KUALA LUMPUR, August 14, 2025 – The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) will continue its outreach programmes to educate micro, small, and medium enterprises (MSMEs) and cooperatives on the implementation of the e-Invoice system.
Minister Datuk Ewon Benedick said these initiatives have been ongoing since 2024 through KUSKOP agencies, particularly SME Corp Malaysia, in collaboration with the Inland Revenue Board of Malaysia (LHDN).
“The National Entrepreneurship Institute (INSKEN) has also been conducting Usahawan MADANI e-Invoice seminars at various locations across Peninsular Malaysia, Kota Kinabalu, and Kuching.
“I believe this process will take time, and we will continue to intensify efforts with LHDN to provide awareness and encourage MSMEs to adopt the e-Invoice system.
“However, I acknowledge that this is a significant concern, especially among small and micro entrepreneurs, even though the majority of them are exempted because their annual sales do not exceed RM500,000,” he said during a session in the Dewan Rakyat today.
He was responding to a supplementary question from Sungai Besar MP, Datuk Muslimin Yahaya, who asked whether KUSKOP provides education, training, and guidance for entrepreneurs to implement e-Invoicing.
According to Muslimin, the SME Malaysia 2025 survey found that over 55% of SMEs are still unprepared to transition from manual systems to e-Invoicing, especially in the services and retail sectors.
Key challenges include increased compliance costs, the need to invest in integrated accounting software, staff training, workflow adjustments, and the risk of penalties for non-compliance.
Ewon said MSME entrepreneurs frequently raise such concerns during the ministry’s outreach and engagement sessions.
“For that reason, we’ve also been involved in discussions with the Ministry of Finance, and it has been decided that MSMEs with annual sales of RM500,000 or below will be exempted from implementing e-Invoicing,” he said.
Responding to a separate question from Betong MP Datuk Dr. Richard Rapu, who asked how the ministry will ensure e-Invoicing does not burden MSMEs, particularly those in rural areas with limited digital literacy or poor internet access, Ewon acknowledged the practical challenges involved.
“We are aware of the challenges in implementing e-Invoicing, especially in rural areas where internet access is unstable,” he said.
“This is a technical issue that requires serious attention, especially for rural entrepreneurs in Sarawak, parts of Sabah, and some areas in Peninsular Malaysia. Improving internet access is a key factor for the successful implementation of e-Invoicing.
“At the same time, LHDN has assured that if entrepreneurs use the system provided by the board, it will be free of charge,” he added.
Ewon reaffirmed that the ministry will continue its efforts to provide guidance and support to MSMEs.
“SME Corp Malaysia and INSKEN are among the ministry’s agencies actively conducting these sessions nationwide to ensure that MSME entrepreneurs understand and are prepared to implement e-Invoicing,” he said.