PETALING JAYA: Agents for Malaysia My Second Home (MM2H) have seen an increase in interest in the programme with the majority coming from China after the new guidelines were announced.
MM2H consultant Tara Lim said majority of those who are interested are from China, but she is also seeing increasing interest from Taiwanese nationals.
“I have more than 70 interested applicants, and many agents around me also have around 40 to 50 potential applicants,” she said.
She added that there is also increasing interest from Singaporeans who are considering MM2H for retirement, as it is an attractive option due to cheaper living costs and a similar culture.
“With the requirement of RM40,000 offshore income removed, more can apply as they don’t have to fulfil the income requirement,” Lim said.
“The changes to owning a property may deter some; however, those who own property in Malaysia will fulfil that requirement.”
Property ownership is still cheaper in Malaysia, which charges up to 4% stamp duty compared with Singapore’s 60% additional buyer’s stamp duty fees, she added.
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She also said that compared to a similar programme in Thailand (Elite Thailand), Malaysia’s programme remains competitive.
“Elite Thailand requires at least 900,000 bhat (RM115,000) for five years in fees, which are not refundable, whereas under MM2H foreigners have a fixed deposit and property ownership that they still fully own,” she said.
Current hotspots for MM2H applicants are Kuala Lumpur and Penang with Johor also rising in popularity, she said.
Lim also clarified that those who came under the previous MM2H conditions are not subjected to the new rules.
“They should refer to the conditions as per their approval letter,” she said.
Jaime Chiew, managing director of an MM2H consultancy, also said she has noted a slight increase in interest after the announcement of the new guidelines.
“I have quite a number of interested parties wanting to apply for the programme, especially those who can meet the new requirements.
“But there are some who still find the requirements too strict,” she said.
The mandatory property purchase, especially the 10-year holding period, can be a significant financial commitment, she explained.
“It may be too early to determine how many will actually apply. We still need more details from the government for the application procedure and the approval duration,” she said.
Malaysia remains an attractive MM2H destination, especially with its lower cost of living, diverse and welcoming culture, relaxed lifestyle and ability to own properties, she added.
On the other hand, MM2H Consultants Association president Anthony Liew said many of his clients lost interest in the programme after the mandatory property purchase requirement.
“Only 30% to 40% of the current MM2H holders would buy property in Malaysia,” he said.
While foreigners from China, Hong Kong and Korea are more willing to buy property, those from Japan and Western countries usually prefer to rent, he said.
He also hopes the ministry can clarify if applicants must purchase the property first or if they can buy later.
Checks by The Star on MM2H Facebook groups saw more discussions and interest in the programme after the announcement of the updated guidelines recently.
While the removal of the income requirement was welcomed, some expressed concerns about the mandatory property purchase and the 10-year holding period.
Nevertheless, there is a consistent interest in staying in Malaysia for its welcoming people, ease of communication (language) and good educational institutions.
An MM2H expat from China, George Yue, said he came to Malaysia with his wife in 2022. They had planned the move after falling in love with the country during their travels in the region.
“Locals speak Chinese and English, which was very convenient for us, and we could easily adapt to the food and climate here,” he said.
However, the new MM2H conditions may deter expats, as it no longer offers the flexibility of its predecessors, he cautioned.
“Now the pass is more rigid with the property purchase requirement and a 90-day minimum stay in the country.
“When I applied in 2019, a number of my friends were interested, but with these new guidelines, they have lost interest,” he said.
On June 14, Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing announced a new three-tier category for MM2H applicants – Platinum, Gold and Silver.
The Platinum category requires a fixed deposit of US$1mil, the Gold category US$500,000, and the Silver category US$150,000, along with a property purchase of at least RM600,000.
