Are You Ready for MBRS 2.0
24 Mar 2025
The Malaysian Business Reporting System (MBRS)
The Malaysian Business Reporting System (MBRS) introduced by SSM in 2018, is an online submissions platform based on the eXtensible Business Reporting Language (XBRL) format. MBRS allows the submission for:
- Annual Return (AR)
- Financial Statement Report (FS); and
- Exemption Applications (EA) related to the FS and AR.
Since March 2019, businesses have been required to submit Annual Returns (ARs), Exempt Company (EPC) certificates, and unaudited Financial Statements (FS) via MBRS. With the launch of MBRS 2.0, companies must now prepare for a more extensive and detailed reporting structure.
MBRS Filing Requirements
All companies, including foreign entities registered in Malaysia and required to submit their annual statutory financial statements (FS) to SSM, must comply with MBRS filing requirements.
On 26 November 2024, SSM announced the mandatory digital submission of FS under MBRS 2.0, with a phased implementation to facilitate a smoother transition for businesses. The mandate now extends to all entities, including previously exempt sectors such as banking, financial, and insurance institutions regulated by Bank Negara Malaysia.
What’s New in MBRS 2.0
MBRS 2.0 enhances its predecessor with improved functionality, expanded filing coverage, and updated regulatory compliance for more efficient financial reporting to SSM. Key features of the MBRS 2.0 system includes:
Updated Filing Framework: The new filing framework under MBRS 2.0 is designed to ensure a smoother, more efficient submission process.
Broader Filing Coverage: Expands to include additional compliance documents beyond financial statements and annual returns, offering a more comprehensive reporting framework.
Improved XBRL taxonomy: The eXtensible Business Reporting Language (XBRL) framework has been enhanced to streamline financial reporting
User friendly Interface and system functionality: More efficient submissions, smarter compliance checks, real-time error detection.
MBRS 2.0 Phased Implementation
| Phase 1 (Effective 1 December 2024) |
Phase 2 (Effective 1 March 2025) |
Phase 3 (Effective 1 June 2025) |
|---|---|---|
|
a) Annual Return (“AR”) (Companies Act 2016) b) Unaudited Financial Statements (“FS”) and Reports (Companies Act 2016) c) Certificate for Exempt Private Company (“EPC”) (Companies Act 2016) d) Rectification Application or Court Order for filing AR and Unaudited FS and Reports (Companies Act 2016) e) Application for Extension of Time for FS for EPC (Companies Act 2016) f) Application for Extension of Time for Unaudited FS and Reports (Companies Act); and g) Application for Extension of Time for submission of AR (Companies Act 2016) |
a) Annual Return (“AR”) (Companies Act 1965) b) FS and Reports (“FS”) including Company Limited by Guarantee (Companies Act 1965) c) Certificate for Exempt Private Company (“EPC”) (Companies Act 1965) d) FS and Reports Regulated by Bank Negara Malaysia (Companies Act 1965 and Companies Act 2016) e) Declaration and FS of Origin (HQ) for Foreign Company (Companies Act 1965 and Companies Act 2016); and f) Rectification Application/Court Order Filing for Annual Return and Audited FS and Reports (Companies Act 1965) |
a) Audited Financial Statements (“FS”) and Reports (Companies Act 2016) b) Rectification Application or Court Order for filing Audited FS and Reports (Companies Act 2016) c) Application for Extension of Time and all Exemption Applications in relation to FS and Reports (Companies Act) |
Benefits of MBRS 2.0
Streamlined Compliance
MBRS 2.0 simplifies financial reporting by automating submission processes, reducing manual intervention, and ensuring compliance with statutory requirements. The improved digital framework enhances accessibility and efficiency for businesses filing with SSM.
Improved Data Quality and efficiency
Advanced validation checks and real-time error detection enhance the accuracy and reliability of financial data. Automation minimizes human errors, while optimized workflows speed up processing, making submissions smoother and more efficient.
Enhanced Transparency
Standardized reporting aligned with MFRS and MPERS ensures greater consistency and accessibility of financial information. This improves corporate governance, regulatory oversight, and investor confidence.
Cost Savings
By eliminating manual paperwork and streamlining reporting processes, MBRS 2.0 reduces administrative costs, saving businesses time and resources while enhancing operational efficiency.
How We Can Help
Shifting to MBRS 2.0 brings challenges, especially for organisations unfamiliar with digital reporting and XBRL-based filing requirements.
Preparing the XBRL file for financial statements involves:
- Identifying and tagging financial and non-financial information from signed and audited FS
- Mapping data accurately to the corresponding element labels within the MBRS Taxonomy
- Leveraging expertise for cost savings and efficiency
Many organisations lack in-house expertise or resources to manage this transition smoothly. Outsourcing the conversion and submission process can be a cost-effective and efficient solution, allowing you to focus on your core business operations while ensuring compliance.
Conclusion
With MBRS 2.0 now in effect, organisations must act proactively to ensure compliance. Investing in the right systems and expert guidance can ease the transition. If you need support, our team is ready to help ensure a smooth and compliant filing process.