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What is MSC?

MSC status is increasingly a critical enabler of business transformation and growth and needs to play a fundamental role as catalyst for IT business growth.

With recognition, endorsements and support, MSC-status businesses propel products and technology innovation, and also foster and nurture start-ups into full fledge technology provider. Ampersand helps clients realize the full potential of their innovations as they embark on major change and growth initiatives.

MSC Benefits

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No income tax

No income tax for up to 10 years or investment tax allowance (ITA)

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No duties on importation

No duties on importation of multimedia equipment

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Allow unrestricted employment

Allow unrestricted employment of foreign knowledge workers

MSC Benefits

• Entitles qualified entities to a set of incentives, rights and privileges from the Government of Malaysia (“Government”), namely the MSC Malaysia Bill of Guarantees (“BoGs”)
• To provide competitive financial incentives namely Pioneer Status (100 percent tax exemption) for up to ten years or an
• Investment Tax Allowance for up to five years and no duties on the importation of multimedia equipment. To allow employment of local and foreign knowledge workers.
• MSC Malaysia Status companies are free to source capital globally, unless otherwise stated in the Anti-Money Laundering and Anti-Terrorism Financing Act 2001, or from residents, authorities, agencies or entities of countries specified in the Exchange Control Act 19533.

1. Non-residents investing in MSC Malaysia Status companies are free to repatriate any amount of capital, divestment proceeds, profits and dividends arising from their investments.
2. MSC Malaysia Status companies are free to remit funds abroad, which are made in foreign currency and transacted through licensed onshore banks.
3. MSC Malaysia Status companies are also free to borrow from resident and non-resident lenders in Ringgit and in any foreign currency4 to finance their business operations.
4. MSC Malaysia Status companies can borrow in Ringgit: Any amount from licensed onshore banks and other residents.
5. Any amount from their non-resident non-bank parent companies for purpose of financing activities in the real sector in Malaysia. Up to RM1 million in aggregate from other non-resident non-bank companies or non-resident individuals for use in Malaysia.

The Criteria for MSC Status

• The companies must be either:
   1. Private limited companies (e.g. Sendirian Berhad)
   2. Institutions of Higher Learning
   3. Incubators

• Ensure that at least 15% of the total number of employees of MSC Malaysia status company are knowledge workers

• Directors must not be a bankruptcy or involvement in AMLA Activities or Illegal activities. **AMLA: Anti Money Laundering Act of Malaysia

• Companies applying must be from these industries :
   1. Infotech (Information Technology)
   2. GBS (Global Business Services) – VLS* Very Large Scale Businesses e.g. BPO (Back Project Office), ITO Services, KPO Services
   3. Creative Content Technology

Application Procedures

We offer A-Z services from setting up company to meeting with MDEC board

1. Setup a subsidiary company

2. Choosing a tech solution

3. Finacial framework planning

4. Drafting business proposal

5. Brainstorm with the management

6. Build tech prototype

7. Interview with MDEC

8. Success obtain status

Frequently Asked Question