KOTA KINABALU: The implementation of the electronic invoicing system in Sabah has to be delayed, said Parti Warisan, citing the state’s unique challenges.
Party vice-president Datuk Junz Wong said the Inland Revenue Board’s (LHDN) uniform approach fails to consider Sabah’s distinct circumstances, which differ significantly from those of Peninsular Malaysia.
He pointed out that even small and medium enterprises in Kuala Lumpur are struggling with the transition to e-invoicing, warning that the impact could be even more severe in Sabah due to the state’s greater technological challenges.
“We have seen cases where students had to climb trees just to get a stable Internet signal for their exams,” Wong said, highlighting the significant infrastructure gaps in the state.
Responding to Finance Minister II Datuk Seri Amir Hamzah Azizan’s recent announcement of an einvoicing exemption for micro, small, and medium enterprises with annual sales below RM150,000, Wong argued that additional measures are necessary to address Sabah’s specific needs.
He proposed that if a delay in implementation in the state is not feasible, the threshold for mandatory e-invoicing should be raised to RM1mil for businesses in Sabah.
This adjustment would better reflect local economic realities and alleviate the burden on smaller operators, said Wong.
“Implementing e-invoicing without addressing our serious Internet connectivity issues and the high costs of digital compliance could lead to many small businesses closing, similar to the hardships faced during the Good and Services Tax implementation,” he said in a statement yesterday.
Wong emphasised the need for a cautious approach by the government to ensure that einvoicing policies do not unintentionally harm the businesses they aim to support.
“By raising the e-invoicing threshold, we can give Sabah’s small businesses the breathing space they need to grow and adapt to digital changes at a more manageable pace,” Wong said.
As the Tanjung Aru assemblyman, Wong also stressed the urgent need to improve basic infrastructure, particularly Internet access across Sabah, before enforcing such digital policies.
“We must prioritise strengthening our foundational infrastructure to ensure that no business, especially those in remote areas, is left behind in this digital shift,” he said.
