What is MSC Status?

Definition of MSC Malaysia Status
MSC Malaysia status is a recognition by the Government of Malaysia through the Multimedia Development Corporation (MDeC), for ICT and ICT-facilitated businesses that develop or use multimedia technologies to produce and enhance their products and services.

It is also a mark of world-class service and achievement and your passport and gateway to a host of privileges granted by the Government of Malaysia to the business entities.

MSC Malaysia status is awarded to 3 types of business entities, each with a set of different application criteria and guidelines. The qualifying business entities are:-

  1. Private limited companies (i.e. Sendirian Berhad)
  2. Institutions of Higher Learning
  3. Incubators

 MSC Malaysia Status Eligibility Criteria

  • Provide or heavy user of IT & multimedia products & services
  • Employ a substantial number of knowledge workers
  • Strong value proposition specifying how operations will contribute to the development of MSC Malaysia
  • Establish separate legal entity for MSC-qualifying activities
  • Locate in a MSC Malaysia designated Cybercity or Cybercentre
  • Comply with environmental guidelines

 MSC Malaysia Financial Incentive

Below are some of the incentives granted by the Federal Government of Malaysia to MSC Malaysia status companies :-

  • Pioneer Status privilege with a five (5) + five (5) year 100% exemption from taxable statutory income (on income derived from qualifying activities) starting from the date when the company starts generating income, renewable to 10 years
  • 100% Investment Tax Allowance (ITA) on new investments made in MSC Malaysia Cybercities/Cybercentres, commencing from the date on which the first qualifying capital expenditure is incurred.
  • Eligible for R&D grants (for majority Malaysian owned MSC Malaysia status companies)
  • Freedom to source capital globally for MSC Malaysia infrastructure and the right to borrow funds globally.
  • Freedom of ownership by exempting companies with MSC Malaysia status from local ownership requirements.
  • Unrestricted employment of foreign knowledge workers.
  • Duty-free importation of multimedia equipment, provided that the equipment is used by the company in the operation of its business, and not for direct sale and trading or use as components in manufactured items.
  • Globally competitive telecommunication tariffs and services guarantees if MSC Malaysia status companies are located within the MSC Malaysia.
  • Intellectual property protection and a pioneering and comprehensive framework of cyberlaws can be enjoyed by MSC Malaysia status companies irrespective of location.
Cybercity and Cybercentre status are awarded to allow more opportunities for a city, township or large building complexes to become an MSC designated area, which in turn will provide more dedicated and specialized industry areas for MSC status companies to locate their operations.

They serve as the physical location to catalyse and support growth of ICT and ICT enabled industries to extend the benefit of ICT to local communities. In essence, the MSC Cybercities/Cybercentres are designated to house the MSC status companies.

  • MSC Cybercity – defined as a self-contained intelligent city with world-class business and living environment offering the 10-point MSC BoGs.
  • MSC Cybercentre – defined as a building or complex with basic enabling environment offering partial BoGs (some parts of the BoGs).