RM1 Mln e-Invoice Exemption Threshold Eases MSMEs' Compliance Costs -- ACCCIM

KUALA LUMPUR, Dec 7 (Bernama) -- The government’s decision to raise the e-invoice exemption threshold from RM500,000 to RM1 million beginning 2026 would ease the compliance costs and administrative burden for micro, small and medium enterprises (MSMEs).

In a statement today, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) welcomed the recalibration of regulatory and tax measures to ease the financial burden on MSMEs in a challenging business environment.

It said the recalibration of these measures demonstrates the government’s pragmatism in its economic policy implementation while being mindful of the potential impact on businesses.

The association said a doubling of the tax refund allocation from RM2 billion to RM4 billion would also help businesses struggling with delayed payments and ease their cash flow.

However, the processing timelines must be expedited, along with improved compensation mechanisms, to ensure timely returns to taxpayers, it added.

The association also commended the government's measures to provide a two-year moratorium with no enforcement or penalties on the reporting of job vacancies under the amendments to the Social Security Organisation, together with plans to exempt SMEs from mandatory job vacancy reporting, subject to the outcome of stakeholders’ consultation.

“While we welcome sufficient consultation with stakeholders before implementing this mandatory job vacancy reporting, the effectiveness and perception of mandatory job reporting hinge on balancing the benefits of a transparent labour market for jobs matching with the businesses' need for operational flexibility and minimal compliance burden.

“With these latest policy adjustments, ACCCIM is optimistic that the government has taken a meaningful step toward safeguarding the interests of SMEs, enabling them to stabilise their operations, invest in growth, and contribute more effectively to Malaysia’s economic recovery and long-term development,” it said.

-- BERNAMA