The MSC Malaysia Status
The MSC Malaysia Status
What is MSC Malaysia Status?
Recognition by the Government through
MDeC for companies that participate and
undertake its ICT activities in the MSC
Who Should Be In The MSC
Malaysia?
Local and Foreign Companies that
develop or use multimedia technologies to
produce or enhance their product and
services and or process development.
Application Process
 An Account Manager will be assigned to
the client when the ‘pre-application’ is
received
 Documents required:
 3 year business plan to show the proposed
activities
 3 year financial projections
 Formal application form
 RM 2000 process fee (Non Refundable)
 100% foreign owned companies can
apply as an unincorporated company
Application Process
Pre-Application @ HelpDesk
http://wizard.msc.com.my/wizard
Acct. Mgr assigned +
Due Diligence
Internal Approval
Committee
Submit Business Plan
+ Financial Projection
Qualifying Criteria
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Provider or heavy user of IT &
multimedia products & services.
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Employ a substantial number of
knowledge workers.
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Strong value proposition specifying how
operations will contribute to the
development of MSC Malaysia and
Malaysia itself.
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Establish separate legal entity for MSC
Malaysia-qualifying activities.
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Locate in an MSC Malaysia designated
cybercities.
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Comply with environmental
guidelines.
Non-Qualifying Activities
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Trading companies / resellers.
Configuration of existing foreign developed software.
Integration of 3rd party software & hardware.
Manufacturing.
Technical Support Services for 3rd party providers.
Licensed MCMC VOIP/Telecom service providers.
SSO companies that provide services for Malaysia only.
Companies already enjoying Pioneer Status/ITA.
Companies formed for sole purpose of undertaking contractual work for
Malaysian Federal Govt/ State Govts only.
Companies seeking to bring in Foreign Knowledge Workers for subcontract
(Body shopping) and turn-key projects.
Benefits: Bill of Guarantees
The Government of Malaysia commits the following Bill of Guarantees to MSC
Malaysia Status Companies:
1. Provide a world-class physical and
information infrastructure
2. Allow unrestricted employment of
knowledge workers
3. Ensure freedom of ownership
4. Allow freedom of sourcing capital globally
for MSC Malaysia infrastructure and
freedom of borrowing funds
5. Provide competitive financial incentives
including no corporate tax or an
investment tax allowance for up to ten
years and no duties on the import of
multimedia equipment
6. Become a regional leader in
intellectual property protection
and cyberlaws
7. Ensure no censorship of Internet
8. Provide globally competitive
telecoms tariffs
9. Tender key MSC Malaysia
infrastructure contracts to leading
companies willing to use MSC
Malaysia as their regional hub
10. MDeC – one stop service agency
Creative Multimedia Cluster
Qualifying Activities
 Companies whose core business activity
revolves around multimedia content creation,
processing, packaging and aggregation and
delivery activities
 Digital content development, aggregation,
packaging and delivery on any platform
 Post production/animation/virtual reality
applications
SSO Cluster
Qualifying Activities
 Shared Services- a model where common services are provided under a single,
shared organization leveraging on economies of scale e.g. IT, call centre,
software dev, data centre consolidation
 Outsourcing – results oriented shared service partnership with an external
service provider e.g. business process outsourcing, IT Outsourcing
 Global/regional in IT in sourcing and outsourcing models
 Global/regional business process service providers
SSO Local
SSO Foreign
 50% exports by end of year 5 from the
date of MSC Malaysia approval
 30% of total investment to be in MSC
designated area within 6 months of
MSC approval
 Minimum 50 knowledge workers by
end of year 5 from the date of MSC
Malaysia approval
 Maintain a minimum 85% knowledge
workers
 70% exports by end of year 3 from the
date of MSC
 70% of total investment to be in MSC
designated approval
 Minimum 100 knowledge workers by
end of year approval
 Maintain a minimum 85% knowledge
workers
Software & eSolution (SeS) Cluster
Qualifying Activities
Software & eSolution (SeS) is a combination
of 3 sub-cluster:
1. Internet Based Business - IBB
2. Application Software - AS
3. Mobility & Embedded
Software/Hardware - MeSH
SeS: Internet Based Business
Qualifying Activities
Qualifying Activities:
 Utilized the world wide web
as its main platform of
operation such as its
marketing, web hosting
and/including
ecommerce transactions
 Application service providers,
e-commerce service providers;
web-based trading platforms.
 E-Government based service
providers
SeS: Application Software
Qualifying Activities
Software Development
 Companies undertaking design, development,
maintenance and marketing of software products which
include but not exhaustive of the following.
 e.g.. General Business applications such as
CRM/ERP/Accounting on any platform
 specialized applications for vertical industries such
as Manufacturing/ security solutions/ Wireless &
fixed telecommunications/ embedded software.
 The activities should have significant proportions of IP
generation, innovative and export orientation.
SeS: MeSH
Qualifying Activities
Hardware Design
 Companies undertaking design, development, maintenance
and marketing of hardware technology products and
applications which include but not exhaustive of the
following.
 e.g.. Intelligent Controllers/RFID/security solutions/
Wireless & fixed telecommunications/ SoC designs/ IC
designs
 Specialist design companies focused on electronic hardware
components or finished products (RFID/Smart Cards)
 The activities should have significant proportions of IP
generation, innovative and export orientation
 Embedded systems/Industrial Designs (prototyping &
modeling)
Institute of Higher Learnings (IHLs)
Qualifying Activities
 IHLs, Training & education services including via digital means (non
content related)
All Applicants must have all of the following activities in order to qualify for the MSC
Malaysia incentives, namely :
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Provide or be a heavy user of multimedia products and services;
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;
Employ a substantial number of knowledge workers;
Conduct and support R&D activities;
All Applicants must also be registered as a separate legal entity; and
Comply with MQA guidelines
Applicable courses must only be related to multimedia, information technology and
communication fields.
Incubators
Qualifying Activities
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Must be directly engaged in incubation / acceleration related activities
Incubator technology focus: specifically in ICT & MSC Malaysia Status
Qualifying areas, such as: software development, internet-based businesses,
hardware design, creative multimedia, shared services and outsourcing
Incubatees/tenants must be early stage companies with no MSC M’sia Status yet,
but have the potential to qualify
Must offer business development services such as business plan assistance,
mentoring and coaching, etc.
Physical Facilities MUST OFFER the following basic facilities:
 Internet access with minimum bandwidth of 128Kbps per employee
 Shared facilities e.g. meeting rooms, reception and audio visual systems
 Minimum of 2000 sq ft for incubation activities (including space for at
least 5 ICT SMEs)
Must have an incubator manager (ideally a technopreneur or an entrepreneur)
who is willing to undergo training at the MSC Malaysia Technology
Commercialisation Centre
Incubators (contd.)
Qualifying Activities
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Must establish a separate legal entity (company) to qualify for tax
incentives under MSC Malaysia Status for Incubator
Must demonstrate funding and fund-raising capabilities
Must comply to MDeC-TED Incubation Best Practices, which
include but are not limited to:
 Establishing entry selection criteria for potential incubatees
 Demonstrate a monitoring process for incubatees
 Provision of relevant business (e.g. advisory, mentoring and
coaching, training, etc.) and technical (e.g. technology lab,
technology consultancy, etc.) services to the incubatees which
enable them to grow and mature,
 Demonstrate links/access to a wider network of resources that
can contribute to incubatees growth (e.g. funding and
marketing assistance from various external parties, etc.)
Value Added System Integration
Qualifying Activities
 MSC Malaysia Status Qualifying Criteria be expanded
to include ICT Consulting & System
 Integration, subject to the following criteria:
 By the 3rd year of operation, the company should:
 export at least 50% of its products & services; and
 have at least 70% knowledge workers
*Note: exports are defined as products and services that are
outbound or sold to MNCs