What is Malaysia's Multimedia Super Corridor (MSC)?

The Multimedia Super Corridor (MSC) is a brainchild of Malaysia's Prime Minister (then), Datuk Seri Dr. Mahathir Mohamad, envisioned to jumpstart the development of technology in the country. Physically, the MSC initially is a 15km by 50km band reaching from Kuala Lumpur City Centre (KLCC) to Kuala Lumpur International Airport (KLIA).

The MSC is devoted to creating the best possible environment for multimedia companies wanting to create, distribute and employ multimedia products and services. It brings together four (4) key elements:

1.  Best possible physical infrastructure.

2.  New policies and "cyber laws" to facilitate multimedia.

3.  High capacity global telecommunications and logistics infrastructure.

4.  Multimedia Development Corporation (MDeC), a high powered one-stop corporation to manage and market MSC.

Seven (7) flagship applications have been identified to spearhead the development of MSC:

1.  Electronic government

2.  Telemedicine

3.  Smart Schools

4.  Multi-purpose card

5.  R&D clusters

6.  Worldwide manufacturing webs

7.  Borderless marketing

The Multimedia Development Corporation (MDeC) acts as promoter and faciliatator for companies interested in setting up operations in MSC. It will provide information and advice on the MSC, assist in expediting permit and license approvals, as well as introduce companies to potential local partners and financiers. The MDeC supports a 30-day turnaround period in processing applications and will assist companies through the application process.

Companies interested in applying for the MSC Status need to fulfill three (3) key criteria:

1.  They must be a provider or heavy user of multimedia products and services.

2.  They must employ a substantial number of knowledge workers.

3.  They should be able to outline how it will transfer technology and/or knowledge to Malaysia, or otherwise contribute to the development of the MSC and the Malaysian economy.

MSC-status companies enjoy financial and non-financial incentives and other benefits:

Financial Incentives 

Companies will enjoy a five-year exemption from Malaysian income tax, which is renewable to ten years, or a 100% Investment Tax Allowance on new investments. They will also enjoy duty-free importation of multimedia equipment as well as R&D grants for local enterprises.

Non-financial Incentives  

Besides financial incentives, companies enjoy unrestricted employment of foreign knowledge workers, freedom of ownership and freedom to source capital globally for MSC infrastructure. 

Other Benefits 

The MSC also promises intellectual property protection and the world's first comprehensive framework of cyberlaws. World-class physical and IT infrastructure is prepared at Cyberjaya, together with globally competitive telecommunication tariffs and service guarantees.

Besides all the above, the Malaysian government has confirmed the following benefits for MSC companies:

• No censorship on the internet

• High quality, planned urban development

• Excellent educational facilities

• Green environment protected by strict zoning