By DayakDaily Team
KUCHING, Sept 30: Sarawak Timber Association (STA) asserts that the federal government’s decision to mandate e-invoicing for all businesses in Malaysia is an inconsiderate policy that will disproportionately impact small and medium-sized enterprises (SMEs), which form the backbone of the Malaysian economy.
STA chief executive officer Annie Ting said while the intention to modernise the tax system is understandable, this compulsory approach ignores the unique challenges faced by SMEs, which often lack the resources and expertise to implement complex technological solutions.
“The low threshold for e-invoicing registration, set at revenue above RM150,000, further entraps SMEs in a compliance dilemma.
“Implementing e-invoicing requires significant investments in new hardware, software, and training. For many SMEs, these expenses are simply out of reach, forcing them to either divert resources from core business activities or face the risk of non-compliance.
“Moreover, the transition to e-invoicing can be complex and time-consuming, disrupting operations and potentially leading to errors or delays,” she said in a statement today.
Ting further said instead of imposing a mandatory requirement, the government should focus on providing incentives to encourage voluntary adoption of e-invoicing.
This approach, she said, could include tax rebates or credits for SMEs that implement e-invoicing; financial assistance to help offset the costs of hardware, software, and training; and simplified compliance procedures for e-invoicing adopters.
“By offering these incentives, the government can create a more favourable environment for SMEs to embrace e-invoicing while minimising the financial burden on businesses,” she added.
She also said unlike other countries, such as Singapore, Australia, and the United Kingdom, Malaysia’s approach is overly hasty, lacking consultation with businesses in Sarawak especially the SMEs.
“We urge the government to reconsider this policy and make e-invoicing a voluntary choice for businesses with effective incentives and support.
“This approach would alleviate the financial burden on SMEs, promote innovation, and ultimately contribute to a more vibrant Malaysian economy,” she emphasised. — DayakDaily
