Big Changes Announced for Malaysia’s MM2H: What Expats Need to Know

The much-awaited Malaysia My Second Home (MM2H) visa has been relaunched with new terms and conditions. Although the official start date is still pending, there are plenty of updates to get excited about. Additionally, the state of Sabah will introduce a new visa in the coming months. Currently, there are five options for applicants to choose from, and with the inclusion of Sabah, there will soon be six.

The MM2H visa has expanded its focus beyond retirees, now catering to a broader audience, including younger foreign investors. This shift marks a new direction for the program, offering opportunities for a diverse group of applicants.

New Financial Requirements

Interestingly, there is no longer a minimum income requirement for new applicants in any tier. Previously, the requirement was RM10,000 per month (US$2,600). The fixed deposit requirements have also been updated and are now listed in US dollars, reflecting global exchange rates:

• SMM2H: RM150,000 (US$31,000)

• Special Economic Zone Johore Bahru (Age 50+): US$32,000 (Age 21-49) US$65,000

• Silver: US$150,000

• Gold: US$500,000

• Platinum: US$1 million

These amounts were previously in ringgit, so applicants should be aware of potential fluctuations in exchange rates. Additionally, there is a one-time 'participation fee' for principal applicants: RM1,000 for Silver, RM3,000 for Gold, and a substantial RM200,000 for Platinum. Dependents are not charged any fees.

Silver, Gold, or Platinum visa applicants must purchase property in Malaysia which cannot be sold for 10 years. Here are the minimum property values for each tier:

• Silver: Over RM600,000

• Gold At least RM1 million

• Platinum: At least RM2 million

These requirements may conflict with state regulations on property purchases for foreigners, creating questions about which rules will take precedence.

Visa Process and Family Reunification

The length of the visa varies by tier:

• SMM2H: Five years

• Special Economic Zone: 10 years

• Silver: Five years

• Gold: 15 years

• Platinum: 20 years

Each visa is a multiple-entry visa and is based on the validity of the applicant’s passport, with a maximum duration of five years. Visas automatically renew on expiry for another term, requiring only the payment of the renewal fee to the agent.

Participants can bring their partner and biological children under 21. Unmarried children over 21 and up to 34 who are not working can also join. There is no age limit for disabled children or children needing constant care. The Platinum visa allows holders to work without special permission, while rules for other tiers are yet to be clarified.

A significant improvement is that dependent spouses can now take over the principal visa if the primary holder passes away without having to reapply.

Agents MM2H

Applicants could previously apply for their visas independently, but this proved problematic for both applicants and authorities. Now, using an authorized agent is mandatory. Alter Domus is highly recommended for its reliability, honesty, and deep understanding of the system. For more information, please see penangmyhome.com.

Potential Problems and Future Directions

Most applicants are expected to choose the Silver package, but the large fixed deposit and property purchase requirements may be significant barriers. Malaysia remains a wonderful country to live in, offering a vibrant and fulfilling lifestyle at a relatively low cost. The visa regulations may need adjustments to better reflect these local realities and meet the expectations of potential residents, ultimately benefiting both applicants and Malaysia. While current changes might not fully meet these goals, they mark an exciting new chapter for the MM2H program.