When you appoint a contractor for an office renovation, a licence from the right authority does not guarantee a perfect result. It does tell you that the company has been checked against a standard, and that it has to keep meeting that standard to keep the licence. Credentials in the technology industry work in a similar way, and Malaysia Digital (MD) Status is one of the most widely recognised in Malaysia.
In short, MD Status is awarded by the Government of Malaysia, through MDEC, to companies that carry out approved digital activities in Malaysia. It replaced MSC Malaysia status, the older scheme, in 2022. Valse Technologies was awarded MD Status in 2025. Here is what the status requires, what it tells you about a technology partner, and what it does not.
What Is an MD Status Company in Malaysia?
An MD Status company is a company awarded Malaysia Digital (MD) Status by MDEC, on behalf of the Government of Malaysia, because it carries out approved digital activities in Malaysia with its own team. The status comes with incentives under the MD Bill of Guarantees, and the company reports to MDEC every year to keep it.
Key Points
- MD Status is awarded by MDEC to companies that carry out approved digital activities in Malaysia.
- Malaysia Digital replaced MSC Malaysia in 2022, and new awards are made as MD Status.
- An MD Status company carries out its approved activities itself, in Malaysia, and reports to MDEC every year.
- Valse was awarded MD Status in 2025.
From MSC Malaysia to Malaysia Digital
MSC Malaysia was introduced in 1996 to build Malaysia's digital economy, with technology companies concentrated in designated corridors. In 2022, MDEC (the Malaysia Digital Economy Corporation) rebranded the initiative as Malaysia Digital, to drive digital growth across the whole country and its economy.
Under Malaysia Digital, MDEC awards MD Status to eligible companies that carry out approved digital activities. The status gives those companies a set of incentives, rights and privileges from the Government, known as the MD Bill of Guarantees, subject to the conditions of the status.
What MD Status Requires
According to MDEC's guidelines on Malaysia Digital Status, a company must meet several conditions to receive the status and keep it:
- It is incorporated under the Companies Act 2016 and resident in Malaysia.
- It carries out one or more approved digital activities in Malaysia.
- It employs knowledge workers for those activities.
- It carries out its approved activities itself. The guidelines do not permit outsourcing the core of those activities to third parties.
- It reports to MDEC every year, and the status may be revoked if its conditions are not met.
The guidelines are updated from time to time, so check MDEC's current version for the full and latest conditions.
What It Tells You About a Technology Partner
For a business choosing a technology partner, MD Status says three useful things about a company:
- The work is done in Malaysia, by the company itself. Its approved digital activities are carried out by its own team, here.
- It has been assessed. MDEC reviewed the company and its activities before awarding the status.
- It is accountable over time. The company reports every year and has to keep meeting the conditions.
What MD Status does not tell you is whether a company is the right fit for your business. A credential is a starting point. You still need to see relevant work, understand how the project will be run, and know what happens after launch. We explain how to assess those points in our guide to choosing a web design company in Malaysia.
Questions to Ask Alongside Any Credential
- Who will actually build and support the system, and are they part of the company's own team?
- Can you see work for a business of a similar size or industry?
- Who will own the domain, the code and the data once the project is complete?
- What support is provided after launch, and how quickly are problems answered?
A good partner answers each of these clearly, and is comfortable putting the answers in writing.
Our MD Status at Valse
Valse Technologies was awarded MD Status by MDEC in 2025. As an MD Status company, we carry out our approved digital activities ourselves, in Malaysia, and report to MDEC every year. Alongside MD Status, we are a MYNIC accredited registrar for .my domains and a member of KAIN (Konsortium AI Negara). You can read more about how we build on our digital platform development page.
Looking for a technology partner and want a clear starting point? Take the free RIDE Digital Scorecard, or talk to us today.