SIBU: The federal government has been urged to seriously address the current complex and severe economic headwinds and postpone policies that would further impact the livelihoods of the people as well as small and medium-sized enterprises (SMEs), particularly the full implementation of the e-invoicing system scheduled beginning in July.
In making the call, Sarawak United People’s Party (SUPP) Dudong Branch Chairman, Wong Ching Yong, pointed out that Malaysia’s e-invoicing policy began its first phase on August 1, 2024, initially targeting businesses with an annual turnover of RM100 million or more.
“The second phase, targeting businesses with annual turnovers between RM25 million and RM100 million, has been in effect since January 1, 2025.
“The third and final phase, which will cover all businesses, is scheduled to begin on July 1 this year.
“The federal government has mandated that once the third phase begins, all traders, including small businesses and hawkers, must adopt e-invoicing.
“However, based on the feedback I’ve received, many hawkers still have very limited understanding of e-invoicing.
“They are concerned about the cost burden imposed by this new policy and fear penalties from the federal government due to their unfamiliarity with how the system operates,” he said in a statement on Sunday.
Wong, an accountant by profession, added that learning to use the e-invoicing system, as well as purchasing the necessary software and hardware, represents a heavy financial burden for the hawkers.
With the current economic downturn, he asserted that some hawkers have confided that their businesses are worsening, and the additional costs and potential fines leave them feeling completely hopeless.
“Some fellow hawkers have told me helplessly that they are considering closing down their businesses immediately, but what will they do to support their families afterward?” he said.
Thus, he urged the federal government to be empathetic toward the plight of SMEs and micro-enterprises and to review the e-invoicing policy.
Suggesting postponing the third phase that mandates implementation for all businesses, and exempting those with annual turnovers below RM1 million from adopting e-invoicing, he proposed gradually lowering the threshold to RM500,000 only after the system is running smoothly.
Wong, who is also Sibu Rural District Council (SRDC) Deputy Chairman, also expressed his deep disappointment with the two Democratic Action Party (DAP) Members of Parliament (MP) from Sibu for failing to take responsibility and prevent the comprehensive implementation of e-invoicing in Parliament, thereby causing distress to local SMEs and micro-enterprises.
He emphasised that the e-invoicing policy was implemented by the federal government, and Lanang MP, Alice Lau Kiong Yieng, and Sibu MP, Oscar Ling Chai Yew, cannot shirk responsibility.
“They failed to strongly voice the concerns of the people of Sibu in Parliament.
“Furthermore, Deputy Finance Minister, Lim Hui Ying, is also from the DAP, meaning they have a direct channel to provide feedback on and advocate changes to the e-invoicing policy.
“Beyond the e-invoicing issue, I believe the federal government should also reassess its decision to expand the scope of the Sales and Services Tax (SST) starting May 1, as this will increase production costs for many industries, which will eventually be passed on to consumers,” he added.
According to Wong, United States (US) President, Donald Trump, announced on April 9 a 90-day delay in imposing retaliatory tariffs, set to expire on July 8.
This means starting July 9, he stressed that products exported from Malaysia to the US will face a 24 per cent high tariff which will severely impact industries such as furniture, palm oil, minerals, solar panels, and many other export-dependent manufacturers.
He believed that, compared to expanding the scope of the SST, the federal government should reinstate the Goods and Services Tax (GST), as it would better achieve a win-win situation for both taxation and the people, starting with a two per cent tax rate.
Highlighting that the GST is the main tax system adopted by almost all Western countries, including the United Kingdom, Franc, and Australia, as well as many Asian countries, he hoped that the Pakatan Harapan coalition leading the federal government will no longer reject the reinstatement of the GST out of pride.
Wong further noted that several federal government policies planned for the second half of the year are expected to cause business costs to soar and drive up prices, such as the planned removal of RON95 petrol subsidies in June, a 14.2 per cent electricity tariff hike starting July 1, and the full removal of egg subsidies beginning August 1.
“Although Sarawak’s electricity tariffs will not increase in tandem, I hope the petrol subsidies will be retained like the diesel subsidies as many essential goods in Sarawak come from Peninsular Malaysia.
“Once prices rise there due to these policies, Sarawak will inevitably suffer the indirect impacts.
“Given the aforesaid circumstances, if the federal government insists on implementing these policies, both businesses and the people will be plunged into dire straits.
“Therefore, SUPP urges the federal government to think carefully and reconsider or temporarily suspend these policies.” Said Wong.
