Deputy minister of energy, communications and multimedia Chan Kong Choy was quoted as saying in parliament that the 179 companies would invest a total of 4.5 billion ringgit ($1.2 billion) over a five-year period.

Chan was also quoted as saying companies given MSC status would not be subject to capital controls imposed by the government in September.

The MSC is a 15-by-50 km (nine-by-31 mile) zone south of the capital Kuala Lumpur where Malaysia hopes high technology companies will establish offices.

Malaysia is offering tax holidays and 100 per cent equity stakes for foreign companies based in the corridor.

Chan said the 4.5 billion ringgit investments would be in fields such as computer software, telecommunications and electronic equipment development.

He said the construction of the MSC was on schedule with 19 companies having set upoffice at the MSC's headquarters of Cyberjaya while phase one of the Multimedia University would be completed early next year.

Chan said the foreign companies came from Europe, the United States, Canada and Japan.