WHO IS ELIGIBLE FOR MSC MALAYSIA STATUS?

MSC Malaysia Status is awarded to both local and foreign companies that develop or use multimedia technologies to produce or enhance their products and services, and for process development. Four types of business entities are eligible for MSC Malaysia status, each with a set of different application criteria and guidelines listed below:

MSC Malaysia status is awarded to 4 types of business entities, each with a set of different application criteria and guidelines. The qualifying business entities are:-

  1. Private limited companies (i.e. Sendirian Berhad)
  2. MSC4Startups
  3. Institutions of Higher Learning (IHL)
  4. Incubators
COMPANY MSC4STARTUPS IHL INCUBATOR

Tier 1
Multi-tiered Incentive
Tier 2

Tier 3
 If your company is able to comply with the MSC requirement of relocating your business to a Cybercity or Centre and to enjoy 10 BOGs, you belong to this type of company.  If your company is able to comply with the MSC requirement of relocating your business to Commercial building within Cybercity or Centre and to enjoy 8 BOGs, you belong to this type of company.  If your company is not able to comply with the MSC requirement of relocating your business to a Cybercity or Centre and willing to enjoy partial incentives of 6 BOGs, you belong to this type of company. If your company is striving towards a business that is scalable, repeatable and profitable, HAS less than 3 years’ experience, HAS revenue less than RM100K per annum, HAS employees not exceeding 10 workers (or HAS l0 employees or less), you (or your company) would fall under this category.  If your company is providing courses related to multimedia and ICT fields approved by MOE and accredited by MQA, you belong to this type of company.  If your company providing Incubation services to ICT Companies (e.g mentoring, facilities, business advisory support), you belong to this type of company.
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The grant of MSC Malaysia Status entitles qualified entities to a set of incentives, rights and privileges from the Government of Malaysia (Government), namely the MSC Malaysia Bill of Guarantees (BoGs). The BoGs reflects the Government’s intention to provide an environment in MSC Malaysia that is conducive to the development of MSC Malaysia Status entities.
The Incentives, rights and privileges granted pursuant to the BoGs are subject to requirements under relevant laws and regulations.

While the Government will reasonably exercise all authority and power towards providing the relevant incentives, rights and privileges under the BoGs, the actual provision will be dependent upon a range of factors and parties (both public and private), and can be affected by circumstances that are not within the control of the Government.

MSC Malaysia Status entitles qualified entities enjoy different type of benefits from BoGs as shown below:

 

MSC Malaysia Bill of Guarantees (BOGs) Tier 1 Tier 2 Tier 3 & MSC4STARTUPS
1. To provide a world-class physical and information infrastructure
2. To allow employment of local and foreign knowledge workers
May employ foreign knowledge workers up to max 20 at any time
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% tax exemption) for up to 10 years  or ITA for up to 5 years and no  duties on importation of multimedia equipment
Income tax exemption of 70% period of 5 Years and no duties on the importation of multimedia equipment
6. To become a regional leader in IP Protection and Cyberlaws
7. To ensure no censorship of the internet
8. To provide globally competitive telecommunication tariffs
9. To tender key MSC Malaysia infrastructure contracts to leading companies willing to use MSC as their regional hub
10. To provide a high-powered implementation agency to act as an effective one-stop super shop

MSC Malaysia Status companies are qualified to a set of incentives, rights and privilege and are subjected to requirements by MSC Malaysia. The qualified entities enjoy different type of benefits and requirements shown below:

 

Criteria Tier 1 Tier 2 Tier 3 MSC4STARTUPS
BOGs Enjoy 10 BOGs Enjoy 8 BOGs
FORGO : 1 & 8
Enjoy 6 BOGs
FORGO : 1 & 8
PARTIAL : 2 & 5
Enjoy 6 BOGs
FORGO : 1 & 8
PARTIAL : 2 & 5
Relocation MSC Cybercity/Centre Commercial Building within MSC Cybercity /Centre Exempted Exempted
Financial Incentive 100% Tax Exemption 100% Tax Exemption Income tax exemption of 70% for period of 5-Years and no duties on the importation of multimedia equipment Income tax exemption of 70% for period of 5-Years and no duties on the importation of multimedia equipment
Foreign Knowledge Workers Unrestricted FKW Unrestricted FKW May employ foreign knowledge workers up to max 20 at any time May employ foreign knowledge workers up to max 20 at any time
Processing Fee RM2,120 RM2,120 RM2,120 RM530
Cluster IFT, GBS, CCT, IHL, INC IFT, GBS, CCT IFT, GBS, CCT IFT, CCT
Operations NA NA NA Less than 3 years
Compliance – Declaration NA NA Yearly Self Declaration Self declaration, certified business location and 1st invoice from auditors, annual audited accounts from auditors
Incentives Renewal 5th Year 5th Year NA NA
Annual Sales NA NA NA Zero to minimal revenue per annum ie. <RM100K
Service Level Agreement (Days)* 30 30 30 15