Kuala lumpur:<Text>

The Federation of Malaysian Manufacturing (FMM) has expressed support for the recent deferment of mandatory e-invoicing, calling it a necessary move to accommodate the varying levels of digital readiness among micro and small enterprises in Malaysia. The deferment comes as a response to concerns about digital capability, systems integration, and compliance costs faced by these businesses.

According to BERNAMA News Agency, FMM President Jacob Lee highlighted that the government's decision to defer e-invoicing implementation is a practical approach that considers the existing readiness gap. In addition, the upward revision of the service tax threshold on rental services is expected to alleviate cost pressures on small and medium enterprises (SMEs), particularly those involved in manufacturing and supporting service sectors. These businesses often operate from rented premises due to limited financial resources to purchase or construct their own facilities.< /P>

Lee noted that rental expenses are a significant and unavoidable cost for many smaller businesses. Relief from additional tax burdens will provide these enterprises with the necessary headroom to better manage their cash flow, invest in productivity enhancements, and ensure business continuity. This perspective was shared in the wake of Prime Minister Datuk Seri Anwar Ibrahim's announcement regarding the deferment.

Today, Prime Minister Anwar declared that the mandatory e-invoicing for companies with annual sales ranging from RM1 million to RM5 million, initially slated to commence on January 1, 2026, has been postponed by a year. No penalties will be imposed during this extension period. The government acknowledged that some companies are not yet prepared to adopt e-invoicing due to the high implementation costs.