Quick answer: MD status is not the only way to use MDEC. MDEC's Expats Service Centre also serves operating ICT companies without MD status, provided they are incorporated in Malaysia, active, have a physical office and meet a minimum paid-up capital of RM250,000 if 100% locally owned, RM350,000 if local and foreign owned, or RM500,000 if 100% foreign owned. The non-MD route takes about 30 working days to register, includes a site visit, and carries a higher MDEC charge of RM3,024 per Employment Pass against RM2,160.
- MD route: subscription takes about 2 working days for first-time users.
- Non-MD route: about 30 working days, with MDEC checking e-SSM activities and visiting the office.
- Non-MD paid-up capital: RM250,000, RM350,000 or RM500,000 by ownership.
- MDEC charge: RM2,160 (MD) against RM3,024 (non-MD).
- Companies outside both routes use Immigration's ESD or another agency.
MD Route Against Non-MD Route
| MD status company | Non-MD ICT company | |
|---|---|---|
| Who it is for | Company with MD (or MSC Malaysia) status that is in operation and complies with its conditions | Malaysian-incorporated ICT company without MD status, fully operational, ICT as core business |
| Paid-up capital | No amount stated on MDEC's MD page | RM250,000 (100% local), RM350,000 (local and foreign), RM500,000 (100% foreign) |
| Office | Not stated on MDEC's MD page; the company must be in operation | Physical office in Malaysia required |
| First-time set-up | About 2 working days | About 30 working days, with site visit and possible interview |
| Employment Pass MDEC fee | RM2,160 | RM3,024 |
| Diploma holder qualifies with | 2 years' relevant multimedia or ICT experience | 5 years' relevant experience |
Non-MD Paid-Up Capital
| Ownership | Minimum paid-up capital |
|---|---|
| 100% locally owned | RM250,000 |
| Local and foreign owned | RM350,000 |
| 100% foreign owned | RM500,000 |
MDEC's MD pre-application page states no paid-up capital amount for MD companies. It also requires the company to remain eligible throughout the subscription and the validity of the passes.
What the Non-MD Assessment Involves
Register on the Expats portal
Select the ICT registration type and submit the documents in MDEC's non-MD checklist.
MDEC assesses
It checks the company profile against e-SSM business activities, visits the office and may interview senior management. MDEC targets about 1 month from a complete application.
Committee decision
The company is notified of the approval committee's decision.
Acceptance
Nominate the authorised person and upload the Expatriate Service Agreement and Authorised Person Letter.
Qualifying Activities for Non-MD
- Infotech: application software, hardware design and business platforms.
- Global Business Services: GBS, centres of excellence and software development services.
- Digital Content: animation, business information, digital platform content and business research.
- ICT sector scope includes IT, e-commerce, cloud computing, networking, BPO, cybersecurity, data management and analytics.
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Which Route Makes Sense
Example. A newly formed software company that has applied for but not yet received MD status cannot use the MD subscription. MDEC says companies awaiting approval can check status on the Malaysia Digital platform. If it is already operating with a physical office and enough paid-up capital, the non-MD route is an option, at a higher MDEC charge and a longer set-up. If MD status is likely soon, waiting may cost less overall. Compare both before committing.
Common Mistakes
Starting the non-MD route without the capital
Paid-up capital must meet the minimum for the ownership category.
Applying as a trading or staffing business
Those activities do not qualify on either route.
Forgetting the physical office
The non-MD route requires a physical office in Malaysia.
How We Help
What we handle for you
Before you apply
- Check which MDEC route your company fits, MD status or non-MD ICT, and whether the post, salary and category match.
- Prepare the JTKSM, MyFutureJobs and supporting documents with your team and review them against MDEC's checklist.
Application
- Prepare the FKW projection and pass application for your company's authorised person to submit, and help you respond to MDEC and Immigration queries.
- MDEC states that companies are discouraged from nominating a third-party agent as the authorised person, so the submission stays under your own account.
Why companies choose us
End-to-end under one roof
- We handle company incorporation, Malaysia Digital status, accounting and payroll as well as expatriate pass preparation, so your structure, payroll 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
Straight answers to the questions we hear most.
Which companies can apply through MDEC?
MDEC's Expats Service Centre serves companies with Malaysia Digital (MD) status, or MSC Malaysia status, that are in operation and comply with the conditions of that status. It also serves ICT companies without MD status that are fully operational and use ICT as their core business, subject to a minimum paid-up capital, a physical office and an assessment by MDEC. Companies in non-qualifying activities, such as trading, staffing and staff augmentation, do not qualify.
What does an Employment Pass cost through MDEC?
MDEC's published charge is RM2,160 per applicant for an MD company and RM3,024 per applicant for a non-MD company, for new and renewal applications. A Dependant Pass or Social Visit Pass is RM540 per applicant, and an amendment of an approval letter is RM108. Immigration's own fees are on a separate Immigration schedule that MDEC links to, and this page does not quote them. Confirm the current amounts with MDEC before budgeting.
How long does an Employment Pass application through MDEC take?
MDEC states about 14 working days for an FKW Projection Request, about 7 working days for an individual FKW application, and 10 working days for the JTKSM section 60K approval that comes first. Endorsement takes 3 working days for an applicant already in Malaysia, and immediate endorsement at ESC KLIA Terminal 1 for an applicant arriving from abroad. A first-time MD company subscription takes about 2 working days, and a non-MD registration about 30 working days. These are stated service times for complete submissions, not guarantees.
Who counts as a foreign knowledge worker?
On MDEC's MD route, a foreign knowledge worker holds a bachelor's degree in any field, or a diploma in multimedia or ICT, or a specialised ICT certification, with at least 2 years of relevant experience, or holds a professional, executive, management or technical role in IT-enabled services. On the non-MD route the experience requirement for diploma and certificate holders is 5 years. MDEC also lists exemptions for Global Business Services and Creative Content roles.
Does staff augmentation qualify?
No. MDEC lists staff augmentation among the activities that do not qualify, describing it as resource requests through a request form, projects without project managers, pricing by resource tables or work permit costs, and resources with no service level commitment beyond available hours. MDEC states that it may check for these activities and revoke passes or MD status at any time.
Where is the full document list?
MDEC publishes an Employment Pass Checklist for MD Companies and one for Non-MD Companies, both version 3 with file names dated 28 May 2026, and an FKW Projection checklist and template for June 2026. They sit in MDEC's document library, which this page could not reproduce. Download the current version from MDEC rather than relying on any third-party list, ours included.
Can we use a consultant or agent for the application?
MDEC states that companies are discouraged from nominating a third-party agent as the company's authorised person. The authorised person is named in the Authorised Person Letter on company letterhead and signs up through the company's own account. A consultant can still help prepare documents, check them against MDEC's checklist and advise on the route, while the company's own authorised person submits. Xpats Gateway separately says a Private Employment Agency may submit section 60K applications as an authorised representative, although its own wording on who counts as one is unclear.
What if my MD status application is still pending?
MDEC's MD page says companies awaiting MD approval can check their status on the Malaysia Digital platform. The MD route requires approved status and a company in operation.
Does MD status need paid-up capital?
MDEC's pre-application page for MD companies states no amount. Malaysia Digital status has its own requirements, which our Malaysia Digital guides cover.
Is the non-MD route a lesser route?
No. Both routes lead to the same Employment Pass issued by Immigration after MDEC approval. The conditions, timing and MDEC charge differ.
How long does a non-MD company take to register?
MDEC's application process page states 30 working days for first-time registration, and its pre-application page targets about 1 month from a complete application. Incomplete documents or clarification requests extend this.
Do GBS companies need MD status?
No. MDEC's June 2026 announcement describes GBS sector proof for non-MD companies, such as membership of GBS Malaysia or the Contact Centre Association of Malaysia, or another document MDEC accepts.
Can a non-MD company later switch to MD?
The sources reviewed do not describe switching. If your company obtains MD status, ask MDEC how your subscription and existing passes are treated.
Which route is cheaper overall?
MDEC's charge is lower on the MD route, at RM2,160 against RM3,024 per Employment Pass, and set-up is faster. The non-MD route also needs paid-up capital that may be tied up. Immigration fees are separate.
Where is the MD requirements guide?
Our guide on Malaysia Digital status requirements sets out who qualifies.
Sources
Official sources
- MDEC, Pre-application process for MD companies
- MDEC, Pre-application process for non-MD companies
- MDEC, Application process for non-MD companies
- MDEC, Expats Service Centre: services and eligibility
- MDEC, FKW declaration, headcount and additional requirements (June 2026)
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with MDEC, the Immigration Department (ESD) and MIDA, or with us, before you act. Checked November 2026.
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