KUALA LUMPUR: The government projects that four per cent of micro, small and medium enterprises (MSMEs) will participate in e-invoicing when it becomes mandatory next year.
Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick shared this estimate based on current e-invoicing adoption rates.
As of July 31, 84,000 taxpayers, including MSMEs, had issued 417 million e-invoices nationwide.
Malaysia currently has 1.08 million MSMEs, with microenterprises making up 70.1 per cent of the total.
Ewon addressed concerns raised by Datuk Ahmad Amzad Mohamed @ Hashim in Parliament regarding MSME participation in the e-invoicing system.
He acknowledged worries about compliance costs, such as software investments and staff training.
To ease the burden, the government increased the annual sales exemption threshold to RM500,000.
The Inland Revenue Board (IRB) will continue awareness programmes to help businesses adapt.
Ewon confirmed that IRB’s e-invoice system remains free for direct taxpayer use. – Bernama