When it comes to investment, you would be looking for something that’s worth every penny, and if that investment buys you a second home, you’d be even more concerned.
Well, countries around the world are taking every step to make their nation a better place to live in because there’s hardly any place humankind has not set foot in, which raises the question of Global Mobility.
People are no longer ready to abide by rules as an excuse to not be able to visit any country, and the saying that “Money can buy everything,” comes true. Therefore, there may be rules restricting your global mobility but you can obviously opt for amazing citizenship and residency programs that give you visa-free access to a number of countries.
Malaysia is a welcoming nation that welcomes people from all over the world, including Indians, Chinese, Malays, and Indigenous groups. It is a rich tapestry of culture, languages, and traditions, and the people of Malaysia are very hospitable.
But are the citizenship programs as welcoming as their people? Let’s find out.
The MM2H Visa
The Malaysia My Second Home (MM2H) program was launched in 2002 and has approved around 57,000 applicants since then. The program was then halted in 2020 due to COVID-19 and was resumed again in 2021 with a little stricter rules.
The program, however, was revamped again last December, easing investment requirements and other criteria for its investors. Back then, in 2021, the Malaysian government increased the monthly income threshold (one of the requirements for the MM2H program) from 10,000 ringgit (US$2,112) to 40,000 ringgit (US$8,450).
The change led to a 90% decline in the applications in the next two years, urging the government to bring other amendments to the program.
The recent amendments highlight that the eligible applicant’s age has been revised from 35 to 30 and that the parents-in-law of the applicant can be included as dependants. We’ll learn more about these changes in the section below.
Requirements of the MM2H Program
In order to qualify for the MM2H program, you must meet the following requirements:
Minimum Income Level
You must have a consistent and verifiable source of monthly income of RM10,000. This is to ensure that you can maintain a lifestyle in Malaysia without any local employment.
Proof of financial Capability
In order to prove yourself financially capable, you must provide the following:
- For applicants aged below 50, a copy of your bank statement for the last three months showing liquid assets worth RM500,000 is required. For applicants above 50, you must have liquid assets worth RM350,000.
- Your payslip or income statement for the last three months, if applicable, will be used to verify your offshore income claim.
Real Estate Investment and Tenancy laws
If you decide to acquire property in Malaysia, here are the rules for it:
Purchasing Property
It would be a wise move to purchase property in Malaysia because then you will be liable for some benefits, such as you can purchase a property at a lower price when compared to the non-MM2H applicants.
In particular, in Penang, you will be able to buy a residential property starting at RM500,000, whereas the price of the same property is set at RM1,000,000.
Rental Agreements
If you rent property in Malaysia, you must enter into a rental agreement outlining the terms and conditions of your tenancy. Below are other requirements for renting a property:
- You will be required to make a deposit equal to two months of rent plus a utility deposit.
- Rental contracts come with a lease duration of a year. These can be renewed upon agreement between you and the landlord.
Benefits of the MM2H Program
Listed below are some of the benefits of the MM2H program:
Long term visa
The MM2H visa is a multiple-entry visa valid for up to 5 years, initially with the possibility of renewal. This provides a stable base in Malaysia for a specified period.
Family Inclusion
You can include your spouse, unmarried children under the age of 35, dependent parents, and parents-in-law aged above 60.
Tax advantages
You will only be required to pay tax on the income you have earned in Malaysia. You are exempted from paying taxes on any foreign funds or even interest gained on bank fixed deposits.
Education
Malaysia has universities that are recognized worldwide. MM2H can enroll their children in the university without a student visa, which helps them pursue quality education.
Competitive Healthcare
Malaysia boasts a modern and affordable healthcare system, making it effective for retirees and those seeking medical care.
Cost of living
The cost of living in Malaysia is relatively low compared to many other Western countries, which is perfect for someone waiting to spend their retirement years in Malaysia.
Conclusion
Malaysia offers a welcoming culture, beautiful natural scenery, and a relatively low cost of living. If you are considering moving to Malaysia, you can learn more about it at the Global Residence Index; our experts are ready to lead you wherever you want, on your own terms.
Before proceeding, it is essential that you have done your research and hired an immigration expert to help and guide you with the process.
Article and permission to publish here provided by Andrew Williams. Originally written for Supply Chain Game Changer and published on May 1, 2024.
Cover photo by Esmonde Yong on Unsplash.