EMPOWERING COMPLIANCE THROUGH DIGITAL INNOVATION
AS Malaysia's e-invoicing mandate rolls out in stages, large organisations are racing against time to stay compliant – all against the backdrop of ongoing operations, without disrupting business continuity.
Some organisations are seeking a simple, intuitive solution that enables compliance, while others are looking for one with workflows that integrate seamlessly with their existing operations.
UPC Chemicals (Malaysia) Sdn Bhd (UPC), one of the world's largest plasticiser manufacturers and distributors, faced similar challenges.
Like many others, UPC faced costly challenges when integrating its legacy Enterprise Resource Planning (ERP) system with the MyInvois platform.
Effortless compliance
So, how did UPC overcome the complexities of Malaysia's e-invoicing mandate?
UPC chose AREMA, a cloud-based middleware solution by Finexus Group, a diversified technology and financial services company, for its seamless integration, cost and time efficiency, hassle-free implementation, automation features, and regulatory readiness.
The e-invoicing solution, compliant with the Inland Revenue Board (LHDN), Open Peppol and the Personal Data Protection Act (PDPA), enabled UPC to meet compliance requirements efficiently while minimising disruptions to its existing operations.
For UPC, integration was a top priority. AREMA's middleware seamlessly integrated their existing company systems to the MyInvois platform without requiring major changes.
With AREMA, UPC experienced a significant reduction in manual errors. Its built-in automation – including preloaded LHDN validation rules – enabled auto-validation and exception handling.
These features flagged issues before submission to LHDN, reducing the risk of invoice rejections and compliance penalties.
Ongoing assurance
To keep up with LHDN's evolving requirements, having a solution that supports continuous updates is essential.
UPC noted that AREMA's rigorous pre-launch validation tests significantly minimised errors and ensured full compliance with LHDN from day one.
With future regulatory updates built into the system, UPC is better prepared to avoid penalties and disruptions.
More than just a software provider, Finexus positions AREMA as a dedicated long-term compliance partner.
Smooth onboarding
Onboarding plays a critical role in the success of any e-invoicing implementation – a key strength UPC highlighted in their AREMA experience.
The process began with an in-depth consultation covering their business model, invoice volume, and system architecture.
UPC appreciated the structured approach, which ensured alignment from the start.
Support was notably responsive across phone, email, and WhatsApp, enabling swift issue resolution.
Trusted partner
Finexus remains committed to supporting Malaysia's digital transformation through compliance-focused innovation and strategic partnerships.
'As part of our next quantum leap in artificial intelligence (AI) and automation, we aim to help more businesses like UPC Chemicals securely adopt e-invoicing,' said Finexus group chief executive officer Clement Loh.
'We believe this initiative, aligned with the Madani Economy's KPIs, will help propel Malaysia into the world's top 30 economies and top 12 in the Global Competitiveness Index, driven by fiscal automation, transparency and digitalisation.'
He added that empowering businesses with scalable, future-ready solutions is essential to strengthening national economic resilience.
It continues to invest in cutting-edge technologies to meet the evolving needs of businesses navigating regulatory change.
By fostering greater trust and efficiency in digital processes, the company plays a vital role in accelerating Malaysia's shift towards a robust digital economy.
To learn more about Finexus and its innovative offerings, visit https://www.finexusgroup.com/
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
20 hours ago
- The Star
Art in the age of AI
While artificial intelligence (AI) is reshaping the creative landscape, academics say technology will never replace human ingenuity and imagination. 'Everybody says AI can replace artists and that creative talent is no longer needed. 'But those of us in the industry know that AI can never fully take our place in the creative sphere. 'It is merely a digital tool that can expedite the process of creation and make it more efficient,' said Unitar International University animation lecturer Elaine Loh Ee Ling at the opening of the varsity's curated exhibition, Create, Transform, Reflect, Liberate (CTRL'25), on July 24. Loh In March, the value and ethics of using generative AI in art came under the spotlight when stylised portraits resembling the iconic animation style of Japanese production house Studio Ghibli flooded social media feeds. Certain artistic styles, said Loh, remain beyond AI's capabilities. 'AI-generated art often has a recognisable 'look and feel', which has led to copyright restrictions in countries like the UK, Canada and the US,' she said, 620 Loh, who has over 15 years of experience in animation industry and academia, advised students to embrace AI as part of creative evolution, rather than fear it. 'As artists, we will transition into another phase where AI is incorporated – just like the shift from fine art to 2D to 3D. Now, we are actually at the peak of a golden age for 3D,' she added. The future in 3D Meanwhile, fashion design lecturer Suhaimi Shapii sees AI tools like CLO 3D as a practical innovation – transforming the way clothing is designed and developed. CLO 3D is a software that allows designers to combine 2D pattern drafting with 3D garment simulation, giving designers a real-time preview of how clothing will look and move before it is physically made. Suhaimi Shapii 'Before this, there was a manual technique that you use in fashion design – from sketches to creating master patterns, and finally sewing garments. 'But with CLO 3D, you can create patterns, sew garments in the software, and even print them in real size,' he explained. But, like Loh, Suhaimi maintains that AI cannot replicate the emotional depth behind human-made art. 'AI only does what we tell it to do. It looks nice but there is no soul in the work,' he said. Suhaimi Shapii's art Wrong perception But despite the innovation and impact that creative work provides, many art students still face discrimination and misconceptions about their career prospects, said Loh. 'Society, especially parents, think artists are very poor. When they learn about our background, they ask, 'How can you earn money?'' she shared. The perception that art is easy or not a 'real' profession also leads to people undervaluing creative work, even within academic settings, she said. 'Students and lecturers are constantly asked to do things for free because they think it's easy to do,' Loh noted. She also highlighted how this mindset is exploited in the workforce, where young graduates are underpaid under the guise of gaining 'exposure'. 'Imagine paying fresh grads RM2,500 or RM3,000 when they have expertise. 'Of course, they need more training – but companies use the term 'learn for exposure' as an excuse to underpay them,' Loh said. Hoping to challenge these misconceptions, Loh emphasised that art is a meticulous and demanding process – far from the easy task many assume it to be. Despite not being an academic high-achiever in her school years, Loh attributed her success to sheer determination. 'At school, I was not a top scorer. I was slow, but I did not give up. I kept working to improve my skills. 'I noticed that students nowadays also have their own struggles so I want to tell them that anything is possible,' she shared. From working on TV series and feature films to landing opportunities in Japan, Loh's journey is a testament to what persistence can achieve. 'Even though I started off as a nobody, I can now venture out. 'I've worked on TV series and feature films. I even went to Japan and worked – something I never thought was possible. So, I just want to give that kind of encouragement – that they can actually do it, as long as they put in the effort,' she said.
Borneo Post
a day ago
- Borneo Post
More than money: Sabah's quest for fair revenue and fight for 35% parliamentary representation
THE debate surrounding Sabah's claim for 40% of its net revenue, enshrined in the 1963 Malaysia Agreement (MA63), continues to evolve. Recent events highlight a strategic two-pronged approach, Pakatan Harapan (PH) Sabah's calculated withdrawal of its lawsuit against the federal and state governments, combined with the Sabah Law Society's (SLS) ongoing legal action. This article examines both strategies, illustrating their complementary roles in securing a just and equitable resolution for Sabah. This analysis incorporates information from Sabah News Today regarding PH Sabah's actions, a statement from the Sabah Law Society dated May 21, 2025, and my own observations. Pakatan Harapan's decision to withdraw its originating summons marked a strategic shift toward collaborative engagement with the newly formed federal government. Their rationale centers on the establishment of the MA63 Implementation Action Council (JKTMTPMA63) and its Technical Committee. Datuk Ewon Benedick, a key figure in PH Sabah and a former plaintiff, now holds a significant position within these committees, ensuring direct representation in discussions regarding Sabah's financial claims. This approach prioritized negotiation and a collaborative path to resolution over protracted litigation. As reported by Sabah News Today, this withdrawal was a calculated move to foster collaboration with the federal government. This collaborative approach has yielded concrete results. Amendments to the Inland Revenue Board of Malaysia (LHDN) Act 1995 now include Sabah and Sarawak representatives on the LHDN Board, promoting transparency in revenue collection. With the inclusion of representatives from Sabah, Sabah will be able to know how much tax is actually collected from Sabah. Furthermore, the federal government initiated interim payments, demonstrating a willingness to address Sabah's financial concerns while ongoing discussions continue within the established committees. The Federal Government replaced the old 2022 review by increasing the interim payment to RM300 million in 2023, and the subsequent interim payment increased to RM600 million in 2025. This interim payment is temporary until the payment related to this 40 percent is finalized and does not affect Sabah's right to claim special grants based on the 40 percent formula for the years affected, unlike the 2022 review payment made previously by the prior government. While the exact amounts and timelines of these payments are subject to ongoing negotiations, the commitment to interim payments represents a significant step forward. Sabah News Today highlights these interim payments as a tangible outcome of the collaborative approach. In support of Pakatan Harapan's efforts, it's important to note that the Sabah Government, in addition to pursuing the 40% revenue claim, can also advocate for the reinstatement of a 35% quota of Parliament seats for Sabah, Sarawak, and the Federal Territories. I fully endorse Datuk Seri Wilfred Madius Tangau's urgent appeal, voiced during his parliamentary address, for the swift implementation of Sabah's constitutional entitlement to 40% of net revenue, as enshrined in Article 112C. It is imperative that Sabah's representatives in the MA63 Technical Committee meetings make Tangau's proposal a top priority. The ongoing delay in honoring this constitutional provision is simply not acceptable. These committee members must champion this cause to secure Sabah's prosperity, which will, in turn, drive Malaysia's overall economic progress. The current pursuit of the 40% revenue claim and the reinstatement of the 35% parliamentary representation quota are both rooted in this desire to restore the balance of power and ensure that Sabah and Sarawak receive the treatment they were promised in 1963. Specifically, the 35% parliamentary representation quota originally included Singapore. With Singapore's departure from Malaysia in 1965, that portion of the quota should have been reallocated to Sabah and Sarawak, reflecting their increased importance within the federation. In 1963, Sabah had 16 seats, Sarawak had 24, and Singapore had 15, totaling 55 seats and representing approximately 35% of the overall 159 parliamentary seats. The last time the redelineation of parliamentary seats was conducted was in 2006, with Sabah and Sarawak having 25 and 31 seats respectively, making a total of 56 seats or about 25 percent of the 222 parliamentary seats. Today, Sabah has 25 and Sarawak has 31 out of 222 seats, totaling 56 seats and representing only about 25% of the total. This isn't just about numbers, it's about power. Reinstating the 35% quota would fundamentally shift the balance of power in Parliament, giving Sabah and Sarawak the amplified voice they need to protect their rights, promote their development, and ensure their concerns are finally heard at the national level. This pursuit aligns with the original spirit of the Malaysia Agreement 1963 (MA63), ensuring a more equitable representation in the federal legislature. This aspect is crucial for ensuring Sabah's voice is adequately represented at the federal level, and it demonstrates a comprehensive approach by the Sabah Government. Complementing this political strategy is the Sabah Law Society's (SLS) ongoing legal action. According to their statement, published on Facebook on May 21, 2025, the SLS is pursuing a landmark constitutional hearing before the High Court of Sabah and Sarawak at Kota Kinabalu. The SLS's case, now before the courts, directly challenges the federal government's actions regarding Sabah's revenue rights. Their core arguments center on the alleged breach of constitutional duty regarding the non-payment of the 40% entitlement during the years since the last review. The case continues to address the constitutional basis for Sabah's claim, citing Articles 112C and 112D of the Federal Constitution, and Part IV of the Tenth Schedule. The SLS statement emphasizes that this is not a political matter but a constitutional obligation, grounded in Article 112C and the Tenth Schedule of the Federal Constitution. Sabah's strategic duality, simultaneous pursuit of political negotiation and a robust legal challenge, positions the state for a truly transformative outcome. The inclusion of the 40% claim on the MA63 Technical Committee's agenda signals a commitment to finding a resolution, while the ongoing legal action ensures accountability. Success will not only secure significant financial redress for Sabah but also fundamentally reshape the power dynamics within the Malaysian Federation, solidifying Sabah's autonomy and setting a powerful precedent for future intergovernmental relations.
New Straits Times
2 days ago
- New Straits Times
Second day of tax grievances: Guan Eng joins Wee in flagging refund delays
KUALA LUMPUR: The issue of delayed tax refunds was raised for the second consecutive day in Parliament, with former finance minister Lim Guan Eng highlighting refund backlogs and unreasonable Inland Revenue Board (LHDN) assessments as key concerns for taxpayers. Lim, who is the Bagan member of parliament, said taxpayers were questioning why they had not received their refunds within the stipulated 30-day period. "Some companies have even reported having to wait more than three years to get their tax refunds. What is the total amount of outstanding tax overpayments?" he asked. Lim added that taxpayers often complained of being pressured by unreasonable assessments issued by the LHDN. He also raised concerns over enforcement of transfer pricing regulations, saying unclear procedures had led to confusion, particularly over recent requirements for companies to impose interest on funds transferred to subsidiaries, which are then deemed taxable income. On Tuesday, Datuk Seri Dr Wee Ka Siong called for the LHDN to be restructured as an independent statutory body that reports to Parliament, rather than remaining under the Finance Ministry. Wee, the MP for Ayer Hitam, said LHDN must not be seen as a political tool and should not follow the dictates of the executive, regardless of who is in power. He also highlighted growing frustration among small and medium enterprises (SMEs), citing an increase in complaints over delayed tax refunds. "This creates the perception that the government is borrowing the people's money without interest," Wee said, pointing to a case where a taxpayer who applied for a RM13,000 refund was offered only RM650, with the balance to be paid over four years. Meanwhile, Lim called for the establishment of a special Taxpayer Tribunal to protect individuals and small and medium-sized enterprises (SMEs) from alleged unfair treatment by the LHDN. There was growing complaints from taxpayers claiming they were pressured by questionable tax assessments and enforcement actions, including bank accounts being frozen without clear justification, he said. He said that while LHDN's efforts to boost government revenue were commendable, these must be balanced with fair and reasonable enforcement. "While we appreciate the board's efforts to increase national revenue, it must be balanced with fair and reasonable treatment to avoid arbitrary actions," he said when debating the 13th Malaysia Plan in the Dewan Rakyat today. "I propose the formation of a special taxpayer tribunal to protect individuals and SMEs from feeling that they are being treated unfairly, victimised, or subjected to double standards in enforcement," Lim added.
