In a landmark event that promises to reshape Malaysia’s digital business landscape, the Malaysia Digital Economy Corporation (MDEC) recently hosted its inaugural National e-Invoicing Open Day & Accreditation Ceremony.
MDEC, a government agency under the purview of the Ministry of Digital, introduced the Malaysia Digital (MD) national strategic initiative. This initiative aims to encourage and attract companies, talents, and investment, empowering Malaysian businesses and citizens to play a leading role in the global digital economy.
With a new and enhanced framework, MD seeks to transform the nation’s digital capabilities, fostering the growth of local tech companies and driving digital adoption. Through these efforts, MDEC aims to firmly establish Malaysia as the digital hub of ASEAN.
As the nation’s lead digital economy agency and newly appointed Peppol Authority, MDEC has taken a giant leap forward in its mission to propel Malaysia into the forefront of digital transformation.
The Peppol Promise for Malaysian Business
The event, held on 16 July 2024 in Kuala Lumpur, represented an important milestone in Malaysia’s journey towards a more integrated digital economy.
The gathering focused on the implementation of Peppol, an internationally recognised framework for electronic invoicing and document exchange.
The Peppol framework, recognised as the most widely implemented e-Invoicing framework globally, comprises technical specifications that enable systematic interoperability between diverse systems, thus facilitating seamless e-Invoice exchange.
MDEC’s key functions as Malaysia’s Peppol Authority includes localising the Peppol framework, establishing governance protocols, setting up infrastructure, and managing service provider accreditation.
Peppol is an international e-invoicing framework that enables seamless electronic document exchange between companies, regardless of their software, hardware, or geographical location. This framework has the potential to significantly change how Malaysian businesses operate and interact in the digital age.
The implementation of e-Invoicing in Malaysia represents a collaborative effort between MDEC and Lembaga Hasil Dalam Negeri Malaysia (LHDNM).
Whilst MDEC spearheads the business digitalisation aspect using the Peppol framework, LHDNM focuses on e-Invoicing for tax reporting and compliance. This strategic partnership ensures a comprehensive approach to e-Invoicing adoption in the country.
From Concept to Reality: MDEC’s e-Invoicing Journey
MDEC’s efforts to champion e-Invoicing began in 2020, with the Open Day representing a culmination of years of planning and strategic effort. Ts. Mahadhir Aziz, Chief Executive Officer of MDEC, provided insights into the progress made.
The CEO informed attendees that as of June 2024, MDEC had received over 150 applications for Service Provider and Peppol-Ready Solution Provider accreditation, indicating strong interest from the business community in adopting e-Invoicing solutions.
The event brought together key stakeholders from both the public and private sectors, providing a platform for business leaders, technology providers, and government officials to explore e-Invoicing solutions and their potential impact on Malaysian commerce.
Government Backs the Digital Push
The gravitas of the occasion was further heightened by the presence of Yang Berhormat Tuan Gobind Singh Deo, Minister of Digital, who officially inaugurated the event.
Businesses seeking to adopt e-Invoicing must first assess their implementation options, considering either tax reporting compliance or a more comprehensive business digitalisation approach.
They then evaluate their readiness, including the compatibility of existing systems, and select accredited Peppol Service Providers or Peppol-Ready Solution Providers.
The Peppol Accreditation Ceremony
A key highlight of the event was the accreditation ceremony for 31 Malaysia Peppol Service Providers and four Peppol-Ready Solution Providers.
Peppol Service Providers (SPs) function as access points, serving as gateways to the Peppol network. They securely connect businesses and route e-Invoices to their intended recipients.
Peppol-Ready Solution Providers (PRSPs), conversely, offer accounting software, Enterprise Resource Planning (ERP) systems, or e-Invoice platforms capable of sending and receiving e-Invoices in Peppol format, connecting to the Peppol network via an access point.
The accreditation ceremony marks the inception of the Peppol community in Malaysia, with both SPs and PRSPs playing crucial roles.
This first group of accredited companies will play a crucial role in facilitating secure and efficient e-Invoice exchanges within the Peppol network.
Some of the accredited SPs and PRSPs include Advintek, Basware, BEACON, B-Global, Bigledger, Billit, Defmarco (Cleartax), Comarch, Creditflow, Cygnet, Deskera, E Stream MSC (SQL), Edicom, Egroup Tech, Finexus, Goldsoft, IMT Tech, Linkfor, ManageTradeX, OFCOM, Ozedi, Pagero, Pintar Investments, Precomp, RTC, SESAMi, SF Asia, Storecove, TNGSTN, Valtatech, Xaana, MyBiz, and Sage.
The accreditation of these companies is significant as it establishes a network of trusted partners, offering Malaysian businesses various options to implement e-Invoicing solutions that can streamline operations and ensure compliance with tax regulations.
Networking to Forge Digital Partnerships
One of the most valuable aspects of the event was the networking opportunities it provided. In the breaks between presentations and demonstrations, attendees interacted freely, exchanging ideas and forming potential collaborations and partnerships.
The air was thick with the energy of innovation and collaboration, as Malaysia’s business community and IT professionals engaged in animated discussions with service providers, exploring the possibilities and potential impact of e-Invoicing on their operations.
This interaction highlighted the collaborative spirit within Malaysia’s business community as it adapts to the evolving digital landscape.
MDEC’s Vision: A Peppol-Powered Malaysian Economy
MDEC envisions widespread adoption of Peppol-based e-Invoicing as a contributor to economic growth in Malaysia. The organisation anticipates that this initiative will play a role in increasing the nation’s digital economy GDP, which is projected to reach 25.5% by 2025.
Furthermore, implementing e-Invoicing is expected to impact tax revenue positively. Projections suggest that once fully implemented across all businesses by 1 July 2025, e-Invoicing could increase tax revenue contribution to between 14% and 15% of GDP.
The implementation of e-Invoicing aligns with several national-level plans, including the 12th Malaysia Plan (RMK12), the MyDigital Blueprint, and the National eCommerce Strategic Roadmap (NESR) 2.0.
Businesses to Join the e-Invoicing Revolution
During the National e-Invoicing Open Day & Accreditation Ceremony, MDEC and LHDNM worked in tandem to engage with businesses, offering a holistic view of e-Invoicing implementation. MDEC shared the Peppol framework and its benefits for business-to-business transactions, whilst LHDNM provided guidance on tax compliance aspects.
This coordinated effort demonstrated how e-Invoicing serves dual purposes: streamlining business operations and enhancing tax reporting efficiency.
As the event concluded, MDEC encouraged businesses of all sizes to explore the potential of Peppol and e-Invoicing for their operations. The organisation aims to support the transition to digital invoicing practices across the Malaysian business landscape.
For those interested in learning more about e-Invoicing and Peppol implementation in Malaysia, MDEC has made resources available. Queries related to e-Invoicing using the Peppol framework can be directed to clic@mdec.com.my. Additional information is available on MDEC’s website at https://mdec.my/national-einvoicing.
The National e-Invoicing Open Day & Accreditation Ceremony marked an important step in Malaysia’s digital business evolution. As the country continues to develop its digital economy, the adoption of e-Invoicing through the Peppol framework represents a significant development — possessing the potential to streamline operations, boost efficiency, and contribute to Malaysia’s position in the global digital economy.
The Open Day has set the stage for Malaysian businesses to explore and potentially adopt these new digital practices as part of the nation’s ongoing digital transformation efforts.
Source: https://fintechnews.my/45441/digital-transformation/mdec-national-e-invoicing-open-day-marks-new-chapter-in-malaysian-digital-business/