KUALA LUMPUR, 2 July 2024 – The Malaysia Digital Economy Corporation (MDEC) today hosted the Malaysia Digital (MD) Open Day, a significant event highlighting the strategic direction and recent achievements aimed at spurring Malaysia’s digital transformation. Key initiatives include the MD Tax Incentive, the streamlined Foreign Knowledge Worker (FKW) process, and the National e-Invoicing (NEI) initiative, all designed to support businesses and bolster Malaysia’s economic growth.

The MD Open Day celebrated the achievements of over 5,400 awarded MD companies, reflecting MDEC’s role in fostering a thriving digital community. These companies have collectively contributed to RM485 billion in cumulative investment and generated more than 223,000 jobs as of December 2022. This robust performance underscores Malaysia’s growing influence, ensuring continued competitiveness on the global digital stage.

MDEC promotes innovation and growth through initiatives aimed at improving business flexibility and efficiency. Companies can benefit from MD status independently of tax incentive that warrant higher commitments, hence promoting inclusivity. This flexibility allows companies to operate from any location in Malaysia, supporting diverse and dynamic business environment.

The newly introduced MD Tax Incentive scheme reflects Malaysia’s dedication to fostering local tech champions and attracting high-value digital investments. This scheme offers flexible, outcome-based incentives, including reductions in corporate tax rates and investment tax allowances, to stimulate growth in the digital economy. “Our innovative tax incentive aligns with international best practices and addresses the current economic landscape, further showcasing our commitment to leading the digital revolution and reinforcing Malaysia’s position as the digital hub of ASEAN,” stated Ts. Mahadhir Aziz, CEO of MDEC.

Significant improvements in the FKW process were also unveiled, reducing approval timelines from 21 working days to just up to seven (7) working days from the complete submission. This demonstrates MDEC’s commitment to enhancing operational efficiency and rapidly onboarding global talent, crucial for accelerating digital initiatives and building a competitive, dynamic digital workforce.

To further expedite business operations, MDEC has streamlined the MD application process, significantly reducing the processing time from 30 working days to just 14 working days from the complete submission. This improvement enables companies to quickly obtain MD status, access various incentives and resources, and support faster business growth and development within the digital economy.

Interoperable e-Invoicing based on the Peppol framework was also showcased, highlighting how standardised data exchange can streamline operations, enhance efficiency, and ensure tax compliance for businesses. This aligns with global standards, facilitating seamless cross-border transactions. Businesses can learn more about the benefits of e-invoicing and how to operationalise it at the National e-Invoicing Open Day on 16 July 2024 at M Resort & Hotel Kuala Lumpur.

Additionally, MDEC has many exciting events lined up and one of them is Malaysia Digital Expo (MDX) 2024, a significant nationwide event dedicated to celebrating Malaysia's digital economy. This expo is designed to foster industry collaboration, promote technological adoption, and showcase Malaysia’s advancements on both the local and international stages.

The MD Open Day offered a snapshot into MDEC’s mission to drive digital innovation and growth. MDEC remains committed to supporting the digital industry with an inclusive, flexible, and efficient approach, ensuring Malaysia continues to lead in the digital revolution. Attendees also benefited from expert insights on how these businesses can contribute to the nation's digital success.

For more information on the MD initiative and how MDEC can support your business, visit our official website at https://mdec.my/malaysiadigital.

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Issued by:
Corporate Communication Division
Malaysia Digital Economy Corporation (MDEC)