise births and deaths also increased.

60,671enterprise births · 8%
39,418enterprise deaths · 5.2%
72.5%five-year survival cohort
← Business edition
BUSINESS MOMENTUM · MALAYSIA

Formation, closure and survival can move in different directions at the same time.

Business demography is an ecosystem signal. It tells you how many enterprises are active, entering, exiting and surviving — not whether one new business idea will succeed.

ACTIVE ENTERPRISES755,342+2.9% vs 2024Reference year 2025
BIRTH RATE8%+0.5 pp vs 202460,671 enterprise births
DEATH RATE5.2%+1.3 pp vs 202439,418 enterprise deaths
5-YEAR SURVIVAL72.5%2020 birth cohort surviving to 2025Do not compare as if it were the same firms as the previous cohort.
HOW TO READ THIS

A high birth rate can coexist with high churn. Survival statistics are cohort measures, and state highlights are only shown where the official release publishes defensible values.

NATIONAL MOMENTUM · 2024 → 2025Formation, closure and survival moved in different directions.
ACTIVE ENTERPRISES755,342

2025 active enterprises

734,0892024

Published increase: 2.9%.

ENTERPRISE BIRTHS60,671

8% birth rate

55,3762024 · 7.5%

Birth rate moved +0.5 pp.

ENTERPRISE DEATHS39,418

5.2% death rate

28,9242024 · 3.9%

Death rate moved +1.3 pp.

FIVE-YEAR SURVIVAL72.5%

2020 births surviving to 2025

69.9%2019 births surviving to 2024

Different birth cohorts — do not read this as the same firms improving.

SECTOR DYNAMICS · 2025High startup rates and high churn can coexist.
AGRICULTURE
9.3%enterprise birth rate

BIRTHS2,284

DEATH RATE4.9%

DEATHS1,193

5-YEAR SURVIVAL73.1%

MINING & QUARRYING
10.3%enterprise birth rate

BIRTHS817

DEATH RATE6.6%

DEATHS524

5-YEAR SURVIVAL70.1%

MANUFACTURING
10.9%enterprise birth rate

BIRTHS6,607

DEATH RATE4.6%

DEATHS2,763

5-YEAR SURVIVAL70.5%

60,564 active enterprises
CONSTRUCTION
11.4%enterprise birth rate

BIRTHS7,635

DEATH RATE5.2%

DEATHS3,477

5-YEAR SURVIVAL73.8%

67,145 active enterprises
SERVICES
7.3%enterprise birth rate

BIRTHS43,328

DEATH RATE5.3%

DEATHS31,461

5-YEAR SURVIVAL72.5%

595,137 active enterprises
STATE SIGNALS · 2025Only the state values explicitly published in the current release.
ACTIVE ENTERPRISE SCALE

Largest published state totals

#1Kuala Lumpur244,406

#2Selangor201,111

#3Johor75,661

ENTERPRISE FORMATION

Birth rates above national 8.0%

Johor9.5%

Putrajaya9%

Kuala Lumpur8.5%

Selangor8.4%

ENTERPRISE CLOSURE

Highest published death-rate states

Perlis6.2%

Selangor5.6%

Kuala Lumpur5.5%

Labuan5.5%

LONGER-TERM SURVIVAL

Highest published five-year survival

Sarawak79.5%

DOSM states that seven other states also exceeded the national 72.5% rate; this page does not invent unpublished values.
HOW TO USE THIS

Momentum tells you about business churn — not whether your idea will work.

A high enterprise birth rate can signal optimism, lower barriers to entry, market expansion or intense competition. A high death rate can reflect churn even in a large and active market.

Combine momentum with PulseKita's market size, household income, category density, district intelligence and commercial activity before drawing a business-location conclusion.

OFFICIAL SOURCEBusiness Demography 2025

Department of Statistics Malaysia (DOSM) · released 29 Sep 2026

Open DOSM release ↗