PETALING JAYA: Small and Medium Enterprises Association of Malaysia (Samenta) today welcomed the announcement by the prime minister that SMEs with annual revenue under RM1 million will be exempted from e-invoicing starting 2026.
National president Datuk William Ng said this is a timely and compassionate decision that reflects the government’s genuine understanding of the pressures faced by micro and small enterprises.
“Based on our estimates, this expanded exemption will exempt an additional 200,000 SMEs, many of whom operate at very thin margins and lack the digital infrastructure required to comply with e-invoicing in the immediate term. For these businesses, the announcement offers much-needed breathing space at a time when they are already grappling with rising costs, tariff uncertainties, growing competition from foreign online sellers, and other unforeseen compliance burdens,” he added in a statement.
Ng said this decision will allow the smallest enterprises in Malaysia to focus on stabilising their operations, improving productivity, and upgrading their internal processes without the fear of abrupt disruption.
“It also preserves the broader national digitalisation agenda by ensuring that adoption happens at a pace that is practical, sustainable, and sensitive to the realities on the ground.”
Ng urged their SMEs not to view this exemption as a reason to delay automation and digitalisation. Instead, SMEs must use this window to strengthen their accounting practices, organise their financial records, and gradually transition to digital systems where possible.
“Early preparation will make future compliance smoother and will also help businesses improve efficiency, cashflow visibility, and overall competitiveness,” he said.
Samenta thanked the prime minister and the Ministry of Finance for listening closely to the concerns of the SME community and for taking a balanced approach that safeguards both economic resilience and long-term national progress.
