KUCHING: ‘Pertubuhan Transformasi Dayak’ or Dayak Transformation Association (TRADA) urged the federal government to grant an exemption to all micro, small, and medium enterprises (MSMEs) from the onerous e-invoicing requirements.
This relief should not be extended only to traditional or offline businesses.
Its president Joseph Janting said that e-invoicing could hinder the growth of MSMEs in Sarawak.
Many of them have come to rely on online e-commerce platforms to reach a broader consumer base, particularly in Peninsular 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?
“We do not understand why the double standards should exist, more so when many traditional MSME operators have now begun to move online as a way to grow their businesses.
“With one platform being exempted from e-invoicing while another is not, it adds to further confusion and concern that they may not be able to comply with the regulations,” he said this in his recent statement.
Joseph stressed that 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 Peninsular Malaysia as many MSMEs in Sarawak are still in the early stages of digital adoption.
“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,” he said.
Joseph highlighted that e-invoicing process is not fully automated by the e-commerce platform, and many sellers would be facing difficulties in understanding, much less complying with the regulations.
He also emphasised that mandating online sellers to use e-invoice will stifle growth and innovation in the sector, 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,” he stated.
He said that 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.
