Discover how MBRS 2.0 is revolutionizing corporate compliance in Malaysia with advanced technology and global standards. This blog unpacks its key features, phased implementation, and actionable steps to help your business adapt seamlessly.

• December 13, 2024
• SSM
• By FinTags

MBRS 2.0 mandates enhanced digital reporting in XBRL by Malaysian companies

The Companies Commission of Malaysia (SSM) has announced the rollout of MBRS 2.0, marking a transformative leap in corporate compliance. Officially launched on September 25, 2024, MBRS 2.0 will become mandatory for all corporate filings starting December 1, 2024, with phased implementation extending into 2025.

This update redefines how businesses in Malaysia handle their compliance obligations, introducing enhanced technology, global standards, and a fully digital ecosystem. But what does MBRS 2.0 mean for companies, and how can they prepare? Let’s dive in.

What is MBRS 2.0 and Why Is It Important?

The Malaysian Business Reporting System (MBRS) was first introduced in 2018, enabling companies to submit statutory documents, such as financial statements and annual reports, electronically. It was a game-changer, streamlining manual submissions into a digital process, but it still left room for improvement in areas like data quality, standardization, and error reduction.

Enter MBRS 2.0, the next-generation platform designed to overcome these limitations. MBRS 2.0 incorporates XBRL (eXtensible Business Reporting Language), a global standard for digital reporting that ensures high accuracy, transparency, and interoperability. This upgrade aligns Malaysia’s corporate reporting framework with international best practices, creating a more robust and efficient compliance environment.

Key Features of MBRS 2.0

Here’s what MBRS 2.0 brings to the table:

• Global Standards with XBRL: MBRS 2.0 leverages XBRL to ensure standardized and machine-readable submissions. This enhances the comparability and usability of corporate data across industries and borders.
• Error Reduction: Automated validation checks reduce the risk of errors during submission, ensuring greater accuracy and compliance.
• Streamlined Workflow: The platform simplifies tagging, submission, and processing of corporate filings, saving time and reducing administrative burdens.
• Phased Rollout for Adaptability: MBRS 2.0 will be implemented in phases, giving businesses sufficient time to adjust and align their processes with the new requirements.

Implementation Timeline for MBRS 2.0

SSM has outlined a phased rollout for MBRS 2.0, ensuring businesses have a clear roadmap to compliance:

PHASE	DATE	REQUIREMENTS
PHASE 1	December 1, 2024	Mandatory digital submissions for: Annual Statements (PT) Unaudited Financial Statements (PK) Certificates for Exempt Private Companies (EPC) Requests for Rectifications or Court Orders for unaudited filings Extensions of time for filing PT, PK, and EPC submissions
PHASE 2	March 1, 2025	Requirements expand to: Financial institutions regulated by Bank Negara Malaysia (BNM) Foreign companies submitting audited financial statements and country-of-origin documents Foreign companies submitting audited financial statements and country-of-origin documents
PHASE 3	June 1, 2025	Focus on audited financial submissions: Audited Financial Statements (PK) Applications for Rectifications or Court Orders for audited filings Extensions of time for audited PK filings

By June 2025, MBRS 2.0 will cover all corporate filings, completing Malaysia’s shift to a fully digital compliance ecosystem.

Benefits of MBRS 2.0

The new platform delivers a range of benefits for businesses and stakeholders:

• Enhanced Transparency:The use of XBRL ensures data is accurate, consistent, and easily accessible to regulators and investors.
• Improved Efficiency: Automation and digital workflows reduce processing times and eliminate the inefficiencies of manual submissions.
• Global Alignment: MBRS 2.0 positions Malaysia as a leader in adopting international reporting standards, boosting investor confidence and global competitiveness.
• Cost Savings: Reduced errors and streamlined processes mean lower administrative and compliance costs in the long run.

How Companies Can Prepare for MBRS 2.0

Here’s how businesses can get ready:

• Understand the Requirements: Review the new filing requirements for each phase and identify which filings apply to your company.
• Invest in Training: Ensure your teams are familiar with XBRL tagging, validation, and submission processes.
• Adopt Digital Tools: Transition from manual systems to digital platforms that support XBRL filing.
• Partner with Experts: Work with compliance and technology providers who have expertise in XBRL reporting and can guide you through the transition.

How FinTags Can Help You Navigate MBRS 2.0

As a global leader in XBRL and regulatory technology (regtech), FinTags is uniquely positioned to support Malaysian businesses in this transition. Here’s how we can help:

• XBRL Expertise: FinTags specializes in converting financial data from PDF, Excel, or XML into fully compliant XBRL files that meet SSM’s standards.
• Simplified Compliance:Our advanced tools and proven solutions streamline the entire submission process, from tagging to validation.
• End-to-End Support: Whether you’re just starting your MBRS 2.0 journey or finalizing your filings, our experts provide guidance every step of the way.
• Global Experience: With years of experience helping businesses worldwide adapt to regulatory changes, we ensure a seamless transition to MBRS 2.0.

Embrace the Digital Future with MBRS 2.0

MBRS 2.0 isn’t just a compliance requirement; it’s an opportunity to modernize your corporate reporting processes, improve efficiency, and align with global standards. By acting now, companies can stay ahead of deadlines and reap the benefits of a streamlined and transparent reporting ecosystem.

Ready to make the transition? Contact FinTags today. Let us help you navigate MBRS 2.0 confidently and without any stress. Together, let’s move forward into Malaysia’s digital compliance future.

Call us at +60 33310 1800 or email hello@fintags.com.my to get started!

Explore MBRS 2.0 and its features here