Malaysia Digital Status Requirements: Who Qualifies?

To apply, a company must be incorporated under the Companies Act 2016 and resident in Malaysia, propose to carry out or already carry out at least one MD activity from MDEC's list, and have a minimum paid-up capital of RM1,000. After approval it must meet the operating conditions within 12 months.

Start operations and carry out the approved MD activities in Malaysia, employ at least two full-time knowledge workers at an average monthly base salary of at least RM5,000 for those activities, and spend at least RM50,000 a year on operating expenditure for them. The RM1,000 paid-up capital must be kept at all times.

A person with a tertiary qualification in any field; an ICT, engineering or technology diploma or specialised certification plus at least two years of relevant experience in a technology-heavy field; or a professional, executive, management or technical role in technology-enabled services such as IT, finance, engineering, medical or legal work. The definition also covers foreign workers with scarce knowledge-based skills and people hired for creative talent.

No. MD activities cover 22 areas, from AI, big data, fintech, cybersecurity and cloud to creative media technology, robotics, drones, quantum and spatial technology, and global business services. The activity must involve research, development and commercialisation of a solution, or provision of services, in one of those areas.

Trading, retailing or leasing hardware, software or accessories; manufacturing and semiconductor fabrication; telecommunication services; low-value global business services such as basic call centres, data entry and recruitment process outsourcing; staffing and staff augmentation; event management; advertising, marketing and promotion; advertorials and publications; training and consultancy; traditional web design and development; and supply chain services for the tobacco, cigarette, alcohol and gambling industries.

Yes. MD status exempts companies from local ownership requirements, so there is no required local shareholder. The company must still be incorporated in Malaysia and resident here.

Yes, RM1,000, both to be eligible to apply and to be maintained at all times. Other agencies, such as those handling work passes or other licences, can ask for far higher capital, so check each separately.

No. The company must perform the approved MD activities itself. Outsourcing the core activities, in whole or in part, to third parties is not permitted.

Spending on items consumed in carrying out the MD activities, including salaries, utilities, rental, professional fees, administrative costs and marketing. The minimum is RM50,000 a year.

Submit the application through MDEC's online system and pay the non-refundable processing fee published on MDEC's website. MDEC assesses it and its Approval Committee decides. If approved, you accept the terms in the decision letter and MDEC issues an MD Status Digital Certificate.

MD status is perpetual as long as every approved condition continues to be met. There is no fixed expiry, but it can be revoked for non-compliance.

Unsuccessful applicants can apply again if they meet the eligibility criteria, and they pay the processing fee again. Fix the reason for the rejection first, such as an activity that does not qualify, before you reapply.

Not automatically. MD status gives access to a set of benefits, including tax incentives, but those are subject to separate approvals, eligibility criteria and conditions. The tax incentive is a separate application.

Access to a foreign knowledge worker quota and passes, tax incentives under separate approval, import duty and sales tax exemption on multimedia and ICT equipment, infrastructure in MD locations, exemption from local ownership requirements, freedom to source capital globally and MDEC as a one-stop agency. All are subject to the conditions and approvals involved.

An annual Self-Declaration Form within seven months after the end of each accounting period. The information must be verified by an independent external auditor appointed and paid for by the company. MDEC can also ask for SSM documents and audited accounts.

Changes to paid-up capital above the minimum, shareholding or equity structure, company name and product or service names must be notified through MDEC's forms with supporting documents. Changes to the operating address and contact details are updated on the MD platform. Other changes to approved conditions need Approval Committee approval.

Yes, by making a formal written request to MDEC. It follows the same process as a new application, and the original conditions continue to apply.

Yes. It can be revoked for non-compliance with the conditions, and the related incentives and benefits are withdrawn. A company can also surrender its status at any time, provided MDEC confirms there is no non-compliance.

The guidelines require the company to be resident in Malaysia and to keep MDEC informed of its operating address, and the 12-month conditions require staff and spending in Malaysia. In practice, plan for real premises where the knowledge workers are based.

MD status replaced MSC Malaysia status. MDEC rebranded MSC Malaysia as Malaysia Digital and now awards MD status to eligible companies.

It gives access to a foreign knowledge worker quota and passes through MDEC's Expats Service Centre, with each hire still approved individually. Salary categories, headcount approval and other rules apply to every application.

MDEC's Client Contact Centre handles enquiries on +603-8315 3000, toll free on 1-800-88-8338 within Malaysia, or [email protected].

Yes. We test the activity, the hiring plan and the cost base against MDEC's conditions before a foreign investor commits capital, so you know early whether MD status is realistic.