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The Real Estate Corridor

Posted in Daily Observations, Effective and Efficient, Entrepreneurship, Technology |

MSC Malaysia Status
The MSC Malaysia status is your passport to a host of privileges reserved for ICT and ICT-facilitated business. It is also a mark of world-class service and achievement. Companies with the MSC Malaysia status will benefit from an array of world class facilities and premises that provide just the right environment for a thriving and dynamic global ICT hub for the region.

MSC Malaysia status is awarded to both local and foreign companies that develop or use multimedia technologies to produce or enhance their products and services, and for process development. There are five types of applications available for the MSC Malaysia status.

So what’s wrong with this whole MSC thing? Will world class facilities and premises produce world class IT start-ups and give Malaysian IT companies the edge to compete with the giants of the world?

Ironically, the most profitable business in the MSC area is not ICT-related. It’s real estate.

If you happen to own oil palm lands near the district of Dengkil which is included in the MSC designated zone, you’ve just struck gold. To be eligible for MSC status, you must be located in the MSC zone. The idea of having a company physically there just to obtain the MSC status is totally absurd.

I had the privilige to work for 2 companies that hold MSC status. The first one was run by a team that specializes in getting grants and fundings. Yes, they’re very good with proposals and when they see the ministry of finance giving out so much money to “support ICT projects”, they immediately went to work on their killer proposals. They got the funds but nothing came out of the proposed projects.

The 2nd company I worked for had a more viable business model. In order to comply with the MSC requirement of having a physical office in the MSC designated zones, they rented an office in Cyberjaya. It’s about 1,500 square feet and the company stationed nobody there for the next 4 years. You can’t go wrong with the “MSC Real Estate Scheme”.

And now, they started this I-City thing in Shah Alam, and is inviting companies who wants to setup their MSC offices to consider renting a place there, far away from “civilization”. Now, that’s another up and coming “MSC Real Estate Scheme”.

Why in the world didn’t the MSC Management consider approving areas in Petaling Jaya or Subang where there are already alot of entrepreneurs and infrastructure ready? Whose interest is the MSC really taking care of? The ICT entrepreneur or the oil palm estates owners?

There’s definitely a better way to increase the ICT workforce and talent pool than to cram everyone into high tech oil palm estates.




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  • Pin
    I happen to own one company with MSC status, granted a year ago. As a ICT-based company who run our own online business, physically located in those so-called designated MSC coverage area doesnt seem to provide any advantages to us, except the extra monthly rental we are going to pay with soon.

    Again, the MSC choose to penatize those who refuse to move to MSC area than rewarding or attracting businesses to move there.

    Unless I have a super 5GB fibre optic running beneath i-City, or I don't see any reason it is another real estate corridor.
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