Swinburne Sarawak explores how small business owners in Sarawak can confidently transition to e-invoicing using accessible digital tools and free local training.

What does E_Invoicing Mean for Local Small Businesses?

As Malaysia prepares for the nationwide implementation of e-invoicing by January 2026, small business owners in Sarawak – from cleaning services to renovators and food stall operators – must adapt to this digital shift. While often seen as a regulatory requirement, e-invoicing is an opportunity to modernize business operations using free, accessible tools.

Beginning 1 January 2026, all businesses in Malaysia, regardless of size, will be required to issue electronic invoices via the Inland Revenue Board’s (LHDN) MyInvois system. These digital documents include key information such as the business owner’s tax number, customer details, and a breakdown of goods or services provided.

The move aims to strengthen tax compliance while encouraging micro and small businesses to adopt digital record-keeping. This shift will reduce paperwork, streamline tax filing, and improve access to financing and government grants.

Getting Started with E-Invoicing Using a SMartphone

Many small businesses in Sarawak already use smartphones to manage orders, communicate with customers, and handle payments. Transitioning to e-invoicing is a logical next step – and doesn’t require expensive software or hardware.

One recommended platform is Bukku, a Malaysian-developed cloud-based accounting system. Its free plan supports startups and micro-enterprises, with seamless integration into MyInvois system. Users can create, submit, and manage e-invoices directly from their mobile device.

For businesses with fewer transactions, LHDN’s MyInvois Portal is a free alternative. Business owners can manually input invoice details through the platform, and ideal alternative for occasional billing.

Streamlining Operations with Automation

Once a suitable platform is selected, automation features can significantly reduce administrative work. For example, many invoicing tools allow businesses to save a product catalog, making it easy to reuse standard items like ‘Laksa Sarawak-RM10’ in future invoices with just a tap.

Other helpful functions include automated payment reminders sent via email or WhatsApp, real-time invoice tracking, and searchable invoice histories – all of which eliminate the need to sort through paper records.

Simplyfing Customer Data Collection

E-invoices require customer details such as full name, address, and Taxpayer Identification Number (TIN). Business owners can simplify this step by sending pre-written message templates via WhatsApp or SMS, such as:

“Hi! To issue your official receipt, could you kindly send your full name, address, and Taxpayer Identification Number (TIN)? You can register for your TIN at mytax.hasil.gov.my. Thank you!”

This information can be stored in simple tools like Google Sheets ir within the invoicing platform itself for future use. 

Getting Ready for 2026: Steps Towards E-Invoicing Success

LHDN recommends that small businesses start early. Practicing mock transactions weekly – starting with family and friends – can help build familiarity and confidence. As comfort grows, owners can start issuing real e-invoices during off-peak hours.

This proactive approach prevents last-minute confusion and builds momentum for full implementation by January 2026.

Free Local Training Across Sarawak

To support the digital transition, free hands-on training is available across Sarawak:

• Sarawak Digital Economy Corporation (SDEC) runs regular workshops at Digital Innovation Hubs in Kuching and other regions
• TEGAS Digital Village, Kuching South City Council (MBKS), and Kuching North City Hall (DBKU) also offer community-based digital clinics and innovation sessions
• Sessions are available in both English and Bahasa Malaysia.

These programs ensure even the smallest business owner can adapt confidently, regardless of digital proficiency.

Connecting E-Invoices with Digital Payments

E-invoicing also enables integration with digital payment systems like DuitNow QR and FPX. This allows customers to pay faster and more securely, improving cash flow and reducing delays.

Maintaining digital records also helps small businesses strengthen their case when applying for micro-loans and grants from agencies like TEKUN Nasional, SME Bank, and SDEC.

Turning Compliance into an Opportunity for Growth

E-invoicing should not be seen as a burden. With free and low-cost digital tools, small businesses in Sarawak can turn this mandate into a strategic advantage.

By starting early, selecting the right platform, and leveraging local training, business owners will be well-positioned for success – operationally and financially. Timely compliance also ensures eligibility for funding opportunities while avoiding penalties.