Kuala lumpur: The government estimates that four per cent of micro, small and medium enterprises (MSMEs) will be involved in the implementation of e-invoicing when mandatory compliance begins on July 1, 2025. Entrepreneur Development and Cooperatives Minister, Datuk Ewon Benedick, highlighted this projection based on the current progress of e-invoicing, which, as of July 31, recorded 417 million e-invoices issued by 84,000 taxpayers, including MSMEs.

According to BERNAMA News Agency, in 2024, Malaysia recorded 1.08 million MSMEs, comprising 761,897 microenterprises (70.1 per cent), 306,764 small enterprises (28.2 per cent), and 17,725 medium enterprises (1.6 per cent). Ewon was responding to a question from Datuk Ahmad Amzad Mohamed @ Hashim (PN-Kuala Terengganu) in the Dewan Rakyat regarding the percentage of entrepreneurs expected to be involved in e-invoicing.

Ewon stated that the government is aware of MSMEs’ concerns about compliance costs, including the need to invest in accounting software, staff training, and the risk of penalties for non-compliance. To address these concerns, the annual sales value threshold for e-invoice exemption has been raised to RM500,000, while the Inland Revenue Board (IRB) will continue its briefing programmes to raise awareness and understanding among entrepreneurs.

“IRB has also assured that the e-invoice system provided by the agency is free if used directly by taxpayers,” Ewon added.