KUALA LUMPUR: Malaysia Digital Economy Corporation (MDEC) has launched the inaugural national e-Invoicing open day and accreditation, marking a significant milestone towards digitalising business processes.
MDEC said the landmark event 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.
According to the nation's digital economy agency, the event 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.
Officiated by the Digital Minister Gobind Singh Deo, it also honoured the first cohort of 31 Malaysia Peppol service providers (SPs) 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," it said in a statement.
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, enterprise resource planning (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.
MDEC said this highlights the strong interest in e-invoicing adoption by businesses in Malaysia, driven by the mandate for tax compliance.
As the designated Peppol authority in Malaysia, MDEC chief executive officer Mahadhir Aziz said the agency is actively accrediting organisations to facilitate their operations within the country.
MDEC has received over 150 applications for SP and PRSP accreditation as of June.
"This initiative, formalised by the accreditation ceremony, forms the foundation of Malaysia's e-invoicing community, leveraging the Peppol framework," he added
With the digital economy gross domestic product (GDP) projected to reach 25.5 per cent by 2025, MDEC said the initiative is poised to bolster the growth, benefiting businesses of all sizes.
Additionally, the adoption of e-invoicing is also projected to boost tax revenue contribution to between 14 per cent and 15 per cent of GDP once fully implemented across all businesses by July 1 next year.
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, the MyDigital Blueprint and the National eCommerce Strategic Roadmap 2.0.