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THE government has granted a six-month extension for micro, small, and medium enterprises (MSMEs) with annual sales of RM500,000 or less to comply with mandatory e-invoicing requirements.
Finance Minister II, Datuk Seri Amir Hamzah Azizan, announced this in the Dewan Rakyat today, revealing that MSMEs with sales between RM150,000 and RM500,000 will now be exempt from the e-invoicing mandate until January 1, 2026.
This extension is part of a broader effort to support over 240,000 MSMEs in transitioning to digital invoicing, giving them additional time to adapt.
The government also reaffirmed its earlier decision to exempt MSMEs earning less than RM150,000 annually, a measure expected to benefit more than 700,000 small businesses.
Despite these accommodations, Amir Hamzah saod MSMEs are still encouraged to adopt e-invoicing to align with the nation’s digitization goals and improve their sales record management.
The third phase of mandatory e-invoicing is scheduled to take effect on July 1, following the earlier phases.
Phase 1, which began on August 1, 2024, targets businesses with annual turnovers exceeding RM100 million, while Phase 2, which started this January, applies to businesses with annual turnovers exceeding RM25 million.
Since the rollout of e-invoicing last August, 25,173 companies have made the transition, collectively issuing 181.3 million e-invoices.
In addition, the minister discussed new mandatory contributions for foreign workers to the Employees’ Provident Fund (EPF), designed to create a level playing field for local workers. - February 21, 2025