Samenta: 200,000 more SMEs exempted from e‑invoicing next year

KUCHING (Dec 7): An additional 200,000 small and medium enterprises (SMEs) will be exempted from e-invoicing starting next year following Prime Minister Datuk Seri Anwar Ibrahim’s recent announcement, said Datuk William Ng.

The Small and Medium Enterprises Association Malaysia (Samenta) president said Anwar had announced the exemption of SMEs with annual revenue under RM1 million from e‑invoicing beginning next year.

“Based on our estimates, this expanded exemption will exempt an additional 200,000 SMEs, many of whom operate on very thin margins and lack the digital infrastructure required to comply with e-invoicing in the immediate term,” he said in a statement.

Ng said they welcomed the announcement, describing it as a timely and compassionate decision that reflects the government’s genuine understanding of the pressures faced by micro and small enterprises across the country.

He believes that the move offers much-needed breathing space at a time when SMEs are already grappling with rising costs, tariff uncertainties, growing competition from foreign online sellers, and other unforeseen compliance burdens.

“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 also preserves the broader national digitalisation agenda by ensuring that adoption happens at a pace that is practical, sustainable and sensitive to the realities on the ground,” he said.

In the meantime, Ng urged SMEs not to view this exemption as a reason to delay automation and digitalisation.

Instead, he said businesses should use this window to strengthen their accounting practices, organise financial records and gradually transition to digital systems where possible.

“Early preparation will make future compliance smoother and will also help businesses improve efficiency, cashflow visibility and overall competitiveness,” he said.

On behalf of Samenta, he thanked Anwar and the Ministry of Finance for listening closely to the concerns of the SME community and for taking a balanced approach that safeguards both economic resilience and long-term national progress.