Post-Sabah Defeat: Anwar Swiftly U-turns on E-Invoicing Burden

Kota Kinabalu, 7 Dec 2025 – Still reeling from Pakatan Harapan’s crushing defeat in last weekend’s Sabah state election, Prime Minister Datuk Seri Anwar Ibrahim today announced immediate policy relief for small businesses, admitting some federal rules had hurt sentiment on the ground.

Speaking at the Sentuhan Madani programme, Anwar conceded the previous RM500,000 e-invoicing threshold “imposed unnecessary burden on small operators” while big corporations coped easily. “The Cabinet has agreed to raise it to RM1 million effective immediately — businesses below that level will no longer be compelled,” he said, acknowledging the issue contributed to PH’s losses, especially in urban Chinese-majority seats.

Post-Sabah Defeat

He also responded to long-standing complaints about delayed tax refunds, revealing an extra RM2 billion allocation — doubling the original RM2 billion — to clear backlogs before year-end. Further funding may follow through a supplementary budget.

“Traders pay taxes on time, yet refunds come late. That cash-flow pain is real,” Anwar stressed, signalling rare post-election responsiveness as the unity government scrambles to rebuild business and voter confidence.