By Kevin Voon
AS Malaysia prepares for the nationwide implementation of e-invoicing by January 2026, small business owners in Sarawak, from cleaning services to renovators and food stall operators, must adapt to this digital shift. While the transition is often seen as a regulatory requirement, e-invoicing provides an opportunity to modernise business operations using free, accessible tools.
What does e-invoicing mean for local small businesses?
Beginning January 1, 2026, all businesses in Malaysia regardless of size will be required to issue electronic invoices via the Inland Revenue Board’s MyInvois system. These e-invoices are digital documents that include key information such as the business owner’s tax number, customer details and a breakdown of goods or services provided.
The move aims to strengthen tax compliance while encouraging micro and small businesses to shift towards digital record-keeping. Authorities believe that adopting e-invoicing will not only reduce paperwork but also make it easier for businesses to manage tax filing, apply for financing and access government grants.
Getting started with e-invoicing using a smartphone
Many Sarawak small businesses leverage smartphones for orders, customer communication and payments. E-invoicing adoption is a cost-effective progression, facilitated by mobile browser-based platforms, even for micro-enterprises. Bukku, a Malaysian cloud accounting system, offers a free invoicing plan for startups.
It supports real-time submissions to the Inland Revenue Board of Malaysia’s MyInvois system. For businesses with lower transaction volumes, LHDN’s MyInvois Portal serves as a free solution, ideal for occasional invoicing. Users can securely input invoice details at https://myinvois.hasil.gov.my. Explore more at bukku.my for comprehensive accounting features.
Streamlining operations with automation
Selecting a suitable e-invoicing platform can streamline operations for business owners. Automation features like product catalogues eliminate repetitive data entry, allowing quick addition of preset items like “Laksa Sarawak – RM10”. Automated payment reminders save time by sending alerts for overdue invoices via email or WhatsApp.
Real-time monitoring enables easy tracking of payment statuses, distinguishing between received and outstanding invoices without the hassle of manual record checks.
Simplifying Customer Data Collection
To issue e-invoices, businesses need customer details, including full name, address and Taxpayer Identification Number (TIN). This process can be simplified by sending automated message templates via WhatsApp or SMS. For example:
“Hi! To issue your official receipt, could you kindly send your full name, address, and Taxpayer Identification Number (TIN)? You can register for your TIN at mytax.hasil.gov.my. Thank you!”
Customer data can be stored in free tools like Google Sheets or within the invoicing system, making it easy to access for future transactions.
Steps toward e-invoicing success
With e-invoicing set to become mandatory by January 1, 2026, the Inland Revenue Board of Malaysia (LHDN) is encouraging small business owners to start preparing early. One recommended approach is to practise issuing e-invoices weekly starting with mock transactions involving family or friends. This low-pressure method helps build familiarity and confidence. As business owners become more comfortable, they can begin issuing e-invoices to regular customers during off-peak hours to ease into the new system.
Free local training across Sarawak
To support the digital transition, workshops and training sessions are regularly conducted across Sarawak. The Sarawak Digital Economy Corporation (SDEC) offers free hands-on training at its Digital Innovation Hubs in Kuching and other regions. Business owners can stay up to date by visiting sdec.com.my or following SDEC on social media.
Other organisations such as TEGAS Digital Village, the Kuching South City Council (MBKS) and the Kuching North City Hall (DBKU) also run free digital clinics and innovation sessions.
These community-based programmes are available in both English and Bahasa Malaysia. More information is available at digital.tegas.org.my, mbks.sarawak.gov.my, and dbku.sarawak.gov.my.
Connecting e-invoices with digital payments
E-invoicing integrates with payment platforms like DuitNow QR and FPX, enhancing payment speed and security for customers. This boosts cash flow, vital for small businesses.
Digital records from e-invoicing also improve the credibility of financial support applications. Agencies like TEKUN Nasional, SME Bank, and SDEC often demand solid financial documentation for grants and loans, where e-invoicing can strengthen a business’s position.
Turning compliance into an opportunity for growth
Transitioning to e-invoicing in Sarawak presents small businesses with a chance to modernise rather than a regulatory burden. With accessible tools, this shift streamlines operations and enhances record-keeping. Starting promptly, exploring platforms and engaging in training programmes fosters confident adaptation. Timely adoption is crucial to evade penalties and stay competitive in a digital landscape where efficiency, financing access and sustainability rely on embracing digital solutions early.
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at mvoon@swinburne.edu.my.
