(Audit Update) MBRS 2.0: No More Paper, The Future of Filing is Here

(Audit Update) MBRS 2.0: No More Paper, The Future of Filing is Here

Before the Malaysian Business Reporting System (MBRS), filing with Suruhanjaya Syarikat Malaysia (SSM) was a manual and tedious process. Companies had to print, sign, and physically submit their audited financial statements and annual returns at SSM counters.

Once received, SSM manually entered data, scanned documents, and stored them as PDFs. But these scans were unstructured, non-searchable, and prone to errors. Compliance was slow. Analysis was difficult. The system was outdated.

Now, everything is changing. By mid-2025, MBRS 2.0 will be mandatory. No more paper. No more manual uploads. Everything must be filed digitally in XBRL format.

What is MBRS 2.0?

MBRS 2.0 (Malaysian Business Reporting System) is an enhanced digital filing platform that replaces PDFs with XBRL (eXtensible Business Reporting Language), a structured format for financial data submission.

Why the Shift?

  • Faster Processing – Digital submissions reduce waiting time.

  • Higher Accuracy – No more manual data entry errors.

  • Regulatory Compliance – Aligns with global financial reporting standards.

  • Improved Transparency – Easier access and better data analysis for stakeholders.

Key Impacts on SMEs

1. Digital Transformation & Efficiency

  • No More Paper: All filings will be submitted digitally.

  • Automated Validation: The system checks for errors before submission.

  • Time-Saving: No more delays caused by manual corrections.

2. Adaptation Challenges

  • Technical Learning Curve: SMEs must familiarize themselves with XBRL.

  • Initial Setup Costs: Some businesses may need software or training.

  • Resource Strain: Accounting teams must upskill to meet new requirements.

3. Regulatory Alignment

  • Mandatory by Mid-2025: Companies must comply or face penalties.

  • Standardized Reporting: Ensures consistency with the Companies Act 2016.

  • Phased Implementation: Gives SMEs time to adapt, but they must start early.

4. Business Growth & Opportunities

  • Better Financial Insights: Structured data allows for better decision-making.

  • Credibility with Banks & Investors: Transparent reporting improves trust.

  • Global Recognition: XBRL aligns with international business standards.

What Should SMEs Do?

✅ Seek expert help – Work with accountants familiar with XBRL.
✅ Invest in training – Equip your finance team with MBRS knowledge.
✅ Use available tools – Leverage SSM’s mTool for a smoother transition.
✅ Start early – Avoid last-minute scrambling before the deadline.

Who is Responsible for MBRS Filing?

Several key parties play a role in ensuring successful MBRS submission:

  • Auditor – Reviews and certifies the financial statements for compliance.

  • MBRS Preparer (Maker) – Inputs financial data into the MBRS system.

  • Company Secretary – Oversees submission and ensures regulatory compliance.

  • The Company – Ultimately responsible for accurate and timely filing.

The Bottom Line

MBRS 2.0 is not just a system change—it’s a business transformation. While the transition may seem challenging, it is designed to make compliance easier, faster, and more accurate. The clock is ticking—SMEs must prepare now to avoid disruptions in 2025.

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