SHAH ALAM: The Domestic Trade and Cost of Living Ministry through the Companies Commission of Malaysia (CCM) has introduced three criteria to exempt companies from financial statement audits, effective Jan 1.
Minister Datuk Armizan Mohd Ali said private companies seeking an audit exemption must meet two of the three criteria, with one of them being that their annual revenue must not exceed RM3mil for the current and the previous two financial years.
"Secondly, the company’s total assets for the current and previous two financial years must not exceed RM3mil, and thirdly, the number of employees at the end of the current financial year and the previous two financial years must be no more than 30,” he told a press conference here on Thursday (Jan 16).
Armizan added that to ensure the smooth implementation and readiness of all parties for the changes, the increase in the threshold value would be implemented in three phases over a period of three years, from 2025 to 2027.
In the meantime, he said that 215,008 private companies listed as active in CCM’s records had the opportunity to benefit from the initiative, which would assist qualified business entities, including young entrepreneurs and newly registered businesses.
"The implementation of these new criteria is in line with CCM’s commitment to reducing the burden and compliance costs faced by private companies, especially small and medium enterprises.
"It is hoped that this initiative can also promote the growth and increase in the registration of companies and business entities among youth entrepreneurs, including students,” he said.
Armizan said that, according to CCM records of company and business entity registrations among youth, as of Dec 31, 2024, there were 246,463 directors, 258,474 shareholders, 792,794 business owners, and 40,855 partners in Limited Liability Partnership Entities (PLT). - Bernama
