The Malaysia Digital Economy Corporation (MDEC), the nation’s lead digital economy agency and the Peppol Authority in Malaysia, launched the inaugural National e-Invoicing Open Day & Accreditation Ceremony, marking a significant milestone towards digitalising business processes.
Officiated by Gobind Singh Deo, Minister of Digital, this landmark event by MDEC aims to empower businesses by facilitating the adoption of e-Invoicing solutions, after having championed the e-Invoicing initiative to accelerate the nation’s digital transformation since 2020. It serves as a platform for businesses to explore and consult with various e-Invoicing solution providers, helping them identify the most suitable solutions to streamline operations and enhance efficiency.
The ceremony also honoured the very first cohort of 31 Malaysia Peppol Service Providers (SP) and four Peppol-Ready Solution Providers (PRSP). These accredited e-Invoicing service providers creates a pool of trusted partners for businesses, allowing them to explore various e-Invoicing solutions that streamline both system-to-system e-Invoice exchange and ensure compliance with tax regulations.
Peppol SPs are access points that function as the gateway to the Peppol network, securely connecting businesses and routing e-Invoices to the intended recipients. PRSPs, on the other hand, is an accounting software, ERP system or e-Invoice platforms that can send and receive e-Invoice in Peppol format that connects with the Peppol network through an access point.
Last year, Malaysia became the 21st Peppol Authority, and as of April 2024, OpenPeppol ranked Malaysia in the Top 10 for the number of Peppol members. This achievement highlights the strong interest in e-Invoicing adoption by businesses in Malaysia, driven by the mandate for tax compliance. The Peppol framework, the most widely implemented e-Invoicing framework globally, consists of technical specifications that enable systematic interoperability between disparate systems, facilitating seamless e-Invoice exchange. The accreditation ceremony is the start for the Peppol community with the SP and PRSP.
“As the designated Peppol Authority in Malaysia, MDEC is actively accrediting organisations to facilitate their operations within the country. As of June 2024, MDEC has received over 150 applications for SP and PRSP accreditation. This initiative, formalised by the accreditation ceremony, forms the foundation of Malaysia’s e-Invoicing community, leveraging the Peppol framework.” said Ts. Mahadhir Aziz, Chief Executive Officer of MDEC.
With the digital economy’s GDP projected to reach 25.5% by 2025, this initiative is poised to bolster this growth, benefiting businesses of all sizes. The adoption of e-Invoicing is also projected to boost tax revenue contribution to between 14% and 15% of GDP once fully implemented across all businesses by 1 July 2025.
MDEC’s National e-Invoicing Initiative to digitalise the business operations using Peppol framework is an initiative under several national-level blueprints, namely the 12th Malaysia Plan (RMK12), the MyDigital Blueprint and the National eCommerce Strategic Roadmap (NESR) 2.0.
As Malaysia advances towards a digital economy, the adoption of e-Invoicing is a crucial step. This initiative helps businesses streamline operations and boost efficiency, driving economic growth and increasing tax revenue.
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