Quick answer: Malaysia Digital (MD) status requires a minimum paid-up capital of RM1,000, both to be eligible to apply and to be maintained at all times. Changes in paid-up capital above the minimum must be notified to MDEC. The RM1,000 figure applies to MD status only: other agencies, such as those handling work passes, licences or non-MD routes, can set much higher requirements, so check each separately.
- The MD status minimum paid-up capital is RM1,000.
- It must be held to apply and maintained at all times.
- Changes above the minimum must be notified to MDEC.
- Other agencies and licences can set much higher capital requirements.
- Capital is not the main cost: payroll and operating spend are.
The Rule
| Point | Detail |
|---|---|
| Minimum | RM1,000 paid-up capital |
| When | To apply and maintained at all times |
| Changes above the minimum | Notify MDEC through its forms with supporting documents |
Capital Versus the Real Costs
| Requirement | Amount |
|---|---|
| Paid-up capital | At least RM1,000 |
| Operating expenditure on MD activities | At least RM50,000 a year |
| Two knowledge workers at RM5,000 average base salary | At least RM120,000 a year |
Why Other Agencies Differ
| Agency or route | Capital position |
|---|---|
| MD status | RM1,000 |
| MDEC non-MD expat route | RM250,000 (100% local), RM350,000 (local and foreign), RM500,000 (100% foreign) |
| Work passes and licences | Set by the relevant agency, so check separately |
Practical Advice
- Keep paid-up capital at or above RM1,000 at all times.
- Record any capital increase and notify MDEC with supporting documents.
- Check capital requirements for any licence or work pass you need.
- Fund payroll and operating spend, not only the minimum capital.
Not sure where you stand? WhatsApp us. We will check it before you apply.
Mistakes
Assuming RM1,000 satisfies every agency
It applies to MD status only.
Ignoring capital changes
Notify MDEC of increases.
Funding only the minimum
The 12-month spend and payroll conditions need real cash.
Three Scenarios
Scenario 1. A company incorporates with RM1,000 and applies. It meets the capital test, and plans its payroll separately.
Scenario 2. A company raises capital after approval. It notifies MDEC.
Scenario 3. A company plans to hire foreign staff through a non-MD route. It must meet that route's higher capital requirement.
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.
What is the minimum paid-up capital for Malaysia Digital status?
RM1,000.
Is the capital needed only when applying?
No. It must also be maintained at all times.
Do I have to notify MDEC if I increase capital?
Yes, changes in paid-up capital above the minimum are notified through MDEC's forms.
Does RM1,000 satisfy other agencies?
No. Other agencies and licences can set higher requirements.
What capital does the MDEC non-MD expat route need?
RM250,000 for 100% locally owned, RM350,000 for local and foreign owned and RM500,000 for 100% foreign owned companies.
Is capital the main cost of MD status?
No. Payroll and operating expenditure are the larger commitments.
How much must I spend a year?
At least RM50,000 on the MD activities.
Can foreign owners fund the company?
Yes. MD status gives freedom to source capital and funds globally, subject to applicable laws.
What happens if capital falls below RM1,000?
It is a condition that must be maintained at all times, so non-compliance risks revocation.
Do I need proof of capital?
Prepare evidence of paid-up capital for the application.
Does a bigger capital help my application?
The guidelines set the minimum, with no stated bonus for more.
Can you advise on capital planning?
Yes. We plan capital together with payroll, spend and any work pass requirements.
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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