Malaysia is one of the most popular destinations for foreigners to live and work in Asia. One of the options that foreigners have is the Malaysia My Second Home (MM2H) programme, which allows foreigners to live in Malaysia for an extended period of time.
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:
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:
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:
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:
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:
Alternatives to MM2H Programme in Malaysia
For foreigners who are not eligible for the MM2H programme, there are certain alternatives that you can explore.
Why Malaysia’s a Great Destination for Investments
There are plenty of reasons to invest in Malaysia, given its strong GDP per capita and proactive business conditions. Here are some of the reasons why foreigners choose Malaysia as an investment destination:
The corporate tax in Malaysia is one of the lowest in the world at 17%, including multiple tax incentives for SMEs.
Large consumer base
Malaysia has one of the largest populations in Southeast Asia at 33 million – this means that businesses can tap on this consumer base with growing spending power and middle-income class.
The GDP per capita in Malaysia is at USD 12,450 in 2022, ranking at 63rd.
You can check out the top business opportunities in Malaysia 2023 in our article here.
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.
Is the MM2H programme connected to either permanent resident status or citizenship status in Malaysia?
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.