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FAQ for MSC Malaysia

FAQ FOR MSC MALAYSIA

Select a topic from the list below to quickly navigate through our frequently asked questions.



About MSC Malaysia

Wizard is an online submission system for MSC Malaysia related applications including the pre MSC application, new MSC application and post MSC applications.

No. Applicants must be incorporated as 'Sdn Bhd'.

MDEC will review the pre application for MSC and upon acceptance, an email notification will be sent to applicant.

Applicants are required to submit 3 or 5 years business and financial plan via Wizard.

The application processing time from formal application to presentation to the Approval Committee is within 30 days.

An MSC Malaysia Status company is required to maintain 15% KWs at all times. However should your company is categorized under Global Business Services (GBS) cluster, company is required to maintain 85% KWs at all times instead

An MSC Malaysia Status company is required to maintain 15% KWs at all times. However should your company is categorized under Global Business Services (GBS) cluster, company is required to maintain 85% KWs at all times instead.

There is no restriction of on numbers of Foreign Knowledge Workers (FKWs) for MSC Malaysia Status companies approved under Tier 1 and Tier 2 category.

MSC Malaysia has recently launched the MSC Malaysia for Startups (MSC4Startups) programme and any MSC Malaysia Status companies which approved after 1 January 2015 under the programme will be allowed to employ up to maximum 20 FKWs at one time. For more information on MSC4Startups programme, please visit http://www.mscmalaysia.my/msc4startups

MSC Malaysia Status companies are required to relocate to MSC Malaysia designated Cybercenter Cybercities to enjoy benefits and advantages offered by MSC Malaysia.

  1. Three copies of business and financial plan (hardcopy)
  2. MSC Malaysia Status Application form
  3. Certified True Copy of ROC documents - form 9, 24, 49 and 13/32A (if any)
  4. Three years financial audited report of the company and/or substantial stakeholders of the company (applicable to company which has been in operational prior to the application)
  5. A non-refundable processing fee of RM2,000 payable to Multimedia Development Corporation Sdn Bhd. Please be informed that effective from 1st April 2015, GST rate of % is applicable.

No.

Yes. A non-refundable processing fees of RM2,000 will be imposed. Please be informed that effective from 1st April 2015, GST rate of 6% is applicable.

Upon successful application , the company will be receiving MSC Malaysia Status Approval Letter and followed by MSC Malaysia Status Certificate.

Global Business Services

The MSC Malaysia Bill of Guarantees, which promises the following benefits:

  1. To provide a world-class physical and information infrastructure.
  2. To allow employment of local and foreign knowledge workers.
  3. To ensure freedom of ownership by exempting companies with MSC Malaysia Status from local ownership requirements.
  4. To give the freedom to source capital globally for MSC Malaysia infrastructure, and the right to borrow funds globally.
  5. To provide competitive financial incentives namely Pioneer Status (100 percent tax exemption) for up to ten years or an Investment Tax Allowance for up to five years and no duties on the importation of multimedia equipment.
  6. To become a regional leader in Intellectual Property Protection and Cyberlaws.
  7. To ensure no censorship of the Internet.
  8. To provide globally competitive telecommunications tariffs.
  9. To tender key MSC Malaysia infrastructure contracts to leading companies willing to use MSC Malaysia as their regional hub.
  10. To provide a high-powered implementation agency to act as an effective one-stop super shop.

Click here for more information on MSC Malaysia Bill of Guarantees.

Criteria Sector Foreign MSC Companies Local MSC Companies
Headcount GBS 50 Knowledge Workers in 5 years or 20 Knowledge Workers with Average Salary >= RM10K (subject to MDEC’s evaluation) 30 Knowledge Workers in 1 year or 20 Knowledge Workers with Average Salary >= RM8K (subject to MDEC’s evaluation)
Exports GBS + Data Centers 70% exports by 5th year of MSC status 20% or RM0.5 million by 5th year MSC Status (whichever is lower)
Location GBS + Data Centers 70% of investment within designated areas located 30% of investment within designated area located
Investment Data Centers RM 10 million capital expenditure (CAPEX) in 5 years RM 5 million capital expenditure (CAPEX) in 5 years

Note: *1: An individual who holds a tertiary qualification from an institution of higher learning (in any field) or diploma in multimedia/ICT with 2 years relevant experience or foreign workers with knowledge-based skills that are not prevalent in Malaysia. *2: Local GBS companies providing their services to MNCs in Malaysia shall be referred to as “exports” *3: The % is based on combination of CAPEX and OPEX investment value of the Approved MSC Malaysia Activities in the MSC Designated Area.

The main reasons are attractive incentives and benefits, competitive cost-in-doing business, excellent infrastructure and process-friendly environment that MSC Malaysia provides.

  1. Bill of Guarantees
  2. Powerful branding of the MSC Malaysia status
  3. Access to market access
  4. Access to grants/funds for ICT research and development

No, you are not limited to only setting up in Cyberjaya. Currently there are 25 MSC Malaysia-designated areas where you may set up your operations.

Please contact:

MDEC Client Contact Center (CliC)
E-mail: clic@mdec.com.my
Toll free no.: 1-800-88-8338 (within Malaysia)
Tel: +603 8315 3000 (outside Malaysia)
Fax: +603 8318 8519
SMS: Type MDEC ASK (your email address)(your inquiries), send to 15888

Yes, there are. Please visit this page for information on grants and funding.

MSC MALAYSIA STATUS APPLICATION

Yes. This is to ensure that the submission meets all the application criteria and all documents required are completed. We would be more than delighted to have you see us.

The Certificate serial number can be found at the bottom right of the MSC Malaysia-status Certificate. Please record and keep this number safely.

The official date of approval on the MSC Malaysia status for a company refers to the date of the Letter of Approval issued from MDEC to the MSC Malaysia applicant.

Knowledge Workers (also known as KWs) can be classified as follows:

They are directly involved in technical development and deployment of products and services. They should possess the following qualifications:

Five or more years of professional experience in multimedia / ICT industry
A university degree or a diploma in multimedia / ICT discipline plus two or more years of related working experience
A masters degree or higher in any discipline

As a reference, you may use the template found in the MSC Malaysia Application Guidelines and Form.

Yes you can. However, you may not enjoy the 100% tax exemption (if you are opting for pioneer status). We would calculate a threshold amount - which is an average of your past years net profit before tax amount (maximum of 3 years). Tax exemption only applies to the amount above your threshold. You would still require paying tax for the threshold amount.

MSC MALAYSIA STATUS REVOCATION

  • If the company is unable to relocate to an MSC Malaysia location within the given time frame.
  • If the company is found to be in serious breach of the MSC Condition of Grant.
  • If the company wishes to surrender the status due to inability to proceed with MSC Malaysia activities.
  • If the company is bought over / merges with another company and MSC Malaysia activities defer from that stated in the business plan.

The revocation of MSC Status takes effect from the date of the endorsement by the Minister of International trade and Industry (MITI). The revocation is then deemed final and cannot be rescinded.

  1. Issuance of Notice of Breach (NoB) by MDEC for failing to comply with any of the stipulated requirements under the MSC Condition of Grant (CoG).
  2. Decision to revoke by the MSC Approval Committee (AC).
  3. Issuance of “show cause” by MIDA for the withdrawal of Pioneer Status.
  4. Confirmation by MSC Approval Committee (AC) of revocation.
  5. Endorsement of revocation by Minister of International trade and Industry (MITI).
  6. Final notification of revocation by MDEC to company.

Upon revocation all MSC Bill of Guarantee (BoG) benefits and all or any related MSC benefits would be withdrawn.

RELOCATION

MSC Malaysia Status Companies are ensured of full benefits of Bill of Guarantee no. 1 by residing in one of the MSC Malaysia Cybercities/Cybercentres. These locations locations offer the conducive IT and multimedia environment that will attract and retain the knowledge community.

Besides that, companies located in the MSC Malaysia Cybercities/Cybercentres can benefit from the most advanced telecommunication technologies with 99.9% guaranteed reliability - where service disruptions will not exceed 43 minutes per month.

Providers for the MSC Malaysia Cybercities also offer performance guarantees with financial penalties should they fail to observe the above reliability.

Any MSC Malaysia Status company approved after 1 January 2015 will have a choice of operating an office in an MSC Designated area, or operating from any commercial premises in Malaysia. Based on these options, the MSC Malaysia Status company will fall under these categories:

  1. Tier 1 – Located in Designated Premises within MSC Malaysia Cybercities / Cybercentres
  2. Tier 2 – Located in Commercial Premises within MSC Malaysia Cybercities / Cybercentres
  3. MSC4Startups – Located outside of MSC Malaysia Cybercities / Cybercentres

Existing MSC Malaysia Status companies (approved prior to 1 January 2015) will still need to adhere to the location requirement as stated in their Condition of Grant (CoG).

MSC Malaysia Status companies approved after 1 January 2015, and who have yet to activate their Pioneer Status incentive, is eligible to apply for MSC4Startups.

There are multi-tiered incentives accorded to MSC Malaysia Status companies, subject to the chosen location. For more information, please refer to MSC Malaysia BOGs and MSC4Startups sites.

"Designated Premises" are premises designated by the Government located within the approved boundary of MSC Malaysia Cybercities/Cybercentres MSC Malaysia Cybercity / Cybercentre that are available for the location and operation of MSC Malaysia Status Companies. Relocation to "Designated Premises" entails full entitlement to the Bill of Guarantees.

The difference is that MSC Malaysia Status companies that opt to relocate to the “Other Commercial Premises” will have to forego BOG1: “To provide a world-class physical and information infrastructure” and BoG8: “To provide globally competitive telecommunications tariffs” as compared to those who operate from the “Designated Premises”.

The difference is that MSC Malaysia Status companies that opt to relocate to the “Other Commercial Premises” will have to forego BOG1: “To provide a world-class physical and information infrastructure” as compared to those who operate from the “Designated Premises”.

MSC Malaysia Cybercities and Cybercentres are designated MSC Malaysia areas with conducive business environment that provides the ecosystem to attract ICT investors and promote the growth of local ICT companies. Government has put in place policies, frameworks and plans to facilitate the provision of physical and information infrastructure as part of a conducive and enabling environment for the operation of MSC Malaysia status companies under the Bill of Guarantees. MSC Malaysia Cybercities/Cybercentres are measured by their respective sets of globally competitive standards, namely the MSC Malaysia Performance Standards on matter such as utilities and telecommunications services (“Performance Standards”). Currently, BoG1 and BoG8 is are only offered to MSC Malaysia status companies located in a Designated Premises within MSC Malaysia Cybercities/CybercCentres. In other words, MSC Malaysia status companies located in a Designated Premises within MSC Malaysia Cybercities/Cybercentres enjoy all 10 BoGs.

For more information on the MSC Malaysia BoGs, please refer to the site: http://www.mscmalaysia.my/bogs

Information on the area, approved boundary and Designated Premises of each of the MSC Malaysia Cybercities and Cybercentre are available at http://www.mscmalaysia.my/locations_cyber

MSC Malaysia status companies can contact:

  • The respective Cybercity/Cybercentre Managers (CCM)
  • MDEC Client Contact Center (Clic)

Finance

No, they have to register with MOF. However, they do receive some priority when bidding for tenders.

Yes, MDEC needs a copy of your company`s audited report. The number of reports to be submitted depends on how often the company produces it (annually, etc).

To further enjoy the tax exemption incentive, company must first submit the Pioneer Status/ITA activation form within 24 months from the MSC Malaysia Status approval date. In addition, company also is required to submit additional documents e.g first sales invoice, tenancy agreement, copy of MSC Status certificate and etc. For full details please refer to the checklist.

Click here to download the checklist.

For more information, please contact:

MDEC Client Contact Center (CliC)
E-mail: clic@mdec.com.my
Toll free no.: 1-800-88-8338 (within Malaysia)
Tel : +603 8315 3000 (outside Malaysia)Fax: +603 8315 3115
SMS: Type MDEC ASK (your email address)(your inquiries), send to 15888

There are no other documents for you to hand over to your accountant.

MSC Malaysia status companies may opt for either :

  • Pioneer Status (PS), OR
  • Investment Tax Allowance (ITA)

The qualifying capital expenditures are:

  • Hardware and software
  • Purchasing and / or renovation of building / office
  • Expenditure for greenery in Cyberjaya - plants and machinery

APPLICATION FEE

We accept:

  • Bankers’ cheque - payable to Multimedia Development Corporation Sdn Bhd
  • Bank draft - payable to Multimedia Development Corporation Sdn Bhd

Regardless of whether a company receives MSC Malaysia status or not, the application fee is not refundable.

Upon submitting the official document for MSC Malaysia-status application, the applicant may use a bank draft or a cheque of RM2,000 that is made payable to Multimedia Development Corporation Sdn Bhd.

CREATIVE MULTIMEDIA

Yes , this is applicable to all companies with MSC Malaysia status, for Animation facility, you would need to specify what type, amount and ensure that these equipment is for your approved MSC Malaysia activities use.

Yes, should these skilled workers qualify for the definitions of MSC Malaysia Knowledge Workers, the MDEC is able to assist the entry and work permits of such workers through our facilitation department, MSC Malaysia Management Services.

MSC Malaysia-status companies whose activities have been approved to such work, should have no worries on regulatory policies to sending back materials made for enhancements, edits or re- colouring from MSC Malaysia.

No, for MSC Malaysia-status companies, remitting earnings or profits from dues made from activities in MSC Malaysia is not scrutinised by the Foreign Direct Investment Committee

MSC Malaysia Logo

The Logo is based on the concept of a rising sun behind the horizon, signifying the dawning of a new era in Malaysia, to be ushered in with MSC Malaysia. There are three rays emanating from the sun, representing the key elements that MSC Malaysia will bring about: a high-capacity global telecommunications and logistics infrastructure; new policies and Cyberlaws; and an attractive environment in which to live and work.

At the heart of the Logo is a green sphere, emphasizing the environment considerations at the core of Malaysian policy-making and new initiatives. MSC Malaysia will house garden megacities with environment-friendly and intelligent urban-development features. The arch surrounding the sphere symbolizes united strength.

MSC Malaysia is an initiative requiring tight integration and cooperation between many parties including government and private industries, local and foreign investors, and the people of Malaysia as a whole. The success of MSC Malaysia depends upon mutual support and collaboration between these parties The webbed element behind the `sun` represents the hope that companies within MSC Malaysia will form a `web` and set new standards which other companies will comply with. This in turn will help spawn other `webs`, the ultimate goal being to create a perpetually growing and innovating entity.

The design of the webbed element suggests rapid motion to highlight the fast-moving nature of the world of technology in general, and MSC Malaysia in particular.