Malaysia My Second Home (MM2H) Program: A Comprehensive Guide for Expats to Live in Malaysia

The Malaysia My Second Home (MM2H) program is an attractive initiative by the Malaysian government designed to invite foreigners to live and invest in Malaysia. In 2024, the MM2H Malaysia program has been reintroduced with a three-tiered system, offering flexible options to cater to different financial and personal needs. This article covers the latest MM2H news, including the new MM2H requirements 2024.

What is MM2H?

The Malaysia My Second Home (MM2H) program is an initiative by the Malaysian government to attract foreigners to live and invest in Malaysia. It offers a renewable, multiple-entry visa that allows foreigners to stay in Malaysia for an extended period. Introduced in 2002, the program aims to boost Malaysia's tourism sector, real estate market, and overall economy through foreign investment and residency.

MM2H Requirements

The requirements for the MM2H program have evolved over the years, reflecting the Malaysian government's changing priorities and economic conditions. As of 2024, the primary requirements for MM2H applicants are as follows:

Age and Financial Requirements:

• Applicants below 50 years old must have a minimum of RM 1.5 million in liquid assets and a monthly offshore income of at least RM 40,000.
• Applicants aged 50 and above must have a minimum of RM 1 million in liquid assets and a monthly offshore income of at least RM 10,000.

Fixed Deposit Requirement:

• Successful applicants under 50 must open a fixed deposit account in Malaysia with a minimum of RM 1 million. They can withdraw up to RM 500,000 for approved expenses after one year.
• Applicants 50 and above need to place a fixed deposit of RM 500,000, with the option to withdraw up to RM 250,000 after one year for approved expenses.

Medical Insurance:

Applicants must possess a valid medical insurance policy from any insurance company that covers their stay in Malaysia.

Health Screening:

Applicants must undergo a medical examination in Malaysia and be certified free from serious diseases.

Police Clearance:

Applicants must provide a police clearance certificate from their home country, proving they have no criminal record.

Terms and Conditions

The MM2H program comes with specific terms and conditions designed to ensure that participants can contribute positively to Malaysian society and economy:

• Visa Duration: The MM2H visa is typically granted for a period of 10 years and is renewable, provided that the participant continues to meet the program's requirements.
• Dependents: The program allows applicants to bring their spouse and children under 21 years old as dependents.
• Employment and Business: MM2H visa holders are generally not allowed to work in Malaysia. However, they can invest and own businesses, provided they do not actively participate in the day-to-day operations.
• Property Purchase: MM2H participants are encouraged to invest in the Malaysian real estate market, subject to state regulations on foreign property ownership.

Latest News on MM2H 2024

Recent updates to the MM2H program have garnered significant attention. In 2021, the Malaysian government announced stricter requirements to enhance the quality and security of applicants. These changes have debates among expats in Malaysia and potential applicants.

In response to feedback from various stakeholders, the MM2H requirements for 2024 have seen some adjustments. These changes aim to balance the program's attractiveness to foreign nationals while ensuring that it continues to benefit Malaysia's economy and society.

Understanding the Three-Tiered System

The latest guidelines, approved by the Cabinet, require applicants to place at least USD 150,000 into a fixed deposit account, which works out to about RM 700,000 and to qualify for the new MM2H visa, applicants are now required to buy a property in Malaysia worth between RM 600,000 and RM 2 million, depending on which visa category they apply for.

The MM2H program now includes three tiers, each with specific fixed deposit requirements:

Platinum Tier 

• Requires a fixed deposit of USD 1,000,000 (approximately RM 4.7 million). This option is ideal for those seeking a long-term visa and are willing to make a significant investment.
• Extended visa duration for 20-year visa

Gold Tier

• Requires a fixed deposit of USD 500,000 (approximately RM 2.35 million). It provides a middle ground between investment amount and visa benefits.
• Extended visa duration for 15-year visa

Silver Tier

• Requires a fixed deposit of USD 150,000 (approximately RM 705,000). This tier offers the most accessible entry point for those interested in living in Malaysia with a lower investment.
• Extended visa duration for 5-year visa

This tiered structure replaces the previous requirement for a uniform fixed deposit of RM 1,000,000, offering more flexibility and choice for participants.

No More Offshore Income Requirement

A significant change in the 2024 MM2H program is the removal of the offshore income requirement, which previously mandated a monthly offshore income of RM 40,000. This change broadens access to the program for various individuals, including retirees and those with diverse income streams.

Expanded Dependent Eligibility

The MM2H program now allows more family members to join the primary applicant in Malaysia, including:

• Unmarried children aged 21 to 34
• Parents and parents-in-law

This expansion supports family-oriented applicants and provides greater flexibility for family living arrangements.

Financial Requirements

The program has also eliminated the need for a minimum of RM 1.5 million in liquid assets, making it easier for more individuals to qualify.

The Affordable Special Economic/Financial Zone Option

Many people believe the revamped MM2H program is primarily for attracting affluent expats in Malaysia to boost the country's high-end property segment. However, the program also offers a more affordable option through the Special Economic/Financial Zone category, designed to accommodate those seeking a lower-cost entry.

For foreigners over 50, this package provides a pathway to residing in Malaysia without breaking the bank. Here's how you can get started:

Engage a Licensed MM2H Agency

Begin by finding a licensed MM2H agency to assist with document submission as per the Ministry of Tourism, Arts, and Culture (Motac) guidelines. According to consultants, the application process typically takes three to four months for approval.

Open a Bank Account

Once approved, applicants must travel to Malaysia and open a bank account with a fixed deposit of USD 32,000 (approximately RM 151,000).

Property Purchase Requirement

Within one year, purchase property in a designated special economic or financial zone, such as the Forest City enclave in Johor Baru, where properties can be found for as low as RM 320,000.

Financial Considerations and Returns

Applicants should also be aware of additional costs:

• Participation Fee: RM 1,000 for joining the program
• Security Bond: RM 200 to RM 2,000, depending on nationality
• Mandatory Medical Examination: Required to ensure health suitability
• Consultation Fee: A fixed RM 40,000 fee by licensed MM2H agencies to prevent overcharging and scams

After purchasing property, applicants can withdraw 50% of their fixed deposit. The remaining 50% stays in the bank until the visa's expiration, but applicants earn annual interest of 3.5% to 3.8%.

For example, a deposit of RM 151,000 could yield an annual interest income of around RM 2,642.

Advantage vs Disadvantage of MM2H

Benefits of MM2H

The MM2H program offers numerous benefits to participants, including:

• Long-term Residency: The ability to live in Malaysia for an extended period with the option to renew the visa.
• High Quality of Life: Malaysia boasts a low cost of living, excellent healthcare facilities, and a diverse cultural landscape.
• Strategic Location: Malaysia's strategic location in Southeast Asia provides easy access to other major Asian cities.

Potential Drawbacks and Assurances of MM2H

Despite its advantages, the MM2H program has some drawbacks:

• Mandatory Property Purchase: This requirement may deter individuals who prefer renting, which is common in some societies.
• Participation Fee Disparities: The large fee difference between tiers—RM 200,000 for Platinum and RM 3,000 for Gold and RM 1,000 for Silver raises questions about fairness, even if Platinum participants can work and invest.
• Property Holding Period: The 10-year holding period for property seems inconsistent with the five-year MM2H pass for the Silver tier.

However, the Minister of Tourism, Arts, and Culture assures that the three-tier system targets high-net-worth individuals and digital nomads, with no expected changes despite potential government or ministerial shifts. The MM2H program aims to regain momentum lost during its temporary freeze in August 2020, when it was reviewed and updated with new terms, resuming in October 2021. Notably, this program is exclusive to West Malaysia, as Sabah and Sarawak have separate MM2H schemes.

Application Process

The application process for MM2H involves several steps, including the submission of required documents, health screening, and the opening of a fixed deposit account. Applicants are advised to consult with licensed MM2H agents or legal advisors to ensure a smooth application process.

The MM2H program continues to be a valuable opportunity for expats in Malaysia looking for a long-term residency option. The MM2H 2024 program also offers diverse options to cater to different financial capabilities, encouraging more people to consider Malaysia as their second home. With the government ensuring stability and addressing past challenges, the program stands to attract a broader audience while boosting Malaysia's economy and property market.

 

Relevant Article:

• What are The Cheapest Places to Live in Malaysia for Expats?
• Moving to Malaysia- A Complete 2024 Guide on How to Immigrate to Malaysia.
• Top 14 Johor Bahru International Schools in 2024