National ICT agency Multimedia Development Corporation (MDeC) has launched the MSC (multimedia supercorridor) Malaysia for Startups programme to help open up the global marketplace for local startups.
“The MSC Malaysia for Startups programme is an extended platform in nurturing startups and intended to take them to the next level of growth,” said MDeC chief executive officer Dato ‘ Yasmin Mahmood during the official announcement.
She said that this move has been helped by Malaysian Global Innovation and Creativity Centre (MaGIC) and other major startups ecosystem players such as StartupMalaysia.org, the New Entrepreneurship Foundation (MyNEF), Cradle, Cyberview, National Incubator Network Association (NINA), 500 Startups, Technopreneur Association of Malaysia (TeAM) and Founder Institute (FI).
MSC Malaysia status is a government recognition of world-class service and achievement given through MDeC for ICT and ICT-facilitated businesses, said Yasmin.
“In addition to the specified incentives provided under the BoGs [Bill of Guarantees], MSC Malaysia Status companies also benefit from MSC Malaysia Community ecosystem,” she said. “Benefits include networking opportunities to further business objectives and partnerships, capability building programs to enhance their competitive edge and market access programmes to assist these companies to compete globally.”
Benefits for startups
Yasmin said that ICT companies at different points on the growth cycle have different requirements. The MSC Malaysia status therefore has multi-tiered incentives to help inspire digital entrepreneurs.
The programme also serves as an alternative route for young companies to attain MSC Malaysia Status without being obliged to location requirements. Startups or companies who join this programme will be able to benefit from:
– Flexibility in choosing location of operation
– Ease of hiring foreign talents; can employ up to 20 foreign knowledge workers in key positions.
– Competitive financial incentives; 70 percent tax exemption of statutory income for 5 years
– Other MSC Malaysia Bill of Guarantees (BoGs) specified under this programme
Government agency MaGIC, which has been tasked to develop Malaysia’s startup ecosystem, and is an important partner of the MSC Malaysia Startups programme, she said.
MaGIC’s chief executive officer Cheryl Yeoh said: “When MaGIC had its first entrepreneur’s dialogue in 2014, the MSC status location requirement was one of the issues raised by the startups. This latest development and the additional benefits it offers will definitely boost and increase the number of MSC Malaysia Status startups and help drive the setup of foreign companies here in Malaysia. We at MaGIC are highly supportive of this programme and are proud to work closely with MDeC to promote this initiative to the local startup community.”
“MDeC looks forward to working with MaGIC in implementing this programme. The startups undergoing MaGIC’s entrepreneurship programmes are certainly a good pool of potential MSC Malaysia for Startups candidates. We, at MDeC, intend to assist them further and accelerate their growth to potentially become regional, and eventually global ICT players,” said MDeC’s Yasmin.
Khailee Ng, the investor from 500 Startups and a serial entrepreneur said, “Startups are popping up all across Malaysia, and this is designed specifically to accelerate that! Many of us have been looking forward to this day. Startups who don’t take this up will be missing out on a huge opportunity!”
There are now more than 3,600 MSC Malaysia Status companies across multiple sectors, primarily grouped as creative multimedia, global business services (formerly known as shared services and outsourcing) and information technology (infotech) clusters.
