FMM Urges Simplified Access for RM1 Billion Micro-Financing, Guidance on Revised e-Invoicing Threshold

KUALA LUMPUR, Sept 1 — The Federation of Malaysian Manufacturing (FMM) has called on the government to implement simple application procedures, affordable financing terms, and expedited disbursement for the newly announced RM1 billion micro-financing top-up.

FMM President Jacob Lee Chor Kok stated today that the additional facility—which raises total micro-credit funding for 2026 to RM6 billion from RM5 billion—is vital as small and medium enterprises (SMEs) continue to struggle with rising operating costs and cash flow constraints. He stressed that adequate financing access for eligible small manufacturers will help businesses sustain operations, retain workers, and invest in productivity enhancements.

The funding boost was part of six immediate relief measures announced by Prime Minister Datuk Seri Anwar Ibrahim during his 2026 National Day address on Aug 30, aimed at easing financial pressures on households and businesses ahead of Budget 2027. Lee noted that while several measures focus on the wider community, they will generate positive economic spillovers for commercial enterprises.

Furthermore, FMM welcomed the government’s decision to raise the annual sales threshold for mandatory e-invoicing from RM1 million to RM3 million. Lee highlighted that the higher exemption threshold will provide meaningful relief to smaller firms by lowering compliance costs, administrative burdens, and system maintenance requirements.

“For businesses with annual sales between RM1 million and RM3 million that have already implemented e-Invoicing under the previous threshold, FMM calls on the Inland Revenue Board of Malaysia to provide early clarification on whether they may opt out following the revised threshold or continue participating voluntarily,” Lee said.

He added that early adopters who have already invested in systems integration should continue to receive technical guidance and support from the tax authority.

–NMT