Sam Choong

MM2H Malaysia My Second Home

In all my years of sharing advice on the Malaysia My Second Home (MM2H) programme, I have often encountered the same questions from individuals like you who might be considering MM2H.  This is why I have compiled these FAQs to help you make up your mind.  Read on to find out more about Malaysia My Second Home and whether you meet its eligibility criteria.

  • What is MM2H?

 In a nutshell, MM2H is a long-term visa which allows the successful applicant, their spouse, children under 35 years, and parents above 60 years, the right to remain up to five years (renewable for a further 5 years) in Malaysia with the right for multiple entries and exits from Malaysia. It is open to all foreign citizens — aged 35 years and above — from countries that are formally recognized by Malaysia. MM2H is overseen by the Home Ministry (Immigration Department).

 

 

  • Do I need Malaysia My Second Home to purchase a property in Malaysia?

No, you don’t. Not unless you want to benefit from the lower purchase threshold on properties in certain states. Foreigners can purchase property subject to the land/property guidelines of the State in which the property is located without MM2H. Please note that foreigners need to obtain the consent of the State in which the property they are purchasing is located before they can complete the purchase.  Each State government in Malaysia has jurisdiction so expect the land laws in each State to vary. You are therefore advised to seek legal advice before signing any documents and/or placing any deposits/earnest monies. You can email us at [email protected] or leave your details below in the contact form if you require more information on this.

 

3) How do I qualify for Malaysia My Second Home?

You need to be 35 years and above and demonstrate that you have the financial means to live in Malaysia.  The summary of the MM2H qualification criteria can be divided into the following stages:

  1. The Application Stage
  2. The Post Approval Stage
  3. Miscellaneous Important Information

 

  1. APPLICATION STAGE – What are the requirements?

 

What do you need to qualify? As with most countries, our authorities seek applicants who are financially capable of looking after themselves as well as contributing to our country.

  1. PROOF OF FUNDS:
  2. Income

The applicant needs to show income of at least RM40,000 (or its equivalent in the relevant foreign currency of the applicant) per month. Bank statements for the 3 months prior to submission of the application are required as proof. Items such as salary, property rental, fixed deposit interest, and annuities made out into the name of the applicant can be considered income. Income from the applicant’s spouse can also be taken into account for 30% of the income requirement.

 

  1. Liquid Assets

In addition to showing proof of income of at least RM40,000 per month, the applicant is required to show they have liquid assets of RM1,500,000 (or its equivalent in the relevant foreign currency of the applicant). Bank statements for the 3 months prior to submission of the application are required as proof.

 

  1. LOGC

This is the letter of good conduct which is typically obtained from the authorities such as the police in the applicant’s country of residence. As the name suggests, this serves to show that an applicant is a person of good standing.

 

 

  1. POST APPROVAL STAGE – What are the requirements?

 

  1. FIXED DEPOSIT

Place a fixed deposit in the amount of RM1,000,000 for the duration of the MM2H Visa. For those applying with family who are below 50 years of age, an additional RM50,000 per dependent is required to be placed into the fixed deposit account. Age has its privileges in Malaysia — applicants who are 50 years and above, and who are applying with family do not need to top up their fixed deposit.

 

An amount up to RM500,000 can later be withdrawn for purposes such as property purchase, and medical or education expenses in Malaysia.

 

  1. SECURITY BOND

This ranges from RM200 to RM2,000 depending on your nationality and is paid to the Immigration Department as security.

 

  1. MEDICAL

A medical check-up with a doctor in Malaysia is a pre-requisite for a passport endorsement.

 

 

4) Can I withdraw the fixed deposit under Malaysia My Second Home lien?

As a general rule, the fixed deposit should not be withdrawn until the termination of the MM2H permit. However, one year from the endorsement of the visa onto the passport, an amount up to RM500,000 can later be withdrawn for purposes such as property purchase, and medical or education expenses in Malaysia.

 

5) How long does the Malaysia My Second Home application process take?

Upon the submission of a complete application, a decision is given in approximately 3 to 4 months.

 

6) What are the benefits of Malaysia My Second Home?

There are multiple benefits for the Malaysia My Second Home programme.

 

 Purchase of residential property at a lower financial threshold

Foreigners are generally only permitted to purchase certain types of higher-end properties (usually foreigners are allowed to purchase properties with a value of RM1,000,000 and above). In certain states, the financial threshold is lowered for MM2H visa holders. An application to the State Authority is, however, still required for purchase by foreigners. Malaysia has clear laws on property ownership and is one of the few countries in the region that allows foreigners to own freehold landed properties. Please take note that Malaysia is a federation of states and each state has their own autonomous guidelines, so check with your legal adviser, or contact us before committing to a purchase to avoid any legal issues. You can email us at [email protected] or leave your details below in the contact form if you require more information personal to your situation.

 

Family

Dependents such as your spouse, your common-law wife, parents, or parents-in-law, single children under 35 years, or disabled children regardless of age, can join. The revamped guidelines are not all doom and gloom. Granted, the financial threshold has increased from the previous ones but fortunately, this comes with a wider class of dependents who can join.

 

Tax

Malaysia has a source-based or territorial taxation system. At the moment any income derived from abroad is not subject to tax.

 

Tax Identification Number or TIN

Foreigners who stay more than 182 days or own properties can apply for a TIN registration.

 

Lifestyle

Malaysia offers a safe and welcoming environment where a low cost of living, good schools, and world-class medical care (a significant number of our doctors and professionals are trained in the UK, USA, Australia, and Hong Kong) are pull factors. Most of my clients tell me that Malaysians are generally warm and hospitable, especially to foreigners. Some may say we are disorganized, sometimes unreliable, have a dysfunctional government, tardy, and breakers of the occasional rules.  I will concede that these may have a degree of validity, but the consensus amongst my foreign clients is that we are generally a welcoming bunch, to give credit where credit is due. I believe Malaysia’s USP for foreigners is that it’s much easier to make lifelong friends in Malaysia, not only with other expatriates but also with my fellow Malaysians.  

 

 

7) What are the limitations of MM2H?

 

Minimum stay requirement of 90 days for the main applicant

Although this can be cumulative over 5 years, it may present a problem for some applicants who need to spend time elsewhere for whatever reasons. We are inserting a proviso here because these are new guidelines, and we believe our interpretation of the minimum stay requirement is correct at the time of writing. We will come back to update this section if there are any developments.

 

Higher financial threshold as compared to Sarawak MM2H

You are not allowed to work but you can set up a company in Malaysia as an investor and reap your profits by way of a shareholders’ dividend. If you wish to work, there are various other visas you can consider.

8) What happens when a Malaysia My Second Home participant passes away?

If an MM2H participant passes away and his/her spouse wishes to stay in Malaysia, they must apply to the MM2H department and request to be named as the main participant. The fixed deposit must also be changed into his/her name upon approval. It is likely the spouse is required to show the same financial means by which the main applicant was approved.

If the spouse does not intend to stay in the country, then the executor or administrator can request to have the MM2H visa terminated. Two letters will then be issued — one to the immigration authorities seeking termination of the MM2H visa and one to the bank, asking to release the fixed deposit.

Of course, having a will made in Malaysia helps this process immensely.

 

9) Can I work if I have MM2H?

Yes, once the applicant obtains his MM2H visa, his employer can apply for him to carry out part-time work in Malaysia.

 

10) What is a Letter of Good Conduct (LOGC)?

This is the letter of good conduct which is typically obtained from the authorities such as the police in the applicant’s country of residence. As the name suggests, this serves to show that an applicant is a person of good standing.

 

Got more questions? Leave your details below and we will get back to you on your questions.

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