MALAYSIA DIGITAL ECONOMY CORPORATION - A Growth Hub

Malaysia Digital Economy Corporation (MDEC), a government agency under the purview of the Ministry of Communications and Digital, was established in 1996 to lead Malaysia’s digital economy. Beginning with the implementation of the MSC Malaysia initiative, we have since then catalysed digital transformation and growth all over the nation. By offering greater incentives and governance for growth and re-investment, we aspire to bolster Malaysia’s status as the digital hub of ASEAN, opening new doors and driving shared prosperity for all Malaysians.

Malaysia’s central geographical location in ASEAN, its young & digitally-savvy population, multicultural & multilingual tapestry, easy access to capital & regional markets, ease of doing business, certainty of business operating environment and legal system, comparative value and high standard of living, makes it the natural choice to land and grow your digital business here

MDEC Mission "Our vision?is for Malaysia to be the preferred hub for world class digital businesses and talents. Our mission?is to drive the digital economy through catalytic high-impact initiatives, strategic and sustainable investments, and inclusive policies".

Malaysia Digital is a national strategic initiative by the Malaysian Government to encourage and attract companies, talents and investment while enabling Malaysian businesses and Rakyat to play a leading part in the global digital revolution and digital economy.

MORE THAN 20 YEARS OF NATION BUILDING: The corporation was officially launched by the then?Prime Minister Tun Dr.?Mahathir Mohamad on 1st August 1996. They were established to strategically advise the Malaysian Government on legislation, policies and standards for ICT and multimedia operations

What is Malaysia Digital Status?

The Malaysian Government, through MDEC, will award Malaysia Digital Status to eligible companies to participate and undertake any of Malaysia Digital’s activities.

Malaysia Digital Status companies will be offered to a set of incentives, rights and privileges from the Government, subject to necessary approvals, compliance of applicable conditions, laws and regulations.With greater flexibility and agility in our offerings, Malaysia Digital Status companies can operate, grow, expand, or invest anywhere in Malaysia.

Energising the Nation’s Digital Economy

Malaysia Digital will continue to drive the nation’s Digital Economy to new heights, built on a foundation that has been laid by MSC Malaysia. With over 2,700 companies and counting, the MSC Status is now known as Malaysia Digital Status.

The Malaysia Digital family is expanding across all sectors of the economy while opening access to exclusive facilitation on relevant offerings to digital companies to be part of the thriving ecosystem

4,726 - Number of awarded MSC Malaysia status companies

2,708 - Number of active MSC Malaysia status companies (as of Dec 2021)

RM430B - Investment recorded as of Dec 2021

RM653B - Revenue generated as of Dec 2021

RM237B - Export generated as of Dec 2021

198,686 - Number of jobs created as of Dec 2021

New Business Opportunities and Growth In A Vibrant Ecosystem : Malaysia Digital will strengthen the digital ecosystem via Malaysia Digital Catalytic Programmes (PEMANGKIN) and targeted digitalisation projects with greater local industry participation via a whole-of-nation approach. Learn how you can be part of this initiative.

Bringing Malaysian SMEs to the next level: Small Medium Enterprise (SMEs) are the key driver of employment and economic growth of Malaysia with almost 99% of total business establishments in Malaysia consisting of SMEs. It is important to enable Malaysian SMEs to move towards digitalisation in order to continue accelerating the Digital Economy.

Performance & Impact: Malaysia’s SME industry has grown substantially over the years. Here are the end-of-the-year figures for 2018.

Pioneering New Paths in the Digital Economy: The greatest innovations can sometimes come from the unlikeliest of places. In this digital age, aspiring entrepreneurs and startups are in a better position to disrupt the industry as technology allows them to rapidly bring their thoughts and ideas to fruition. We believe that entrepreneurs, startups and small-medium enterprises are key to pushing the country’s digital economy to the next level. Our series of initiatives aim to assist these tenacious groups with their endeavours.

Embracing Digital Transformation: As digital disruption continues to transform the business world dramatically, many companies are required to embrace the change or run the risk of being rendered obsolete by the relentless march of technology. In order to help Malaysian companies adapt to this large paradigm shift, we introduced a series of initiatives aimed at assisting companies with their digital transformation journey.

Challenges for Digital Transformation: In order for Malaysia’s digital economy to prosper, Malaysian companies need to adapt to the way technology is changing the rules of business. Here are some of the challenges that Malaysian companies are facing today:

• The perception that Digital Transformation seems fast-paced and complex
• Budget limitations as digital adoption may not be part of their overall strategy
• Lack of structured approach to Digital Transformation
• Shortage of digital professionals to support the journey

SME by Size and Sector : According to the Statistics Department, Malaysia’s small and medium enterprises (SMEs) contribution to the country’s gross domestic product (GDP) rose to 38.3% in 2018 from 37.8% in 2017. It was led by expansion in the services and manufacturing sectors and as SMEs exports grew.

89.2% - Services - 809,126 SMEs on Services Sector

5.3% - Manufacturing - 47,698 SMEs on Manufacturing Sector

4.3% - Construction - 39,158 SMEs on Manufacturing Sector

1.1% - Agriculture - 10,218 SMEs on Manufacturing Sector

0.1% - Mining & Quarrying - 865 SMEs on Manufacturing Sector

Great Initiative: SME Business Digitalisation Grant; 100 Go Digital; SMART Automation Grant (SAG); SME Digital Accelerator; Sharing Economy Business

Pass for New Tech Entrepreneur

1 year Professional Visit Pass- New Entrepreneur

Pass for Experienced Tech Entrepreneur

5 year Resident Pass-Established Entrepreneur

Pass for Tech Investor

5 year Resident Pass-Established Entrepreneur

Well, I have been personally interacted with Malaysia Digital Economy Corporation (MDEC) , I have been reviewing, experiencing the services since 2006 when MDEC was just focusing on bringing new technologies to the country, I know how the transformation were happening, from paper work to digitization when everything was being done through 微软 Excel and 微软 Word for the application and now when digital transformation is at its peak the organisation has great impact on everything. So lovely! Well, the biggest role in the transitions along with MDEC is, The Malaysian Immigration and Ministry of Investment, Trade and Industry (MITI) . Thank you everyone! - Ziaullah Mirza

Land & Expand with MTEP: #MTEP is a specially designed pass to attract tech startup entrepreneur, experience tech entrepreneur and investor to work or invest in tech industries in Malaysia. Malaysia offers 1-year pass for New Entrepreneurs and a 5-year pass for Established Entrepreneurs or Investors along with dependents.

Highlights from Malaysia Digital Economy & Invest KL