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Explore how the Malaysia Digital Status can help your business thrive in digital economy

Overview

Since its establishment in 1996, MDEC and MSC have driven digital transformation and adoption across the public and private sectors in Malaysia.

As the world moves rapidly, MDEC continues to focus on leading Malaysia’s digital economy forward by accelerating:

Formulation of policies and coordination of all stakeholders to enable an innovative and vibrant digital economy ecosystem

Creation of local entrepreneurs and global champions to increase contribution from the digital economy to GDP

Driving digital investment to maximise the digital economy's contribution to the country

The fast-evolving landscape of today’s digital economy warrants for a new strategy to remain relevant and ready to boost the economic recovery of Malaysia.

What is Malaysia Digital

The Government has introduced Malaysia Digital as the new national strategic initiative to encourage and attract companies, talents and investment while enabling Malaysian businesses and Rakyat to play a leading part in the global digital revolution and digital economy.

Drive digital adoption amongst aspiring young entrepreneurs, companies and the Rakyat

Grow local tech companies to be Malaysian champions, thriving globally

To attract high-value digital investments

This initiative  also serves to create substantial digital economic spill-over through equitable access to digital tools, knowledge and income opportunities nationwide

How It Works?

Malaysia Digital is the engine that accelerates the growth of our ecosystem within the nine (9) focus areas; and drive digital adoption and opportunities in digital economy via the Malaysia Digital Catalytic Programmes (PEMANGKIN) and other competitive offerings.

Malaysia Digital’s inclusive approach aims to harmonise the growing Demand of digital solutions with a steady Supply of products and services, whilst continuing to strengthen the Enablers such as talents, infrastructure and regulations.

As digital technology continues to evolve, a robust digital economy ecosystem is represented by the dynamic relationship between Demand, Supply and Enablers. From the growing Demand of digital solutions, steady Supply of product and services, as well as support by Enablers such as talents, infrastructure and regulations, Malaysia Digital’s inclusive approach aims to harmonise these components to ensure a thriving and sustainable digital economy ecosystem.

Governance

With the Cabinet’s approval, a Malaysia Digital Coordinating Committee (MD-CC) has been established to coordinate a more efficient and effective governance and operation of Malaysia Digital. The MD-CC is under the jurisdiction of the Ministry of Communications and Multimedia Malaysia (K-KOMM), and the Government impresses on a whole-of-nation approach whilst emphasizes the importance of the involvement of industry players, stakeholders and the community in the implementation of various national policies.

Malaysia Digital Catalytic Programmes (PEMANGKIN)

DE Rantau

DE Rantau programme aims at establishing Malaysia as the preferred digital nomad hub in ASEAN while boosting digital adoption and promoting professional mobility and tourism across the country.

Digital Trade

Digital Trade aims at accelerating e-commerce and business digital adoption, whilst simplifying cross-border trade, aligned with the National Strategic e-Commerce Roadmap (NESR).

Join us in Malaysia Digital!

Find out how your business can thrive in digital economy.

Beneficiaries

Digitalisation of economic activities impacts Rakyat, Business, Investors.

Equitable Access to Digital Tools, Knowledge & Income Opportunities

MDEC shall continue to accelerate digital adoption with MD via the #SayaDigital campaign which promotes new digital lifestyle experience, sustainable income opportunities and equitable wealth creation.

 

The MD initiative and #SayaDigital campaign will create a holistic digital journey for the Rakyat to reap digital economy benefits with the right knowledge, skills and tools towards building a robust digital nation.

More than 500,000

Individuals trained

RM 2.8 billion

Total value of revenue generated

Our Services

Malaysia Digital boasts competitive offerings which can benefit you and your business, and they include:

Malaysia Digital Status (formerly known as MSC Status)

The new Malaysia Digital Status offers greater agility for local and international digital companies to choose from competitive fiscal and non-fiscal incentives.

MTEP

A special programme for technopreneurs who want to start a company or move their existing companies to Malaysia.

e-DFI

The Duty Free Importation (e-DFI) system is an online application services for duty free importation of multimedia equipment

Facilities

Discover our dedicated facilities and special programmes that aim to drive innovation to new heights

eXpats

Discover the one-stop hub for all your company’s Foreign Knowledge Worker (FKW) employment needs

SUCCESS STORY

With eRezeki, I found my way to get back on track

Our Initiatives

New Business Opportunities and Growth In A Vibrant Ecosystem

With Malaysia Digital, MDEC continues to strengthen the digital ecosystem throughout the country via:

  1. The implementation of Malaysia Digital Catalytic Programmes (PEMANGKIN) with local industry participation;
  2. Targeted digitalisation programmes to empower businesses with the right digital knowledge, skills, and tools; and
  3. Various facilitation services and competitive offerings to complement business needs.

890,291

Cumulative MSMEs adopting E-Commerce from 2016 until 2021

RM 1 Trillion

More than RM1 trillion income of E-Commerce transactions reported at the end of 4th quarter in 2021.

Our Services

Malaysia Digital boasts competitive offerings which can benefit you and your business, and they include:

Malaysia Digital Status (formerly known as MSC Status)

The new Malaysia Digital Status offers greater agility for local and international digital companies to choose from competitive fiscal and non-fiscal incentives.

MTEP

A special programme for technopreneurs who want to start a company or move their existing companies to Malaysia.

e-DFI

The Duty Free Importation (e-DFI) system is an online application services for duty free importation of multimedia equipment

Facilities

Discover our dedicated facilities and special programmes that aim to drive innovation to new heights

eXpats

Discover the one-stop hub for all your company’s Foreign Knowledge Worker (FKW) employment needs

SUCCESS STORY

Digital transformation is imperative for businesses to stay competitive

By leveraging on our workforce to develop new skills and making use of new and evolving technologies, we made sure our manufacturing processes continue to be efficient. This is not just for manufacturing, but also for businesses in general. I think all businesses have, to some degree, benefitted from digital transformation.

 

Muzaffar Othman
Permodalan Nasional Berhad (PNB)
Chief Technology Officer

Our Initiatives

Flexible and Agile Digital Investments Facilitation

Investments are one of the key drivers of the economy. MDEC as the lead digital economy agency continues to work with the public and private sector to attract new digital investments as well as grow the existing businesses since 1996.

 

With new and flexible option of Malaysia Digital status, both foreign direct (FDI) or domestic direct (DDI) investors have the flexibility to choose from a set of competitive offerings.

 

Companies also have a greater agility to operate, grow, expand, or invest anywhere in Malaysia. Key infrastructure and ecosystem development is no longer confined to designated area or location and companies can choose to operate in any location that suited their needs.

1st

in the Upper Middle-income category in the Global Talent Competitiveness Index 2021

1st

in Global Islamic Economy Indicator (GIEI) for nine consecutive years in the Global Islamic Economy Report 2022

1st

globally in the Global Islamic Fintech Report 2021

2nd

in ASEAN in Global Cybersecurity Index 2020

3rd

globally in the Kearney’s Global Services Location Index 2021 (Malaysia being Top 3 in Kearney Global Services Location Index since 2004)

3rd

in the Upper Middle-income category in the WIPO Global Innovation Index 2021

As at 2020, MSC Malaysia has recorded

RM 384 billion

Total cumulative investments

RM588 billion

Total revenue

184,030

Total jobs, out of which 85% are Local Knowledge Workers.

Our Services

Malaysia Digital boasts competitive offerings which can benefit you and your business, and they include:

Malaysia Digital Status (formerly known as MSC Status)

The new Malaysia Digital Status offers greater agility for local and international digital companies to choose from competitive fiscal and non-fiscal incentives.

MTEP

A special programme for technopreneurs who want to start a company or move their existing companies to Malaysia.

e-DFI

The Duty Free Importation (e-DFI) system is an online application services for duty free importation of multimedia equipment

Facilities

Discover our dedicated facilities and special programmes that aim to drive innovation to new heights

eXpats

Discover the one-stop hub for all your company’s Foreign Knowledge Worker (FKW) employment needs

SUCCESS STORY

Digital transformation is imperative to stay competitive in business

Our Initiatives

Contact Us

If you do have any enquiries, please don’t hesitate to reach us.

FREQUENTLY ASKED QUESTIONS

Malaysia Digital (MD)is the enhanced and revamped initiative succeeding MSC Malaysia.

This new initiative serves to accelerate Malaysia’s digital economy and create substantial digital economic spill-over through equitable access to digital tools, knowledge and income opportunities.

  1. A new framework centred around three primary components: Agility, Flexibility and Relevance.
  2. New Catalytic Projects:
    • Malaysia Digital Nomad Programme (De Rantau) towards making Malaysia the preferred Digital Nomad Hub.
    • Malaysia Digital Trade towards facilitating Digital Trade within Malaysia and across borders.

MDEC shall make further announcement on the Malaysia Digital (MD) initiatives in due course. Stay tuned.

Existing Malaysia Digital status and benefits thereunder that have been granted will continue to subsist, subject to compliance of existing conditions by the companies/IHL/incubators.

MDEC shall provide further guidelines on the branding and use of Malaysia Digital (MD) logo.

Existing MSC Malaysia Cybercities/Cybercentres/Digital Hubs will continue to provide ready infrastructure for MSC Malaysia Status companies as well as technology related companies.

FAQs

Frequently
Asked Questions

The Government has introduced Malaysia Digital as the new national strategic initiative to encourage and attract companies, talents and investment while enabling Malaysian businesses and Rakyat to play a leading part in the global digital economy.

  • MSC Malaysia was introduced 26 years ago. With the changing economic landscape, it is timely for us to adapt to the changing trends and new normal.
  • With a new and enhanced framework, Malaysia Digital seeks to transform the nation’s digital capabilities and boost the digital economy via the introduction and execution of various Malaysia Digital Catalytic Programmes (PEMANGKIN).
  • These projects are set to evolve Malaysia’s digital economy capabilities and capacities, raise Malaysia’s value proposition for digital investments, and nurture technology sectors with significant commercial and economic potential.
  • Bolstered by three key considerations in our proposition– Flexibility, Agility, and Relevance – Malaysia Digital will pave the way for the nation’s ongoing and future efforts to establish itself as the digital hub of ASEAN.

The Malaysia Digital initiative will introduce:

  • Malaysia Digital Status with revised conditions, governance and benefits;
  • Malaysia Digital Catalytic Programmes (PEMANGKIN); two of these have already been identified – DE Rantau and Digital Trade;
  • Continuous efforts on existing projects, programmes and other benefits will be aligned under the Malaysia Digital initiative, to benefit Rakyat, businesses, and investors.

For more information, kindly refer to: mdec.my/malaysiadigital

Presently, Malaysia Digital Focus Areas are as follows:

  1. Digital Trade
  2. Digital Agriculture
  3. Digital Services
  4. Digital Cities
  5. Digital Health
  6. Digital Finance
  7. Digital Content
  8. Digital Tourism
  9. Islamic Digital Economy

 

Note: The list above is non exhaustive and will be reviewed and updated from time to time

  • Malaysia Digital Status is the enhanced and revamped initiative succeeding MSC Malaysia Status.

 

  • The Government, through MDEC, will award Malaysia Digital Status to eligible companies that participate in and undertake any of the Malaysia Digital activities.

 

  • Malaysia Digital Status offers greater flexibility for local and international digital companies to choose from competitive offerings.

 

  • Malaysia Digital Status companies also have the flexibility and opportunity to operate, grow, expand, or invest anywhere in Malaysia.

Malaysia Digital Status companies will have access to a set of benefits* which include:

  1. Foreign knowledge worker quota and passes
  2. Tax incentives
  3. Access to local and international markets and ecosystems
  4. Multimedia/ICT equipment import duty and sales tax exemption
  5. High powered implementation agency

*The benefits are subjected to applicable terms and conditions.

For details on the benefits, kindly refer to this LINK

Research, development and commercialisation of solution and/or provision of services in relation to technologies or areas including:

  1. Drone technology
  2. Blockchain
  3. Creative media technology
  4. Global business services or knowledge process outsourcing;
  5. Virtual, augmented and/or extended reality; and
  6. Other emerging technologies.

For full list of Malaysia Digital Activities kindly refer to this LINK

Malaysia Digital Status is open to companies meeting the following minimum requirements::

  1. Incorporated under the Companies Act 2016 and resident in Malaysia; and
  2. Proposing to carry out or is currently carrying out one or more of the Malaysia Digital activities.

Companies have to comply with the following conditions within 12 months of date of award of Malaysia Digital Status:

Please refer to the Malaysia Digital Status Guidelines at HERE

Follow these application steps to apply for your Malaysia Digital Status.

  • MSC Malaysia is now rebranded to Malaysia Digital (MD). Following to that
    • MSC Malaysia Status is now known as MD Status; and
    • MSC Status Company is now known as MD Status Company.
  • Existing location conditions will be expanded nationwide to allow companies to carry out Malaysia Digital Activities in any location within Malaysia.
  • Existing MSC Malaysia Status and benefits thereunder that have been granted will continue to subsist, subject to continued compliance of existing conditions.
  • Existing MSC Malaysia Status companies are not required to reapply for Malaysia Digital Status and will be automatically rebranded as Malaysia Digital Status companies.

 

With effect from 25 March 2022:

 

  • Company is allowed to operate and undertake its approved activities in any location within Malaysia.

 

  • Following the above, the minimum office space requirement is no longer applicable for the Company.

Company may submit a request to MSC Malaysia Client Contact Centre (CliC) via email at [email protected] for a new Malaysia Digital Status digital certificate.

MDEC will issue further guidelines on the branding and use of the Malaysia Digital (MD) logo. Kindly refer to mdec.my/malaysiadigital/apply for the latest updates.

The Digital Investment Office (DIO) is a collaborative virtual platform between MDEC and MIDA (Malaysian Investment Development Authority) to coordinate and facilitate digital investments in Malaysia. MDEC will continue its role as the Digital Investment Promotion Agency (IPA) for Malaysia. For further information, please visit HERE