Is your company ready for E-invoicing?

Nanyang Siang Pau: E-Invoicing Press Release

Nanyang e-Invoice

Photo Caption: From Left to Right: Danny Soon Woon Fu (KCCCI), Ms. Lim Ai Chen (PKF), Yong Teck Hui (PKF), Yong Siew Woon (IFCA), and participants at the seminar.

Kuantan, 21st May – Implementing e-Invoicing measures poses significant challenges. Experts estimate that SMEs will need at least six months to prepare and will face potential cybersecurity risks. Without proper cybersecurity protection systems, there is a high risk of business privacy leaks.

Ms. Lim Ai Chen, a partner at accounting firm PKF Malaysia, estimates that it will take at least six months for businesses to prepare and integrate an e-invoicing system. The larger the enterprise, the longer the time required.

“Developing an e-Invoicing system takes about one to two months. Additionally, time is needed for training, system replacement, and adaptation, making the timeline quite tight.”

She highlighted this during the “Navigating E-Invoicing Compliance” seminar jointly organised by the E-Commerce and Multimedia Division of Kuantan Chinese Chamber of Commerce & Industry (KCCCI), the Real Estate and Housing Developers’ Association (REHDA) Pahang, and IFCA Software.

Lim Ai Chen pointed out five major challenges businesses face in implementing e-invoicing, namely: Lack of time and resources for preparation; Budget constraints for system upgrades and IT infrastructure investment; Uncertainties in e-invoicing guidelines; Insufficient knowledge of e-invoicing; Cybersecurity risks when adopting solutions. These measures primarily impact business operations, employee adaptability, and investment costs.

Basic System Costs Tens of Thousands
She estimates that for small and micro-enterprises, customising an e-invoicing system, including training and guidelines, will cost between RM 10,000 and RM 15,000, depending on the company’s size and system complexity.

Given the numerous and extensive details involved in an e-Invoicing system, she urged businesses to take this seriously and familiarise themselves with the operating procedures as soon as possible. Failure to submit e-Invoices on time is a violation, and if convicted, company owners could be fined between RM200 and RM20,000, imprisoned for up to six months, or both.

Privacy Concerns Among Businesses
Kevin Lim, Vice President of Infra365 Sdn Bhd, stated that the e-Invoicing system allows authorities to read internal business data, raising concerns about business privacy leaks without proper protection systems in place.

“Installing an e-invoicing system is similar to opening a door to a previously closed internal business system, making it vulnerable to cyber-attacks and sensitive data breaches.”

The Malaysian government kick-started the e-Invoicing pilot project in May this year. All businesses with annual revenue exceeding RM 100 million are required to implement e-Invoicing beginning 1 August this year, those with revenue between RM 25 million and RM 100 million will implement it on 1 January 2025, and full implementation will begin on 1 July 2025.

Other distinguished guests included Danny Soon Woon Fu, Director of E-Commerce and Multimedia of KCCCI; Pang Kwei Seen, Chairman of the REHDA Pahang; Yong Siew Woon, Vice President of IFCA Software; and Yong Teck Hui, Senior Tax Manager at PKF Accounting Firm.