Malaysia - My Second Home Programme: FAQs

Hi Folks,

Something about "Malaysia - My 2nd Home (MM2H)" programme: Just to share some FAQs and answers based on information to the best of my knowledge as at the time of this posting.

1. When was it introduced? In 2002 by the Malaysian Government to replace what was then known as "The Silver Hair Programme (SH)".
2. What is it all about? Like its predecessor SH programme, MM2H programme encourages foreigners to come and live in Malaysia. This is done through a "Multiple-Entry" Social Visit Visa up to 10 years (depending on expiry date of your passport) that is renewable.
3. Why this MM2H policy? Policy makers believe there are great economic spin-offs for such a policy (psssst...not that Malaysia wants to be colonised again).
4. Who may apply? Citizens of ALL countries except Israel, Montenegro and Yugoslavia.
5. Why choose Malaysia? Expats with strong currency will find Malaysia the best value place outside their home country to regularly visit and live. The climate and weather are pleasant all year-long - NO cold winter, no scorching summer, no typhoon, no cyclone, no earthquake or things like - Monsoon Cup & some floods - yes; F1 - yes; Le Tour De Langkawi -Yes, World-class Medical Facilities - Yes, many rich Indonesians can vouch for this; World-class Education - being worked on; Great Variety of Foods and Cuisines - from all cultures; Exotic mouth-watering tropical fruits - Big Yes; Nice beaches, Cool highlands, Great cities; Warm, friendly and beautiful people; politically stable; foreigner-friendly; no utopia though - occasional hiccups are to be expected. That should make your stay interesting.
6. Does it allow you to work in Malaysia? What about doing unpaid charity works? MM2H Visa holders and their dependants are not permitted to work in the country except if the holders have unique skills which Malaysia needs. However, all MM2H visa holders are allowed to invest in the country. Or, to do gratuitous/unpaid charity works provided the Malaysian Immigration Department is informed.
7. Does it allow you to bring in your spouse and children? Yes, MM2H Visa holders are allowed to bring in their legal spouses, and their unmarried children who are below the age of 18.
8. Does it allow you to buy residential property? Yes, but it is not compulsory: Each foreign under this programme are allowed to buy 2 units of residential properties each above RM250,000 (above RM350,000 if in the state of Sarawak). This is 1 unit more than ordinarily allowed under existing FIC (Foreign Investment Committee) Rules.
9. What are the terms and conditions of applications? Applicant - no age limit; but age determines his financial requirements: if below age of 50, must open a RM300,000.00 Fixed Deposit (FD) account with a local Malaysian bank for at least 1 year; after which RM240,000 may be withdrawn for house purchase, medical and children education and the balance of not less than RM60,000 must be maintained throughout the period of validity of the MM2H visa. If age 50 or above, RM150,000.00 FD account with a local bank is required of which up to RM90,000.00 may be withdrawn after 1 year for house purchase, medical and children education and a balance of not less than RM60,000 must be maintained from 2nd year onwards throughout his MM2H stay. In lieu of the RM150,000 FD requirement, suffice if an applicant age of 50 or above can furnish proof of monthly off-shore income of RM10,000. (Remarks: The FD requirement - to put in FD the stipulated sums for at least 1 year - is 1 way to ensure that only the cash rich expats (not speculators, real estate or otherwise, who acquire local assets more on local bank finances rather than his own wealth) are attracted to the MM2H scheme)
   
10. Do you need a sponsor? From April 2006, a sponsor was no longer needed.
11. What about insurance coverage and medical report? Yes, a medical insurance valid in Malaysia and a medical report from a recognised medical institution are needed.
12. What are the incentives that come with it? Apart from being allowed to buy 2 residential houses as aforesaid, successful applicant also enjoys 1) Car Tax Exemption in bringing in 1 personal car from abroad or Excise Duty & Sales Tax Exemption for purchase of 1 locally manufactured car - an incentive that even the locals do not enjoy.
13. What about education for your dependants? Yes, provided "Student Passes" are applied.
14. Taxation: Successful applicant will be bound by local tax law, systems, regulations and policies.
15. Security vetting: Yes, approval is subject to security vetting by the Malaysian security agency.
16. Application procedures: Application may be made while you are in the country on a valid pass. Upon approval, the MM2H visa will be issued to you in Malaysia. [Alternatively, you may apply under this route: "...the applicant can actually apply for his MM2H visa while still overseas; he only needs to arrive in Malaysia when his application is approved, and he has 6 months do this. Upon arrival, he has to open the fixed deposit account, take a medical test, buy his insurance cover, and make a visit to the immigration department at Putrajaya to have the visa endorsed in his passport...." per Licensed MM2H Agent Matthew Yeoh (of DRI Group) in his comments (pl see below)]
17. Approving authorities: Applications can be sent directly to: The Licensing Division, Ministry of Tourism Malaysia, Level 33, Menara Dato' Onn, Putra World Trade Centre, 45 Jalan Tun Ismail, 50695 Kuala Lumpur, Malaysia. (Note: Applicants who wish to stay in Sabah/Sarawak should forward applications to the Director, State Immigration Department of Sabah / Sarawak);
18. Can You Apply Personally or Through Unlicensed Party? No! Effective June 1, 2007, all MM2H applications are to be submitted through licensed MM2H agents - there are currently about 178 of them. All are bound by "dos and don'ts" stipulated by their licensing body - the Ministry of Tourism of Malaysia.
19. Fees payable: RM 90/yr is payable for a MM2H Social Visit Visa/Pass - RM900.00 for a 10-yr visa
20. Understandable restrictions you ought to know: Participant are not allowed to be employed anywhere in Malaysia nor involved in activities deemed sensitive to local people or a threat to the security of Malaysia.
21. Is Financing Available for Purchase of Houses Under MM2H? Yes, at least 1 bank I know of offers this mortgage plan: a) Margin of Financing - up to 80%; b) Loan Tenure - 5 to 20 years or, up to 70 years of age; c) Loan Amount - RM250,000 and above; d) For Completed Residential Properties with Certificate of Fitness for Occupation; e) Interest Rate: Base Lending Rate - 1.4%. For more info, please call this bank at: 1 300 880 900
    

Should you need further information or help for introduction of a licensed MM2H agent or of residential houses to bjuy under the MM2H programme, please feel free to drop me an email. I will invite some MM2H agents to pose comments on this post and their services if time permits.

Cheers,

Douglas (Updated on 30 June 2008)

CEO/Principal

GT REALTY, 22-B, Jalan 19/36, 46300 Petaling Jaya, Selangor, Malaysia.

Email: tanhalim1@gmail.com; tanhalim1@yahoo.co.uk

(Disclaimer: While every efforts are made to provide accurate information, the author does not and could not warrant 100% accuracy. Reliance on any or all of the information is at the readers' discretion and risks. The author cannot be held liable for any loss or damage howsoever suffered in consequence of any reliance on the information provided herein in good faith.)