Malaysia My Second Home: The Revised MM2H Programme After the 2021 Overhaul

Malaysia's My Second Home (MM2H) programme has been one of South-East Asia's most popular long-term residency schemes since its launch in 2002. The programme was suspended in 2020 during COVID-19 and relaunched in October 2021 with dramatically increased requirements. A further revision in 2022 introduced tiered categories that partially softened the thresholds. Understanding the current structure is essential for anyone considering Malaysia as a long-term base.

History and Legal Basis

MM2H operates under the Immigration Act 1959/63 and is administered by the Ministry of Tourism, Arts and Culture (MOTAC) through approved MM2H agents. The programme grants a Social Visit Pass (Long Term) — a renewable long-stay visa that permits residence but not employment in Malaysia.

The original programme (pre-2021) required applicants under 50 to demonstrate liquid assets of MYR 500,000 and offshore income of MYR 10,000 per month, with a fixed deposit of MYR 300,000. These thresholds were accessible to middle-class retirees and remote workers globally.

The 2021 Overhaul

The October 2021 relaunch increased requirements by approximately 500-1,000%:

• Offshore income: MYR 40,000 per month (up from MYR 10,000)
• Liquid assets: MYR 1,500,000 (up from MYR 500,000)
• Fixed deposit: MYR 1,000,000 in a Malaysian bank
• Visa duration: Reduced from 10 years to 5 years (renewable)
• Minimum stay: 90 cumulative days per year (new requirement)

These changes caused a dramatic decline in applications, falling from over 5,000 annually to fewer than 500.

The 2022 Tiered Revision

In response to the collapse in applications, the government introduced three tiers in August 2022:

Silver Tier

• Offshore income: MYR 5,000 per month
• Liquid assets: MYR 150,000
• Fixed deposit: MYR 150,000 (MYR 50,000 can be withdrawn after one year for approved expenditures)
• Visa duration: 5 years (renewable)
• Maximum age: None
• Minimum stay: 60 days per year

Gold Tier

• Offshore income: MYR 10,000 per month
• Liquid assets: MYR 500,000
• Fixed deposit: MYR 300,000 (MYR 150,000 can be withdrawn after one year)
• Visa duration: 15 years (renewable)
• Minimum stay: 60 days per year

Platinum Tier

• Offshore income: MYR 40,000 per month
• Liquid assets: MYR 1,000,000
• Fixed deposit: MYR 1,000,000 (MYR 500,000 can be withdrawn after one year)
• Visa duration: 20 years (renewable)
• Minimum stay: 60 days per year
• Additional benefit: Permitted to invest in business in Malaysia

Application Process

Required Documentation

• Valid passport with at least 6 months remaining validity
• Police clearance certificate from country of origin (not older than 3 months)
• Medical report from a Malaysian-registered medical practitioner
• Proof of offshore income (employment contract, pension statements, investment income documentation)
• Bank statements evidencing liquid assets for at least 3 consecutive months
• Passport-sized photographs (biometric specifications)
• Marriage certificate (if applying with spouse)
• Birth certificates for dependent children

Approved Agents

Applications must be submitted through a MOTAC-approved MM2H agent. The agent handles document verification, submission and liaison with the Immigration Department. Agent fees typically range from MYR 5,000-15,000 per application.

Processing Timeline

• Document preparation: 2-4 weeks
• MOTAC review and approval: 3-6 months (though backlogs have extended this to 12 months in some cases)
• Conditional approval letter: Valid for 6 months to complete the fixed deposit and medical requirements
• Visa endorsement: 2-4 weeks after fulfilling conditions

Government Fees

• Application processing fee: MYR 500 per applicant
• Visa endorsement fee: MYR 500 per year
• Multiple entry visa (for certain nationalities): MYR 530
• Security bond (for certain nationalities): MYR 200-2,000

Tax Position of MM2H Holders

Malaysia operates a territorial tax system under the Income Tax Act 1967. Key provisions for MM2H holders:

• Foreign-sourced income: Exempt from Malaysian tax for non-citizens under Paragraph 28 of Schedule 6. This exemption was temporarily revoked from 1 January 2022 but reinstated from 1 January 2023 for all categories of foreign-sourced income except where the income is received in Malaysia by a resident of Malaysia.
• Malaysian-sourced income: Taxable at progressive rates from 0-30%. However, Silver and Gold tier MM2H holders are not permitted to work in Malaysia, so employment income should not arise.
• No capital gains tax: Malaysia does not impose CGT on shares (except for shares in real property companies under the Real Property Gains Tax Act 1976).
• Real Property Gains Tax (RPGT): Applicable on disposal of Malaysian real property. Rates range from 30% (disposal within 3 years of acquisition) to 10% (disposal after 5 years) for non-citizens.

MM2H holders are treated as tax residents if they are present in Malaysia for 182 days or more in a calendar year under Section 7 of the Income Tax Act 1967.

Property Purchase Rights

MM2H holders may purchase residential property in Malaysia subject to minimum price thresholds set by each state. The federal minimum is MYR 600,000 for foreign buyers, but several states impose higher thresholds:

• Kuala Lumpur: MYR 1,000,000
• Selangor: MYR 2,000,000 (certain areas)
• Penang: MYR 800,000-1,000,000 depending on location
• Johor: MYR 1,000,000

Foreigners may not purchase Malay Reserve Land, properties built on Malay Reserve Land, or properties priced below the state-mandated foreign threshold.

Practical Considerations

• Banking: Malaysian banks (Maybank, CIMB, Public Bank) will open accounts for MM2H holders upon presentation of the visa endorsement. Initial deposits and KYC requirements are straightforward by regional standards.
• Healthcare: Malaysia has excellent private healthcare infrastructure at costs significantly below Western countries. A comprehensive health insurance policy costs MYR 3,000-8,000 per year depending on age and coverage.
• Cost of living: Kuala Lumpur is substantially cheaper than Singapore, Hong Kong or Bangkok's prime areas. A comfortable lifestyle including rental costs approximately MYR 8,000-15,000 per month.
• Dependants: Spouse and unmarried children under 21 are included in the application at no additional fixed deposit requirement (though each dependant incurs visa fees).
• Employment restriction: Silver and Gold tier holders may not work in Malaysia. Platinum holders may invest in and operate businesses but cannot take up employment with third parties.

Sarawak MM2H: The Alternative

Sarawak (Malaysian Borneo) operates its own MM2H programme independently from the federal scheme, known as S-MM2H. The requirements are notably lower:

• Monthly income: MYR 7,000
• Savings/fixed deposit: MYR 150,000
• Fixed deposit in Sarawak: MYR 100,000
• Visa duration: 10 years (renewable)

S-MM2H provides residence rights in Sarawak and permits travel to Peninsular Malaysia (subject to standard immigration controls between East and West Malaysia). For applicants who primarily wish to reside in East Malaysia, S-MM2H offers substantially lower barriers to entry.

Key Takeaways

• The MM2H programme now operates in three tiers (Silver, Gold, Platinum) with fixed deposit requirements of MYR 150,000-1,000,000 and offshore income requirements of MYR 5,000-40,000 per month.
• Malaysia's territorial tax system means foreign-sourced income is generally exempt for non-citizens, making it attractive for remote entrepreneurs and investors with offshore income streams.
• The minimum stay requirement of 60 days per year is lower than many comparable programmes and provides genuine flexibility for mobile individuals.
• Processing times have extended significantly since the 2021 overhaul; applicants should budget 6-12 months from submission to visa endorsement.
• The Sarawak MM2H (S-MM2H) offers a materially lower-cost alternative with a 10-year visa duration.
• Employment in Malaysia is restricted for Silver and Gold tier holders; only Platinum holders may engage in business activities, and even then, not conventional employment.