‘Inconsistent e-Invoicing policies erode trust, burden SMEs’

KUCHING (Jan 6): Sarawak United People’s Party (SUPP) Kuching Branch Youth chief Nicholas Wung has criticised the federal government’s decision to postpone the implementation of e-Invoicing for another year, saying repeated policy reversals have created uncertainty and financial strain for small and medium enterprises (SMEs).

He was referring to Prime Minister Datuk Seri Anwar Ibrahim’s recent announcement that the e-Invoicing requirement for businesses with annual turnover between RM1 million and RM5 million, which was scheduled to take effect on Jan 1, will now be deferred.

Wung said many businesses had already acted on the earlier directive by paying upfront for system software and investing additional funds in training to ensure compliance.

“Some merchants have even paid deposits of up to RM3,000 to system providers and are now stuck in a dilemma.

“Whether they proceed to pay the remaining RM6,000 depends entirely on whether the government changes its policy direction again,” he said in a statement.

According to him, such flip-flop decisions have left businesses at a loss and further tightened the already strained cash flow of SMEs.

“The government must face the real costs arising from inconsistent policies and not simply brush them aside with a casual ‘postponement’,” he said.

Touching on recent political developments, Wung noted that following Pakatan Harapan’s setback in the Sabah state election last December, the coalition appeared to have developed a strong sense of urgency, announcing plans to accelerate reforms within six months.

He pointed out that the Prime Minister has since said several major bills―including the Separation of Prosecutorial Powers Bill, the Ombudsman Bill and the Freedom of Information Bill―will be tabled in Parliament this month, alongside a proposal to limit the prime minister’s term to two terms or 10 years.

“The public is watching these developments closely.

“Despite the Madani government having been in power for three years, many key promises made during the 2022 general election remain unfulfilled,” he said.

Among them, Lam said, were pledges to prohibit the prime minister from also holding the finance minister portfolio, to recognise the Unified Examination Certificate (UEC), and to abolish tolls on highways in Peninsular Malaysia.

“While some partial measures, such as freezing toll hikes, have been introduced, none of these commitments have been fully implemented,” he added.

Wung warned that public trust would continue to erode if reforms remained merely slogans and paperwork.

He further highlighted the current economic pressures faced by the public, saying domestic prices continue to rise, the market remains sluggish and purchasing power is declining.

At the same time, he said the country’s fiscal position is becoming increasingly precarious.

Citing recent figures, he noted that national debt has reached RM1.31155 trillion, accounting for 64 per cent of gross domestic product (GDP)―the highest level recorded.

“In comparison, at the end of 2018, federal government debt stood at RM741.05 billion, or 51.2 per cent of GDP.

“In just over eight years, the national debt has nearly doubled, which is deeply worrying and could burden future generations,” he said.

In view of these challenges, Wung urged the government to adopt a more responsible and consistent approach to governance.

“All policies should be thoroughly evaluated before being announced to avoid erratic changes, so as to genuinely ease the burden on businesses and alleviate people’s hardships, rather than making them repeatedly pay for the government’s hesitation and missteps,” he said.