This study assesses the current safety culture level among Small and Medium Enterprises (SMEs) in Malaysia, which comprise approximately 97.4% of the total business establishments. Despite the significant workforce in SMEs, safety-related research, particularly on safety culture, remains limited in Malaysia. A survey was conducted using a 37-item questionnaire addressing six (6) key safety culture constructs, covering both organizational and human domains, with responses collected from 263 participants across various sectors. The analysis indicates that both employers and employees demonstrate proactive engagement in implementing safety culture practices. However, the lowest score was observed in the "Rewards and Recognition" factor, suggesting an area for improvement to further enhance workplace safety culture. Strengthening social recognition can foster positive safety behaviors driven by a genuine commitment among workers. The grand mean score of 3.76 suggests that SMEs are still in the early stages of developing a proactive safety culture. Hypothesis testing using Partial Least Squares Structural Equation Modeling (PLS-SEM) revealed a strong correlation (r = 0.733) between safety culture and safety performance, supported by a high effect size, emphasizing the critical role of safety culture in driving improved safety performance within SMEs.