KUALA LUMPUR: Malaysia must continue modernising its tax system to keep pace with a more digital, connected and complex economy, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II said new business models, cross-border transactions and changes in international taxation required governments to continuously update tax policy and administration.
“Malaysia has responded proactively to these developments.
“Through continuous reforms and digitalisation initiatives, we are strengthening the transparency, efficiency and integrity of our tax ecosystem to ensure Malaysia remains competitive and attractive as an investment destination,” he said.
Amir Hamzah said this when opening the 26th National Tax Conference at the Kuala Lumpur Convention Centre on Tuesday (Aug 4).
He said a strong fiscal position depended on an efficient, fair and trusted revenue system, adding that taxation was not merely a source of government revenue, but also an important tool to strengthen confidence in public institutions, support economic stability and fund essential services and development programmes.
For 2026, he said Federal Government revenue is projected to reach RM343.1bil, which would support spending on education, healthcare, infrastructure, security and social protection.
He said the implementation of e-Invois was among the country’s most significant tax administration reforms, helping to improve compliance, transparency and data integrity.
Since its implementation, he said the Inland Revenue Board had recorded RM1.009bil in tax payable, with more than 52,000 taxpayers coming forward to make voluntary declarations.
“The e-Invois initiative not only enhances transparency, but also improves data integrity while supporting a more efficient and technology-driven approach to tax compliance and administration,” he said.
Amir Hamzah said the government was also mindful of the challenges faced by micro, small and medium enterprises.
He said the e-Invois voluntary disclosure programme, which runs until Dec 31, 2027, allows taxpayers to voluntarily update, review or correct submissions without penalties.
The government has also approved an accelerated capital allowance incentive, allowing businesses to claim full allowance within one year for qualifying expenditure related to e-Invois implementation.
“These measures will help ease compliance costs and administrative burdens while encouraging higher compliance,” he said.
On the economy, Amir Hamzah said Malaysia continued to show resilience despite global uncertainty.
He said the economy grew 5.4% in the first quarter of 2026, while advance estimates showed growth strengthening to 5.8% in the second quarter, supported by domestic demand and expansion in the services, manufacturing, mining and construction sectors.
In the first half of 2026, total trade reached RM1.8 trillion, with exports rising 27.5% year-on-year, contributing to a trade surplus of RM147.1bil.
He said Malaysia had also improved its global competitiveness, rising to 15th place out of 70 economies in the IMD World Competitiveness Ranking 2026, from 23rd place last year.
However, he said Malaysia must remain vigilant as the global outlook continued to be marked by uncertainty.
“The government will continue to implement policies that strengthen economic resilience, enhance competitiveness and safeguard long-term fiscal sustainability,” he said.
