MCA has called on the government to end the policy indecision over electronic invoicing (e-invoice) and move decisively to reinstate the Goods and Services Tax (GST), warning that ongoing flip-flops around the system are piling costs and uncertainty onto businesses.
MCA Economic and SMEs Affairs Committee chairman Datuk Ir Lawrence Low said the rollout of the e-invoicing system has been plagued by operational problems, repeated delays and shifting thresholds, creating stress for businesses already grappling with rising costs and weak demand.
“GST and e-invoicing were originally designed to function as a complete and complementary package. But the government has pushed ahead with e-invoicing while sidelining GST, resulting in a contradictory policy direction that leaves businesses confused and uncertain,” he said.
Low highlighted that the government’s repeated revisions — raising the e-invoicing threshold and postponing enforcement dates — reflect poor policy planning and timeline management.
While authorities say they are responding to feedback, he argued the changes have instead disrupted market order and shifted additional costs onto businesses.
He noted that many firms have already incurred expenses for system upgrades, software purchases and staff training.
“Some even paid deposits of up to RM3,000 for e-invoicing systems and now face uncertainty over whether they must fork out a further RM6,000, complicating cash flow and business planning,” he said, while adding that the inconsistency has also hurt service providers, with software vendors suffering losses after investing in systems, manpower and operations, only to be caught out by policy reversals.
Low said Prime Minister Datuk Seri Anwar Ibrahim’s decision to postpone the e-invoicing requirement for businesses with annual turnover between RM1 million and RM5 million by another year offers only temporary relief and fails to address the root problem.
Given past adjustments that lifted the threshold from RM200,000 to RM500,000 and later to RM1 million, he urged the government to now consider raising it to RM1.5 million or higher, especially as inflation and operating costs continue to rise.
“Reinstating GST remains the most direct, effective and long-term solution,” Low said, stressing that tax and system reforms must come with clear direction and adequate support.
“Otherwise, local businesses and the rakyat will continue to bear the cost of policy uncertainty,” he added.
