SMALLER manufacturers and businesses are set to receive greater financial and administrative relief after the Government expanded its micro-financing pool by RM1 billion and raised the e-Invoicing threshold.
The additional funding brings the total micro-financing pool for 2026 to RM6 billion, potentially giving small businesses greater room to manage cash flow, retain workers and invest in productivity amid elevated raw material and operating costs.
Federation of Malaysian Manufacturers (FMM) president Jacob Lee Chor Kok said the expanded financing would only deliver its intended impact if eligible businesses could access the funds quickly and at affordable rates.
He called on financial institutions and government agencies to simplify application procedures, offer reasonable financing terms and expedite approvals.
For smaller manufacturers facing tight working capital, faster access to financing could help them maintain operations and employment while freeing resources for productivity upgrades.
The Government has also raised the mandatory e-Invoicing sales threshold from RM1 million to RM3 million, reducing the immediate compliance burden on businesses below the revised threshold.
The change could spare eligible micro and small enterprises from the cost of implementing e-Invoicing systems, including software, IT maintenance and related compliance resources.
However, FMM has called for early clarification for businesses with annual sales between RM1 million and RM3 million that have already invested in e-Invoicing systems and begun compliance.
Lee said the Inland Revenue Board (LHDN) should clarify whether these businesses can opt out under the revised threshold, while continuing to provide technical support for companies that choose to maintain voluntary e-Invoicing adoption.
The measures are part of a six-point economic package announced on Aug 30 ahead of the Budget 2027 presentation, aimed at easing cost pressures facing households and businesses.
For Malaysia’s smaller businesses, the combination of additional financing and reduced compliance costs could provide more working-capital flexibility at a time when operating expenses remain a major challenge. - September 1, 2026
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