ISKANDAR PUTERI, July 9 — The government will review the rollout of the e-invoice system to alleviate the regulatory pressure currently weighing on Malaysian businesses, said Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi.

He confirmed the decision following a Cabinet meeting yesterday.

“The review was undertaken as the implementation of the e-invoice faced numerous problems and difficulties, causing stress and additional burden on businesses across the country," Zahid said during a Barisan Nasional (BN) community programme in Kota Iskandar last night.

He noted that the move came after strong advocacy from BN ministers and shared concerns from other parties within the administration.

“The review is a positive decision for the country’s business community," he added.

The event was attended by Umno supreme council member Datuk Nur Jazlan Mohamed, former Johor Umno chief Datuk Seri Hasni Mohammad, and BN’s Kota Iskandar candidate Datuk Pandak Ahmad.

The Inland Revenue Board's (LHDN) mandatory e-invoice system has sparked significant operational and financial friction for local firms. Small and medium enterprises (SMEs), in particular, have struggled with steep upfront technology costs, complex accounting integrations, and rigid validation timelines.

Beyond digital invoicing, he said the Cabinet is also revisiting the mandatory two per cent Employees Provident Fund (EPF) contribution for foreign workers.

Currently, any company employing foreign labour must contribute two per cent of the worker's salary to the EPF. 

“At BN’s request, the Cabinet also decided to review and examine the two per cent contribution. The two per cent contribution amount is said to burden the business community,” he said.

The EPF announced last year that both employers and non-Malaysian workers must contribute two per cent of their monthly pay.

This mandate applies to all non-Malaysian workers with valid passports and work passes, excluding domestic helpers. Previously, these contributions remained optional.