Ever thought of moving to Malaysia or having Malaysia as your second home? Many foreigners have come to Malaysia to live using the Malaysia My Second Home (MM2H) programme.
There are certain requirements, terms, and conditions to be fulfilled by anyone who are interested in the MM2H programme. Let’s take a closer look at them.
What Is the MM2H Programme?
Aimed primarily for foreign retirees and working expatriates who are interested in having Malaysia as their second home, MM2H is a housing programme that allows them to stay in Malaysia on a multiple-entry social visit pass.
This was initiated by the Malaysian government and introduced by the Ministry of Tourism and Culture (MOTAC) for those who wish to start a new life in the country.
One can obtain an MM2H visit pass which will be valid for up to 10 years upon becoming part of the MM2H programme and is renewable once the holder fulfils the renewal requirements after it expires.
The validity period can be extended at any time as long as the owner of the visa possesses the necessary documents as well as the financial ability to pay for them. However, the visa does not confer permanent resident (PR) status; neither does it lead its owner’s receiving PR status in Malaysia.
Economic Effects of the MM2H Programme
From the year MM2H programme was introduced in 2002, to the end of 2018, the scheme has generated a total of RM40.6 billion of revenue for Malaysia. The revenue received are mainly from the following:
- Application and approval fees
- Purchase of property
- Medical treatments
- Bank deposits
- Tourism
- Other purchases
The programme has been able to accelerate the country’s economic growth through revenue collection as well as the purchases of services and objects by foreigners who are part of the MM2H programme.
How Foreigners Can Benefit from the MM2H Programme
There are several benefits and incentives from the MM2H programme, including visas. The programme helps foreigners who are willing to come to the country to obtain a renewable 10-year visit pass with multiple entries.
These are some of the features a foreigner can enjoy under the MM2H Programme:
A Foreigner can enter and leave the country whenever they choose to do
- However, they need to be physically present in Malaysia for a cumulative total of 90 days per year
Applicants are allowed to bring their children with them as dependants
- The child (dependant) is 21 years old or younger and unmarried,
- Dependants are allowed to receive education in Malaysia,
- However, if any of these children are planning on entering tertiary education in Malaysia, the MM2H social visit pass will have to be terminated and the students will be required to apply for a Student Pass.
- Ownership of a Student Pass is a requirement imposed by the tertiary learning institutions of Malaysia.
- Any foreigner who visits the country through the MM2H programme is allowed to purchase a residential home or property
- No taxation on pensions as well as the ability to receive offshore income including funds transferred into the country
Applicants who are over 50 years old are allowed to work part-time for 20 hours a week
- Requires permission from the Immigration Department in order to do so.
Foreigners who are in Malaysia through the use of the MM2H programme are allowed to own and run a company
Allowed to apply for a maid subject to the prevailing guidelines of the Immigration Department.
They are also allowed to bring a pet into the country, and their parents can also join them as dependants through the use of a renewable visa
Requirements For the MM2H Programme
Citizens from any country are allowed to apply for the MM2H programme. However, there are certain financial requirements which an applicant has to fulfil:
Those who are younger than 50 years old must have:
- Minimum liquid assets of RM1,500,000
- Minimum offshore monthly income of RM40,000
- A fixed deposit account in Malaysia which contains at least RM1,000,000
Individuals who are 50 years or older must have:
- Minimum liquid assets of RM1,500,000
- Minimum offshore monthly income of RM40,000
- A fixed deposit account with a Malaysian bank which contains at least RM1,000,000
- For retirees, there is a requirement to show proof of receiving pension from government RM10,000 per month
Other requirements include:
- One-off personal bond payment which costs approximately RM2,000
- Social pass will also require an annual payment of RM90
Although the financial requirements for MM2H programme increased significantly, the programme is still widely popular due to the benefits the programme offers as well as the general low cost of living in Malaysia.
Restrictions to MM2H Programme
There are multiple restrictions to the MM2H programme as listed below:
Requirement to stay in Malaysia for 90 days
This may not be feasible for business owners who are conducting business activities outside of Malaysia or have other commitments outside of the country.
Unable to actively run their Malaysia business under the MM2H programme visa
While MM2H visa holders are allowed to set up a private limited company in Malaysia, they are not allowed to be involved in the day to day running of the business. A work visa is required for this.
Unable to work in Malaysia
MM2H visa holders are not permitted to work or be employed while in Malaysia. They are to work overseas – this can be quite contradicting to the above restriction on requirement to spend 90 days in Malaysia as there are concerns on what they can do for the 90 days given working is not allowed.
MM2H Sarawak Programme
The MM2H programme is primarily for those who wish to live anywhere in Malaysia with the exception of Sarawak and Sabah.
For those who are looking to live in Sarawak, you have to apply for the MM2H Sarawak programme instead. All applications must be sponsored by a local Sarawak citizen or permanent resident.
Here are the requirements to the MM2H Sarawak programme:
Age
Above 50 years old, unless you are 30 and above and requires long-term medical care in the country or have a child studying there.
Income
Single applicants need at least RM 7,000 of offshore monthly income or have a fixed deposit account of RM 100,000. A minimum fixed deposit of RM 60,000 is required after 1 year.
For married couples, the income requirement is at least RM 10,000 of offshore monthly income or have a fixed deposit account of RM 150,000. Similar to single applicants, a minimum fixed deposit of RM 60,000 is required after 1 year.
FAQs
In Malaysia, the federal constitution of the country states that dual citizenship is illegal.
The main reason why such is the case is that dual citizenship provides one with both privileges and responsibilities; such status might be abused when a dual citizen decides to use the privileges while avoiding the responsibilities.
The MM2H programme does not grant permanent resident status to its participants. It also does not enable anyone to become a Malaysian citizen.
Many people from all over the world use the MM2H program to live in Malaysia. The seven countries which have the most people who are participating in the program are China, Japan, Bangladesh, the United Kingdom, South Korea, Singapore, and Iran.
