THE Consumer Choice Centre (CCC), a global consumer advocacy group, has called on the Malaysian government to review and amend the current e-invoicing framework by exempting both micro and small online businesses earning RM150,000 or less annually.
Under the present policy, small physical businesses with similar revenue thresholds are exempted, while online businesses are still required to comply with e-invoicing obligations.
In this regard, CCC expressed concern that the unequal treatment of small businesses based solely on their sales channel – physical or online –places unnecessary burdens on micro and small online entrepreneurs.
At the end of the Dy, such disparity may also result in higher costs being passed down to consumers, thus affecting product pricing and limiting variety in the market.
“As a consumer association, we are deeply concerned that the current e-invoicing policy unfairly penalises small online sellers, many of whom are everyday Malaysians trying to earn an honest living,” justified CCC’s country associate (Malaysia) Tarmizi Anuwar.
“It is not reasonable that small physical shops are exempt yet online businesses operating at the same scale are forced to bear additional compliance costs and administrative burdens.
“Such an imbalance not only discourages digital entrepreneurship but may also reduce healthy market competition, ultimately impacting consumer choice and pricing.”
Moreover, Tarmizi contended that most online businesses are already using e-wallets, online banking and digital payment platforms that automatically generate transaction records.
These existing financial systems provide transparency and traceability, thus making additional e-invoicing requirements redundant and unnecessarily bureaucratic.
As such, policymakers should recognise that instead of imposing rigid compliance measures, digital payment adoption itself already enhances financial accountability without the need to further burdening small entrepreneurs.
“We strongly urge the government to level the playing field by extending the same exemption to small online businesses,” appealed Tarmizi.
“Supporting the growth of small businesses regardless of whether they operate online or offline ensures that consumers benefit from a broader range of affordable products and services while encouraging the development of a fair and inclusive digital economy in Malaysia.” – March 20, 2025
Main image credit: Kollect Systems
