PETALING JAYA: With the six-month extension granted to small businesses on e-invoicing compliance, these companies say it will enable many of them to be better prepared for the system.
Yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan announced the extension for micro, small and medium enterprises (MSMEs) with annual sales of between RM150,000 and RM500,000.
The implementation will now take effect from Jan 1, 2026.
Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry (KLSICCI) president Nivas Ragavan said the extension will be helpful to these business concerns to prepare for the transitional phase.
But he said six months may still not be enough for many MSMEs, especially those with limited digital capabilities and resources.
“It is crucial that this period is utilised effectively with targeted outreach, training and support programmes to ensure a smooth adoption process,” he said.
To encourage more MSMEs to adopt e-invoicing, Nivas said the government could introduce subsidies or tax deductions for those investing in digital infrastructure.
He also said the government can develop user-friendly tools and platforms to make e-invoicing accessible even to the smallest businesses.
Additionally, he called on the government to introduce training and awareness campaigns as well as having helplines to assist businesses in troubleshooting compliance-related challenges.
“KLSICCI stands ready to collaborate with the Inland Revenue Board (LHDN) and relevant government agencies to support MSMEs in making this transition seamless and beneficial,” he added.
SME Association of Malaysia president Chin Chee Seong said the six-month extension will allow SMEs to learn more about the implementation of e-invoicing.
“Most Malaysian SMEs are in this category. At least they can have more time to understand the system,” he said.
He said the government should have reached out to more stakeholders in the country on the benefits of e-invoicing.
“This can also be promoted with more campaigns via mainstream and social media,” he added.
The Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong said the proposed e-invoicing system should be postponed until more businesses are familiar with the system.
“Delay it until most of the companies are familiar with it. Bigger companies have better resources than smaller firms.
“So, it is definitely easier for bigger companies to implement it,” he said.
Koong recalled that at a recent dialogue session with LHDN, it was mentioned that an app was being developed to facilitate e-invoicing matters among businesses.
“The app should be developed quickly so that all businesses can come on board with the e-invoicing move,” he said.
