Benefits

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 MSC Malaysia has revolutionized the ICT industry in Malaysia and helped contribute to the country's economy. By doing so, MSC Malaysia has successfully bridged the digital gap between the nation and its capability to conduct businesses world wide. 
   
 
   
   
 Here are some of the reasons why you should think about MSC Malaysia Status.  
   
 
Bullet PointBill of Guarantees
Bullet PointInfrastructure
Bullet PointCyberlaws
Bullet PointIncentives
Bullet PointHigh Quality Cosmopolitan Living
Bullet PointEducated, Multilingual Population
Bullet PointCompetitive Cost, High Value
 
 
 

Bill of Guarantees

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.

For more information on the BoGs, please visit http://www.mscmalaysia.my/bogs.

 
 
 

World-Class Physical & Communications Infrastructure

Developed Infrastructure

These Cybercities and Cybercentres are audited annually to comply with a set of minimum standards and criteria that differentiates them from any other location. The Malaysia Digital Economy Corporation, MDEC, administers the minimum standards to ensure that MSC Malaysia Cybercities are always adopting the latest in intelligent cities standards.

Telecommunications Infrastructure

MSC Malaysia is supported by a high-capacity, digital telecommunications infrastructure designed to meet the highest international standards in capacity, reliability and pricing.

Key telecommunications network features that will link MSC Malaysia to regional and global centres include:

  • A fibre-optic backbone with an unprecedented 2.5-10 gigabits per second capacity.
  • High-capacity links
  • Open standards, high-speed switching, and multiple protocols including Asynchronous Transfer Mode (ATM).
  • Best-in-class performance guarantees.
  • Competitive telecommunications pricing.
  • Integration into new transportation projects.
 
 
 

Cyber Laws

Malaysia is a member of the World Intellectual Property Organization (WIPO), Paris Convention, Berne Convention and signatory to the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS).

With the implementation of MSC Malaysia, the Government makes a commitment to MSC Malaysia-status companies in 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.

A brief description of the Malaysian statutory framework for intellectual property protection and cyberlaws is as follows:

Intellectual Property Protection
  • Cyberlaws
  • Digital Signature Act 1997 (Effective 1 November 2001)
  • Communications & Multimedia Act 1998 (Effective 1 April 1999)
  • Malaysian Communications & Multimedia Commission Act 1998 (Effective 1 November 1998)
  • Copyright (Amendment) Act 1997 (Effective 1 April 1999)
  • Telemedicine Act 1997 (Not yet enforced)
  • Computer Crimes Act 1997 (Effective 1 June 2000)
  • Electronic Commerce Act 2006 (Effective 19 October 2006)
  • Electronic Government Activities Act 2007 (Effective 1 January 2008)
  • Pending Initiatives
Click here to read more about the MSC Malaysia Cyberlaws.
 
 
 

Incentives

Financial

  • Guided by Malaysia's Promotion of Investment Act (PIA) 1986, amended 1997, MSC Malaysia status companies, institution or faculties may enjoy the following financial incentives: Pioneer Status -100% exemption from taxable statutory income. This incentive is granted for a period of 5 years for the first round.
  • A 100-percent Investment Tax Allowance (ITA).
  • Eligibility for R&D grants (for majority Malaysian ownership MSC Malaysia-Status companies
  • Freedom to source capital and borrow funds globally.
  • Duty-free importation of multimedia equipment (DFI)

Non-Financial

  • No censorship of the Internet
  • Globally competitive telecommunication tariffs and services guarantees if MSC Malaysia-status companies are located within the MSC Malaysia.
  • World-class physical and IT infrastructure if companies are located within MSC Malaysia.
  • Intellectual property protection and a pioneering and comprehensive framework of cyberlaws can be enjoyed by MSC Malaysia-status companies irrespective of location.
  • High-powered implementation agency to act as an effective one-stop super shop - the MDEC.
  • High-quality planned urban developments
  • Excellent R&D facilities, including the region's first Multimedia University if companies are located within MSC Malaysia.
  • Green environment protected by strict zoning if located within MSC Malaysia.
 
 
 

High Quality Living

Malaysia is an ideal destination for expats considering moving to Asia. Traditionally a country reliant on resource exports, Malaysia is beginning to expand its economy in areas such as science, tourism, commerce and medical tourism, resulting in an increase in expat employment opportunities.
Malaysia is a tropical paradise that offers high quality modern living at an affordable cost. Kuala Lumpur, Malaysia’s capital city located in ideally as a hub for business ventures. Travelling within Malaysia is generally affordable and easy, particularly within Peninsula Malaysia. Malaysia has an extensive road and rail network. Flights throughout Asia are also incredibly cheap.
Shopping is a national favourite past-time as well as for locals, expatriates and tourists alike.  The city has vibrant entertainment options for people of every taste - from classical orchestras to jazz bars to dance clubs that offer the latest hits. Malaysia offers exceptional cuisinewhich reflects the variety of ethnic groups present in the country; as well it’s coupled with rich colonial heritage. Blessed with a warm weather all year round, eating out is a Malaysian favourite pastime activity.

Education

High quality education is top priority in Malaysia, where the education sector both private and public is closely monitored by the Malaysia Education Ministries. Malaysia is proud to offer a range of top-notch international school with quality international education which holds their own against neighbouring Singapore’s top-quality list.

Healthcare

Malaysia offers first class medical facilities and services as well as internationally recognized specialist hospitals, clinics and dental services. The growth of Health Tourism also continues to gain worldwide attention with its modern medical facilities and competitive medical cost.

Sports and Recreation

Malaysia's most popular competitive sports are soccer and badminton. Family recreation clubs with swimming pools, squash courts, tennis courts can be found in every large residential neighbourhood as well as gyms and fitness centres. Extreme sports such as mountain biking, rock climbing, and white-water rafting are also making their mark as Malaysians’ favourite pastime.

 
 
 

Educated, Multilingual Population

Malaysia’s literacy rate is at a high 94%. The national language in Malaysia is Bahasa Malaysia, whereas English is used extensively both in formal and informal occasions. The country has more than 500 institution of higher learning, i.e., universities and colleges, out of which 18 are public institutions and the rest are private institutions (including polytechnics and industrial training institutes).

A total of 70 local colleges have also been established to produce technical manpower. With a strong focus on quality education, the total enrolment in public universities and colleges is projected to reach over 325 600 students with more than half enrolment in science and technical disciplines. Many Malaysians also study overseas, with at least 50,000 college students studying abroad each year and upon returning to Malaysia they will bring along the international experience and viewpoints to make up a fully multinational workforce.

Collaboration between Government and the Private Sector

Over the past 17 years, MDEC via MSC Malaysia has been a vital advocator in Malaysia’s ongoing efforts to develop a highly skilled ICT-literate workforce, implementing various training and up-skilling programmes.  MDEC continues to accelerate efforts to nurture talent via greater industry-academia collaboration, to ensure that the expertise produced, matches the specific industry needs.

The beauty of the Malaysian talent is the versatility. We take pride in having smart and able workers who are virtually employable worldwide. With the value-added ability to mingle, interact and blend with a variety of cultures whilst still keeping a firm ground base are all qualities of top-notch workforce highly sought after by all companies.

Multilingual and Youthful Workforce

Malaysia has a multicultural and multireligious population of 26 million with the three main races - Malay, Chinese and Indian - make up the largest segments of the population. Most Malaysians are multilingual speaking at least two languages. Bahasa Malaysia is the national language and English is the second most widely-used for daily communication as well as the business language. In addition, various Chinese dialects or Tamil, a southern Indian language is used extensively as well.

Malaysia has a youthful workforce with 70% of workers below the age of 35. Majority of the workforce has strong industry knowledge (i.e., finance, logistics, utilities, manufacturing, telcos). These capabilities allow them to incorporate technology in their work such as productivity tools and business applications such as CRM and ERP. The Malaysian workforce is fiercely loyal with the nation lowest attrition rate is 5%, the lowest compared to other developing countries in Asia Pacific.

Today there are more than 128,850 skilled jobs created by MSC Malaysia-status companies, with 65,000 jobs in the Shared Services and Outsourcing (SSO) sector. More than 95% of those employed by MSC Malaysia-status companies are Malaysians.

Industrial relations in Malaysia are harmonious. Trade disputes and strikes are very unusual in the country due to Malaysia's labour laws which safeguards the interests and spells out the rights and responsibilities of employers and employees. This in turn provides a legal framework for the orderly conduct of industrial relations in the country.
 
 
 

Competitive Cost, High Value

Malaysia is one of the most cost-effective and easiest places to do business. Malaysia's corporate tax today is 28%, one of the lowest in the region.

The country's economy has been experiencing steady growth of 5.5% per annum, with low inflation rate of 3.2%. The interest rate has recently been revised upward to 3.25% in anticipation of the country's strong economic growth, sustained by private sector demand and strong economic growth in global and regional economies.

 
 
 
 Comparative information and statistics on Malaysia's attractiveness as a
competitive-cost business destination :
 
   
 
   
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Hotel Costs in KL
 
 
   
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Financing Rate
 
 
   
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Currency Exhange Rate
 
 
 
 
 
   
   
   
   
   
   
 
 
 
Malaysia Digital Economy Corporation

The Malaysia Digital Economy Corporation (formerly known as Multimedia Development Corporation) a unique organization established to direct and oversee MSC Malaysia, the national ICT development initiative, by advising the Malaysian Government on legislation and policies, developing industry-specific practices and setting the standards for multimedia and digital operations. MDEC is also responsible for promoting MSC Malaysia locally and globally, whilst providing strategic support to MSC Malaysia Status Companies.

More about the Malaysia Digital Economy Corporation >