Quick answer: The Global Services Hub (GS-Hub) incentive in Malaysia is for a company incorporated and resident in Malaysia that is established to carry out a qualifying activity, with no existing or related entity already carrying on a qualifying activity. Core activities are a regional profit-and-loss or business management unit, strategic business planning and corporate development, plus at least two other services. Tier 1 offers 5% and Tier 2 offers 10% on value-added income. Tier 2 needs RM2.5 million paid-up capital, services to at least seven network companies including three related, and at least half of high-value jobs filled by Malaysians.
- For a new company established for a qualifying activity.
- Core activities plus at least two other services are required.
- Tier 1 is 5% and Tier 2 is 10% on value-added income.
- Tier 2 requires RM2.5 million paid-up capital and at least seven network companies.
- A flat 15% rate is available for up to three non-citizen C-suite individuals.
Core Eligibility
| Test | Requirement |
|---|---|
| Company | Incorporated under the Companies Act 2016 and resident in Malaysia |
| Purpose | Established for a qualifying activity |
| Related entities | No existing or related entity carrying on a qualifying activity |
| Core activities | Regional P&L or business management unit, strategic business planning, corporate development |
| Other services | At least two more services |
The Two Tiers
| Item | Tier 1 | Tier 2 |
|---|---|---|
| Rate | 5% | 10% |
| Period | 5 or 10 years for a new company, 5 for existing | 5 or 10 years for a new company, 5 for existing |
| Paid-up capital | Per tier conditions | At least RM2.5 million |
| Network | Per tier conditions | At least 7 network companies, including at least 3 related |
| People | Key personnel at RM35,000 basic monthly salary and sustainability conditions | At least 50% of high-value jobs, at least RM10,000 basic monthly salary, filled by Malaysians |
Special Individual Rate
A flat 15% rate is available for up to three non-citizen C-suite individuals earning at least RM35,000 basic monthly salary, who must be tax resident for three consecutive years of assessment.
Is GS-Hub for You?
- We are setting up a regional management centre.
- We will serve several group companies.
- No related entity already does this work.
- We can fund at least RM2.5 million paid-up capital for Tier 2.
- We can hire senior Malaysian talent.
- We can apply before the project commences.
Not sure where you stand? WhatsApp us. We will check it before you apply.
Mistakes
Existing related entity
It can defeat the new-company test.
Starting before applying
Apply before the project commences.
Overlooking the Malaysian hiring condition
Tier 2 sets a share for Malaysians.
Three Scenarios
Scenario 1. A group sets up a regional treasury and planning centre serving seven entities.
Scenario 2. A group already runs a regional centre in Malaysia and opens a second entity doing the same work.
Scenario 3. A start-up asks about GS-Hub for a software product. It is not a regional service centre.
How We Help
What we handle for you
Before you apply
- Test your activity, hiring plan and cost base against MDEC's conditions.
- Advise whether MD status, a tax incentive or both make sense for your business.
- Prepare your business plan and financial plan based on your company idea or business model.
Application
- Prepare and submit the application and answer MDEC's questions.
Why companies choose us
End-to-end under one roof
- We handle company incorporation, accounting and payroll, as well as MD status and expatriate pass applications, so your structure, records and hiring plan stay aligned.
- The company is set up correctly from day one.
We check before you invest
- We confirm eligibility, including whether you can hire the expatriates you need, before a foreign investor decides to incorporate in Malaysia.
- Neutral Consulting PLT is a Kuala Lumpur firm led by a Managing Partner who is a member of the Malaysian Institute of Accountants.
Frequently Asked Questions
Quick answers.
Who is eligible for the Global Services Hub incentive?
A Malaysian-incorporated, resident company established for a qualifying activity with no existing or related entity already carrying on a qualifying activity.
What are the core activities?
A regional profit-and-loss or business management unit, strategic business planning and corporate development, plus at least two other services.
What are the rates?
Tier 1 is 5% and Tier 2 is 10% on value-added income.
How long does it last?
Five or 10 years for a new company and five years for an existing company.
What does Tier 2 require?
At least RM2.5 million paid-up capital, services to at least seven network companies including three related, and at least 50% of high-value jobs filled by Malaysians.
What is a high-value job?
One with a basic monthly salary of at least RM10,000.
What is the special individual rate?
A flat 15% for up to three non-citizen C-suite individuals earning at least RM35,000 basic monthly salary.
Is GS-Hub for start-ups?
It targets regional service centres, not product start-ups.
Does GS-Hub need MD status?
No.
When does the window close?
31 December 2027.
Where does the guideline come from?
It was introduced in Budget 2024, enhancing the Principal Hub scheme, and is administered by MIDA.
Can you assess eligibility?
Yes. We test your structure and business plan before you apply.
Sources
Official sources
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with MDEC, or with us, before you act. Checked November 2026.
Talk To Us Now
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