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Asean Centre of Entrepreneurship

Services

MSC for Startups

Overview

MDEC (Multimedia Development Corporation), the Malaysia’s national ICT custodian has launched the ‘MSC Malaysia for Startups’, a special programme to facilitate and accelerate local startups in obtaining recognition. Launched in May 2015, as part of the national strategic initiative to position Malaysia as the ‘Entrepreneur Hub’ for Southeast Asia.

MaGIC will be a key partner in promoting the programme and funneling potential startups for participation with the main goal is to make Malaysia as the Startup Capital of Asean.

The programme will not only assist local technopreneurs but also regional technopreneurs in setting up their startups here in Malaysia. This programme is designed for MSC Malaysia Startups Companies which are located outside of MSC Cyber City and Cyber Centres.

Among the benefit now available to startups under the programme are the flexibility to choose where to operate (no longer bound to reside in a designated Cyber City), hiring up to 20 foreign knowledge workers in key positions, 70 per cent tax exemption of statutory income for five years, and other MSC Malaysia Bill of Guarantees (BoGs) specified under the programme.

MSC Malaysia for Startups Programme will catalyze the Growth of ICT Industry through: Increase in the participation of ICT industry in MSC Malaysia’s community hiring talents would be easier due to flexibility of location, which will spur innovation Spurring growth of Digital Entrepreneurs & SMEs Productivity & quality of life will increase in parallel Multi-tiered incentives will spur growth of regional ICT companies.

Service Providers

Incentives

  1. Enjoy 6 BoG privileges; BoG 3,4,6,7,9 and 10
  2. Forgo BoG1 & 8
  3. Companies that locate outside of Cybercities & Cyber-centres forgo the guarantee of world-class physical and information infrastructure & the provision of a globally competitive telecommunications tariffs
  4. Enjoy partial BoG2
  5. May employ foreign knowledge workers up to a maximum of 20 foreign knowledge workers at any time.
  6. Enjoy partial BoG5
  7. Instead of enjoying 100% tax exemption, companies will enjoy income tax exemption of 70 percent under Section 127(3)(b) of Income Tax Act 1967 for a period of five years and no duties on the importation of multimedia equipment.

Download MSC Malaysia for Startups Programme brochure here.

Process / Qualified Criteria

  1. Submission of online pre-application via MDEC’s Wizard System.
  2. Acceptance of pre-application and assignment of Business Analyst (BA) [2 Days SLA].
  3. Review of Business Plan and Financial Plan by BA.
  4. Confirmation and submission of completed documents (30 days SLA).
  5. Presentation to Approval Committee.
  6. Processing of MSC Malaysia Status Approval Letter (1 week SLA).
  7. Issuance of MSC Malaysia Approval Letter.