The latest MM2H visa introduces significant changes, with higher financial requirements and a renewed focus on economic contributions. Here’s what you need to know.

The latest version of the Malaysia My Second Home (MM2H) visa has brought some significant changes to the visa. It has been rebranded from a retirement visa to an economic generation programme and that is reflected in the new terms and conditions. Of course, the original visa ended up being a significant economic contributor in its own right, as the visa attracted many retirees who, over the years, collectively brought billions of ringgit in foreign currency into Malaysia.   

The current visa requires a higher financial contribution upon approval. There are now three national MM2H visas, and the required deposits are much higher than the original visa (which was available with a fixed deposit of RM150,000 for a single applicant or RM300,00 for a couple). The entry-level visa (Silver) now requires a fixed deposit of US$150,000, which is around RM670,000. This gets the applicant a five-year visa. Full details of the various options can be seen on the website www.MM2H.com, which is operated by TEG Media, the same company which owns this website.

Applicants also have to buy a property within one year of being approved for the visa. Interestingly, according to our research the majority of people who relocated to Malaysia with the original MM2H visa purchased property here, but now it is compulsory. This has certainly turned off some applicants, and arguably this requirement was a mistake, since our research showed renters also contributed strongly to the economy.

There is also a requirement to hold onto the property for 10 years, which should not be a major problem for those who plan to buy property and live here indefinitely. In the event of their death or cancellation of the visa, the property can be sold.

On the positive side, there is no need to show proof of monthly income at the time of application, nor liquid assets, which caused problems for some applicants in the past.

A LESS COSTLY OPTION

However, for those who find the entry cost too high, there is a lower cost option and one that seems to have older applicants in mind. It is called the Special Finance Zone (SFZ) MM2H visa and is linked to the large Forest City development close to the border with Singapore.

This development has certainly had its problems, but now seems to be on the rebound, with renewed interest coming from several initiatives aimed at securing investors. The SFZ is located in the much larger Special Economic Zone (SEZ) that occupies much of Johor state and is a joint initiative with Singapore, which is expected to attract significant investment into the region.

Forest City is focused on attracting financial service companies and new residents. Various tax breaks are being offered, as well as other incentives. The masterplan is to create four islands for the total development which is located quite close to the second crossing into Singapore (Tuas). Only one island has so far been completed and houses around 28,000 properties. These start with small apartments of around 500 square feet for just over RM600,000 and go up to detached houses costing several million ringgit. The island has been declared a duty-free area, which is attractive to some buyers.

The SFZ MM2H visa only requires a fixed deposit of US$32,000 for those aged 50 and above, and $65,000 for younger applicants. That is much less than the lowest cost national option, the Silver Tier visa at US$150,000. Applicants must be aged over 21 to qualify and the visa is for 10 years which will be issued as two five-year visas.

The smaller units are proving attractive to people who wish to live elsewhere because there are no restrictions on where visa holders must relocate, as long as it is in West Malaysia. Half the fixed deposit can be withdrawn at the time the property is purchased so there is no delay in securing the funds. Younger applicants with regular incomes can probably secure a loan for around 50% or 60% of the property cost.

It is reasonable to expect that the visa can be obtained for a total investment of under US$200,000, including the agent’s fee, fixed deposit and the cost of the apartment and related fees. Although the prices in Forest City are slightly higher than other areas in Johor, they should rise in the longer term as awareness of the various incentives are understood.

For more information or to apply for this visa, go to our website www.MM2H.com. We can also assist with the property purchase in Forest City. NOTE: Borneo Vision (MM2H) Sdn Bhd is part of the TEG Media group. We have been closely involved with the Malaysia My Second Home visa since 2004 and have assisted hundreds of people with their applications.