KUALA LUMPUR: Small and medium enterprises fear that Malaysia's electronic invoicing (e-invoicing) system will be painful for them, while those in the automotive sector feel that it will not affect vehicle sales.
Digital Minister Gobind Singh Deo acknowleged the SMEs' concerns and said the government is looking at ways to cut costs of implementing e-invoicing system for them.
The Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain, meanwhile, said the implementation of e-invoicing is not expected to significantly impact new vehicle sales.
E-invoicing will be mandatory for all businesses on July 1, 2025.
The government previously announced that 4,000 companies with incomes of more than RM100 million are targeted to be the first group involved in the implementation of e-invoices from Aug 1.
Companies with annual revenue or sales exceeding RM25 million and up to RM100 million will start using e-invoices on Jan 1, 2025.
The Small and Medium Enterprises Association of Malaysia (Samenta) had raised concerns on the increase in costs for SMEs with the system. The costs include of e-invoicing consulting, IT system upgrade, training and additional employees.
Gobind said he had received a few suggestions to assist SMEs in the process, which he would bring to the government for discussion.
"If there is any announcement, maybe it will be made in the next budget presentation. There are many aspects raised that need to be seen, not only this.We welcome suggestions and as a minister, I am open to opinions and views that can improve this new system," he said after officiating MDEC National E-Invoicing Open Day and Accreditation Ceremony here today.
At the same time, Gobind said the system offers a lot of benefits to businesses which in turn, will simplify invoicing processes and increase productivity.
"If we look at the impact broadly, it can simplify a business where the process will save money for us. Using this digital process will speed up our business process and also expedite all transactions that occur.From that point of view, we can definitely see an increase of income," he added.
Meanwhile, there are concerns that the e-invoicing will effectively eliminate full financing for car purchases. As a result, buyers would need to pay at least 10 per cent down payment.
If this measure was implemented, it will be seen as burdensome because not everyone could afford to provide a down payment, especially young adults starting their careers.
But MAA's Mohd Shamsor assured that dealers and banks are likely to introduce better packages to offset the absence of full loans.
"Typically, full loans are offered to government employees even though it is not stipulated in Bank Negara Malaysia's regulations.
"Therefore, with the implementation of e-invoicing, dealers and banks will definitely present other offers," he said at a press conference on the sales and production of new vehicles for the first half of 2024 on Tuesday.
He added that the shift to e-invoicing should enhance efficiency and transparency within the industry.
"Many financial institutions have introduced flexible financing options beyond conventional hire purchase (HP) plans, including flexi plans and step-up financing. We believe there is no issue with full loans and down payments because they are regulations set by Bank Negara. Therefore, we do not see a significant impact on vehicle sales," he added.