Putrajaya: 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.

According to BERNAMA News Agency, Small and Medium Enterprises Association Malaysia (Samenta) stated that the expanded threshold will benefit SMEs with annual revenue below RM1 million. The decision is seen as a timely response to the challenges faced by micro and small enterprises. Samenta’s national president, Datuk William Ng, highlighted that many of these businesses operate on thin margins and lack the necessary digital infrastructure to comply with e-invoicing immediately.

Ng emphasized that the announcement provides crucial breathing space for these businesses as they deal with rising costs, tariff uncertainties, and competition from foreign online sellers. He noted that the decision allows the smallest enterprises in Malaysia to stabilize their operations and improve productivity without fear of abrupt disruption.

The government’s decision aims to balance the national digitalisation agenda by ensuring that adoption of new systems is practical and sustainable. Ng urged SMEs not to use this exemption as a reason to delay digitalisation efforts but to use the time to strengthen accounting practices and transition to digital systems.

Ng also advised that early preparation for digitalisation will lead to smoother compliance in the future, along with improved efficiency and competitiveness for businesses.