KUALA LUMPUR, Dec 7 — Small and Medium Enterprises Association of Malaysia (Samenta) has welcomed the government’s decision to exempt businesses with annual revenue below RM1 million from e-invoicing starting 2026, saying the move will benefit about 200,000 additional SMEs.

In a statement today, the association said many of the affected firms operate on thin margins and lack the digital infrastructure needed for immediate compliance, adding that the expanded threshold offers “much-needed breathing space” as they contend with rising costs and competition from foreign online sellers.

“This decision will allow the smallest enterprises in Malaysia to focus on stabilising their operations, improving productivity, and upgrading their internal processes without the fear of abrupt disruption,” it said.

The association also stressed that SMEs should not treat the exemption as a reason to delay digitalisation.

It urged businesses to use the transition period to improve accounting practices and gradually adopt digital systems to enhance efficiency and cashflow visibility.

Samenta added that it appreciated the balanced approach taken by the prime minister and the Ministry of Finance in addressing SME concerns.