GEORGE TOWN: Around 200,000 small and medium enterprises (SME) are expected to benefit from the government’s expanded e-invoicing exemption, according to the Small and Medium Enterprises Association Malaysia (Samenta).
Samenta president Datuk William Ng said the exemption, which will apply from 2026 to businesses with annual revenue below RM1mil, will provide much-needed relief for the smallest enterprises.
Many of these businesses, he noted, operate on thin margins and lack the digital infrastructure needed to comply with e-invoicing requirements immediately.
"This is a timely and compassionate decision that reflects the government’s genuine understanding of the pressures faced by our micro and small enterprises.
"These businesses are already grappling with rising costs, tariff uncertainties, growing competition from foreign online sellers, and other unforeseen compliance burdens.
"For them, this announcement offers much-needed breathing space," Ng said on Sunday (Dec 7).
He added the exemption would allow micro businesses to stabilise, improve productivity, and upgrade internal processes "without the fear of abrupt disruption," while still supporting the national digitalisation agenda at a practical and sustainable pace.
However, Ng urged SMEs not to delay their digital transition.
"SMEs must use this window to strengthen our accounting practices, organise our financial records, and gradually transition to digital systems where possible.
"Early preparation will make future compliance smoother and help businesses improve efficiency, cashflow visibility, and overall competitiveness," he said.
Meanwhile, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) also welcomed the government’s recalibration of regulatory and tax measures to ease financial pressures on micro, small and medium enterprises.
ACCCIM said the decision to raise the e-invoice exemption threshold to RM1mil from 2026 would reduce compliance and administrative burdens for smaller businesses.
"This demonstrates the government’s pragmatism in implementing policies while being mindful of their potential impact on businesses," it said.
The chamber also noted that doubling the tax refund allocation to RM4bil would help companies facing delayed payments, but stressed that processing timelines must be expedited with improved compensation mechanisms to ensure timely returns.
It also expressed appreciation for the two-year moratorium on enforcement and penalties for job vacancy reporting under the Social Security Organisation (Perkeso), with plans to exempt SMEs pending stakeholder consultation.
