The Suruhanjaya Syarikat Malaysia’s (SSM) announcement of the Malaysian Business Reporting System (MBRS) 2.0, effective June 2025, represents a significant shift in corporate reporting.

For Malaysian companies, especially those operating under the Companies Act 1965 and 2016, the transition to MBRS 2.0, utilising the eXtensible Business Reporting Language (XBRL), requires careful preparation. Yet, many businesses remain unprepared for this impending mandate.

The Implications and Importance of MBRS 2.0 Malaysia

Why does MBRS 2.0 matter? At its core, MBRS 2.0 is not just an upgrade to corporate reporting but a nationwide pivot toward digital efficiency, accuracy, and transparency. By adopting the globally implemented XBRL standard, MBRS 2.0 aims to:

• Streamline corporate filings by replacing cumbersome manual processes.
• Improve compliance monitoring with real-time data validation.
• Enhance trust with stakeholders through transparent and standardised reporting.

For business leaders, the question isn’t whether compliance is necessary (it is) but how prepared their companies are to meet the challenges and opportunities of MBRS 2.0 fully.

Understanding MBRS 2.0 and How It Differs from MBRS 1.0

MBRS enables companies to digitally submit annual returns, financial statements, and exemption applications, streamlining compliance processes. First introduced in 2018 as MBRS 1.0, the system has since become a cornerstone for Malaysian businesses.

With an expanded submission scope, the platform now requires all companies, including previously exempt entities such as financial institutions regulated by Bank Negara Malaysia (BNM) and foreign companies registered in Malaysia— to make digital submissions.,

MBRS 2.0 enhances it with revised taxonomies and added data elements, making filings more comprehensive and insightful.

Key Deadlines and Phases of MBRS 2.0 Implementation

SSM’s Malaysian Business Reporting System 2.0 will roll out in three major phases:

• December 1, 2024: Unaudited financial statements for companies under the Companies Act 2016.
• March 1, 2025: Audited financial statements for those under the Companies Act 1965.
• June 1, 2025: Audited financial statements for all companies under the Companies Act 2016.

Firms failing to meet these deadlines risk penalties, enforcement actions, and potential damage to their compliance records.

Does Your Business Qualify for Malaysian Business Reporting System 2.0?

The mandatory filing requirements apply to:

• All companies registered under the Companies Acts 1965 or 2016, including foreign branches.
• Entities that were previously exempt from financial filing obligations.

No company within these categories will be exempt, making guidance and preparation essential.

MBRS 2.0. What Must You File?

Compliant companies must digitise and file the following in XBRL format:

• Annual returns.
• Directors’ reports.
• Audited and unaudited financial statements.
• Exemption applications, where applicable.

The True Value of MBRS 2.0

The move to MBRS 2.0 isn’t just about regulatory compliance. Early adoption of the system provides distinct competitive advantages, particularly in efficiently managing and submitting financial statements:

• Time-Saving: Eliminate repetitive filing errors with automated validation.
• Cost-efficiency: Reduce operational costs by streamlining reporting.
• Transparency: Build stakeholder trust with more precise and consistent submissions.
• Enhanced Insights: Harness real-time data for strategic business decisions.

Common Challenges Facing Malaysian Companies with the Reporting System MBRS 2.0

While MBRS 2.0 offers immense potential, businesses should anticipate the following hurdles:

1. Data Conversion

Transitioning from legacy reporting formats to XBRL requires careful mapping and accurate data translation.

Tip: Utilise professional tools like SSM’s mTool Preparation platform, which provides built-in templates and data validation.

2. Skill Gaps and Training

IT and finance teams may lack the technical expertise to deliver XBRL-compliant filings.

Solution: Invest in SSM-certified MBRS training to ensure your teams are equipped for compliance.

3. Cost Concerns for SMEs

While larger entities may have the resources to transition smoothly, smaller businesses often struggle to allocate funds.

Fix: Consult professional service providers with cost-efficient MBRS 2.0 solutions.

Steps to Get MBRS 2.0-Ready

Here’s an actionable roadmap to fast-track compliance:

1. Audit Your Current Filing Process

Evaluate your filing workflows to identify gaps relative to MBRS 2.0 requirements.

2. Acquire Necessary Technology

Install SSM’s mTool, ensuring your organisation has the required hardware (Windows systems with Microsoft Office 2019 or later).

3. Upskill Your Teams

Train relevant personnel in XBRL tagging and MBRS protocols, with a focus on accuracy.

4. Organise Data Efficiently

Compile your filing data with enhanced scrutiny, ensuring its alignment with SSM’s taxonomy framework.

5. Conduct a Dry Run

Perform dummy filings through the mPortal system to test data accuracy and tagging.

6. Collaborate with Experts

Engage professional consultants who specialise in MBRS filings for seamless execution.

Professional Help Can Make All the Difference

Even for seasoned accounting and corporate teams, MBRS 2.0 compliance can seem like a steep learning curve. Partnering with the right service providers can ensure a seamless transition, saving you time, money, and unnecessary stress. Experienced MBRS consultants, certified by SSM, can handle:

• XBRL data preparation.
• Taxonomy mapping and data validation.
• Error correction for failed submissions.

The Cost of Non-Compliance

Businesses that ignore MBRS 2.0 risk more than fines. Failing to comply with this standardised reporting format could lead to damage to corporate reputation and legal consequences, potentially catastrophic for SMEs and foreign branches aiming to establish a strong presence in Malaysia.

Need Help with MBRS 2.0 Compliance?

The shifting regulatory landscape demands your attention now. With compliance deadlines looming, businesses failing to act soon risk facing a costly compliance crisis.

Don’t leave your filing to chance. Contact our experts today and ensure your Malaysian business is ready for the future.

About In.Corp Global Malaysia
In.Corp Global Malaysia, an Ascentium Company, is a trusted corporate service provider offering end-to-end business solutions, including company incorporation, compliance, accounting, taxation, and ESG advisory. With deep local expertise and a strong regional network, we help businesses navigate Malaysia’s evolving regulatory landscape. Contact us to learn more.