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QUALIFYING CRITERIA

ELIGIBILITY CRITERIA FOR MSC MALAYSIA STATUS

Whether you're a technology company, an incubator that nurtures tech companies, or an Institute of Higher Learning (IHL) with a tech arm, being an MSC Status company opens your business to a host of opportunities that will accelerate your growth.

Companies

Those that are techonology-focused in the areas of InfoTech, Global Business Services and/or Creative Content & Technology.

Reap the benefits of being an MSC Malaysia Status company.


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CLUSTER AND QUALIFYING ACTIVITIES

  1. Companies undertaking design, development, maintenance and marketing activities in following areas (not exhaustive):
    1. Software products:
      • General Business applications such as CRM/ERP/Accounting on any platform, including mobile and cloud platforms
      • Specialized applications for vertical industries such as Manufacturing/ security solutions/ Wireless & fixed telecommunications/embedded software
    2. Hardware technology products & application:
      • Intelligent Controllers/RFID/security solutions/ Wireless & fixed telecommunications/SoC designs/IC design
      • Specialist design companies focused on electronic hardware components or finished products (RFID/Smart Cards)

  2. Companies utilizing the world wide web as its main platform of operation (e-Business) which include but not exhaustive, of the following:
    • Application service providers, e-commerce service providers; web-based trading platforms, E-Government based service providers

Global Business Services (GBS) is a maturity evolution model from the Shared Services & Outsourcing industry. GBS integrates business services and has a wider scope to deliver higher value services that goes beyond transactional activities.


Business Process Outsourcing (BPO)

Transactional-type internal business functions such as HR or F&A and front-office functions including customer-related services in marketing & contact center services.


List of Services

  • Contact Center/Call Center
  • Transaction Processing
  • Payroll Processing
  • Customer Relations Management
  • Supply Chain Management
  • Finance & Accounting
  • HR Information System Services
  • Data Entry
  • Business Processes
  • Direct & Indirect Procurement
  • Tender Management Services
  • AP/AR, GL, etc
Information Technology Outsourcing (ITO)

Transactional-type IT & IT-related functions such as programming, technical support, desktop & server support, network & security systems etc.


List of Services

  • IT Helpdesk/Tech Support
  • Hosting Services
  • Digital Forensic
  • Systems Integration
  • Software Development
  • Applications Development/Maintenance Management
  • Business Applications / Integration / Management
  • Disaster Recovery
  • Technology Infrastructure
  • Testing & Quality Assurance
  • Software R&D, Product Development & Solutions
  • Security Design
  • Data Warehouse Design
  • Cloud Services
Knowledge Process Outsourcing (KPO)

Highly complex value added processes & require talent professionals with degree, widespread educational backing, specific & advanced knowledge of a domain or specialty, >5 years experience and an average salary of RM8K per month.


List of Services

  • Business, Marketing & Branding Research/Analytics
  • Global Business Integration
  • Corporate Planning & Development
  • Investor Relations & Management
  • Financial Statement, P&L, Global Reporting
  • Tax Support, Preparation, Consulting & Advisory
  • Treasury & Risk Management
  • Budgeting & Forecasting
  • Engineering & Process Design Services
  • 3D Modeling & 2D to 3D Conversion
  • Finite & CFP Analysis
  • Value Engineering
  • Technical Specification for Tenders
  • Telemedicine, Tele-pathology & Tele-radiology
  • Clinical Data Management and Disease Management
  • Consumer Surveys, Market & Database Research
  • Equity, Economics, Financial & Optimization Modeling/Analysis/Research & Analytics
  • Business Intelligence
  • Statistical & Econometric Modeling
  • Case Study & SWOT Analysis
  • Content Planning & Proofing
  • E-Publishing
  • Cross Media Composition
  • Pre-press Work and Editorial Service
  • Legal Research including IP Management
  • Contract Draft & Review and Patent Draft & Review
  • Study Legal Precedents & Craft Arguments, Prosecuting Patents
  • Project Management
  • Pharmaceutical R&D & Medical Services
Qualifying Activities

Global Business Services (GBS) is a maturity evolution model from the Shared Services & Outsourcing industry. GBS integrates business services and has a wider scope to deliver higher value services that goes beyond transactional activities.


Qualifying business services activities include IT, Finance and Accounting, Human Resources, Procurement, Legal, Marketing, Business Analytics and other shared support functions across multiple locations within an organization.


Additional Criteria

Headcount
GBS
50 Knowledge Workers*1 in 5 years or
20 Knowledge Workers with Average Salary >= RM10K
(subject to MDeC’s evaluation)
Exports
GBS + Data Centers
70% exports by 5th year of MSC status
Location
GBS + Data Centers
70% of investment*3 located within designated areas
Investment
Data Centers
RM 10 million capital expenditure (CAPEX) in 5 years
Headcount
GBS
30 Knowledge Workers*1 in 5 years or
20 Knowledge Workers with Average Salary >= RM8K
(subject to MDeC’s evaluation)
Exports
GBS + Data Centers
20% or RM0.5 million exports*2 by 5th year MSC Status (whichever is lower)
Location
GBS + Data Centers
30% of investment*3 within designated area located
Investment
Data Centers
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”. The % is based on combination of CAPEX and OPEX investment value of the Approved MSC Malaysia Activities in the MSC Designated Area.


3. The % is based on combination of CAPEX and OPEX investment value of the approved MSC Malaysia Activities in the MSC Designated Area.

Activities and technologies involved in the creation, delivery and enhancement of digital content. These include the development, production, aggregation, distribution and merchandising of IP, and the supply of the associated technological tools, services and platforms to support said activities.


These activities include but not exhaustive of the following:

  • Production of Digital Content IP
  • Production Process (include interactive content)
  • Post Production: Digital Audio and Visual EFX / Computer Graphics based (CGI)
  • Animation and design using technologies such as 2D/3D, Virtual Reality, Simulation, and Augmented Reality
  • Aggregation/Packaging of Content
  • Delivery of Content
  • Enhancement of IP for licensing

Additional Criteria - Licensing & Merchandising Activity

Investments
No minimum requirement
Must have 'IP development' activities
in their business model
High value jobs
No minimum requirement
% of revenues from exports
No minimum requirement
Investments
Minimum RM 5 million
Must have 'IP development' activities
in their business model
High value jobs
Minimum 20 high value jobs
% of revenues from exports
Minimum 60% revenue from exports
Startups

Those striving towards a scalable, repeatable and profitable business; have been operating under 3 years with less than RM100K in annual revenue and with 10 employees or less.


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CLUSTER AND QUALIFYING ACTIVITIES

New companies involved in the development of digital products and services; who are striving towards a scalable, repeatable and profitable business may also apply to enjoy the benefits of being an MSC Malaysia Status company.

To be eligible companies must:

  • Be Involved in activities which fall under the Infotech or Creative and Content Technology Clusters,
  • Have been operating for 3 years or less,
  • Have earned less than RM100K per annum in revenue and
  • Have 10 employees or less
  1. Companies undertaking design, development, maintenance and marketing activities in following areas (not exhaustive):
    1. Software products:
      • General Business applications such as CRM/ERP/Accounting on any platform, including mobile and cloud platforms
      • Specialized applications for vertical industries such as Manufacturing/ security solutions/ Wireless & fixed telecommunications/embedded software
    2. Hardware technology products & application:
      • Intelligent Controllers/RFID/security solutions/ Wireless & fixed telecommunications/SoC designs/IC design
      • Specialist design companies focused on electronic hardware components or finished products (RFID/Smart Cards)

  2. Companies utilizing the world wide web as its main platform of operation (e-Business) which include but not exhaustive, of the following:
    • Application service providers, e-commerce service providers; web-based trading platforms, E-Government based service providers

Activities and technologies involved in the creation, delivery and enhancement of digital content. These include the development, production, aggregation, distribution and merchandising of IP, and the supply of the associated technological tools, services and platforms to support said activities.


These activities include but not exhaustive of the following:

  • Production of Digital Content IP
  • Production Process (include interactive content)
  • Post Production: Digital Audio and Visual EFX / Computer Graphics based (CGI)
  • Animation and design using technologies such as 2D/3D, Virtual Reality, Simulation, and Augmented Reality
  • Aggregation/Packaging of Content
  • Delivery of Content
  • Enhancement of IP for licensing

Incubators

Those that provide incubation services to ICT companies, for example, mentoring, facilities and business advisory support services.


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QUALIFYING ACTIVITIES

TECHNOLOGY FOCUS
Incubatees involved in ICT and ICT-facilitated businesses recognized by the MSC Malaysia.


TENANCY
Houses idea to early growth stage, technology focused incubatees.


FACILITIES

  • Utilities including water and electricity
  • Internet access
  • Shared facilities (e.g. meeting rooms, reception, audio-visual systems)
  • Business advisory support (in-house or outsourced)

Additional Criteria


FUNDING
Demonstrates the ability to provide direct investment capital or establish channels for financing seed or growth capital.


RESOURCES
Availability of resources in providing mentoring, coaching and training.


INCUBATION BEST PRACTICES
Adopts and provides necessary resources to incorporate elements of best practices into the incubation model.

TECHNOLOGY FOCUS
Incubatees involved in ICT and ICT-facilitated businesses recognized by the MSC Malaysia.


TENANCY
Serves idea to early growth stage, technology focused incubatees.


FACILITIES
Virtual services offered to the incubates (Mentoring, Business Advisory)
Maintain a small office for day to day operations

Additional Criteria


FUNDING
Demonstrates the ability to provide direct investment capital or establish channels for financing seed or growth capital.


RESOURCES
Availability of resources in providing mentoring, coaching and training.


INCUBATION BEST PRACTICES
Adopts and provides necessary resources to incorporate elements of best practices into the incubation model.

Institues of Higher Learning (IHL)

Institutes of Higher Learning that provide courses related to multimedia and ICT fields which are approved by MOE and accredited by MQA.


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QUALIFYING ACTIVITIES

MSC Malaysia Status may be given to Applicants that offer an internationally recognised standard of higher education, information technology, engineering, the sciences and other related fields that will contribute to the development of human resources for the MSC Malaysia. Suitable applicants who locate their business or activities in the MSC Malaysia or one of the designated Cybercities, will also reap the full benefits of the incentives that are offered under the Bill of Guarantees.

All Applicants must have all of the following activities in order to qualify for the MSC Malaysia incentives, depending on whether they are companies, institutions of higher education or faculties and depending on the location of their business or activities, namely:


  • Applicable courses must only be related to multimedia, information technology and communication fields.
  • Grant either Diploma or Degree courses in multimedia, information technology and related fields for a training period covering a minimum period of 2 years and above.
  • Establish a multimedia faculty or a qualified faculty conducting multimedia courses, programmes and related activities.
  • Comply with Lembaga Akreditasi Negara guidelines.