Digital Transformation by SSM for SME - MBRS 2.0

 MBRS 2.0: What Malaysian SME Owners Need to Know

The Malaysian Business Reporting System (MBRS) has undergone significant enhancements with the launch of MBRS 2.0 in September 2024. Built on the globally recognized eXtensible Business Reporting Language (XBRL), MBRS enables digital submission of financial reports, annual returns (AR), and exemption applications (EA) to Suruhanjaya Syarikat Malaysia (SSM).


What's New in MBRS 2.0?
MBRS 2.0 introduces critical upgrades beneficial for SME business owners. Key improvements include:
    • Increased Submission Types: Submissions for financial statements (FS) and key financial indicators (KFI) now expanded from 9 to 15 categories, catering to a wider array of reporting needs.
    • Bilingual Support: Users can now choose between English and Bahasa Malaysia, easing usability and broader adoption among SMEs.
    • Enhanced Validation and Dynamic Dropdowns: Automatic validation reduces errors, and dynamic dropdowns simplify data input, streamlining the filing process significantly.
    • Updated Taxonomy: MBRS 2.0 adopts the International Financial Reporting Standard Taxonomy 2022, ensuring compliance with the latest standards and regulations under the Companies Act 1965 and 2016.

Impact on SMEs: Cost Considerations

With MBRS 2.0, SME owners must anticipate certain initial costs:
    • System Updates: SMEs may incur software upgrade or training expenses as staff develop proficiency in the enhanced MBRS preparation tool (mTool Version 2.1). This tool relies on Microsoft Excel-based templates.
    • Digital Certificates: Submissions via MBRS require obtaining Digital Certificates for secure identification and authentication, involving additional fees for initial registration and periodic renewals.
    • Compliance Costs: Professional fees associated with engaging accountants or company secretaries to ensure accurate completion and compliance may see a modest increase, especially during the transition period.
Yet, these immediate costs are balanced with long-term financial savings. The automation and streamlined reporting substantially reduce errors, inquiries from regulators, and processing delays—ultimately minimizing financial reporting costs in the long run.

Changes in Submission Timelines

Under MBRS 2.0, SME owners will experience adjustments in timelines and procedures:
    • Rectification Process: Now simpler, SMEs can directly submit Rectification Applications electronically via MBRS Portal 2.0 without physically visiting SSM offices. This minimizes turnaround times and improves business efficiency.
    • Mandatory adoption: Companies regulated by Bank Negara Malaysia and previously exempted entities under the Companies Act 1965 are now required to use MBRS 2.0 for submissions. SMEs in these categories must ensure timely compliance to avoid penalties.

Preparing for MBRS 2.0

For seamless adoption, SMEs should:
    • Ensure their in-house or outsourced financial reporting professionals receive proper training on MBRS 2.0.
    • Plan budgets accommodating digital certificate fees, software upgrades, and potential professional advisory charges.
    • Fully understand submission deadlines under MBRS guidelines to avoid disruptions.
In conclusion, MBRS 2.0 is more robust, accessible, and efficient. Although SMEs initially face manageable increases in costs and investment in preparation, the changes promise faster, more accurate compliance reporting translating into cost reduction and greater ease in the long term. Being proactive ensures SMEs maximize benefits and smoothly navigate the shift towards digital compliance in Malaysia.






Location: Malaysia

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