Kota Kinabalu: Many Small and Medium Enterprises (SMEs) in Sabah are facing the transition to the mandatory e-invoicing system a challenge, a random Daily Express survey showed.
The national rollout of the e-invoicing system which took effect Thursdsy (Aug 1) nationwide promises to modernise financial transactions, but local businesses in Sabah are encountering difficulties in adjusting to the new system.
While the Inland Revenue Board (LHDN) has provided a six-month grace period for businesses to adapt, there are concerns about the readiness of many Sabah SMEs, especially those with limited resources and technological infrastructure.
Affected parties claimed the transition to e-invoicing is proving to be a tough journey due to several common and practical reasons.
“Upgrading existing systems and acquiring new software can be financially challenging, placing a significant burden on businesses with constrained budgets.
“Many Sabah SMEs operate with limited resources and technological infrastructure, making the implementation of new systems like e-invoicing a daunting task.
“Moreover, the lack of digital literacy among some SMEs poses an additional challenge,” said one industry player.
A gap in awareness and understanding of e-invoicing requirements further impedes the adoption of the new system, making it challenging for businesses to navigate the complexities of the e-invoicing process.
Recognising the hurdles faced by SMEs, the government has pledged to provide support during the transition period.
This support includes training programs, financial assistance, and technical guidance, which are essential for Sabah businesses to successfully navigate the transition to e-invoicing.
The e-invoicing system presents both challenges and opportunities for Sabah SMEs.
While the transition may be arduous, the potential benefits of increased efficiency, transparency, and security are significant.
The government’s commitment to providing support is crucial, particularly for smaller SMEs.
By embracing the changes and leveraging available resources, Sabah businesses can overcome the challenges posed by e-invoicing and position themselves for future success in the digital economy.
