Sarawak Ngo Trada Wants E Invoicing Exempted For All Msmes In The State

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THE Pertubuhan Transformasi Dayak (TRADA) has called on the federal government to exempt all micro, small and medium enterprises (MSMEs) from the burdensome e-invoicing requirements – not just brick-and-mortar or offline businesses.
This is because e-invoicing could hinder the growth of MSMEs in Sarawak, many of which have come to rely on online e-commerce platforms to reach a broader consumer base, particularly in Peninsula Malaysia, where there is a larger market for their products and services.
“Given that traditional MSMEs with revenue below RM150,000 are already exempted from e-invoicing, why can’t online businesses be exempted as well?” asked the Sarawak-based NGO’s president Joseph Janting.
TRADA’s president Joseph Janting“We don’t understand why the double standards should exists, more so when many traditional MSME operators have now begun to move online as a way to grow their business.
“With one platform being exempted from e-invoicing while another is not, this adds to further confusion and concern that they may not be able to comply with the regulations.”
TRADA estimates that there are over 50,000 online-based MSMEs in Sarawak. Most of these are run by individuals looking to earn a bit more income from selling self-made products or trading small goods just to make ends meet.
“The landscape in East Malaysia is vastly different from that of Peninsula Malaysia as many MSMEs in Sarawak are still in the early stages of digital adoption,” revealed Janting.
MSMEs with a turnover pf less than RM150,000 annually will be fully exempted from e-invoicing (Image credit: AutoCount)“As these operators are already struggling with shortage of funds, labour and technology, the additional burden of navigating the complexities of e-invoicing could force existing online sellers to re-think their business operations or exit altogether.”
Moreover, given that the e-invoicing process is not fully automated by existing e-commerce platform, Janting expects many sellers to be facing difficulties in understanding, much less, complying with the regulations.
In this regard, TRADA emphasised that mandating online sellers to comply with e-invoicing will stifle growth and innovation, more so at a time when the government is encouraging the expansion of the digital economy.
“Both the federal government and state government must be cognisant of implementing policies that would have a negative impact on people’s livelihoods, especially within less well-off communities in Malaysia,” asserted Janting.
“TRADA remains committed to advocating for policies that support the development of MSMEs in Sarawak and will continue engaging with relevant stakeholders to ensure a fair and sustainable business environment.” – Focus Malaysia

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