KUALA LUMPUR: An additional 200,000 small and medium enterprises (SMEs) are expected to be exempted from e-invoicing following the government’s announcement to raise the exemption threshold to RM1 million, starting in 2026.
In a statement today, Small and Medium Enterprises Association Malaysia (Samenta) said the expanded threshold, which will benefit SMEs with annual revenue below RM1 million, was a timely and compassionate decision that reflects the government’s genuine understanding of the pressures faced by micro and small enterprises.
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Its national president Datuk William Ng said many of the additional SMEs operate on thin margins and lack the digital infrastructure required to comply with e-invoicing in the immediate term.
“For these businesses, the announcement offers much-needed breathing space at a time when they 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,” he said.
Ng said the government’s decision also preserves the broader national digitalisation agenda by ensuring adoption at a pace that is practical, sustainable, and sensitive to realities on the ground.
“We urge our SMEs not to view this exemption as a reason to delay automation and digitalisation.
“Instead, (we) must use this window to strengthen our accounting practices, organise our financial records and gradually transition to digital systems where possible,” he said.
He said early preparation will make future compliance smoother and help businesses improve efficiency, cash flow visibility, and overall competitiveness.
