(Kuala Lumpur, 7th) Following the government's announcement yesterday to raise the electronic invoice exemption threshold to RM1 million starting next year, it is expected that an additional 200,000 small and medium enterprises (SMEs) will be exempted.
Dato’ William Ng, President of the Small and Medium Enterprises Association of Malaysia (SAMENTA), pointed out that raising the exemption threshold is a timely and considerate decision, reflecting the government's deep understanding of the pressures faced by micro and small enterprises.
In a statement, he said many of the newly established SMEs have thin profit margins and lack the digital infrastructure required to implement e-invoicing in the short term.
“For these businesses, this announcement provides urgently needed breathing space, especially as they are facing rising costs, tariff uncertainties, intense competition from overseas online sellers, and other sudden compliance burdens.”
Dato’ William Ng, President of the Small and Medium Enterprises Association of Malaysia (SAMENTA), pointed out that raising the exemption threshold is a timely and considerate decision, reflecting the government's deep understanding of the pressures faced by micro and small enterprises.
“For these businesses, this announcement provides urgently needed breathing space, especially as they are facing rising costs, tariff uncertainties, intense competition from overseas online sellers, and other sudden compliance burdens.”
“This decision will enable small enterprises in Malaysia to focus on stabilising operations, improving productivity, and enhancing internal processes without having to worry about sudden disruptions.”
He said the government’s decision also safeguards the broader national digitalisation agenda, ensuring that the transition towards digitalisation proceeds at a pragmatic, sustainable, and realistic pace.
“We urge SMEs not to view this exemption as a reason to delay automation and digitalisation, but instead to make good use of this period to strengthen their accounting operations, organise their financial records, and, as much as possible, gradually transition to digital systems.”
He said the government’s decision also safeguards the broader national digitalisation agenda, ensuring that the transition towards digitalisation proceeds at a pragmatic, sustainable, and realistic pace.
“We urge SMEs not to view this exemption as a reason to delay automation and digitalisation, but instead to make good use of this period to strengthen their accounting operations, organise their financial records, and, as much as possible, gradually transition to digital systems.”
“Being prepared in advance will make future compliance smoother, and will also help enhance business efficiency, transparency in cash flow, and overall competitiveness.”