Kota Kinabalu: Warisan Vice President Datuk Junz Wong has called for a delay in implementing the electronic invoicing (e-invoice) system in Sabah.
He said the region’s unique challenges make the transition premature and potentially detrimental to its economy.
Wong contended that the Inland Revenue Board had not adequately considered Sabah’s distinct circumstances compared to Peninsular Malaysia.
He noted that even SMEs in Kuala Lumpur struggle with e-invoicing, suggesting Sabah’s greater technological barriers could exacerbate these issues.
“We have seen cases where students had to climb trees to find adequate internet signals for their exams,” he said, underlining the severe infrastructure deficits in the region.
In response to the recent exemption from e-invoicing for micro, small and medium enterprises (MSMEs) with annual sales below RM150,000, announced by Finance Minister II Datuk Seri Amir Hamzah Azizan, Wong advocated for further accommodations in Sabah.
He suggested raising the mandatory e-invoicing threshold to RM1 million for Sabah businesses if a delay is not possible, to better reflect local economic conditions and reduce pressure on small operators.
“Imposing e-invoicing without considering the severe internet connectivity issues and the high costs of digital compliance tools could force many of our small businesses to shut down, mirroring the hardships faced during the GST implementation,” he said.
“It is crucial that the government of the day takes a sensitive approach to the implementation of e-invoicing in Sabah, ensuring that policies do not inadvertently stifle the very businesses they aim to support.
“By raising the e-invoicing threshold, Sabah’s small businesses would be afforded the necessary breathing room to grow and adapt to digital transitions at a more manageable pace,” he added the Tanjung Aru Assemblyman.
He also highlighted the critical need for improvements in basic infrastructure, particularly internet access across Sabah, including rural areas, before such digital policies are enforced.
“We must prioritise the strengthening of our foundational infrastructure to ensure that no business, especially in remote areas, is left behind in this digital shift,” he said.
