Companies no longer need to be located at Multimedia Super Corridor (MSC) Malaysia-designated cyber centres or cyber cities to enjoy the associated tax benefits, said Dr V. Sivapalan, the policy institute director of Technopreneurs Association of Malaysia (TeAM) on his Facebook page.
He added that TeAM had been lobbying the MSC for this initiative for the last few years
The MSC Malaysia Status entitles companies to a set of incentives, rights and privileges from the Government called the MSC Malaysia Bill of Guarantees. This includes pioneer status tax exemptions of up to 10 years.
However, he said that with the new ruling, the tax exemption benefit will only be 70% of a company's revenue, compared to the 100% tax exemption enjoyed by companies located within the previously designated cyber centres and cyber cities in the Klang Valley, Kedah, Penang, Melaka, Johor, Perak and Pahang.
“But I think 90% of companies at the early stages are not profitable anyway and companies can always relocate if they are profitable and need the exemption,” he remarked.
It was not clear whether this new initiative will only be for new MSC companies or all new companies. The guardian of the MSC, the Multimedia Development Corporation declined to comment when contacted but said that details would be revealed next week.The MSC began in Cyberjaya in 1996 before expanding to other areas.
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