E-INVOICE IMPLEMENTATION UNLIKELY TO IMPACT AUTO LOAN MARKET - MAA

KUALA LUMPUR, July 16 (Bernama) -- The implementation of electronic invoicing (e-invoice) should not significantly impact the auto loan market, said Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain.

He noted, however, that the initiative is expected to enhance efficiency and transparency in hire purchase loan applications.

“Bank Negara Malaysia has imposed strict regulations to ensure responsible banking practices under the Hire-Purchase Act. 

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“Although customers are required to pay a minimum down payment, some banks still offer 100 per cent loans," he told a press conference today.

He made these remarks when asked about the impact of e-invoice on full loans and vehicle sales.

“So I feel that basically, it should not have a big impact on the whole scenario of full loan situations,” he added.

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Yesterday, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz stated that the implementation of e-invoice, scheduled to begin next month, would not affect overall vehicle sales this year.

Recent media reports suggested that vehicle sales might decrease in August due to the elimination of full financing for purchases following the e-invoice implementation.

The government previously announced that 4,000 companies with incomes exceeding RM100 million would be the first group involved in the e-invoice implementation starting Aug 1, 2024.

Companies with annual revenue between RM25 million and RM100 million will start using e-invoice on Jan 1, 2025, with full enforcement of the system set for July 1, 2025.

-- BERNAMA