ICT License in Malaysia: Eligibility & How to Apply?

4 min read|Last Updated: April 19, 2024|

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. Since its establishment in 1994, NITC has heralded Malaysia as a global ICT hub, thanks to the Multimedia Super Corridor (MSC) flagship project, along with other developments in the country such as:

  • The computerisation of ministries and agencies
  • Ongoing upgrades of the country’s telecommunications and IT infrastructure
  • The MSC Net Leap program which was introduced during the 9th Malaysia Plan between 2006 to 2010, which boosted the growth of cyber cities and centres throughout the country.
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There is already an impressive list of multinational companies since its establishment 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:

  • Network Facilities Providers – This includes network facilities such as satellite earth stations, broadband fibre optic cables, telecommunications lines and exchanges, radio communications transmission equipment, mobile communications base stations and broadcasting transmission towers and equipment.
  • Network Service Providers – This includes basic connectivity and bandwidth to support a variety of applications.
  • Application Service Providers – This includes those who provide functions such as voice services, data services, content-based services and electronic commerce.
  • Content Application Service Providers – Involves a special subset of applications service providers including traditional broadcast services and newer services such as online publishing and information services.

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:

  • Individual license – For close monitoring and control of activities
  • Class license – A “light-handed’ form of regulation which is designed to promote industry growth and development by removing unnecessary regulatory barriers.

ICT License Eligibility in Malaysia

To be eligible to apply for an Individual License, you must be classified as:

  • A foreign company as defined under the Companies Act 1965
  • An individual or a sole proprietorship
  • A partnership
  • Such other persons or classes of persons as may be decided by the Minister from time to time.

To be eligible to apply for a Class License, you must be classified as:

  • A foreign individual who is not a permanent resident
  • A foreign company as defined under the Companies Act 1965

How to Apply for ICT License in Malaysia?

To apply for an Individual License, you must submit the following documentation to the MCMC:

  • A duly completed Form A together with an application fee of RM10,000.00
  • Documentation details are required on a checklist available on the MCMC’s website
  • Additional information or documents as may be requested by MCMC

All recommendations must be processed within 60 days of receiving the needed information. The MCMC will then make a recommendation to the Minister. If accepted, the Minister will grant the license. If your application is rejected, the MCMC will inform you and provide a reason in writing.

To apply for a Class License, you must submit the following documentation to the MCMC:

  • A duly completed Form D
  • A registration fee of RM2,500.00
  • Additional information or documents as may be requested by MCMC

For more information about the licensing requirements and how the MCMC evaluates applications, refer to their Licensing Guidebook.

ICT Opportunities

Cybersecurity

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.

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FAQs

How long does it take to secure all business licenses?2024-03-15T17:21:38+08:00

This is dependent on several factors, but most businesses have managed to secure their licenses within 14 working days.

Do you need a business license to incorporate?2024-03-15T17:21:51+08:00

No, but business licenses are needed to operate legally.

Are Business Licenses from Malaysia also valid in other Countries?2024-03-15T17:22:07+08:00

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.

What is a DP10 Work Permit?2024-03-15T17:22:23+08:00

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.

What are the Primary purposes of SSM?2024-03-15T17:22:34+08:00

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.

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