KUALA LUMPUR, Jan 5 — The Federation of Malaysian Manufacturing (FMM) views the deferment of e-invoicing as a pragmatic step that acknowledges the readiness gap among micro and small enterprises, particularly in terms of digital capability, systems integration and compliance costs.
Its president, Jacob Lee, said that the upward revision of the service tax threshold on rental services will similarly help ease cost pressures for small and medium enterprises (SMEs), especially manufacturers and supporting service providers that operate from rented premises due to limited financial capacity to purchase or build their own facilities.
“For many smaller businesses, rental expenses represent a fixed and unavoidable cost, and relief from additional tax burdens provides much-needed headroom to manage cash flow, invest in productivity improvements and support business continuity,” he told Bernama.
Today, Prime Minister Datuk Seri Anwar Ibrahim announced that mandatory e-invoicing for companies with annual sales of between RM1 million and RM5 million, originally scheduled to take effect from Jan 1, 2026, will be extended by a year, with no penalty imposed.
Anwar said the government decided to postpone the implementation because some companies are not yet ready due to the high cost of adopting e-invoicing. — Bernama
