Insights
Are you considering investing in the Malaysian economy or perhaps retiring in this vibrant country? If so, Malaysia residency programs could be the perfect solution for you.
The Ministry of Tourism and Culture created this program with the hope of enticing foreigners such as yourself to live full or part-time in this country. This program has benefits, requirements, and limitations. Plus, in the Sarawak region, the program has different requirements.
In this article, we’ll explore this residency program, its benefits, and how you can acquire it.
The Malaysia My Second Home (MM2H) is a program that allows you to live in this country with your family for 5 years. However, to remain in this program, you'll need to live in this country for a minimum of 60 days per year. In addition, this program allows you to enter this country multiple times without having to apply for a visa again. Interestingly, you can renew it to extend your stay.
Expats and retirees opt for this program because it offers the following benefits:
This program allows you to have a maximum income tax rate of 30%. This rate applies to incomes over RM 2 million or around $ 420,000. Plus, in this country, you won’t need to pay tax on your foreign-sourced income.
According to studies, e-commerce has seen growth for the past decade and 83% of Malaysians are online, with 61% of them on shopping applications. So, you can do business in Malaysia with an MM2H pass. This legal document allows you to invest in the Western area of this country. Then, you can take advantage of its booming sectors such as online shopping, healthcare, and food and beverages. You can even work in the West of Malaysia, though there are conditions.
When you enter this program, you have the chance to move with your family. In particular, you can include your spouse, unmarried children who are 34 or below, and parents, and parents in law that are 60+ years of age.
The Malaysian government has recently made this program more accessible by simplifying its requirements. Importantly, there are no longer any requirements regarding income, which streamlines the application process considerably. However, there's a liquid asset requirement of RM 1 million or around $210,700 and a fixed deposit of RM 500,000 or around $105,300.
You’ll need to meet the following requirements to enter this program:
If you opt to move with your family, they’ll need to follow the above requirements except the age restriction. In addition, you’ll need to meet these requirements:
Meanwhile, the Sawark program has a much lower financial requirement of:
| Requirements | Cost |
| Monthly Income (Single) | RM 7,000 or $1,500 |
| Monthly Income for Married Couples | RM 10,000 or $2,100 |
| Fixed Deposit (Single) | RM 150,000 or $31,400 |
| Fixed Deposit for Married Couples | RM 300,000 or $63,200 |
In addition, those applying to this 5-year subprogram should be 50 years old or older. In addition, you only need to live in the Sarawak region for 30 days a year. Plus, you can renew this visa for a total of 10 years, meaning you'll need to spend less than a year in Sawark during that decade.
To know which subprogram is most appropriate for your needs, you should consult experts like Vancis Capital. They’ll help you understand the intricacies of these programs and how you can leverage them to suit your lifestyle.
Once you’ve decided which subprogram fits your needs, you can follow the following steps to receive your MM2H pass:
To begin your application for this residency program, you'll need to be in Malaysia. Alternatively, you can employ an agent to represent you. You’ll then present your intention letter which details your desire to enter this program.
Now that you’ve submitted your letter of intention, you should pay the processing fees. The government uses these fees to verify the information you’ve given them and to handle your Malaysian MM2H application.
After you’ve paid the fees, the government may give you a conditional letter. This letter allows you to proceed with the application process. Additionally, the letter will detail the steps you’ll have to take in the next 6 months to receive your application.
Now that you’ve received the conditional letter for your Malaysian MM2H application, you should make the fixed deposit of RM 500,000 or around $105,300 in a Malaysian bank.
After you’ve made your fixed deposit, you should acquire insurance coverage. Then, you’ll need to also receive a medical report detailing your overall health from a registered medical facility in Malaysia.
Now that you’ve collected the necessary documents as listed in your conditional approval letter, you’ll submit your application. In particular, you should ensure that you submit the following documents:
If your documents aren’t originally in English, you’ll have to translate them. You can use either the Institute of Language and Literature. If you’re outside of the country, you can instead go to their Consulate to have them facilitate the translation.
After you’ve submitted all of the above and the government finds no issues, you’ll receive the residency permit between 3 and 6 months later or 9 - 12 months if you're applying to the Sawark program.
The MM2H is a Malaysian program that will allow you to enter and live in the country for 5 years and then renew this permit. With this program, you can take advantage of favorable tax rates, and business opportunities in a variety of thriving sectors, and even gain a right to permanent residence.
Particularly with expert guides such as Vancis Capital, you can better understand the different subprograms and decide which is best for you and your family. Once you’ve made your decision, you can send your letter of intention and begin the process of receiving this legal document.
Get in touch to discuss how we can help you with your citizenship or residency by investment goals. One of our investment migration experts will contact you to discuss your case. With over 16 years of combined experience our team has helped hundreds of families achieve freedom.
