The MSC Malaysia Status

The MSC Malaysia Status

The MSC Malaysia Status What is MSC Malaysia Status? Recognition by the Government through MDeC for companies that participate and undertake its ICT activities in the MSC Who Should Be In The MSC Malaysia? Local and Foreign Companies that develop or use multimedia technologies to produce or enhance their product and services and or process development.

Application Process An Account Manager will be assigned to the client when the pre-application is received Documents required: 3 year business plan to show the proposed activities 3 year financial projections Formal application form RM 2000 process fee (Non Refundable) 100% foreign owned companies can apply as an unincorporated company

Application Process Pre-Application @ HelpDesk http://wizard.msc.com.my/wizard Acct. Mgr assigned + Due Diligence Submit Business Plan + Financial Projection Internal Approval Committee

Provider or heavy user of IT & multimedia products & services. Employ a substantial number of knowledge workers. Qualifying Criteria Strong value proposition specifying how operations will contribute to the development of MSC Malaysia and Malaysia itself. Establish separate legal entity for MSC Malaysia-qualifying activities. Locate in an MSC Malaysia designated cybercities. Comply with environmental guidelines.

Non- Trading companies / resellers. Configuration of existing foreign developed software. Integration of 3rd party software & hardware. Manufacturing. Technical Support Services for 3rd party providers. Licensed MCMC VOIP/Telecom service providers. SSO companies that provide services for Malaysia only. Companies already enjoying Pioneer Status/ITA. Companies formed for sole purpose of undertaking contractual work for Malaysian Federal Govt/ State Govts only. Companies seeking to bring in Foreign Knowledge Workers for subcontract (Body shopping) and turn-key projects.

Benefits: Bill of Guarantees The Government of Malaysia commits the following Bill of Guarantees to MSC Malaysia Status Companies: 1. Provide a world-class physical and information infrastructure 2. Allow unrestricted employment of knowledge workers 3. Ensure freedom of ownership 4. Allow freedom of sourcing capital globally for MSC Malaysia infrastructure and freedom of borrowing funds 5. Provide competitive financial incentives including no corporate tax or an investment tax allowance for up to ten years and no duties on the import of multimedia equipment 6. Become a regional leader in intellectual property protection and cyberlaws 7. Ensure no censorship of Internet 8. Provide globally competitive telecoms tariffs 9. Tender key MSC Malaysia infrastructure contracts to leading companies willing to use MSC Malaysia as their regional hub 10. MDeC one stop service agency

Creative Multimedia Cluster Companies whose core business activity revolves around multimedia content creation, processing, packaging and aggregation and delivery activities Digital content development, aggregation, packaging and delivery on any platform Post production/animation/virtual reality applications

SSO Cluster SSO Local Shared Services- a model where common services are provided under a single, shared organization leveraging on economies of scale e.g. IT, call centre, software dev, data centre consolidation Outsourcing results oriented shared service partnership with an external service provider e.g. business process outsourcing, IT Outsourcing Global/regional in IT in sourcing and outsourcing models Global/regional business process service providers 50% exports by end of year 5 from the date of MSC Malaysia approval 30% of total investment to be in MSC designated area within 6 months of MSC approval Minimum 50 knowledge workers by end of year 5 from the date of MSC Malaysia approval Maintain a minimum 85% knowledge workers SSO Foreign 70% exports by end of year 3 from the date of MSC 70% of total investment to be in MSC designated approval Minimum 100 knowledge workers by end of year approval Maintain a minimum 85% knowledge workers

Software & esolution (SeS) Cluster Software & esolution (SeS) is a combination of 3 sub-cluster: 1. Internet Based Business - IBB 2. Application Software - AS 3. Mobility & Embedded Software/Hardware - MeSH

SeS: Internet Based Business : Utilized the world wide web as its main platform of operation such as its marketing, web hosting and/including e- commerce transactions Application service providers, e-commerce service providers; web-based trading platforms. E-Government based service providers

SeS: Application Software Software Development Companies undertaking design, development, maintenance and marketing of software products which include but not exhaustive of the following. e.g.. General Business applications such as CRM/ERP/Accounting on any platform specialized applications for vertical industries such as Manufacturing/ security solutions/ Wireless & fixed telecommunications/ embedded software. The activities should have significant proportions of IP generation, innovative and export orientation.

SeS: MeSH Hardware Design Companies undertaking design, development, maintenance and marketing of hardware technology products and applications which include but not exhaustive of the following. e.g.. Intelligent Controllers/RFID/security solutions/ Wireless & fixed telecommunications/ SoC designs/ IC designs Specialist design companies focused on electronic hardware components or finished products (RFID/Smart Cards) The activities should have significant proportions of IP generation, innovative and export orientation Embedded systems/industrial Designs (prototyping & modeling)

Institute of Higher Learnings (IHLs) IHLs, Training & education services including via digital means (non content related) All Applicants must have all of the following activities in order to qualify for the MSC Malaysia incentives, namely :- Provide or be a heavy user of multimedia products and services; Grant either diploma or degree courses in multimedia, information technology and related fields for a training period covering a minimum period of 2 years and above Establish a multimedia faculty or a qualified faculty conducting multimedia courses, programmes and related activities; Employ a substantial number of knowledge workers; Conduct and support R&D activities; All Applicants must also be registered as a separate legal entity; and Comply with MQA guidelines Applicable courses must only be related to multimedia, information technology and communication fields.

Incubators Must be directly engaged in incubation / acceleration related activities Incubator technology focus: specifically in ICT & MSC Malaysia Status Qualifying areas, such as: software development, internet-based businesses, hardware design, creative multimedia, shared services and outsourcing Incubatees/tenants must be early stage companies with no MSC M sia Status yet, but have the potential to qualify Must offer business development services such as business plan assistance, mentoring and coaching, etc. Physical Facilities MUST OFFER the following basic facilities: Internet access with minimum bandwidth of 128Kbps per employee Shared facilities e.g. meeting rooms, reception and audio visual systems Minimum of 2000 sq ft for incubation activities (including space for at least 5 ICT SMEs) Must have an incubator manager (ideally a technopreneur or an entrepreneur) who is willing to undergo training at the MSC Malaysia Technology Commercialisation Centre

Incubators (contd.) Must establish a separate legal entity (company) to qualify for tax incentives under MSC Malaysia Status for Incubator Must demonstrate funding and fund-raising capabilities Must comply to MDeC-TED Incubation Best Practices, which include but are not limited to: Establishing entry selection criteria for potential incubatees Demonstrate a monitoring process for incubatees Provision of relevant business (e.g. advisory, mentoring and coaching, training, etc.) and technical (e.g. technology lab, technology consultancy, etc.) services to the incubatees which enable them to grow and mature, Demonstrate links/access to a wider network of resources that can contribute to incubatees growth (e.g. funding and marketing assistance from various external parties, etc.)

Value Added System Integration MSC Malaysia Status Qualifying Criteria be expanded to include ICT Consulting & System Integration, subject to the following criteria: By the 3rd year of operation, the company should: export at least 50% of its products & services; and have at least 70% knowledge workers *Note: exports are defined as products and services that are outbound or sold to MNCs