Unlock Growth With Applying Malaysia Digital Status
Malaysia Digital Status offers tax incentives, funding, faster permits, and access to networks, driving growth, innovation, and competitive edge in the digital economy.
What Is Malaysia Digital Status?
MDEC, or Malaysia Digital Economy Corporation, is a government agency in Malaysia dedicated to advancing the country’s digital economy. It focuses on initiatives like digital transformation, talent development, innovation support, and ensuring digital inclusion for all Malaysians. MDEC works with various stakeholders to attract investments, foster innovation, and promote digital skills development to drive Malaysia’s digital growth.
Eligibility Criteria To Apply
Incorporated under the Companies Act 2016 and resident in Malaysia
Proposing to carry out or is currently carrying out one or more of the MD activities
Conditions Must Be Met Within 12 Months Following The Award Of MD Status
The MD Activities
Research, development and commercialization of solution and/or provision of services in relation to any of the following technologies or areas:
big data analytics (BDA);
artificial intellingence (AI);
financial technology (Fintech);
internet of things (IoT);
cybersecurity (technology/software/design/support);
data centre and cloud;
blockchain;
creative media technology;
sharing economy platform;
user interface an user experience (UI/UX);
integrated circuit (IC) design and embedded software;
3D printing (technology/software/design/support);
robotics (technology/software/design);
systems/network architecture design and support;
global business services or knowledge process outsourcing;
virtual, augmented and/or extended reality;
drone technology;
advance telecommunication technology; or
other emerging technologies deemed significant for the digital ecosystem subject to approval by the Approval Committee
Benefits Of Having MD Status In Malaysia
MD Bill of Guarantees (BoGs) is a set of incentives, rights and privileges made available for MD Status companies. The BoGs reflects the Government’s intention to provide an environment in Malaysia that is conducive to the development of MD Status companies.
- Foreign knowledge worker quota and passes;
- Tax incentives (income tax exemption or investment tax allowance);
- Multimedia/ICT equipment import duty and sales tax exemption;
- Competitive and ready infrastructure for business available at MD Cybercities/Cybercentres;
- Freedom of ownership by exempting from local ownership requirements;
- Flexibility to source capital and funds globally; and/or
- MDEC as the one-stop agency for MD Status companies.
The benefits under the MD BoGs are subject to separate approvals being obtained (if required), applicable eligibility criteria and conditions, as well as applicable laws and regulations.
What Is The Malaysia Digital Status Application Process?
Step 1. Registration
Sign up on the MDEC website and submit the online application form within 30 days after the registration date. It should be noted that this deadline will not be extended.
Step 2. Application Acceptance
An acknowledgement receipt will be emailed to applicants registered email addresses. The eligibility of your tax incentives will then be reviewed.
Step 3. Assessment and Evaluation
The applicant may need to provide more information or discuss proposed activities with the Business Analyst if necessary. The applicant must pay a processing fee within 30 days. For Malaysia Digital Status, it’s RM1,060 (including SST). For Malaysia Digital Status with Tax Incentive, it’s RM2,120 (including SST). No extensions are allowed, and the fee is non-refundable.
Step 4. Application Submission
Malaysia Digital Status:
The application will go to the Malaysia Digital – Coordination Committee (MD-CC). Once MD-CC decides, MDEC will send approval or rejection letters to the respective companies.If approved, MDEC will issue the MD Digital Certificate for new applications.
For Tax Incentive (Optional):
The application will be presented to the National Committee on Investment (NCI). After NCI decides, MIDA will issue approval or rejection letters to companies. If rejected, the applicant can re-apply if they meet the eligibility criteria.
Post Approval Compliance
Update on changes
The MD Status company is required to notify MDEC in the event the company has changed its company name, paid-up capital, shareholders, business operating address, contact person(s) and/or contact details.
Annual Compliance Reporting
The MD Status company is required to submit annually all true, correct and complete information and/or documents as may be requested by MDEC for 9 the purpose of reporting on the progress of the MD Approved Activities and/or determining compliance of the applicable conditions through a SelfDeclaration Form (SDF) or other detailed standard forms as specified by MDEC.
All information submitted by the MD Status company must first be verified by an independent external auditor appointed by the MD Status company at its own costs, or in such other manner as may be specified by MDEC.
Frequently Asked Questions
The essence of Malaysia Digital Status lies in recognizing and supporting companies contributing to the digital economy. Eligible companies receive a variety of incentives, rights, and privileges, including potential tax benefits, endorsement for digital services and products, and facilitation in business processes. These benefits are designed to encourage the growth and development of digital services and products, fostering a vibrant digital ecosystem in Malaysia.
The application process for Malaysia Digital Status involves submitting an application, which is then reviewed for eligibility and compliance with specified criteria. If successful, the company is awarded Malaysia Digital Status or tax incentives, aligning with its contributions to the digital economy.
The required documents to apply for Malaysia Digital Status include a detailed application form, company profile, business plans, financial statements, and additional documents based on the specific incentives or benefits sought. Each category of application may have its own set of required documentation to support the evaluation process.
The processing time to obtain Malaysia Digital (MD) status varies depending on the specific category and complexity of the application. It typically involves several stages, including preliminary assessment, documentation review, and approval by the relevant authorities.