In the 11th Malaysia Plan, which is running from 2016 to 2020, the Malaysian government is focused on increasing its ICT contributions towards the country’s GDP. Malaysia aspires to become a developed nation come 2025, and it is the ICT sector that is projected to help make this happen.
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.
How to Apply for An ICT License in Malaysia
If you intend to setup a company in Malaysia which 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), licences 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
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:
Apply for ICT License 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 required on a checklist available at the MCMC’s website
Additional information or document as may be requested by 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.