Building on the MSC Legacy
Originally MSC Malaysia (Multimedia Super Corridor, 1996), the programme was upgraded to Malaysia Digital in July 2022, moving from a location-based to an activity-based approach.
Incentives · Malaysia Digital Status
Malaysia
Digital Status (MD)
A national digital economy status awarded by MDEC, offering tax and non-tax incentives alongside Forest City's Special Financial Zone benefits.
Status Overview
From Location-Based to Activity-Based
Malaysia Digital (MD) Status is a national strategic designation approved by the Malaysia Digital Economy Corporation (MDEC) for local and foreign companies undertaking high-value digital economic activities.
Operate Anywhere in Malaysia
Approved companies are no longer restricted to designated areas and may operate anywhere in Malaysia.
Over 4,000 Approved Companies
More than 4,000 companies have been approved, spanning AI, big data analytics, cloud computing, cybersecurity, blockchain, the Internet of Things, drones and other fields.
Core Incentives
Tax Incentives & Non-Tax Support
Preferential Income Tax Rates
0% on qualifying IP income; 5%–10% on non-IP income.
Investment Tax Allowance (ITA)
An allowance of up to 100% of qualifying capital expenditure, offset against up to 100% of statutory income.
Talent · Imports · Market Access
Fast-track Employment Pass approvals for foreign knowledge workers; import duty and sales tax exemptions for ICT and multimedia equipment used in R&D; and MDEC support for global market access, business matching and priority introductions to government projects.
Additional Benefits at Forest City Financial Centre
National MD Incentives + Special Financial Zone Benefits
In February 2025, Forest City Financial Centre was officially approved as an MD Status Hub. Eligible digital and technology companies based there may combine national MD incentives with Forest City Special Financial Zone (FCSFZ) benefits.
Special 5% Corporate Tax Rate
Eligible MD companies in fintech, financial global business services (Financial GBS) and cross-border payments benefit from a 5% statutory corporate income tax rate for up to 20 years (10 + 10).
Supporting AI-Enabled Finance
Priority support for projects using AI, big data, blockchain, cloud technology and automation to strengthen the financial ecosystem.
Application & Ongoing Compliance
Entry Requirements and Maintaining Status
Entry Requirements
Incorporation in Malaysia under the Companies Act 2016, with at least one existing or planned MDEC-recognised core digital activity, such as AI, big data, software development or cloud services.
Ongoing Requirements
Begin MD activities within 12 months of approval; employ at least two full-time knowledge workers directly engaged in MD activities, each earning at least RM5,000 per month; incur annual local operating expenditure of at least RM50,000; and maintain paid-up capital of at least RM1,000.