The Companies Commission of Malaysia (SSM) has announced Phase Two of the Malaysian Business Reporting System (MBRS) 2.0, requiring companies to submit specific documents starting 1 March 2025. This follows the initial Phase 1 rollout on 1 December 2024. Compliance is essential to avoid penalties and ensure smooth reporting.

What is MBRS 2.0?

MBRS 2.0 enhances the digital submission of financial statements, annual returns, and exemption applications. Built on the eXtensible Business Reporting Language (XBRL) format, it improves efficiency and accuracy in corporate reporting.

Key enhancements include:

Updated Reporting Framework – Aligns with the latest Malaysian Financial Reporting Standards (MFRS), Malaysian Private Entity Reporting Standards (MPERS), and revised Companies Act 2016 requirements.
Improved XBRL Taxonomy – Provides a more structured classification system for financial and non-financial data.
Enhanced System Functionality – Streamlined submission with better validation checks and real-time error detection.
Expanded Filing Scope – Now includes additional compliance documents beyond financial statements and annual returns, covering previously exempt sectors like banking and insurance.

Who is Required to File?

MBRS 2.0 applies to:

All companies incorporated in Malaysia, including foreign entities registered under SSM.
Businesses required to submit audited or unaudited financial statements.
Previously exempted sectors, such as banking, financial, and insurance institutions regulated by Bank Negara Malaysia.
Entities that previously filed financial statements manually at SSM offices, now required to use the digital platform.
Companies that fall under the revised MBRS 2.0 mandate, expanding the scope of required digital submissions.

Why Use MBRS 2.0?

Standardized Reporting – Ensures consistency and compliance across all financial statements.
Reduced Errors – Automated validation checks minimize discrepancies and misinterpretations.
Increased Transparency – Enhances trust among investors, regulators, and stakeholders.
Improved Efficiency – Digital submissions reduce paperwork and processing time.
Secure & Reliable – Digital signatures and controlled access protect sensitive data.

Conclusion & Next Steps

With MBRS 2.0 becoming mandatory, businesses must take proactive steps to ensure compliance. Understanding the system, updating financial records, and seeking expert guidance can streamline the transition. With the full implementation coming on 1 June 2025, it is up to businesses to prepare themselves for the transition.