Malaysia My Second Home (MM2H): The Definitive Guide

You’ve heard all about the great climate, friendly people, and stunning local food of Malaysia and want to know how you can be a part of it.

This article will look at the 2020 requirements and the terms and conditions for the Malaysia My Second Home (MM2H) program.

This housing program was created as a way to allow working expatriates and retirees from foreign countries get a second home in Malaysia.

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Contents

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What is the Malaysia My Second Home (MM2H) Program?

mm2h logoMM2H is a program created by the Malaysian government and introduced by the Ministry of Tourism and Culture (MOTAC).

It was designed to open Malaysia up to people from around the world. Upon joining the program, you’ll receive your MM2H pass that allows you to stay in the country for up to 10 years.

The pass can be renewed when it expires after meeting the requirements for renewal.

Who can Apply for MM2H?

  • Citizens from any country, no matter their age, gender, or religion.
  • You can bring unmarried children under 21 with you, as well as your spouse and parents.
  • You can also apply to get a maid or helper service to make the stay in Malaysia more comfortable.
  • There are also MM2H procedures that allow you to bring your pet with you.


The Duration of MM2H?

How long the visa lasts depends on how long your passport is valid for.

It is advised that you renew your passport before getting the visa. Even so, you can always extend the visa as long as you have the financial capacity and fill out the required documents to do so.

Keep in mind that you aren’t getting a Permanent Residence (PR) Permit.

It is also not a guarantee that you will one day receive a PR. You have nothing more than a Social Pass visit that allows for multiple entries and exits under the guidelines of the MM2H program.


Benefits

Apart from having the opportunities to enjoy the good quality lifestyle and the good values of Malaysia, the government is providing you attractive benefits to make your stay more comfortable and enjoyable in Malaysia:


Freedom to Travel

Applicants aren’t beholden to a minimum stay requirement. You can enter and leave the country whenever you wish.


Parents

Parents who are over 60 years old will receive their own special visit visa that can be renewed for as long as the MM2H Pass is valid.


Taxes

Foreign-secured income and pension are not subject to tax. Only income earned in Malaysia is subject to Malaysian taxes.


House Purchase

Foreigners can purchase as many residential properties that they wish, subject to the minimum rates as set by the state they live in.


Education

Your children can receive great education (up to age of 18) under the MM2H study permit in private or public schools.


Healthcare

Complete access to medical facilities. Medical expenses will be partly covered by the compulsory medical insurance.


Investment

Can invest and be active in the business , subject to the Government policies related to the relevant sectors.


Live-in Maid

Applicants can also apply to receive a foreign maid to help make their stay more comfortable, subject to policies.


The Process

You can apply for the MM2H program from within Malaysia or from your home country.

We’ve put together this handy checklist of the process, as well as the documents you need.

Step 1: Pre-Submission

The first thing to do is to apply online through the Check N’ Track system.

After filling out this form, download any relevant forms and attach any necessary documents to complete the application.

Step 2: Submission

You have two options when it comes to submitting the application.

The first is to submit it yourself, assuming you understand the processes and rules of MM2H and are able to navigate Government offices.

The second option, which is the choice most people will use, is to use an MM2H licensed agent that can help you with the process.

All applicants need to have a Malaysian sponsor who supports their application and they have to pay a Personal Bond of up to RM2,000. If you use an agent for your application they will cover the bond and they work as your sponsor.

Step 3: Conditional Approved Letter

After successfully submitting the documents and application, you are provided with a Conditional Approval Letter by the MM2H Center, Immigration Unit.

The letter can take up to 5 months to be issued.

Step 4: Arriving in Malaysia

After arriving in the country with your Conditional Approval Letter on hand, you have to follow through the other documents within 6 months. When you arrive you want to set up a fixed deposit account and submit your Fixed Deposit Certification to the MM2H Authority.

All applicants – and their dependents – must then purchase a Medical Insurance policy to cover any medical expenses. Any insurance policy will do as long as it is valid in Malaysia. After securing the policy, submit the documents to the MM2H authority. While this is a necessary step, older applicants can be excused if they are unable to find insurance due to their age.

Applicants and their dependents must also go through a medical examination conducted at a private hospital or registered clinic. This Medical Report (RB 11) must be submitted to the authority of MM2H as evidence that your family and you are in good health.

Dependents that have to attend school in Malaysia must apply for a Student Pass to further their education at the primary or higher level. The Student Pass is submitted to the MM2H authority along with the Student Personal Data Form.

Step 5: Collecting Your Visa

Once you’ve submitted all the other documents, you can collect the visa from the MM2H Immigration Center. Your visa is valid for up to ten years, depending on how long your passport is valid for.

Not a fan of paperwork? Don’t like the idea of filling out all those forms?

Keep in mind that these forms can seem scary, but you can always employ a registered MM2H agent to help. They will be with you as you apply for MM2H in Malaysia.

These are people who do this for a living. They are professionals that understand the smoothest and simplest way to go through the application process.

The best MM2H agency will even help you to settle in Malaysia after completing the application.


FAQs

General

[su_accordion class=””] [su_spoiler title=”Does my Spouse’s Income Count Towards our Total?” open=”no” style=”default” icon=”plus” anchor=”” class=””] The program was changed recently so that the income of spouses contributes to the RM10,000 offshore income requirement. However, the principal applicant should be earning more than their spouse by a ratio of at least 7:3. [/su_spoiler] [su_spoiler title=”Do Other Investments Contribute to the RM10,000 Requirement?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Employed applicants have to reference all of their job-related income on their application. This income can’t be boosted through other income sources like investments and rental agreements.[/su_spoiler] [su_spoiler title=”Can I Renew an MM2H Malaysian Visa?” open=”no” style=”default” icon=”plus” anchor=”” class=””]You can apply to renew your visa for another 5-10 years depending on how long until your passport expires.[/su_spoiler][su_spoiler title=”Can I Apply for a Home Helper?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Each applicant can apply for one home-help employee, subject to the immigration guidelines.[/su_spoiler] [su_spoiler title=”Am I Able to Work in Malaysia with an MM2H Visa?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Applicants over 50 years old are eligible to work up to 20 hours per week with an MM2H visa. The job offer has to be registered and approved by the relevant immigration departments.[/su_spoiler][/su_accordion]


Purchasing a House

[su_accordion class=””] [su_spoiler title=”Do Participants Receive Special Entitlements?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Participants are allowed to purchase a residential property at the current minimum purchase price for foreigners as established by the relevant state government. The current minimum price for most states is RM500,000.00.[/su_spoiler] [su_spoiler title=”Can I purchase One House to Live in and One to Rent Out?” open=”no” style=”default” icon=”plus” anchor=”” class=””]No. You are only eligible to purchase a residential property.[/su_spoiler] [su_spoiler title=”Do I need to Pay Yearly Assessment and Quit Rent for Houses Like Malaysian Citizens Do?” open=”no” style=”default” icon=”plus” anchor=”” class=””] Yes. [/su_spoiler][su_spoiler title=”Are participants able to hand over assets to their beneficiaries in the event of an unforeseen death? Are there any limitations to this?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Participants are able to transfer their property to a next-of-kin as long as they have written a will that declares this. If there is no will present, then the next-of-kin is still able to claim their inheritance by proving their identity and relation to the participant.[/su_spoiler] [su_spoiler title=”Are Foreigners Required to Purchase New Malaysian Properties, or are they Free to Purchase any Property, Including Second and Third-Hand Property?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Participants are free to purchase any kind of housing property so long as it has been issued a CF.[/su_spoiler] [/su_accordion]

Fixed Deposits

[su_accordion class=””] [su_spoiler title=”Can I Withdraw the Fixed Deposit While in Malaysia?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Some banks may allow you to periodically withdraw some of the interest earned on the Fixed Deposit. That is entirely subject to the policy of the bank and what you negotiated when you opened your account with them.[/su_spoiler] [su_spoiler title=”Can I Make the Deposit with a Malaysian Bank in my Home Country?” open=”no” style=”default” icon=”plus” anchor=”” class=””]No. The account should be registered under any bank in Malaysia.
[/su_spoiler] [su_spoiler title=”When can I Withdraw the Fixed Deposit?” open=”no” style=”default” icon=”plus” anchor=”” class=””]You can withdraw your fixed deposit after a period of time. The money can only be used for approved expenses such as purchasing a house, educating your children, and for medical expenses. It may also be withdrawn when you leave Malaysia as long as you inform the Ministry of Tourism and Culture Malaysia of your intention to leave at a Malaysia My Second Home Centre. You can also apply to withdraw part of your fixed deposit for an emergency case – such as medical expenses – upon prior approval of the Ministry of Tourism and Culture Malaysia.[/su_spoiler] [/su_accordion]

Education

[su_accordion class=””] [su_spoiler title=”Do Children at Kindergarten Level Require a Student Visa?” open=”no” style=”default” icon=”plus” anchor=”” class=””]Children who are below schooling age – under 7 years old – don’t need a Student Visa. They just have to apply for permission to study with the Immigration Department.[/su_spoiler] [/su_accordion]


Business

[su_accordion class=””] [su_spoiler title=”Are MM2H Participants Allowed to do Business in Malaysia?” open=”no” style=”default” icon=”plus” anchor=”” class=””]No. MM2H Passes are social visit passes. They only allow for participants to stay in Malaysia for a long period of time. If the participant wishes to do business, they would have to terminate their MM2H Pass and apply for the relevant visa.[/su_spoiler] [su_spoiler title=”I’m Interested in Investing in Malaysia. Where can I Get More Information?” open=”no” style=”default” icon=”plus” anchor=”” class=””]You should contact the Malaysia Industrial Development Authority for more information about Malaysian investments.[/su_spoiler][/su_accordion]


Malaysian Second Home Programme Approves 43,466 Applications

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The Malaysian government launched an initiative called MM2H (Malaysia, My Second Home) in the year 2002 welcoming foreigners to reside in their country and till November 2018 close to 43,466 Applications have been received.

mm2h agent

Citizens from 131 countries have applied for the MM2H Programme, Majority of applications applied and accepted were from Chinese citizens says The minister of tourism, arts and culture – Mr Datuk Mohamaddin Ketapi.

The majority of approved applications were from China and ranged around 13,892, The top 10 Approved applications list also included 4,882 people from Japan, 4,187 from Bangladesh, 2,729 from the UK, 2,568 from Singapore, 1,428 from Taiwan, 1,411 From Iran, 1,087 from Hong Kong and 1,077 applicants from India.

It was previously reported by Reuters that Hong Kong residents were highly interested in the MM2H programme due to the anti-Beijing demonstrations around the region. According to the reports the MM2H programme attracted 251 applicants in 2019 rather than the 193 approved residents in the year 2018.

According to a ministry official the MM2H program received 3,500 applications till August 20th of this year which falls short when compared to the 6,279 applications of the previous year, though there has been no approval of applications this year.

Applicants who are successful in getting approval receive a social visit pass and renewable 10-year multiple entry visas.

Many foreigners apply this program via MM2H agency.

Prices of foreign house ownership in Malaysia were reduced from RMB 1 Million to RMB 600,000 for the year 2020’s state budget plans by Finance minister Lim Guan Eng.

There were voices concerned about the foreign ownership of housing in Malaysia.

The finance minister justified the reason for the price drop was to reduce the supply of overhang of apartments as well as condominiums which cost as high as RM 8.3 Billion in mid-2019. The analysts say that this won’t completely resolve the overhang situation but might be able to ease it.

mm2h house purchase

The prime minister’s economic advisor Dr Muhammed Abdul Khalid, On Wednesday, reported that the property price threshold should not be played with so that foreigners could buy the houses but the government should instead wait for the property market to be stable by itself. A lot of foreigners like to stay in high-end living area like Adiva @ Desa ParkCity.

The need for reduction of property overhang was recognised by him but he refers that the unstable match of the supply and demand by the government makes it look like it was designed as a relief for developers.

Muhammed encourages the government to instead promote the construction of affordable homes for the lower and middle-income groups.

In last week’s parliament, a report by Housing and Local Government Minister Zuraida Kamaruddin confirmed that only 15 % of the approved applicants of the MM2H programme had bought properties in Malaysia with a majority of the buyers being from China.

She also further reported that foreign property ownership in the Malaysian property Market was not out of hand with 398 property buyers between January and June 2019 meaning only 0.4% of total property purchases. Majority of the purchases were made by Malaysians which ranged around 99,524 buyers that are 99.6%.

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Conversion Of a foreign driving licence to Malaysian driving licence – JPJ begins programme November 1st 2019

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Approved participants of the MM2H programme as well as Malaysians with a foreign licence can convert their foreign driving licence to a Malaysian driving licence from 1st November 2019. This has been announced by the road transport department (JPJ).

mm2h driving licence

This will be for foreigners who have a valid driving licence from their country of origin. This is not valid for those holding learning licenses, probationary licences or temporary licences.

JPJ director-general Datuk Seri Shaharuddin Khalid informs in a report by Bernama that the application is accepted only at the JPJ headquarters and state-level JPJ offices.

He further informs that the original driving licence will be changed to a Malaysian probationary licence (P licence) the restrictions are the same as those of Malaysian nationals holding a P licence. “This is to ensure that these individuals have the competence to drive and educate them to comply with all traffic rules in the country” he explained.

Compulsory classes are held for licence holders of non-ASEAN countries as well as countries with no form of treaty or agreement with Malaysia. They must also sit for a traffic law theory test. He says that “This is to ensure that they understand the laws and road regulations in Malaysia, which may differ from other countries.”

MM2H As Property Investment Visas in Asia

The MM2H (Malaysia My Second Home Visa Program) is considered to be the most comprehensive programme in Asia. It has been spanning for decades now.

It isn’t only a long term residency programme but can be considered as a complete package as along with a 10-year residency programme it also has its perks and benefits.

The benefits are free medical insurance, work permit for citizens aged 50 and above and tax-free import of personal items.

mm2h benefits

Under the MM2H programme, you are allowed to bring in your spouse, children and live-in maids as your dependants. This is to make the life of Expat’s in Malaysia easy.

Your age is a major requirement factor when it comes to MM2H. Investors below the age of 50 must have proof of owning liquid assets worth RM 500,000 ($125,000).

To obtain and possess a permanent residence in Malaysia they must deposit RM 3,00,000 in a term deposit bank,

RM 150,000 can be withdrawn to buy a property in Malaysia after holding it in a bank for one year.

For those accepted applicants who are 50 years and above must be the owner of liquid assets worth RM 300,000 ($75,000) and must deposit RM 150,000 in a Malaysian bank. RM 100,000 can be withdrawn after a year to buy a property.

The other requirement is that applicants of all ages must have a recurring income of RM 10,000 from abroad every month.

If you have further questions, you can get consultation from MM2H agents.

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