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NETHERLANDS EMBASSY NEWS

Fuelling Malaysia’s Economic Development: desire to obtain the MSC Status: - Start - up should be striving to scalable and profitable business - Operating less than 3 years - Less than RM 100,000 in annual revenues - Should have 10 employees or less The incentives listed above are dependent on the type of company and the categories / tiers it is categorized in . There are indeed different requirements for Foreign Companies, Higher Learning Institutes, and Start - Ups to apply for this status.

Fuelling Malaysia’s Economic Development: An Overview of Key Government Incentives and Initiatives Currently, Malaysia belongs to the middle - income countries and it is well on track to join the high-income countries in the foreseeable future. Recent economic development projects, such as the ‘Iskandar Malaysia project’ and ‘the Digital Free Trade Zone’ are a perfect example of Malaysia’s vision to modernize and digitalize the economy. The recent annual growth rates of Malaysia (4.2% in 2016 and 5.9% in 2017 ) certainly further bolster this high - income 2020 vision. Indeed, this strong economic development makes Malaysia an interesting country to many foreign companies looking for investment opportunities. According to the latest reports of the World Bank, Foreign Direct Investment (FDI) was around 3.02% of Malaysia’s GDP in 2017. To place this strong performance of Malaysia into perspective, FDIs in Thailand and Indonesia were respectively 1.74% and 2.11% of their GDP in the same year. Malaysia’s central government plays a crucial role in attracting foreign investments to the country with several government agencies active in this field. However, a negative aspect of having all these agencies is that data that might be relevant to companies are sometimes hard to find, as information dissemination 26

MDBCONNECTS LAST ISSUE 2018

becomes too decentralized and dispersed. This section in MDBConnects magazine will highlight the key government incentives and programs that might be of interest to your company! Government Incentives There are two major incentives offered to companies and individuals that wish to come and settle in Malaysia. These incentives are the ‘MSC Malaysia Status’ and ‘MTEP’. MSC Malaysia Status The MSC Malaysia Status is a special status granted to foreign and local ICT related companies. This status entitles companies to various incentives and privileges that range from special tax and visa exemptions to exemption of local ownership requirements. The main objective of the MSC Malaysia Status is to promote the growth of ICT related businesses that in turn have a positive trickledown effect on the nation (e.g. transfer of technology and knowledge). Here is a selection of the incentives the MSC Malaysia Status grants to eligible companies: - Employment of a maximum of 20 foreign workers at the same time - The right to freely borrow funds globally - No censorship of internet The following requirements / restrictions are set for (international) start - ups that

It is interesting to note that recently, MDEC has announced that it will revise and update the MSC status. Therefore, the current requirements and incentives offered might be subject to change in the future. Malaysian Tech Entrepreneur Program (MTEP) The main objective of MTEP is to attract the young and skillful from oversees to settle and start - up their companies in Malaysia. This special visa exemption program offers a 1 - year or 5 - year stay to entrepreneurs who fulfill the requirements. In addition, entrepreneurs can use this program to attract other foreign talents to their company. Application for this special program is done online and if one meets the requirements, approval will be given by MDEC and Malaysian immigration services within six weeks. The following requirements must be fulfilled to qualify for this program: One-Year Stay for New Entrepreneurs: a) Business Pitch; b) 3 months Personal Bank statement with a minimum amount of RM 50,000; c) Certificate of Good Conduct; d) Sponsor: Letter of offer from any Malaysia Digital Hubs or recognized partners for 1 year of tenancy Five Year Stay for Established: a) Business Pitch; b) Three months Personal Bank statement with a minimum amount of RM 50,000 and proof of business performance; c) Certificate of Good Conduct;

Profile for Malaysian Dutch Business Council

MDBCONNECTS 2018 - Last edition  

The last edition of 2018 which includes a focus on the annual MDBC Innovation & Sustainability Awards, the budget briefing by KPMG, and info...

MDBCONNECTS 2018 - Last edition  

The last edition of 2018 which includes a focus on the annual MDBC Innovation & Sustainability Awards, the budget briefing by KPMG, and info...

Profile for mdbc
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