— What Is MD Status
Understanding Malaysia Digital (MD) Status
MD Status traces back to the Multimedia Super Corridor (MSC Malaysia) programme launched in 1996, which has since been upgraded and renamed “Malaysia Digital” (MD). Through MDEC, the Malaysian government grants MD Status to eligible companies that undertake MD-designated activities. Companies holding the status enjoy a range of incentives, rights and privileges provided by the government, collectively known as the MD Bill of Guarantees (MD BoGs).
01 · Launched in 1996
Multimedia Super Corridor
MSC Malaysia
Predecessor programme
02 · Current Name
Malaysia Digital
MD
Upgraded and renamed
03 · Benefits
MD Bill of Guarantees
MD BoGs
Incentives, rights and privileges
— Regulator
The Regulatory Authority
The Malaysia Digital Economy Corporation (MDEC) is the Malaysian government’s lead agency for the national digital economy and is responsible for receiving, assessing and monitoring MD Status applications. Once MDEC has assessed an application, an Approval Committee made up of government representatives reviews it and makes the decision. MDEC also acts as the “one-stop agency” for MD Status companies.
01 · Assessment
MDEC
Malaysia Digital Economy Corporation
Receives, assesses and monitors
02 · Decision
Approval Committee
Reviews and decides on applications
Government representatives
03 · After Approval
MD Status Company
MDEC acts as the one-stop agency
Ongoing support from MDEC
— MD vs Non-MD
MD vs Non-MD Companies: What’s the Difference?
MD
MD Company (MD Status Company)
MD Status Company
A company approved by MDEC, holding an MD Status digital certificate and carrying out “MD-approved activities”, which may apply for the incentives under the MD Bill of Guarantees
Non-MD
Non-MD Company
Non-MD Company
A company that has not applied for, or has not been granted, MD Status. Even if its business involves technology, it does not enjoy the above incentives and facilities, but it may still operate normally and must comply with generally applicable laws and regulations
MD Status is a “status recognition” for specific technology activities. Not every technology company automatically qualifies, and it is not the same as an ordinary business licence.
— Scope of MD Activities
Eligible and Non-Eligible Activities
Whether your business counts as an MD activity is the first hurdle in applying for MD Status. The types of activities that do and do not qualify are as follows:
Eligible MD Activities
Qualify as MD activities
Not MD Activities
Do not qualify as MD activities
— A Status, Not a Licence
MD Is a Status, Not a Licence
MD Status is a status recognition, not a graded or categorised licence, and there are no tiers. Once approved, MDEC issues the company an “MD Status digital certificate”.
Please note: when carrying out MD-approved activities, an MD Status company must still comply with all applicable laws and regulations, and must obtain from the relevant authorities any other permits or licences its business requires (such as professional licences in regulated industries). MD Status does not replace these permits.
— Eligibility
Eligibility Requirements
An applicant company must meet the following basic conditions:
After approval, the company must comply with and continue to maintain the following conditions:
“Knowledge workers” generally means those who hold a higher-education qualification (in any field); those who hold a diploma or professional certification in fields such as information and communications technology, engineering or technology and have at least 2 years of relevant experience in a highly technology-dependent industry; or those engaged in professional, administrative, managerial and technical work within IT-related services (such as IT professionals, finance and accounting, business management, engineering, healthcare and legal). The term also covers foreign employees with skills that are scarce in Malaysia, and creative talent who produce value-added creative content for the MD Status company.
Please also note that MD-approved activities must be carried out directly by the MD Status company; core activities may not be outsourced to third parties, in whole or in part.
— Bill of Guarantees
Key Benefits Under the MD Bill of Guarantees
Approved companies may apply for or enjoy the following (each subject to separately meeting its eligibility conditions and approval):
Companies may also benefit from market linkages, business matching, grant and financing assistance, and opportunities to participate in MD-related programmes.
— How We Help
How We Can Assist
Yingke Malaysia can help you determine whether your business falls within the scope of MD activities, assist with company incorporation, capital arrangements and preparation of the application documents, submit the MD Status application on your behalf through the MDEC system, and follow up on the approval progress and post-approval compliance matters.
※This page is a general summary intended to give readers a preliminary overview of the Malaysia Digital Status (MD Status) framework. It does not constitute formal legal, tax or compliance advice, and should not be relied on as the sole basis for any investment or application decision. MDEC’s guidelines and incentive policies on MD Status may be revised from time to time with government approval; the scope of activities, eligibility conditions, incentives and approval outcomes are subject to the latest rules officially published by MDEC and the decisions of the Approval Committee. Companies are advised to confirm the latest rules and specific requirements with Yingke Malaysia or MDEC before submitting an application.