The Consumer Choice Center (CCC), a global consumer advocacy group, today called on the Government to review and amend the current e-invoicing framework, urging authorities to exempt small online businesses earning RM150,000 or less annually.
Under the present policy, small physical businesses with similar revenue thresholds are exempted, while online businesses are still required to comply with e-invoicing obligations.
The association expressed concern that the unequal treatment of small businesses based solely on their sales channel—physical or online—places unnecessary burdens on micro and small online entrepreneurs. This disparity may also result in higher costs being passed down to consumers, affecting product pricing and limiting variety in the market.
Tarmizi Anuwar, Malaysia Country Associate at the CCC said “As a consumer association, we are deeply concerned that the current e-invoicing policy unfairly penalises small online sellers, many of whom are everyday Malaysians trying to earn an honest living. It is not reasonable that small physical shops are exempt, yet online businesses operating at the same scale are forced to bear additional compliance costs and administrative burdens. Such an imbalance not only discourages digital entrepreneurship but may also reduce healthy market competition, ultimately impacting consumer choice and pricing.”
Many online businesses already use e-wallets, online banking, and digital payment platforms that automatically generate transaction records. These existing financial systems provide transparency and traceability, making additional e-invoicing requirements redundant and unnecessarily bureaucratic. Instead of imposing rigid compliance measures, policymakers should recognize that digital payment adoption itself enhances financial accountability without burdening small entrepreneurs.
“We strongly urge the Government to level the playing field by extending the same exemption to small online businesses. Supporting the growth of small businesses, regardless of whether they operate online or offline, ensures that consumers benefit from a broader range of affordable products and services, while encouraging the development of a fair and inclusive digital economy in Malaysia.”
CCC reiterated its commitment to safeguarding the interests of consumers and small businesses and welcomes engagement with relevant stakeholders to review policies that affect the broader marketplace.