Apply for Malaysia Digital Status Now to Unlock Govt Incentives & Privileges

Are you running a digital-based company? If you’re not familiar with Malaysia Digital Status, read on as it can significantly benefit your business operations.

Malaysia Digital is an initiative by The Malaysia Digital Economy Corp (MDEC) aimed at transforming Malaysia into a knowledge-based economy. This strategic initiative aims to create a conducive ecosystem driven by high-end infrastructure development and the attraction of ICT companies within identified corridors.

The Malaysia Digital Status grant provides eligible companies with a range of incentives, rights, and privileges from the Government, subject to necessary approvals and compliance with applicable conditions, laws, and regulations. Companies with Malaysia Digital Status have greater flexibility and agility in their operations, allowing them to operate, grow, expand, or invest anywhere in Malaysia.

Here’s everything you need to know about Malaysia Digital Status:

Who can apply for Malaysia Digital Status?

To be eligible to apply for the award of Malaysia Digital Status, a company is required to meet the following criteria:

1. Incorporated under the Companies Act 2016 and resident in Malaysia
2. Proposing to carry out or is currently carrying out one or more of the Malaysia Digital activities.

Conditions of Malaysia Digital Status

Conditions to be complied with within 12 months from the date of award of Malaysia Digital Status:

Activity

• Commencement of operation and undertaking of the Malaysia Digital Approved Activities in Malaysia

Knowledge Workers

• Minimum 2 full-time employees (comprising knowledge workers) with minimum average monthly base salary of Ringgit Malaysia Five Thousand (RM5,000.00), employed for the Malaysia Digital Approved Activities

Operating Expenditure

• Minimum annual operating expenditure of Ringgit Malaysia Fifty Thousand (RM50,000.00) incurred for the Malaysia Digital Approved Activities

Paid-up Capital

• Minimum of Ringgit Malaysia One Thousand (RM1,000.00)

Benefits granted if you apply for MD status:

1. 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.

2. Under the MD BoGs, MD Status companies are eligible to access or apply for, amongst others:

• 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.

3. An MD Status company may enjoy tax incentives under MD BoGs or any tax incentive programme offered by government of Malaysia, subject to the applicable eligibility criteria and conditions of the said tax incentive programme

Steps to apply for Malaysia Digital Status

STEP 1: The applicant is required to register on the Malaysia Digital Platform and complete the online application form within 30 days from the registration date. No extension will be allowed.
Applicants may request a consultation before applying for MD Status by sending an email to clic@mdec.com.my.

STEP 2: An acknowledgement receipt will be sent to the applicant’s registered email upon acceptance of the complete application submission.
– The application will be reviewed for a preliminary check on tax incentive eligibility.
– Unsuccessful preliminary checks will be rejected. However, the applicant may reapply subject to fulfilling the eligibility criteria.
– An acknowledgement receipt will be sent to the applicant’s registered email upon successful completion of the preliminary check of their application.

STEP 3: A Business Analyst will be auto-assigned to evaluate the applicant’s application.
– At this stage, the applicant is required to provide additional information and/or present the proposed activities to the Business Analyst to support the application, where necessary.
– The applicant is required to make a payment of the following processing fees:

• Malaysia Digital Status – RM1,060 (including SST); or
• Malaysia Digital Status with Tax Incentive – RM2,120 (including SST) within 30 days and no extension is allowed. The processing fee payment is non-refundable.

– The application will be presented at the Deliberation meeting with relevant stakeholders.
– A notification email will be sent to the applicant’s registered email upon successful evaluation.

STEP 4: The application will be presented to the Malaysia Digital – Coordination Committee (MD-CC)
– Upon the MD-CC’s decision, the approval/ rejection letter will be issued by MDEC to the respective companies.
– Upon acceptance of the approval letter, the MD Digital Certificate will be issued to the company by MDEC for the new application.

To unlock all incentives, privileges and rights from the government, you can apply for MD Status here.