Since September 1, roughly 1.1 million MSMEs with annual sales under RM3 million no longer have to implement e-invoicing, but 164,435 of them have voluntarily kept using it. This matters because it clarifies that the exemption is optional, not mandatory withdrawal, letting smaller businesses that already adapted keep the system without being forced back to manual invoicing, while those for whom compliance was a burden can opt out entirely. MSMEs weighing their invoicing setup may be affected directly, with the exemption framed as part of a wider effort to ease compliance costs on smaller businesses still recovering from pandemic-era pressures, even as larger companies above RM3 million in sales remain on the mandatory e-invoicing rollout.

 

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