Why MSC Malaysia Status?
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Why MSC Malaysia Status? |
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Companies that successfully attain the MSC Malaysia Status will enjoy a host of privileges that entail world class services and infrastructure as well as financial incentives.
These privileges includes :-
- Bill of Guarantees (BoG)
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MSC Malaysia 10 Point
Bill of Guarantees (BoG): |
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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. |
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The incentives, rights and privileges granted pursuant to the BoGs are subject to requirements under relevant laws and regulations.
In addition, entitlement to the BoGs are conditional upon compliance of MSC Malaysia Status entities, with such terms and conditions as may be imposed by the Government and/or the Multimedia Development Corporation ("MDeC"), as the organisation mandated by the Government to coordinate, promote and develop the Information and Communications Technology ("ICT") industry and selected services in MSC Malaysia and Malaysia.
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. |
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The BoGs are as follows: |
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| BoG 1: |
To provide a world-class physical and information infrastructure. |
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| BoG 2: |
To allow unrestricted employment of local and foreign knowledge workers. |
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BoG 3:
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To ensure freedom of ownership by exempting companies with MSC Malaysia Status from local ownership requirements. |
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| BoG 4: |
To give the freedom to source capital globally for MSC Malaysia infrastructure, and the right
to borrow funds globally. |
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| BoG 5: |
To provide competitive financial incentives, including Pioneer Status (100 percent tax exemption) for up to ten years or an Investment Tax Allowance for up to five years and no duties on the importation of multimedia equipment. |
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| BoG 6: |
To become a regional leader in Intellectual Property Protection and Cyberlaws. |
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| BoG 7: |
To ensure no censorship of the Internet. |
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| BoG 8: |
To provide globally competitive telecommunications tariffs. |
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| BoG 9: |
To tender key MSC Malaysia infrastructure contracts to leading companies willing to use MSC Malaysia as their regional hub. |
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| BoG 10: |
To provide a high-powered implementation agency to act as an effective one-stop super shop. |
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This document reflects the Government's interpretation in respect of the BoGs, and may be subject to change. For further information, please contact MDeC at:
MSC Malaysia Client Contact Centre (CliC)
Tel. no.: +603-8315 3000
Toll free no.: 1-800-88-8338 (within Malaysia) |
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- Financial incentives
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Guided by the Malaysia's Promotion of Investment Act (PIA) 1986, amended
1997, MSC Malaysia-Status companies, institutions or faculties may enjoy the
following financial incentives: |
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A brief description of the Malaysian statutory framework for intellectual
property protection and cyberlaws is as follows: |
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Pioneer Status - 100% exemption from taxable statutory income. This incentive is granted
for a period of 5 years for the first round. |
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A 100% Investment Tax Allowance (ITA). |
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Eligibility for R&D grants (for majority Malaysian ownership MSC Malaysia- Status companies) |
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Freedom to source capital and borrow funds globally. |
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Duty-Free Importation of multimedia equipment (DFI). |
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- Cutting-edge communications infostructure
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| MSC Malaysia is supported by a high-capacity, digital telecommunications
infrastructure designed to meet the highest international standards in capacity,
reliability and pricing. |
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| Key telecommunications network features that will link the MSC Malaysia to
regional and global centres include: |
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A fibre-optic backbone with an unprecedented 2.5-10 gigabits per
second capacity. |
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High-capacity links to international centres. |
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Open standards, high-speed switching, and multiple protocols
including ATM. |
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Best-in-class performance guarantees. |
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Competitive telecommunications pricing. |
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Integration into new transportation projects. |
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- Cyberlaws
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With the implementation of MSC Malaysia, the Government makes a commitment
to MSC Malaysia-Status companies in one of the 10-Point Bill of Guarantees to provide a comprehensive regulatory framework of intellectual property
protection and cyberlaws to facilitate and assist the development of a
truly ICT and multimedia environment. |
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A brief description of the Malaysian statutory framework for intellectual
property protection and cyberlaws is as follows: |
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- Non-financial incentives
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No censorship of the Internet. |
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High-powered implementation agency to act as an effective one-stop super shop, the MDeC. |
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Globally competitive telecommunication tariffs and service guarantees if MSC Malaysia-Status
companies are located within MSC Malaysia. |
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High-quality planned urban developments if MSC Malaysia-Status companies locate
within MSC Malaysia. |
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Excellent R&D facilities, including the region's first Multimedia University, if companies are
located within MSC Malaysia. |
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Green environment protected by strict zoning if located within MSC Malaysia. |
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- Programmes/Services - MDeC as one stop agency
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