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Winning Incentives

Setting up a business in Cyberjaya is relatively simple. The process takes as few as 11 days, and costs less than the average tech hub. Talk to us to discover what incentives might be available for your business, be it an enterprise or startup.

Incentives

Incentives

As Malaysia’s first cybercity and the core of the Multimedia Super Corridor (MSC Malaysia), Cyberjaya has always been key in moving Malaysia towards an innovation-led economy. Not surprisingly, many incentives in Cyberjaya apply to companies that further that vision.

The list below is just an example of some of the incentives available. Contact us to find out how you can enjoy incentives such as tax breaks, 100% foreign ownership, and more.

  • 10 Bill of Guarantees (BoGs)
    The MSC Malaysia status entitles your company to a set of incentives, rights and privileges from the Government of Malaysia
  • Pioneer Status
    Enjoy 100% exemption from taxable statutory income (corporate tax) for a period of up to ten years and for MSC Malaysia status approved activities only (open external link in new tab)
  • 100-percent Investment Tax Allowance (ITA)
    This covers hardware and software, purchase or renovation of office building, and greenery or landscaping expenses in Cyberjaya
  • Eligibility for R&D grants 
    This incentive is open to majority Malaysian-owned MSC Malaysia status companies (open link in new tab)
  • Industrial Building Allowance (IBA) 
    Valid for a period of 10 years, given for new buildings occupied by MSC Malaysia status companies in Cyberjaya 
  • Accelerated Capital Allowance (ACA)
    Receive an initial allowance of 20% and an annual allowance of 40% for expenditure incurred in acquiring computers and information technology assets, including software
  • Deduction of Operating Expenditure
    A single deduction of operating expenditure including payments to consultants related to IT usage for improving management and production processes
  • Financial freedom
    Enjoy the freedom to source capital and borrow funds globally
  • Duty-free hardware
    Enjoy duty-free importation of multimedia equipment 
  • Double deduction 
    Certain expenses incurred by companies that seek opportunities to export Malaysian services qualify for double deduction

MSC MALAYSIA'S BILL OF GUARANTEES

Bill of Guarantee

1
To provide a world-class physical and information infrastructure.

Bill of Guarantee

2
To allow unrestricted employment of local and foreign knowledge workers.

Bill of Guarantee

3
To ensure freedom of ownership by exempting companies with MSC Malaysia Status from local ownership requirements.

Bill of Guarantee

4
To give the freedom to source capital globally for MSC Malaysia infrastructure, and the right to borrow funds globally.

Bill of Guarantee

5
To provide competitive financial incentives, including 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.

Bill of Guarantee

6
To become a regional leader in Intellectual Property Protection and Cyberlaws.

Bill of Guarantee

7
To ensure no censorship of the Internet.

Bill of Guarantee

8
To provide globally competitive telecommunications tariffs.

Bill of Guarantee

9
To tender key MSC Malaysia infrastructure contracts to leading companies willing to use MSC Malaysia as their regional hub.

Bill of Guarantee

10
To provide a high-powered implementation agency to act as an effective one-stop super shop.

 
FURTHER READING

MIDA – Incentives in Services Sector
MSC Malaysia – Official Portal


REDUCED TAXES
24%
Starting 2016, the corporate tax rate will be reduced from 25% to 24%, and for small-medium enterprises from 20% to 19%.
SMALL BIZ RULES
90%
Small to medium enterprises (SMEs) comprise more than 90% of companies in Malaysia.
MSC INCENTIVES
3,600+
So far, more than 3,600 companies have been awarded the MSC Malaysia status, enjoying its many incentives.
UPCOMING WORKFORCE
27K
Six higher learning institutions in Cyberjaya, with 27K university students, provide an upcoming skilled workforce.
OPEN FOR BUSINESS
#12
According to the Global Finance Magazine in 2013, Malaysia is the world’s 12th easiest country to do business.

Process

APPLYING FOR MSC STATUS

Unlock the many incentives available in Cyberjaya by applying for MSC status. Applications are open to both local and foreign companies that operate within MSC-designated areas, that develop or use multimedia technologies to produce or enhance their products and services, and for process development. 

Please refer to MSC Malaysia’s website for detailed eligibility requirements under each category:

  1. Companies:
    • InfoTech companies (Software development, hardware design, e-business)
    • Shared Services and Outsourcing (SSO) (IT Outsourcing, Business Process Outsourcing, Knowledge Process Outsourcing)
    • Creative Multimedia
    • Value-Added System Integration (VASI)
  2. Institutes of Higher Learning (IHLs)
  3. Incubators


APPLICATION STEPS

1. PRE-APPLICATION

  • Register pre-application
  • Evaluation of pre-application details. Acceptance of pre-application
  • Assignment of successful pre-application to MDeC's Business Analyst

2. INTERNAL ASSESSMENT

  • Submission of 3-year business and financial plans online
  • Evaluation of business and financial plans by MDeC's Business Analyst and Financial Analyst
 

3. FORMAL APPLICATION

Submission of supporting documents:
  • 3 copies of business plan
  • Application form
  • ROC documents
  • 3-year audited report
  • MYR 2,000 processing fee (non-refundable)

4. APPROVAL

  • Presentation to the Approval Committee by Business Analyst
  • An approval is given after the relevant ministries agree to the recommendation made by the MSC Malaysia Approval Committee

FURTHER READING

MSC Status Application Wizard
 

REGISTERING A BUSINESS

To start a business in Malaysia, you will need to register your new company with the Companies Commission of Malaysia, also known as Suruhanjaya Syarikat Malaysia (SSM) in the Malay language. There are three types of businesses to choose from, as shown below.

  • Sole Proprietor

    A business owned by a single owner. There is no audit and annual filling requirement; however, it has unlimited liability

  • Partnership

    Similar to a sole proprietorship, except that the business is owned by two or more people, but with no more than 20 partners

  • Private Limited (Sdn Bhd) / Unlimited (Berhad)

    Preferred by most businesses in Malaysia, as these are legal entities distinct from the members/owners

Company registration fees vary according to nominal share capital, ranging from MYR 1,000 (USD 313) to MYR 70,000 (USD 21,875).

FURTHER READING

Companies Commission of Malaysia
Registration of Businesses Act 1956
Companies Act 1965

Expat / Immigration Services

Companies granted MSC Malaysia status and incentives are allowed to employ expatriate knowledge workers without any restriction.

To apply for the relevant employment passes, just head to the e-Xpats Centre in Cyberjaya or refer to its website www.expats.com.my.

SERVICES

  • Collection and delivery of passports and relevant documents
  • Review and consultancy for applications
  • Submissions on behalf of MSC Malaysia status companies to the Immigration Department of Malaysia for issuance and endorsement of passes

CONTACT DETAILS 

i-location eXpats Service Centre, Suite 2.1, Level 2, East Wing, 3539 Axis Eureka (formerly known as FSBM Plaza), Jalan Teknokrat 7, 63000 Cyberjayai-phone +603 8315 3106i-mail  expatctr@mdec.com.my   i-web  Visit website

Costs & Funding

A competitive ringgit, productive workforce and investor-friendly policies make Malaysia one of the most cost-effective and easiest places to do business. In fact, Malaysia is ranked 18th out of 189 economies in the World Bank's Doing Business 2015: Going Beyond Efficiency report. Malaysia is also amongst the top 5 in IMD's 2014 World Talent Report, which assesses a country's ability to develop, attract and retain talent in a nation's economy.

As for location-specific expenses, the cost of doing business in Cyberjaya does not vary much from the general cost of doing business in Malaysia. Investors who require more specific details can contact the Malaysian Investment Development Authority (MIDA) for further advice and assistance.

CORPORATE TAX

As announced in the 2015 Budget, the current corporate tax of 25% will be reduced to 24% in 2016, and for small and medium sized enterprises from 20% to 19%. Furthermore, if you are an MSC Malaysia status company, you may opt for a Pioneer status that provides an exemption of the corporate tax for up to 10 years or Investment Tax Allowance (ITA). 

GETTING FUNDING

If you are a startup with a great business idea, you’re in luck. Opportunity knocks on many doors in Cyberjaya, leading outstanding teams to angel investors, seed funds, government grants and successful incubators. 

FUNDING FACILITIES

FURTHER READING

MIDA – Costs of Doing Business
Companies Commission of Malaysia (SSM)

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