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Malaysia Digital Status


Malaysia Digital Status | Bestar
Malaysia Digital Status | Bestar

What is Malaysia Digital Status?


Malaysia Digital Status (MD) is a new national strategic initiative by the Malaysian government to encourage and attract companies, talents, and investment while enabling Malaysian businesses and citizens to play a leading part in the global digital revolution and digital economy.


MD builds on the foundation of the Malaysia Cyber Security (MSC) Status, which has been in place since 1996. The MSC Status has been successful in attracting over 2,700 companies to Malaysia, and has helped to position Malaysia as a leading digital hub in the region.


MD offers a wider range of incentives and benefits to companies than the MSC Status, and is designed to be more flexible and agile. Companies that are awarded MD Status will be eligible for a range of fiscal and non-fiscal incentives, including:

  • Exemption from import duties and sales tax on multimedia/ICT equipment

  • Tax deductions for R&D expenditure

  • Accelerated depreciation allowances

  • Access to local and international markets and ecosystems

  • Business matching and partnership opportunities

  • Grant and funding facilitation

  • Participation in MD catalytic programmes

MD is open to all types of companies, regardless of their size or industry. To be eligible for MD Status, companies must meet certain criteria, such as having a significant digital component to their business and employing a certain number of Malaysian citizens.


The Malaysia Digital Status is a major step forward for Malaysia's digital economy. It is designed to attract and retain high-growth digital companies, and to create a more conducive environment for the development of the digital economy.


Here are some of the benefits of obtaining Malaysia Digital Status:

  • Fiscal incentives: MD Status companies are eligible for a range of fiscal incentives, such as exemption from import duties and sales tax on multimedia/ICT equipment, tax deductions for R&D expenditure, and accelerated depreciation allowances.

  • Non-fiscal incentives: MD Status companies are also eligible for a range of non-fiscal incentives, such as access to local and international markets and ecosystems, business matching and partnership opportunities, grant and funding facilitation, and participation in MD catalytic programmes.

  • Greater flexibility: MD Status is more flexible than the MSC Status, and allows companies to operate, grow, expand, or invest anywhere in Malaysia.

  • Enhanced reputation: MD Status is a major boost to a company's reputation, and can help to attract customers, partners, and talent.

If you are a company that is looking to grow your business in the digital economy, then Malaysia Digital Status is a great option for you.


Eligibility Criteria


The eligibility criteria for Malaysia Digital Status (MD Status) are as follows:

  • Incorporation: The company must be incorporated under the Companies Act 2016 and resident in Malaysia.

  • Digital activities: The company must be proposing to carry out or is currently carrying out one or more of the Malaysia Digital activities as listed below:

    • Artificial intelligence (AI)

    • Big data analytics

    • Cloud computing

    • Cyber security

    • Data analytics

    • Fintech

    • Internet of Things (IoT)

    • Robotics

    • Software development

    • Virtual reality (VR) and augmented reality (AR)

  • Employees: The company must employ at least 2 full-time employees (comprising knowledge workers) with a minimum average monthly base salary of RM5,000.00, employed for the Malaysia Digital Approved Activities.

  • Operating expenditure: The company must incur a minimum annual operating expenditure of RM50,000.00 for the Malaysia Digital Approved Activities.

  • Paid-up capital: The company must have a paid-up capital of at least RM1,000.00.

  • No existing tax exemptions: The company must not have any existing tax exemptions granted by the Malaysian government.

If you meet the eligibility criteria, you can apply for MD Status through the Malaysia Digital Economy Corporation (MDEC). The application process is online and can be completed in a few steps.


Here are the steps on how to apply for MD Status:

  1. Visit the MDEC website and click on the "Apply for MD Status" button.

  2. Create an account and log in to the application portal.

  3. Complete the application form and upload the required documents.

  4. Pay the application fee.

  5. Submit your application.

The MDEC will review your application and will notify you of the decision within 30 working days. If your application is approved, you will be issued with a Malaysia Digital Status certificate.


The Malaysia Digital Status is a valuable asset for any company that is looking to grow its business in the digital economy. It offers a wide range of benefits, including fiscal incentives, non-fiscal incentives, greater flexibility, and enhanced reputation. If you are a company that is looking to take advantage of the opportunities in the digital economy, then apply for Malaysia Digital Status.


Conditions of Malaysia Digital Status


There are a few conditions that companies must comply with in order to maintain their Malaysia Digital Status (MD Status). These conditions are designed to ensure that companies are actively engaged in Malaysia's digital economy and are contributing to the country's economic growth.


The conditions of MD Status are as follows:

  • Commencement of operations: Companies must commence operations and undertake the Malaysia Digital Approved Activities in Malaysia within 12 months of the date of award of MD Status.

  • Knowledge workers: Companies must employ at least 2 full-time employees (comprising knowledge workers) with a minimum average monthly base salary of RM5,000.00, employed for the Malaysia Digital Approved Activities.

  • Operating expenditure: Companies must incur a minimum annual operating expenditure of RM50,000.00 for the Malaysia Digital Approved Activities.

  • Paid-up capital: Companies must maintain a paid-up capital of at least RM1,000.00.

  • Compliance with laws and regulations: Companies must comply with all applicable laws and regulations in Malaysia.

  • Annual reporting: Companies must submit an annual report to MDEC, which will include information on their compliance with the conditions of MD Status.

If a company fails to comply with any of the conditions of MD Status, their status may be revoked. The MDEC will notify the company of any non-compliance and will provide them with an opportunity to rectify the situation. If the company is unable to rectify the non-compliance, their status will be revoked.


The conditions of MD Status are designed to ensure that companies are making a genuine contribution to Malaysia's digital economy. By complying with these conditions, companies can ensure that they continue to enjoy the benefits of MD Status.


Here are some of the consequences of non-compliance with the conditions of MD Status:

  • Revocation of MD Status: If a company fails to comply with any of the conditions of MD Status, their status may be revoked.

  • Loss of benefits: If a company's MD Status is revoked, they will lose the benefits that are associated with the status, such as fiscal incentives and non-fiscal incentives.

  • Damage to reputation: Non-compliance with the conditions of MD Status can damage a company's reputation and make it more difficult to attract customers, partners, and talent.

If you are a company that is considering applying for MD Status, it is important to carefully review the conditions of the status and ensure that you are able to comply with them. By complying with the conditions of MD Status, you can ensure that you continue to enjoy the benefits of the status and protect your reputation.


Application Process


The application process for Malaysia Digital Status (MD Status) is as follows:

  1. Visit the MDEC website and click on the "Apply for MD Status" button.

  2. Create an account and log in to the application portal.

  3. Complete the application form and upload the required documents.

  4. Pay the application fee.

  5. Submit your application.

The application form can be downloaded from the MDEC website. The required documents are as follows:

  • Company profile: This should include information about the company's history, operations, and financials.

  • Business plan: This should outline the company's plans for its digital activities in Malaysia.

  • Proof of incorporation: This should be a copy of the company's certificate of incorporation.

  • Proof of paid-up capital: This should be a copy of the company's latest audited financial statements.

  • Proof of employment of knowledge workers: This should be a list of the company's knowledge workers, including their job titles, salaries, and start dates.

  • Proof of operating expenditure: This should be a copy of the company's latest financial statements, showing the amount of money that has been spent on its digital activities in Malaysia.

The application fee is RM1,000.00.


The MDEC will review your application and will notify you of the decision within 30 working days. If your application is approved, you will be issued with a Malaysia Digital Status certificate.


The application process for MD Status is relatively straightforward. However, it is important to carefully review the eligibility criteria and ensure that you meet all of the requirements. By following the steps outlined above, you can increase your chances of being approved for MD Status.


Here are some additional tips for applying for MD Status:

  • Get help from a consultant: If you are not familiar with the application process, you may want to consider getting help from a consultant who specializes in MD Status applications.

  • Submit your application early: The MDEC receives a large number of applications for MD Status each year. By submitting your application early, you can increase your chances of being reviewed and approved before the deadline.

  • Follow up with the MDEC: If you have not received a decision on your application within 30 working days, you should follow up with the MDEC to check on the status of your application.


How Bestar can Help


Bestar is a Malaysian company that provides accounting, and advisory services to businesses of all sizes. The company has a team of experienced accountants who can help businesses comply with accounting and tax regulations, manage their finances, and make informed business decisions.


Bestar can help Malaysia Digital Status companies in a number of ways, including:

  • Helping businesses comply with accounting regulations: Bestar can help businesses stay up-to-date on the latest accounting and tax regulations, and prepare the necessary reports and filings. This can help businesses avoid penalties and fines, and protect their financial interests.

  • Managing businesses' finances: Bestar Accounting can help businesses track their income and expenses, forecast cash flow, and make sound financial decisions. This can help businesses improve their profitability and financial stability.

  • Providing advisory services: Bestar Accounting can help businesses develop sound financial strategies, make investment decisions, and manage risk. This can help businesses achieve their financial goals and objectives.

  • Using digital tools and technology: Bestar Accounting is committed to using the latest digital tools and technology to provide its clients with the best possible service. This includes using cloud-based accounting software, e-filing, and other digital solutions.

By providing these services and solutions, Bestar can help Malaysia Digital Status companies to:

  • Improve their financial health: By staying compliant with accounting and tax regulations, managing their finances effectively, and getting sound financial advice, businesses can improve their financial health and bottom line.

  • Gain a competitive advantage: By using digital tools and technology, businesses can gain a competitive advantage by streamlining their accounting and tax processes, improving their financial reporting, and making better financial decisions.

  • Attract investors and lenders: By demonstrating strong financial health and a sound financial strategy, businesses can attract investors and lenders, which can help them grow their businesses.

Bestar is a valuable partner for Malaysia Digital Status companies. The company has the experience, expertise, and resources to help businesses succeed in the digital economy.


Here are some specific examples of how Bestar has helped Malaysia Digital Status companies:

  • Bestar helped a technology company to stay compliant with accounting and tax regulations, which saved the company thousands of dollars in penalties and fines.

  • Bestar helped a manufacturing company to improve its cash flow management, which allowed the company to invest in new equipment and hire new employees.

  • Bestar helped a retail company to develop a sound financial strategy, which helped the company to attract investors and lenders.

Bestar is a valuable partner for Malaysia Digital Status companies. The company has the experience, expertise, and resources to help businesses succeed in the digital economy. Contact us today!



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