In Malaysia’s vibrant economic tapestry, Small and Medium Enterprises (SMEs) aren’t just threads — they’re the very fabric. From local cafes tucked away in Penang lanes to fast-growing tech firms in Cyberjaya, these Sdn Bhd companies fuel innovation, employment, and resilience. But while their entrepreneurial spirit thrives, a silent transformation is unfolding in the corridors of compliance — one that could either streamline operations or trip up the unprepared. 

Enter MBRS XBRL Filing — not a buzzword, but a digital obligation. Under the regulatory gaze of the Companies Commission of Malaysia (SSM), even the smallest enterprises must now align with a new filing regime powered by data standards and electronic precision. For companies, the message is clear: compliance isn’t optional, timelines are ticking, and understanding this system is no longer a job for “later.” 

In this guide, we break down exactly What is XBRL filing used for? what Sdn Bhd companies need to know about MBRS 2.0, with updated timelines, official source references, and actionable insights tailored for SMEs — especially those navigating their PK filings. No jargon, no panic — just clarity. 

Understanding MBRS 2.0: A New Paradigm for Corporate Reporting 

The Malaysian Business Reporting System (MBRS) 2.0 is an advanced digital submission platform introduced by the Companies Commission of Malaysia (SSM). It utilizes the eXtensible Business Reporting Language (XBRL) format to facilitate the electronic filing of: 

• Annual Returns (AR) 

• Financial Statements and Reports (FS) 

• Exemption Applications (EA) related to AR and FS 

This system is grounded in the Companies Act 2016 and aligns with approved accounting standards, namely the Malaysian Financial Reporting Standards (MFRS) for public companies and the Malaysian Private Entities Reporting Standards (MPERS) for private entities, including SMEs.  

Understanding the PK Category in MBRS 

When we refer to the PK category in MBRS, we’re talking about Private Limited Companies (Syarikat Sendirian Berhad or Sdn Bhd) that are typically: 

• Privately held 

• Non-public interest entities 

• Not required to file under the MFRS, but rather under MPERS 

PK entities still need to submit FS and AR using MBRS templates and follow the XBRL structure but may not be subject to the same level of detail as public companies. 

This category represents the majority of businesses in Malaysia — from family-run logistics firms to local tech startups. 

What Sdn Bhd Companies Need to File 

Sdn Bhd companies typically fall under the requirement to submit the following via MBRS: 

1. Annual Return (AR)

• Prepared for every financial year. 

• Discloses corporate structure, directors/shareholders, paid-up capital, and registered address. 

2. Financial Statements (FS)

• Must include: 

• Statement of Financial Position 

• Statement of Profit or Loss 

• Cash Flow Statement 

• Notes to Financial Statements 

• Must be prepared in accordance with MPERS or MFRS. 

• Must be filed in XBRL format. 

3. Exemption Applications (EA)

• If a company is applying for exemption from filing financial statements or certain disclosures, the EA form is submitted through MBRS. 

MBRS 2.0 and SMEs 

For SMEs, particularly Sdn Bhd companies, the transition to MBRS 2.0 presents both challenges and opportunities:  

Challenges: 

• Technical Proficiency: Adapting to new digital tools and understanding XBRL formatting may require training and upskilling. 

• Resource Allocation: SMEs may need to allocate resources for software acquisition, staff training, and potential consultancy services to ensure compliance. 

Opportunities: 

• Enhanced Efficiency: Digital submissions streamline the reporting process, reducing paperwork and manual errors. 

• Improved Transparency: Standardized reporting enhances the clarity and comparability of financial statements, potentially improving stakeholder confidence. 

• Regulatory Alignment: Compliance with MBRS 2.0 ensures alignment with national regulatory requirements, mitigating the risk of penalties. 

Partnering for a Seamless MBRS 2.0 Journey 

As Malaysia embarks on its journey toward a fully digitized and transparent corporate compliance reporting environment, MBRS 2.0 stands as a pivotal step toward enhanced compliance, governance, and data quality. While the shift to XBRL reporting under MBRS 2.0 can be challenging, it is also an opportunity for businesses—especially Company Secretarial firms—to reimagine their filing processes with smarter, future-ready tools. 

To navigate this transformation efficiently, organizations need more than just manual effort—they need intelligence, accuracy, and speed. IRIS Instant offers an AI-powered solution designed precisely for this new compliance era. Backed by 23 years of global RegTech expertise, trusted by 6500+ enterprises across 54 countries, and powered by the same XBRL validation engine that supports SSM’s mTool and mPortal, IRIS Instant simplifies complex filings and scales effortlessly to match seasonal workloads. 

Whether you’re managing a handful of entities or hundreds, IRIS Instant automates XBRL tagging from PDF to submission-ready format in minutes, reducing the turnaround time from days to hours. With optional expert review services, secure cloud collaboration, and a flexible trial model, IRIS Instant ensures no firm is left behind—no matter its size or structure. 

Inclusion and innovation go hand-in-hand. As regulators raise the bar, let’s rise to meet it—together.