In 2021, several notable alterations were made to the popular Malaysia My Second Home (MM2H) program that increased liquid assets and minimum monthly income requirements. These have not gone well with the number of applications received having dropped by 90 percent. Malaysia is now considering undoing those MM2H changes in an attempt to revive the flagging scheme.
Both the Penang and Johor state governments have noted that it is more difficult to attract long-term foreign residents. Prior to the more stringent requirements going into effect, MM2H was seen as one of Southeast Asia’s best retirement programs due to its transparency. That is no longer the case and Malaysia risks falling behind Thailand and the Philippines in the eyes of potential retirees.
“If such conditions persist, I believe many expatriates will no longer choose Malaysia and will seek our neighboring countries, which are easier for them to meet the eligibility requirements to settle there,” Penang’s State Tourism and Creative Economy Committee Chairman Yeoh Soon Hin was quoted as saying by Bernama.
While Malaysia mulls over MM2H changes in financial requirements, work is already being done to streamline the application process. Malaysian Tourism, Arts and Culture Minister Tiong King Sing told Channel News Asia that a one-stop center was being created to improve the experience.
“The center would also assist the applicants to process the applications and collate all the information needed to be forwarded to the Home Ministry or Immigration Department for processing and issuing the MM2H pass,” Tiong noted.
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About MM2H
MM2H allows anyone who purchases a property over a certain amount to obtain a 10-year, multiple-entry visa that family members are also eligible for. Alternatively, applicants over 50 can instead deposit money into a Malaysian bank account and prove they have a monthly income from a pension or investments to get the visa.
Other benefits of MM2H include the ability to bring money to Malaysia tax-free. Additionally, importing your car from overseas or purchasing one locally can be done tax-free. Applying is straightforward, but you can also find several licensed MM2H agents to help.
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