KUALA LUMPUR, January 6 — The Federation of Malaysian Manufacturing (FMM) has welcomed the government’s decision to defer mandatory e-invoicing, describing it as a pragmatic move that recognises the readiness gap among micro and small enterprises.

Particularly in digital capability, systems integration and compliance costs. FMM president Jacob Lee said the revision would provide much-needed breathing space for SMEs, many of which are still unprepared for the costly rollout.

He added that the higher service tax threshold on rental services would further ease cost pressures on SMEs, especially manufacturers operating from rented premises. The deferment follows Prime Minister Datuk Seri Anwar Ibrahim’s announcement that mandatory e-invoicing.

For companies with annual sales between RM1 million and RM5 million will be postponed by another year from Jan 1, 2026, with no penalties imposed, as some businesses remain unready due to high implementation costs.