Dr. Chin Chee Seong, National President of the SME Association of Malaysia, noted that the announcement demonstrates the government’s responsiveness to industry feedback and its recognition of the real challenges faced by micro, small and medium enterprises (MSMEs) in implementing e-invoicing.
“E-invoicing is an important step towards digitalisation, but MSMEs face significant pressure in terms of system costs, personnel, and technical readiness. By extending the transition period and maintaining a penalty-free arrangement, the government provides valuable breathing space for businesses, allowing the transformation to proceed in a more orderly and sustainable manner,” said Dr. Chin.
The Association also welcomes the government’s decision to expand the scope of consolidated e-invoicing to include the retail and building materials sectors.
Dr. Chin highlighted that this measure will effectively reduce administrative and compliance burdens, particularly for MSMEs with high transaction volumes and limited profit margins, and will help improve overall operational efficiency.
In addition, the Association commends the government for other supporting measures announced today, including:
- Reducing the service tax on rental services from 8% to 6%;
- Exempting rental service tax for MSMEs with annual sales below RM1.5 million; and
- Extending the voluntary stamp duty disclosure programme for six months, from 1 January to 30 June 2026.
“These measures will directly assist businesses in lowering operational costs and improving cash flow management in a challenging economic environment,” Dr. Chin added.
“For MSMEs, today’s announcements offer tangible relief. They not only help reduce business burdens but also demonstrate the government’s determination and commitment to supporting MSMEs at critical times.”
The SME Association of Malaysia fully supports the Minister of Entrepreneur Development and Cooperatives, YB Steven Sim’s description of these announcements as a series of practical and strategic measures capable of providing immediate relief to MSMEs and boosting industry confidence.
The Association also welcomes the Ministry’s continued efforts to implement key initiatives, including additional financing for MSMEs that have not previously received funding, exemptions and reductions in rental service tax, and broader inclusion of rural small traders and cooperatives in the national economic ecosystem.
Currently, the SME Association of Malaysia has over 15,000 member companies nationwide, and continues to play a pivotal role in providing essential support, services, and solutions to empower businesses, enhance competitiveness, and drive long-term growth and success.
The Association also supports the government’s continued push for paperless services and bureaucratic reform. Dr. Chin emphasized that while digitalisation is fundamental for enhancing national competitiveness, its implementation must be progressive, cost-effective, and aligned with the operational realities of MSMEs.
Under the leadership of Dr. Chin Chee Seong, the SME Association of Malaysia pledges to continue working closely with the government and relevant ministries to ensure that policy implementation remains business-friendly, inclusive, and practical, effectively supporting the growth, resilience, and sustainable development of MSMEs.
