KUCHING: The federal government’s decision to raise the e-Invoice implementation threshold from RM500,000 to RM1 million may provide short-term relief to small and medium enterprises (SMEs), but key challenges in Sarawak remain unresolved.
Kuching South City Council (MBKS) councillor Eric Tay Tze Kok said many businesses had already spent money to purchase e-Invoice systems in anticipation of the earlier RM500,000 requirement, only to find the threshold increased — leaving them with unnecessary financial burden.
“Many businesses had already invested in e-Invoice systems to comply with the previous threshold.
“With the requirement now raised to RM1 million, they end up with a system that is no longer immediately mandatory. This creates additional financial strain and wasted resources,” he said in a statement.
He added that the government should consider compensation, subsidies or tax deductions for businesses that proactively complied with the earlier policy but were affected by the sudden revision.
Tay stressed that Sarawak faces conditions very different from Malaya, especially in rural and remote districts where telecommunications coverage remains unreliable.
“In some areas, telco companies are reluctant to install towers due to low population density. Under such circumstances, even businesses earning more than RM1 million may struggle to comply with the e-Invoice system and risk being penalised unintentionally,” he said.
He emphasised that this was not a matter of businesses resisting reform, but rather that the necessary infrastructure is not yet fully in place.
“If these differences are ignored, the burden will fall heavily on grassroots traders,” he added.
Tay also urged the government to focus on policy education, system training and technical guidance before enforcing the requirement, and proposed a multi-year grace period to give businesses sufficient time to adapt.
He questioned whether the threshold would continue to shift.
“From RM500,000 to RM1 million, will it later be RM2 million or RM3 million? Frequent adjustments create confusion among businesses and undermine confidence in policy consistency,” he said.
Tay further called on Putrajaya to prioritise commitments that are fundamentally important to Sarawak over rushing the e-Invoice rollout.
He said the government should demonstrate stronger political will by delivering on Sarawak’s 20 per cent oil royalty and ensuring the full implementation of rights under the Malaysia Agreement 1963 (MA63).
“These issues are closely linked to Sarawak’s fiscal autonomy and directly impact our infrastructure development, people’s livelihood and economic transformation. They were also key promises during the last general election,” he said.
He added that fulfilling these commitments would do “far more to earn the trust and recognition of Sarawakians” than introducing a single technical tax policy.
