MALAYSIAN BUSINESS REPORTING SYSTEM (MBRS)

Companies Commission of Malaysia (CCM) introduced the MALAYSIAN BUSINESS REPORTING SYSTEM (MBRS) – a system that digitalized companies’ financial reporting and annual return based on the eXtensible Business Reporting Language (XBRL) format. XBRL is a computer readable language that standardises the terminologies of business reporting and is commonly used by more than 100 regulators over 60 countries, with Bank Negara Malaysia among them. It contained mTool, an utility that is Excel-based which allows users to generate the filing forms for preparing financial statements, annual returns and Exemption Applications (EA) which are related to the financial statements and annual returns applications through online submission.

The implementation on voluntarily basis is effective from 28 September 2018 and the mandatory implementation based on region shall be with effect from November 2018 as per table below, except for submission of audited financial statements where the date to be determined later.

Zon Negeri Date of Implementation
Zon Tengah Kuala Lumpur and Selangor November 2018
Zon Timur Negeri Sembilan, Melaka and Johor December 2018
Zon Selatan Pahang, Kelantan and Terengganu January 2019
Zon Utara Perlis, Perak, Kedah and Pulau Pinang February 2019
Malaysia Timur Sabah, Sarawak and Labuan March 2019

The Directors, Accountants, Auditors and Company Secretaries required to familarise, learn and understand more on MBRS before the usage of the system being mandatory.

Hence, Companies need to consider and prepare yourself of the following in planning your company’s transition to MBRS financial reporting:

  • To familiarise all filing new requirements of the forthcoming MBRS and its impact to the company’s financial reporting process.
  • To identify the person(s) responsible for managing the MBRS financial statements preparation process and to plan and allocate resources for training, process development and quality assurance check.
  • To plan and allocate resources for preparation of the company financial statements in accordance to MBRS requirements and to ensure that sufficient level of participation for the assurance of completeness and accuracy of information.

For any enquiry on MBRS, please do not hesitate to contact us.

Click here to read the highlights on Malaysian Business Reporting System (PDF)

Broking and Underwriting Services are Subject to Service Tax With Effect from 1 Jan 2019

The Royal Malaysian Customs Department has issued Guide on Broking and Underwriting Services on 27 February 2019. Effective 1 January 2019, under Group I, item 12, First Schedule of the Service Tax Regulations 2018, the provision of broking and underwriting services under prescribed circumstances are subject to service tax. Services tax is not applicable for such services supplied in connection with goods or land situated outside Malaysia or where the subject matter relates to a country outside Malaysia.

Automatic Reduction on Compound

Starting from July 1, 2019, the Companies Commission of Malaysia (SSM) will implement the automatic  compound rate reducing method as a remedial solution for the compound within a specified period. This approach also aims to encourage the corporate community in complying with the provisions of the Companies Act 1965 and the Companies Act 2016.

The main purpose of implementing this new method is to provide benefit to the corporate community to enjoy a higher compound reduction rate without having to submit an appeal to the SSM.

The mechanisms and the rate of automatic compound reduction are as follows:

Payment Period From Date of Compound Reduction Rate From the Original Compound Issued
1 to 40 days 85%
41 to 60 days 75%
61 to 90 days 60%
91 to 180 days 30%

The reduction of the compound will automatically be given to the compounds issued for offences under the Companies Act 1965 and the Companies Act 2016, except:

  • Compound for Out-of-Court or Investigation Papers issued by the Prosecution & Litigation Division and State / Branch Office;
  • Expired Compounded but regenerated for payment process; and
  • Compound that has been given a reduction through the previous appeal process.

Reductions will be given during the payment made at any SSM counter throughout Malaysia.

SSM as a corporate regulator is responsible to ensure a high level of compliance under the provision of the Companies Act among the corporate community in Malaysia as good corporate governance can ensure the continuity and integrity of a company.

SSM would like to suggest that Malaysian corporate community to take this opportunity to clear the compound to avoid any court action.

The automatic compound reduction offer is subject to Section 38A (1) of the Companies Commission of Malaysia Act 2001. When the court action has been taken, all appeals will not be entertained.