Quick answer: To apply for Malaysia Digital (MD) status, your company must already be incorporated under the Companies Act 2016 and resident in Malaysia. Apply through MDEC's online system and pay the non-refundable processing fee. MDEC assesses the application and its Approval Committee decides. If approved, you accept the terms in the decision letter and MDEC issues an MD Status Digital Certificate. Within 12 months you must operate, employ two full-time knowledge workers at RM5,000 average base salary and spend RM50,000 a year on the MD activities.
- Six steps: confirm activity, check the entry tests, apply online, wait for the decision, accept the terms, meet the 12-month conditions.
- MDEC assesses and its Approval Committee decides. The processing fee is non-refundable.
- The company must be incorporated before it can apply.
- A rejected applicant can reapply and pays the fee again.
- MD status and the tax incentive are separate applications.
What Does the Application Involve?
What does the application involve?
You apply online to MDEC, pay a non-refundable processing fee, and wait while MDEC assesses the application and its Approval Committee decides. If approved, you accept the terms in a decision letter and MDEC issues an MD Status Digital Certificate.
What comes before the application?
The company must already be incorporated under the Companies Act 2016 and resident in Malaysia. Before you apply, decide your MD activity, hiring plan and cost base, because the conditions you accept bind you for as long as you hold the status.
What comes after?
The 12-month clock starts. You must operate, hire two knowledge workers and spend at least RM50,000 a year on the MD activities.
The MD Status Application in Numbers
From idea to certificate
Online application to MD Status Digital Certificate.
To meet conditions
Counted from the date MD status is awarded.
Paid-up capital
Minimum to apply and to keep at all times.
Two separate applications
MD status and the tax incentive are applied for separately.
The Six Steps
Confirm your activity
It must fall within an MD activity area and not be on the non-qualifying list.
Check the entry tests
Companies Act 2016 incorporation, residence in Malaysia and RM1,000 paid-up capital.
Submit online
Apply through MDEC's online system and pay the non-refundable processing fee.
Wait for the decision
MDEC assesses the application and the Approval Committee decides.
Accept the terms
Acknowledge and accept the decision letter. MDEC issues the MD Status Digital Certificate.
Meet the conditions
Operate, hire two knowledge workers and spend RM50,000 a year within 12 months.
Decide These Before You Apply
| Decide before you apply | Why it matters |
|---|---|
| Your MD activity | Only activities within MDEC's list qualify, and the status covers the activities approved for your company. Adding one later needs a written request. |
| Who performs the work | The company must carry out the approved activities itself. Outsourcing the core activities in whole or in part is not permitted. |
| Your two knowledge workers | Full-time, on the MD activities, at an average monthly base salary of at least RM5,000. Plan the roles and offers before you commit. |
| Your annual spending | At least RM50,000 a year on the MD activities, including salaries, utilities, rental, professional fees, administration and marketing. |
| Whether you also want a tax incentive | It is a separate application with its own criteria and conditions. |
| Whether you will hire foreigners | MD status gives access to a foreign knowledge worker quota, but each hire is its own application. |
Planning an MD status application? WhatsApp us. We will review your plan before you apply.
What to Prepare
- A clear description of the MD activity and how it fits MDEC's activity areas.
- A business plan based on your company idea or business model.
- A financial plan covering your costs, hiring and revenue.
- A hiring plan showing the two knowledge workers, with job scope and salary for each key role.
- Company incorporation records showing the company is under the Companies Act 2016 and resident in Malaysia.
- Shareholding and director details.
- Evidence of paid-up capital of at least RM1,000.
- The processing fee as published on MDEC's website.
Approved or Rejected: What Happens Next
| Outcome | What happens next |
|---|---|
| Approved | You receive a decision letter. After you acknowledge and accept its terms, MDEC issues an MD Status Digital Certificate. |
| Rejected | You can reapply if you meet the eligibility criteria, and you pay the processing fee again. Fix the cause first. |
| Additional activity needed | An approved company can add MD activities through a written request, treated like a new application. |
After Approval
| After approval | What you do |
|---|---|
| Within 12 months | Start operating, employ two knowledge workers, and spend at least RM50,000 a year on the MD activities |
| At all times | Keep paid-up capital at RM1,000 or more and keep to the approved activities |
| Annual report | Submit the Self-Declaration Form within seven months after each accounting period ends, verified by an independent external auditor |
| Changes | Notify MDEC of changes in shareholding, name or paid-up capital above the minimum, and update address and contact details on the platform |
Three Scenarios
Scenario 1. A company already incorporated builds an AI analytics product. Its activity fits an MD area, it has RM1,000 paid-up capital and it plans to hire three data engineers. It applies online, receives the decision letter, accepts it and starts its 12-month clock.
Scenario 2. An investor wants MD status for a company that has not been formed yet. The company cannot apply until it is incorporated, so the investor first settles the activity, hiring plan and budget, then incorporates and applies.
Scenario 3. A company's application is rejected because its main activity is software resale. It reconsiders its model, develops its own product in an MD area, and reapplies.
Mistakes That Cost Applicants Time
Applying before the plan is clear
The conditions you accept bind you from the date of award, so settle your activity, hiring and spending first.
Choosing a non-qualifying activity
Trading, staffing, marketing and training do not qualify.
Planning to outsource the core work
The company must perform the approved activities itself.
Underestimating the hiring condition
Two full-time knowledge workers at RM5,000 average base salary must be on the MD activities within 12 months.
Treating tax incentive and MD status as one application
They are separate.
Ignoring the follow-up after approval
Annual Self-Declaration Form and changes must be reported.
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 on applying for MD status.
How do I apply for Malaysia Digital (MD) status?
Apply through MDEC's online system and pay the non-refundable processing fee published on MDEC's website. MDEC assesses the application, its Approval Committee decides, and you receive a decision letter. After you acknowledge and accept the terms in it, MDEC issues an MD Status Digital Certificate.
Who approves an MD status application?
MDEC assesses the application and its Approval Committee makes the decision.
What are the steps to get MD status?
Six steps: confirm your activity qualifies, check the entry tests, submit the online application with the processing fee, wait for MDEC's assessment and the Approval Committee's decision, accept the terms in the decision letter, then meet the operating conditions within 12 months of award.
How much is the MD status application fee?
MDEC charges a non-refundable processing fee for each new application. MDEC's guidelines do not state the amount, and publish it on its website, so confirm the current figure there before you apply.
How long does MD status approval take?
MDEC does not publish a fixed approval time. The time depends on how complete the application is and on any questions MDEC raises. Allow for follow-up questions and plan your hiring and spending only after the decision letter.
What documents do I need to apply?
MDEC's guidelines do not set out one consolidated document checklist. In practice, prepare a clear description of the MD activity, a business plan and financial plan, your hiring plan with job scopes for key roles, and the company's incorporation and shareholding records. MDEC can ask for more.
Does MDEC ask about the job scope of key positions?
It can. Prepare a short job scope for each key role, showing how it relates to the MD activity, in case MDEC asks for it.
Can I apply before the company is incorporated?
No. The company must be incorporated under the Companies Act 2016 and resident in Malaysia to apply. You can plan the activity, hiring and costs before you incorporate.
What must the company meet before applying?
Three entry tests: incorporation under the Companies Act 2016 and residence in Malaysia, an approved MD activity that is proposed or already carried out, and paid-up capital of at least RM1,000.
What happens after I receive the decision letter?
You acknowledge and accept its terms. MDEC then issues the MD Status Digital Certificate. The 12-month clock for operations, two knowledge workers and RM50,000 annual spending runs from the date MD status is awarded.
What do I have to achieve after approval?
Within 12 months: start operating and carry out the approved MD activities in Malaysia, employ at least two full-time knowledge workers at an average monthly base salary of RM5,000 or more, and spend at least RM50,000 a year on those activities. Paid-up capital of RM1,000 must be maintained at all times.
What if my application is rejected?
You can apply again if you meet the eligibility criteria, and you pay the processing fee again. Find out why it failed, for example an activity outside MDEC's list, and fix that first.
Can I apply again for a different activity?
Yes. A rejected applicant may reapply, and an approved company can add MD activities by making a written request to MDEC, which follows the same process as a new application.
Is MD status the same as the tax incentive?
No. They are separate applications. MD status gives access to benefits such as tax incentives, but those are subject to separate approvals, criteria and conditions.
Do I need to apply for MD status and the expat pass separately?
Yes. MD status gives access to a foreign knowledge worker quota and passes through MDEC's Expats Service Centre, but each hire is still a separate application.
Does MD status expire?
No fixed expiry. MD status is perpetual as long as every approved condition continues to be met. MDEC can revoke it for non-compliance.
How do I submit changes after approval?
Notify MDEC of changes in paid-up capital above the minimum, shareholding, company name or product names through its forms. Update the operating address and contact details on the MD platform. Other changes to approved conditions need Approval Committee approval.
Who can I contact at MDEC about my application?
MDEC's Client Contact Centre on +603-8315 3000, toll free on 1-800-88-8338 within Malaysia, or [email protected].
Can you prepare the application for me?
Yes. We test your activity, hiring plan and costs against MDEC's conditions, prepare your business plan and financial plan from your business model, and prepare and submit the application.
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.
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