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FOZL Services

FOZL Services

Dedicated to being your reliable partner in the Malaysian market, helping you successfully launch your journey to success in Malaysia.

Information and Communication Technology (ICT)

Information and Communication Technology (ICT) is a major growth engine for Malaysia’s economy, encompassing sectors such as software development, data centers, cloud computing, artificial intelligence (AI), cybersecurity, e-commerce, and financial technology (FinTech). To promote the ICT industry, the Malaysian government has introduced a range of policies and incentives to attract both local and foreign technology companies to establish their operations in Malaysia.

To facilitate this, the government established the Malaysia Digital Status (MD Status) — a strategic initiative to support and recognize eligible ICT companies.

 

What is Malaysia Digital Status?
Malaysia Digital Status (MD Status) is a strategic industry recognition awarded by the Malaysia Digital Economy Corporation (MDEC). It is designed to attract local and foreign investment into Malaysia’s digital economy. Qualified ICT companies can apply for MD Status to gain access to tax incentives, investment benefits, and industry support provided by the government.

 

Eligible Business Categories for MD Status:

  • Software Development & Artificial Intelligence (AI)
  • Data Centers & Cloud Computing
  • E-commerce & FinTech
  • Cybersecurity & Blockchain Technology
  • Other ICT enterprises aligned with Malaysia’s digital economy policies

 

Why is MD Status Important?

  1. 1. Regulatory Recognition: Ensures that companies comply with Malaysia’s digital economy policies and enjoy supportive regulatory frameworks.
  2. 2. Tax Incentives: Eligible companies may receive income tax exemptions, reducing overall operational costs.
  3. 3. Market Advantage: MD Status provides official recognition that enhances credibility and competitiveness in the global marketplace.

 

Incentives and Government Support for MD Status Companies:

  1. 1. Investment Tax Incentives (ITA): Qualified companies can apply for income tax exemption of up to 10 years or Investment Tax Allowance to reduce tax liabilities.
  2. 2. Intellectual Property Protection: Support for IP rights to encourage innovation and R&D.
  3. 3. Employment Passes for Foreign Talent: Companies can apply for work visas to bring in international ICT professionals.
  4. 4. Digital Infrastructure Access: Priority access to government-backed Malaysia Digital Initiative programs and support infrastructure.

 

Development Trends in Malaysia's Information and Communications Technology Industry:

Malaysia’s digital agenda, driven by the MyDIGITAL Blueprint, focuses on:

  • Accelerating 5G and cloud technology adoption to enhance digital infrastructure
  • Promoting AI and big data to foster innovation in intelligent technologies

MD Status is not only a mark of compliance for tech companies but also a strategic advantage to gain access to incentives and thrive in international markets.

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