The Small and Medium Enterprises Association Malaysia (SAMENTA) has urged the government to consider a soft approach in managing the implementation of e-invoicing for SMEs, slated to be launched on August 1, 2024.
SAMENTA president Datuk William Ng asked the government to adopt an educational and advisory approach during the first year of implementation.
“This approach would be more supportive than a punitive one, recognising that SMEs in different industries may adopt e-invoicing at varying paces. We do not want to penalise those who may be slower to adapt due to initial challenges,” Ng stated.
“We hope the government will be lenient and avoid immediate penalties,” said Ng during a roundtable discussion on ‘The Challenges & Opportunities for Malaysia’s SME and Retail Industry’, alongside Dato Liew Bin, deputy president of the Malaysia Retailer Chains Association (MRCA), and Ooi Boon Sheng, CEO of Web Bytes Sdn Bhd.
Ng believes that as e-invoicing becomes more widespread, SMEs will adapt and utilize the system effectively. Consequently, SAMENTA has not called for an exemption of e-invoicing for all SMEs.
Ng also emphasized the importance of digital transformation for SME retailers, noting, “SME retailers are particularly vulnerable to inflation. Embracing digital solutions is no longer optional; it is a necessity. By leveraging technology, SMEs can enhance their competitiveness, improve customer experiences, and drive sustainable growth.”
Contactless payment systems, for example, have gained traction among SME retailers, enhancing customer convenience and streamlining transactions. These systems improve the shopping experience while reducing the resources spent on managing cash transactions.
Furthermore, e-invoicing policies and AI-driven analytics help retailers understand consumer behavior, tailor offerings, and optimize pricing strategies. These technologies enable retailers to make informed decisions, stay agile, and respond quickly to market changes.
As inflation continues to rise, Malaysian retailers are struggling with increasing costs that threaten their profitability and sustainability. Web Bytes Sdn Bhd (Web Bytes), a leading retail management software company, emphasizes the crucial role of technology in helping retailers navigate these economic challenges.
Recent data from the Department of Statistics Malaysia indicates that inflation in May reached its highest level in eight months, driven mainly by restaurant and accommodation services. Inflation has significantly raised business costs, impacting supply chain expenses and operational overheads.
To address these issues, SMEs and retailers are increasingly adopting technological solutions to enhance efficiency, reduce costs, and improve overall business performance.
Ooi Boon Sheng, CEO of Web Bytes, stated, “Inflation poses a significant challenge for retailers, but technology offers powerful tools to help manage these pressures. By adopting advanced retail software solutions, businesses can optimize their operations, reduce waste, and streamline processes. Our goal is to empower retailers with the technology they need to not only survive but thrive in this challenging economic environment.”
One key area where technology can make a difference is inventory management. Advanced retail software provides real-time data and analytics, helping retailers maintain optimal inventory levels, reduce overstocking, and minimize wastage.
Additionally, automating routine tasks such as invoicing and payment processing can significantly cut administrative costs.
“In the face of rising costs, it is clear that technology will play a pivotal role in the future of retail. Data from our top 10 Xilnex retail merchants reveals that nearly 50% of their customers now use e-wallets for payments. This shift to cashless transactions has significantly reduced operational costs and minimized risks associated with cash handling, thereby lowering potential losses from theft or errors. By leveraging real-time analytics, AI-driven insights, and automation, we empower retailers to not only manage inflationary pressures but also drive sustainable growth and enhance customer experiences,” concluded Ooi.
