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MD Status

Malaysia Digital Status and Paid-Up Capital

The MD status capital test is small. Other agencies may not be.


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.

Key takeaways

  • 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.

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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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