KUALA LUMPUR – Around 200,000 small and medium enterprises (SMEs) are set to benefit from the government’s expanded e-invoicing exemption, the Small and Medium Enterprises Association Malaysia (Samenta) has said.
Samenta president Datuk William Ng said that the exemption, which will take effect from 2026, applies to businesses with annual revenue below RM1 million and will provide much-needed relief for the smallest enterprises.
“Many of these businesses operate on thin margins and lack the digital infrastructure required to comply with e-invoicing regulations immediately,” he said in a statement.
He described the move as “timely and compassionate,” reflecting the government’s understanding of the pressures facing micro and small enterprises.
“These businesses are already grappling with rising costs, tariff uncertainties, growing competition from foreign online sellers, and other unforeseen compliance burdens. For them, this announcement offers much-needed breathing space,” he said.
Ng added that the exemption would allow micro enterprises to stabilise, enhance productivity, and upgrade internal processes “without the fear of abrupt disruption,” while still supporting the national digitalisation agenda at a practical and sustainable pace.
However, he urged SMEs not to delay their digital transition.
“SMEs must use this window to strengthen accounting practices, organise financial records, and gradually adopt digital systems where possible.
“Early preparation will make future compliance smoother and help businesses improve efficiency, cashflow visibility, and overall competitiveness,” he said.
Meanwhile, it was reported that the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) welcomed the government’s recalibration of regulatory and tax measures to ease financial pressures on micro, small, and medium enterprises.
ACCCIM highlighted that raising the e-invoice exemption threshold to RM1 million from 2026 would reduce compliance and administrative burdens for smaller businesses.
“This demonstrates the government’s pragmatism in implementing policies while being mindful of their potential impact on businesses,” it said.
It also noted that doubling the tax refund allocation to RM4 billion would assist companies facing delayed payments but emphasised that processing timelines must be expedited, with improved compensation mechanisms to ensure timely returns.
Additionally, ACCCIM expressed appreciation for the two-year moratorium on enforcement and penalties for job vacancy reporting under the Social Security Organisation (Perkeso), with plans to exempt SMEs pending stakeholder consultation. - December 8, 2025
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