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,Malaysia Digital Economy Corp (MDEC) chief executive officer Mahadhir Aziz told StarBiz that the new initiative would accelerate the nation’s digital economy and create substantial digital economic spill-over via equitable access to digital tools, knowledge, and income opportunities.

PETALING JAYA: The digital economy is set to get a boost when the Multimedia Super Corridor (MSC) status companies, which have been operating since 1996, transition to Malaysia Digital (MD) status companies.

The transition is set to take effect either by the end of the month or by next month.

MD is the enhanced and revamped initiative to succeed MSC Malaysia, which has been operating for 26 years.

Malaysia Digital Economy Corp (MDEC) chief executive officer Mahadhir Aziz told StarBiz that the new initiative would accelerate the nation’s digital economy and create substantial digital economic spill-over via equitable access to digital tools, knowledge, and income opportunities.

It would also stimulate, spur, and promote digital economic opportunities and activities throughout the country in attracting high-value investments, he said.

MDEC is the agency which oversees MSC Malaysia.

“Malaysia Digital’s new framework will see – among other improvements – a refresh of the bill of guarantees, non-location-based incentives, and an expansion of locations for promoted activities.

“Among the initial impetus and support programmes is DE Rantau that aims to establish Malaysia as the preferred Digital Nomad Hub by boosting digital adoption and promoting digital professional mobility across the country.

“The other programme is the Malaysia Digital Trade that aims to capitalise on immense opportunities in digitalisation that has been accelerated by the Covid-19 pandemic. This programme will drive interoperability and greater harmonisation of standards and regulatory approaches and facilitate trade within the country and across borders,” he said.Upon the launching of the MD initiative, there would be only one status – MD – that supersedes the existing MSC status.

The existing MSC status and benefits would continue to subsist, subject to compliance of existing conditions by the companies, institutes of higher learning or incubators.

He said the MD companies would soon have the flexibility to choose the benefits (with or without tax incentives) with applicable conditions with further details to be announced soon.

The existing companies are not required to reapply, noting that MD would be implied to existing MSC companies.

Since 1996, MDEC – through the MSC Malaysia initiative – has attracted 2,794 active MSC-status companies. As of December 2020, they have collectively brought in RM384bil worth of investments, creating 184,030 jobs, and totalling up to RM588bil in revenue generated.

On how the MD initiative would transform the nation’s digital economy, Mahadhir said digital economy is an important contributor to gross domestic product (GDP), adding that currently, it contributes 22.6% to GDP and is expected to rise to 25.5% by 2025.

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