Quick answer: Malaysia Digital, run by MDEC, suits companies carrying out approved digital activities and needs as little as RM1,000 paid-up capital for status. The Global Services Hub, run by MIDA, suits regional management and shared services for a network of companies and needs at least RM2.5 million. Both close for applications on 31 December 2027 under their current guidelines.
- Malaysia Digital is for digital activities. Global Services Hub is for regional management.
- Paid-up capital: RM1,000 to RM50,000 for Malaysia Digital, RM2.5 million for Global Services Hub.
- Only the Global Services Hub offers the 15% executive tax rate.
- A related company with an existing incentive may delay a Global Services Hub application.
Side-by-Side Comparison
| Malaysia Digital | Global Services Hub | |
|---|---|---|
| Run by | MDEC | MIDA |
| For | Approved digital activities, such as AI, fintech, cybersecurity and cloud | Regional management, strategic planning and shared services |
| Paid-up capital | RM1,000 for status, RM50,000 for the tax incentive | At least RM2.5 million |
| Tax benefit | 10% (or 5%) for 10 years, or an investment tax allowance | 5% or 10% currently. Budget 2027 proposes new rates. |
| Network requirement | None stated | At least 7 network companies, including at least 3 related |
| Jobs | At least 2 knowledge workers at RM5,000 for status | High-value jobs for Malaysians, from RM10,000 |
| Executive tax rate | None | 15% for up to three non-citizen executives |
| Application deadline | 31 December 2027 (MD tax incentive) | 31 December 2027 (current guidelines) |
Not sure which fits? We will compare them for your group.
Which Should You Choose?
Choose Malaysia Digital if
Fit
- You build or sell digital products or services.
- Your activity is one of the promoted technologies.
- You want a low entry capital of RM1,000 for status.
- You need foreign knowledge worker passes.
Choose the Global Services Hub if
Fit
- You run regional management for a group of companies.
- You do strategic planning and corporate development from Malaysia.
- You can commit RM2.5 million paid-up capital.
- You want the executive 15% rate.
Three Scenarios
Scenario 1. A software company building an AI product. Malaysia Digital fits, because the work is a promoted technology and the capital need is low.
Scenario 2. A group setting up its Asia headquarters in Kuala Lumpur. The Global Services Hub fits, because it covers regional management, planning and shared services for a network of companies.
Scenario 3. A group with both a product team and a regional management team. Each team may fit a different scheme. Check the rule that an existing tax incentive must expire before a Global Services Hub application.
Frequently Asked Questions
Quick answers on Malaysia Digital and the Global Services Hub.
What is the difference between Malaysia Digital and the Global Services Hub incentive?
Malaysia Digital is for companies carrying out approved digital activities and is run by MDEC. The Global Services Hub is for companies that run regional management, strategic planning and shared services for a network of companies and is run by MIDA.
Who approves each one?
MDEC evaluates Malaysia Digital applications and the National Committee on Investments approves the tax incentive. MIDA evaluates Global Services Hub applications and the National Committee on Investment decides.
How much paid-up capital does each need?
Malaysia Digital status needs RM1,000, and the MD tax incentive needs at least RM50,000. The Global Services Hub needs at least RM2.5 million.
What tax rates do they offer?
The MD tax incentive offers 10%, or 5% with additional conditions, for 10 years, or an investment tax allowance. The Global Services Hub currently offers 5% or 10%, with a Budget 2027 proposal for new rates from 1 January 2027.
Which suits a software or technology company?
Malaysia Digital, if the activity is one of its promoted technologies. The Global Services Hub is aimed at regional management and shared services, not product development.
Which suits a regional headquarters?
The Global Services Hub, because its qualifying activities are regional profit and loss management, strategic business planning and corporate development.
Can a company have both?
The Global Services Hub guidelines say that if a company or related company already holds an approved tax incentive for qualifying activities, the application must be submitted after that incentive expires. Check the position for your group before you apply.
Is there a special rate for executives?
The Global Services Hub offers a 15% individual rate for up to three non-citizen individuals in C-Suite positions earning at least RM35,000 basic monthly salary, for three consecutive years of assessment.
Which has the later deadline?
Both close on 31 December 2027 under their current guidelines, for the MD tax incentive and the Global Services Hub respectively.
Do both need local employees?
The Global Services Hub sets high-value jobs for Malaysians, with at least 50% for Tier 2. The MD guidelines do not state a local employee number.
About This Guide
This guide was prepared by Neutral Consulting PLT, a Kuala Lumpur firm of chartered accounting and advisory professionals with 10 years in practice. We help foreign and local companies set up, stay compliant and hire talent in Malaysia. Every figure and rule here was checked against the official sources listed below in November 2026.
Sources
Official sources
- MDEC, Guidelines on Malaysia Digital Status
- MDEC, Guidelines on Malaysia Digital Tax Incentive, New Investment (revised July 2025)
- MIDA, Global Services Hub Tax Incentive guidelines
- Ministry of Finance, Budget 2027 tax measures
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with MDEC and MIDA, or with us, before you act. Checked November 2026.
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