Efficient MBRS and XBRL Reporting for Malaysian Financial Institutions: Best Practices and Tips

Malaysia has made significant strides in modernising its financial reporting system to enhance transparency and efficiency in recent years. One of the crucial initiatives in this endeavour is the introduction of the Malaysian Business Reporting System (MBRS). 

The MBRS is a digital platform that allows companies, including financial institutions, to submit their financial and non-financial information to regulatory bodies more efficiently. However, challenges can arise during implementation, as with any new reporting system. But fret not! The following blog explores the best practices and tips to help financial institutions streamline MBRS reporting in Malaysia.

Understanding MBRS or XBRL Reporting

Before delving into the best practices, it is essential to understand the fundamentals of MBRS reporting. The MBRS platform attempts to standardise and digitise the submission of financial and non-financial information, such as annual returns, financial statements, and exemption applications, to Malaysian regulatory bodies, including the Companies Commission of Malaysia (SSM). 

Compliance with MBRS requirements is mandatory for eligible companies, and non-compliance can result in penalties or fines.

Best Tips and Practices for Streamlining MBRS or XBRL Reporting

• Provide knowledge and training: It is important to ensure that the financial institutions’ team responsible for MBRS reporting is well-trained and thoroughly understands the reporting requirements. Consider organising workshops or training sessions to educate the team and keep them updated on any changes in the MBRS guidelines.
• Automate data collection and integration: Manual data entry increases the risk of errors and consumes valuable time. Solution? Leverage technology to automate data collection and integration from various financial systems within the institution. Employing tools for data collection can significantly simplify the process. 
• Ensure data accuracy: Accuracy and integrity of data are crucial for MBRS reporting. Companies should implement robust data validation processes to ensure the information submitted is error-free and consistent across various reports.
• Prepare and plan early: The best way to avoid last-minute rushes? By starting the reporting process early! Develop a detailed timeline and action plan to meet the reporting deadlines, allowing ample time for data gathering, validation, and internal review.
• Ensure compliance with regulatory changes: Stay abreast of the updates in the MBRS reporting guidelines issued by regulatory authorities. Regularly check for updates related to MBRS reporting to ensure ongoing compliance.
• Consult MBRS reporting to service vendors: If financial institutions face challenges navigating the MBRS reporting process, they should consult their XBRL requirements to a third-party vendor. Consultant can help Malaysian entities to file error-free reports with regulatory bodies. 

Bottom Line

Streamlining MBRS reporting for financial institutions in Malaysia is essential for ensuring compliance and optimising reporting efficiency. By implementing the abovementioned practices, financial institutions can transition to the MBRS reporting process more effectively. 

If you find MBRS reporting to be an added burden on your in-house team’s shoulders, outsource your XBRL requirements to DataTracks TODAY! With over 18 years of experience in regulatory compliance, the professionals at the company can help you prepare and file error-free reports. DataTracks has a recommendable track record of 348,000+ compliance reports for over 23,400 clients. Get in touch with an expert at +60-392-126-125 or email @ enquiry@datatracks.my.