Kota Kinabalu: Warisan Vice President Datuk Junz Wong called on the Federal Government to either raise the e-invoice exemption threshold to RM2 million or abolish the policy, saying recent adjustments still fall short of addressing the burden on Sabah businesses.
He said Putrajaya’s latest decision to exempt companies with annual revenue below RM1 million was only a “partial fix” and failed to reflect the realities faced by SMEs in the State.
“Even businesses above RM1 million are not ready. The compliance cost, system upgrades and digital limitations are still too heavy for many Sabah firms,” he said, in a statement, Monday.
Wong said Sabah SMEs continued to face deep structural challenges that federal policymakers often overlooked. Many mid-sized companies — even those recording turnovers above RM10 million — were struggling to break even due to rising operating expenses.
He cited fuel, logistics, transportation, rental, wages, EPF, Socso, overtime, utility costs and various taxes and compliance obligations as key pressure points already tightening margins.
“When federal policies add more red tape instead of relief, the impact becomes devastating,” he said.
Wong said the strong rejection of the e-invoice system among Sabahans reflected a broader frustration over federal policies that did not consider the State’s economic structure or digital gaps.
“The recent election results were not accidental. Sabahans have clearly rejected policies that burden instead of empower,” he said, adding Putrajaya’s decision to raise the exemption threshold to RM1 million came only after PH candidates were almost wiped out in Sabah.
He urged Peninsular Malaysians to recognise that Sabah voters had forced the Government to rethink its approach.
Wong also welcomed the Prime Minister’s move to accelerate tax refunds through a RM2 billion fast-track allocation, which will double until December to clear backlogged cases.
“This is good news for SMEs, but real progress requires comprehensive reform — not piecemeal adjustments,” he said.
Wong said Warisan would continue pressing for reforms to ensure federal policies uplift rather than burden Sabah’s economic ecosystem.
“We need policies that encourage entrepreneurship, attract investment and reflect our real conditions.
“Warisan will keep fighting to ensure Sabah’s voice is heard and respected in every federal decision,” he said.
