Before incorporating a company in the ICT industry in Malaysia, here is some useful information for you to know.
Overview of Malaysia’s ICT Industry
In Malaysia, it is the National Information Technology Council (NITC) that acts as the main advisor to the government on all matters related to Information and Communications Technology (ICT) in the country. NITC was established back in 1994. Ever since then, Malaysia has been heralded as a global ICT hub, thanks to the Multimedia Super Corridor (MSC) flagship project, along with other developments in the country such as:
There is already an impressive list of multinational companies established in Malaysia, including the likes of IBM, CISCO Systems, Accenture, CSC Malaysia, Hewlett-Packard, Hitachi, Oracle Corporation and more. Indeed, the ICT industry in Malaysia has plenty of opportunities, which makes it a good time to start thinking about incorporating an ICT company.
What are the 4 ICT License Activities in Malaysia?
If you intend to set up a company in Malaysia that provides services and facilities in the ICT sector must lodge an application with the Malaysia Communications and Multimedia Commission (MCMC).
Under the licensing provisions outline in the Communications and Multimedia Act 1998 (CMA), licenses under the CMA are aimed at being both technology and service neutral. The CMA has classified four categories of licensing activities, which are:
Next, we will look at the types of licenses you will need, along with the license application procedure. Now, within these four activity categories, there are two types of licenses available:
ICT License Eligibility in Malaysia
To be eligible to apply for an Individual License, you must be classified as:
To be eligible to apply for a Class License, you must be classified as:
How to Apply for ICT License in Malaysia?
To apply for an Individual License, you must submit the following documentation to the MCMC:
All recommendations shall be processed within 60 days of receiving the required information. A recommendation will then be made to the Minister. If accepted, the Minister will grant the license. If your application is rejected, you will be informed and a reason will be given in writing.
To apply for a Class License, you must submit the following documentation to the MCMC:
For more information related to the licensing requirements and how applications are evaluated by the MCMC, refer to their Licensing Guidebook.
The Malaysian government is committed to ensuring a safe and secure cyberspace by reinforcing the country’s cyber security capabilities on all fronts. They launched the Malaysia Cyber Security Strategy (MCSS) 2020-2024, allocating a total of US$434 million to increase national cybersecurity preparedness and upgrade the country’s cybersecurity measures. Cybersecurity is important and crucial in keeping organizations safe as we move toward digitalization.
Smart City Technology
Another significant opportunity lies in the development of Smart Cities. Smart and Sustainable Solutions, Smart Planning, and Smart Infrastructure and Technologies are the three main pillars of Smart Cities. These are essential initiatives by the Malaysian government, incorporating various leading industry sectors such as ICT, Healthcare, Energy, Environment, and Infrastructure.
This is dependent on several factors, but most businesses have managed to secure their licenses within 14 working days.
No, but business licenses are needed to operate legally.
Business licenses issued in Malaysia only pertain to businesses which have been set up there. Therefore, such licenses are not valid in countries other than Malaysia.
In Malaysia, a DP10 work permit is also known as a Professional Work Permit Visa. It is valid for two years but can have its validity extended by up to 10 years. It is meant for foreigners deemed to be skilled workers.
SSM was established in 2002. It is a statutory body that functions under the auspices of the Malaysian government. Its primary purposes are those of assisting in company incorporation and business registration as well as providing information about companies and businesses in Malaysia to the public.