TAWAU: Micro, small and medium enterprise (MSME) players in the district are urged to use the temporary relaxation on mandatory e-invoicing implementation to make early preparations and avoid future difficulties once the system is fully enforced.
Tawau Chinese Chamber of Commerce (CCCT) President Chia Seong Fatt said the Government’s decision to review the e-invoicing policy helped ease short-term pressure on micro and small businesses, reflecting its willingness to listen to grassroots concerns.
However, he said the exemption is not permanent and the implementation threshold may be revised again any time.
“There are already large companies in the supply chain that refuse to purchase from micro enterprises due to the absence of e-invoices.
“If micro businesses in Tawau make no preparation at all, they risk being pushed out of the market in the future,” he said, in response to the Government’s recent announcement to raise the mandatory e-invoicing threshold from RM500,000 to RM1 million in annual revenue.
CCCT Vice President and Chairperson of the Economic Bureau, Low Foong Meng, said the business landscape in Tawau is dominated by micro enterprises and small and medium enterprises (SMEs).
She said if the entire sector is slow to adapt, it will weaken the competitiveness of local businesses in the national market.
“The implementation of e-invoicing is not merely a taxation system but a crucial foundation for business digitalisation.
“Without early preparation, the cost and pressure of adapting later will be even higher,” she said.
In light of this, CCCT is urging SMEs in Tawau to begin understanding e-invoicing requirements, familiarising themselves with system operations and reporting workflows throughout the grace period to reduce the impact once the system becomes fully mandatory.
At the same time, business owners should reassess internal processes such as invoicing, accounting records and procurement arrangements to ensure a smooth transition when e-invoicing is enforced.
The chamber also warned that some large companies have already rejected purchases due to the lack of e-invoices, which may affect business relationships and future orders.
Additionally, CCCT proposed several constructive measures to the Government to support the transition, including simplifying the e-invoicing system and reporting procedures so that micro enterprises with limited resources can use them easily.
“In particular, the chamber recommends temporarily suspending the implementation of rules related to ‘Self-billed Invoices’ to avoid unintentional non-compliance and penalties arising from overly complex regulations.
“The chamber also urges the Government to establish long-term support mechanisms such as free online training, mobile briefing sessions and technical assistance platforms to help traders in rural areas and those with limited access to information transition smoothly,” they said.
To reduce digital transformation costs, CCCT further suggested that the Government consider providing subsidies or tax rebates to help businesses acquire the necessary digital systems, software and equipment.
