Operational Head Quarter (OHQ) incentives has earlier been mentioned in an earlier article.

Reported in the Edge Malaysia 13/10/06, Global consulting company Frost & Sullivan has announced to set up a third global innovation centre in Malaysia so as to expand in the Asia-Pacific region. Frost & Sullivan further mentioned the important of getting the MSC Malaysia-status accredition.

So what is this MSC accreditation about?

For those who are familiar with the MSC development, it has numerous tax incentives packages lined up to attract foreign investors to set up base in Malaysia.

A little bit of the background of MSC:

Location & Date Launched:

• The MSC measuring 15 kilometres wide and 50 kilometres long starts from the Kuala Lumpur City Centre (KLCC) and extends down sourth to the site of the region’s largest international airport, the Kuala Lumpur International Airport (KLIA);

• It was launched on 27 th June 1998;

• Incidentally, two of the world’s first Smart Cities, Putrajaya and Cyberjaya are been developed in the Corridor.

• Putrajaya is the location for the government and administrative capital of Malaysia where the concept of electronic government will be launched.

• Cyberjaya is an intelligent city with multimedia industries, R & D centres, a multimedia university, shared services and outsourcing centres and operational headquarters for multinational companies wishing to direct their worldwide manufacturing and trading activities using multimedia technology. Cyberjaya has been designed as the national ICT capital.

• The MSC designated areas are demarcated into two distinct categories:

MSC Cybercity

- a self-contained intelligent city with world-class business and living environment offering the 10-point MSC Bill of Guarantees (BOGs). They are Cyberjaya, Technology Park Malaysia, Universiti Putra Malaysia-Malaysia Technology Development Corporation (UPM-MTDC), Kuala Lumpur City Centre, Kuala Lumpur Tower, Penang Cybercity 1 and Kulim High Tech Park.

MSC Cybercentre

- a building or complex with basic enabling environment offering partial BOGs like Kuala Lumpur Sentral and Melaka International Trade Centre. Take note that MSC status companies now have the option to locate in an MSC Cybercentre but will only be eligible for benefits conferred by some parts of the BOGs.

• The 10-point MSC Bill of Guarantees (BOGs) are:

· World class physical and information infrastructure,

· Unrestricted employment of knowledge workers

· Freedom of ownership

· Freedom of sourcing capital globally for MSC infrastructure and borrowing funds

· Competitive financial incentives including no income tax or an investment tax allowance for up to 10 years and no duties on import of multimedia equipment

· Regional leader in IP protection and cyber laws

· No censoring of Internet

· Globally competitive telecoms tariffs

· Tender key MSC infrastructure contracts to leading companies willing to use MSC as their regional hub

· High powered implementation agency to act as an effective one-stop super shop.

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