Multimedia Super Corridor
The Multimedia Super Corridor (MSC) is Malaysia’s most exciting initiative for the global information and communication technology (ICT) industry.
Conceptualized in 1996, the MSC has since grown into a thriving dynamic ICT hub, hosting more than 900 multinationals, foreign-owned and home-grown Malaysian companies focused on multimedia and communications products, solutions, services and; research and development.
With this unique corridor, Malaysia continues to attract leading ICT companies of the world to locate their industries in the MSC and undertake research, develop new products and technologies and export from this base. The MSC is also an ideal growth environment for Malaysian ICT SMEs to transform themselves into world-class companies. Furthermore, the MSC welcomes countries to use its highly advanced infrastructural facilities as a global testbed for ICT applications and a hub for their regional operations in Asia.
The Malaysian government has equipped core areas in the MSC with high-capacity global telecommunications and logistics networks. Emphasis has been placed on eco-friendly, yet sophisticated urban structures for businesses, homes, education and recreation. The MSC is also supported by secure cyberlaws, strategic policies; and a range of financial and non-financial incentives for investors.
Many innovative flagship applications have been developed in the MSC top accelerate its growth. They are focused on the development of Smart Schools, Telehealth, e-Business, smart card technology, electronic government, technopreneurship.
A brand new initiative of the MSC is the Creative Multimedia cluster, which aims to catalyse the development of the Malaysian creative content industry in Malaysia, engaging the participation of global producers. Furthermore, Cyberjaya is finding its niche as a regional outsourcing and shared services haven for international companies.
“In 1996, there were less than 300 IT companies but today we have over 3,400, out of which 1,447 are MSC status companies. In 2005, Malaysia’s ICT sector grew by 17% greater than the country’s overall GDP growth of 5.2%. In 2004, MSC status companies attained revenue of RM7.21 billion. Out of this, export of ICT products and services amounted to RM1.57 billion.”
As highlighted by various reports such as AT Kearney 2004 and the Deloitte Paper 2005, MSC is one of the many factors that make Malaysia more attractive to foreign investors. Cyberjaya, a city created out a palm oil estate, is now a leading intelligent city known throughout the world.
MSC Malaysia status is a recognition by the Government of Malaysia through the Multimedia Development Corporation (MDeC), for ICT and ICT-facilitated businesses that develop or use multimedia technologies to produce and enhance their products and services.
It is also a mark of world-class service and achievement and your passport and gateway to a host of privileges granted by the Government of Malaysia to the business entities.
MSC Malaysia status is awarded to 3 types of business entities, each with a set of different application criteria and guidelines. The qualifying business entities are:-
- Private limited companies (i.e. Sendirian Berhad)
- Institutions of Higher Learning
- Incubators
MSC Malaysia Status Eligibility Criteria
- Provide or heavy user of IT & multimedia products & services
- Employ a substantial number of knowledge workers
- Strong value proposition specifying how operations will contribute to the development of MSC Malaysia
- Establish separate legal entity for MSC-qualifying activities
- Locate in a MSC Malaysia designated Cybercity or Cybercentre
- Comply with environmental guidelines
MSC Malaysia Financial Incentive
Below are some of the incentives granted by the Federal Government of Malaysia to MSC Malaysia status companies :-
- Pioneer Status privilege with a five (5) + five (5) year 100% exemption from taxable statutory income (on income derived from qualifying activities) starting from the date when the company starts generating income, renewable to 10 years
- 100% Investment Tax Allowance (ITA) on new investments made in MSC Malaysia Cybercities/Cybercentres, commencing from the date on which the first qualifying capital expenditure is incurred.
- Eligible for R&D grants (for majority Malaysian owned MSC Malaysia status companies)
- Freedom to source capital globally for MSC Malaysia infrastructure and the right to borrow funds globally.
- Freedom of ownership by exempting companies with MSC Malaysia status from local ownership requirements.
- Unrestricted employment of foreign knowledge workers.
- Duty-free importation of multimedia equipment, provided that the equipment is used by the company in the operation of its business, and not for direct sale and trading or use as components in manufactured items.
- Globally competitive telecommunication tariffs and services guarantees if MSC Malaysia status companies are located within the MSC Malaysia.
- Intellectual property protection and a pioneering and comprehensive framework of cyberlaws can be enjoyed by MSC Malaysia status companies irrespective of location.
