Quick answer: Fintech is a named Malaysia Digital (MD) activity area. MDEC describes it as digital innovation in finance, enabled by technologies such as AI, cloud, analytics and blockchain, that creates new financial models, applications, processes or products. Blockchain is a separate named area. MD status does not replace any licence or permit the business needs: MDEC's guidelines require companies to comply with Malaysian laws and obtain permits and licences from the relevant authorities.
- Fintech is a named MD activity area.
- Blockchain is a separate named MD area.
- MD status does not replace permits and licences from financial regulators.
- The guidelines require companies to obtain all required permits and licences.
- The 12-month hiring and spending conditions still apply.
What MDEC Counts as Fintech
MDEC describes fintech as digital innovation in finance, enabled by technologies such as AI, cloud, analytics and blockchain, that creates new financial models, applications, processes or products. The focus is on the innovation and technology, not the regulated financial activity itself.
Fintech and Neighbouring Areas
| If your product is | Possible area |
|---|---|
| Digital payments, lending or wealth platform | Fintech |
| Distributed ledger technology | Blockchain |
| Credit scoring using machine learning | Fintech with artificial intelligence |
| Analytics over financial data | Big data analytics |
MD Status Is Not a Licence
| Topic | What to know |
|---|---|
| Licences and permits | MDEC's guidelines require compliance with Malaysian laws and all required permits and licences from relevant authorities |
| Who grants them | The relevant authority, which depends on the financial activity |
| MD status | Gives access to benefits, but does not authorise a regulated activity |
Checklist
- Our product is financial technology, not only a financial service.
- We have identified any licence or permit our activity needs.
- We can employ two full-time knowledge workers at RM5,000 average base salary.
- We expect at least RM50,000 a year of spend on the MD activities.
- We perform the technology activities ourselves.
Not sure where you stand? WhatsApp us. We will check it before you apply.
Mistakes
Treating MD status as a licence
It is not a regulatory approval.
Applying as a pure service business
The activity must be technology-led.
Underestimating spend
RM50,000 a year on MD activities is a floor.
Ignoring the hiring condition
Two knowledge workers are required.
Three Scenarios
Scenario 1. A start-up builds a payments platform. It maps to fintech and checks which licence applies.
Scenario 2. A firm builds ledger-based settlement technology. It uses blockchain.
Scenario 3. A consultancy advises banks on regulation. Consultancy is excluded.
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.
Does a fintech company qualify for Malaysia Digital status?
Yes, if it carries out a fintech activity as MDEC describes it and meets the entry tests and conditions.
What does MDEC count as fintech?
Digital innovation in finance, enabled by technologies such as AI, cloud, analytics and blockchain, that creates new financial models, applications, processes or products.
Does blockchain qualify?
Yes. Blockchain is a separate named MD area.
Does MD status replace a financial licence?
No. The guidelines require companies to obtain all required permits and licences from the relevant authorities.
Which authority licences my fintech?
It depends on the financial activity. Identify it before you operate.
Do payment companies qualify?
A payments technology platform may fall within fintech.
Does financial consulting qualify?
No. Training and consultancy are excluded.
What staff does a fintech need?
At least two full-time knowledge workers at RM5,000 average base salary.
What spend is needed?
At least RM50,000 a year on the MD activities.
Is the tax incentive automatic?
No. It is a separate application.
Can a foreign fintech apply?
Yes. MD status exempts companies from local ownership requirements, though licensing rules may differ.
Can you assess my fintech?
Yes. We map your product to MDEC's areas and flag licence questions.
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
Thinking of applying for MD status? We will assess it first. All consultations are by video call.