MSC Malaysia Status (now Malaysia Digital Status under the Malaysia Digital Economy framework) is a government designation for technology companies that qualifies them for a comprehensive suite of incentives, legal protections and operational support. It is administered by MDEC (Malaysia Digital Economy Corporation) through a streamlined one-stop application process.
What You Get
Benefits of MSC Malaysia Status
MSC Status companies are protected by 10 Government-to-Investor guarantees — from a 10-year tax exemption to no internet censorship and 100% foreign ownership rights.
Read All 10 Guarantees →Tax Incentives
- Pioneer Status — full income tax exemption up to 10 years
- Investment Tax Allowance (ITA) as alternative
- Enhanced R&D tax deductions
- Exemption from import duty on multimedia equipment
Talent & Immigration
- Unrestricted employment of foreign knowledge workers
- Streamlined Employment Pass processing through ESD
- Dependant Pass facilitation for employee families
- Access to MSC Malaysia talent development programmes
Infrastructure & Operations
- World-class physical and digital infrastructure
- Competitive broadband and telco tariffs
- Right to tender for Malaysian Government ICT projects
- MDEC one-stop agency for all government dealings
Legal Protections
- IP protection under MSC Malaysia cyberlaw framework
- Freedom from internet censorship
- Intellectual property rights protection
- Enforceable Government-to-Investor guarantees
Eligibility
Who Can Apply
| Criterion | Requirement |
|---|---|
| Company Incorporation | Must be incorporated in Malaysia under the Companies Act 2016. Foreign companies must establish a Malaysian entity (Sdn Bhd). |
| Core Business Activity | Must be engaged in qualifying MSC Malaysia activities — software development, ICT services, multimedia content, shared services, data centre operations, e-commerce, or other digital economy activities approved by MDEC. |
| Physical Presence | Principal place of business must be located within a designated MSC Malaysia Cybercentre, Cybercity, or other MDEC-approved location. Remote/virtual offices do not qualify. |
| Knowledge-Intensive Operations | The majority of employees must be knowledge workers. The company must demonstrate that its operations are primarily ICT or digital economy-oriented rather than manufacturing or physical goods. |
| Business Plan | Applicants must submit a 3–5 year business plan demonstrating revenue projections, employment growth targets and the qualifying nature of activities. The plan is assessed by MDEC evaluators. |
Application Process
Step-by-Step Application
- Pre-application consultation Contact MDEC's one-stop centre to discuss your business activities and confirm eligibility. MDEC officers can advise on whether your activities qualify and which incentives are most relevant. This step saves significant time and avoids rejected applications.
- Prepare application documents Gather company incorporation documents (Form 9, Form 24, Form 49), audited financial statements (if available), a detailed 3–5 year business plan, CV of key management, and a description of qualifying ICT activities. For new companies, a detailed business proposal replaces historical financials.
- Submit online via MDEC portal Applications are submitted through MDEC's online application system. All required documents are uploaded electronically. There is no application fee for MSC Status. Applications are typically acknowledged within 5–10 working days.
- Evaluation and assessment MDEC's evaluation team assesses the application for qualifying activities, business viability and employment projections. They may request additional information or schedule a meeting with company management. This stage typically takes 2–6 weeks.
- Approval and Letter of Offer Successful applicants receive a Letter of Offer specifying the approved MSC Status, any conditions, and the incentive package approved. Companies must formally accept the offer within the stated period.
- Compliance and MSC Status Certificate Upon acceptance and fulfillment of any pre-conditions (such as confirming office premises in a designated location), the MSC Malaysia Status Certificate is issued. The certificate must be renewed periodically — typically every 3–5 years — subject to continued compliance with MSC Status conditions.
- Apply for tax incentives separately MSC Status alone does not automatically activate tax incentives. Pioneer Status or ITA must be applied for separately with the Malaysian Investment Development Authority (MIDA) after MSC Status is obtained. MDEC can facilitate introductions to MIDA.