Kota kinabalu: The government will raise the e-invoice exemption threshold from RM500,000 to RM1 million beginning next year as part of efforts to ease the burden on small and medium enterprises (SMEs). Prime Minister Datuk Seri Anwar Ibrahim said the decision was made after the government received direct feedback from small business owners over the cost of implementing the system.

According to BERNAMA News Agency, Anwar stated that the Cabinet made a preliminary decision after reviewing feedback from SMEs who felt the e-invoicing system added pressure and costs. He made the announcement during the ‘Sentuhan MADANI Bersama Rakyat Sabah’ program at the Sabah International Convention Centre (SICC).

Also present at the event were Sabah Chief Minister Datuk Seri Hajiji Noor, Deputy Chief Ministers Datuk Seri Dr Joachim Gunsalam, Datuk Seri Masidi Manjun, and Datuk Ewon Benedick, as well as Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. Anwar discussed the Cabinet’s decision to ensure next year’s rollout is realistic and does not overburden small businesses still adapting to digital systems.

The prime minister also addressed complaints about delayed tax refunds, announcing an increase in the allocation for tax refunds from RM2 billion to RM4 billion this December to expedite payments for small businesses. Additionally, Anwar reaffirmed the government’s commitment to implementing Sabah’s 40 percent revenue claim under the Malaysia Agreement 1963 (MA63).

Anwar highlighted the steps taken by the Technical Committee, chaired by Treasury secretary-general Datuk Johan Mahmood Merican, which has met with Sabah state secretary Datuk Seri Safar Untong to outline implementation parameters. The full committee meeting is expected before mid-January after resolving several Cabinet vacancies.

He emphasized the importance of setting clear parameters for payments, mentioning that legal amendments may be necessary, similar to past transfers of regulatory powers. Discussions on Sabah’s revenue claim are intended to be transparent and responsible, not mere political rhetoric.