THE Malaysian Micro Businesses Association (Mamba) has criticised the government’s e-invoicing rules for disproportionately affecting online sellers on e-commerce platforms, regardless of their revenue — a move it said places an unfair burden on micro enterprises.
Under current regulations, only physical businesses earning over RM150,000 annually are required to issue e-invoices.
However, online sellers operating through e-commerce platforms must comply regardless of income, while those with standalone websites remain exempt if they fall below the threshold.
In a statement on May 8, Mamba called the discrepancy unjust and said it imposes unnecessary pressure on small, often family-run businesses, already grappling with rising costs and sluggish consumer demand.
Chairman Tan Peng Beng urged the government to reconsider the policy, especially for fledgling digital entrepreneurs.
According to the Datametrics Research and Information Centre (DARE), 94.7% of online micro business owners surveyed believe e-invoicing should not be mandatory, with 87.3% saying the system is too tedious and 12.7% finding it confusing.
“This is clear proof that micro entrepreneurs are not just overwhelmed — they are actively pushing back,” said Tan.
The survey polled 516 entrepreneurs earning below RM150,000 annually and found that only 40.1% were even aware of the upcoming requirement — underlining a lack of outreach ahead of the blanket implementation scheduled for Jan 1, 2026.
Mamba also warned that differing rules based on the platform used are creating confusion and risk deterring micro enterprises from adopting digital channels, undermining national digitalisation goals.
Noting that micro businesses account for 78.7% of Malaysia’s micro, small and medium enterprises (MSMEs), Mamba called for supportive policies that reflect their economic importance — especially amid ongoing uncertainty and cost pressures. — TMR
- This article first appeared in The Malaysian Reserve weekly print edition
The post Mamba slams ‘unfair’ e-invoicing rules for online sellers appeared first on The Malaysian Reserve.
