The Malaysian government has increased the threshold for mandatory e-Invoicing implementation for businesses, offering relief to a significant portion of the country’s micro, small, and medium enterprises (MSMEs). Previously set at RM1 million, the threshold has been raised to RM3 million. This decision means over 1.1 million MSMEs will now be exempt from the requirements of the e-Invoicing system. The move aims to ease the burden on smaller businesses and allow them more time to prepare for digital tax compliance. The government intends to support MSMEs in their digital transformation journey with this adjustment. This policy change is expected to stimulate growth within the MSME sector by reducing immediate compliance costs. Further details regarding the implementation timeline for businesses above the new threshold will be announced separately.