People Criticize the MM2H Program, but Interest in Malaysian Homes Rises!
The updated Malaysia My Second Home (MM2H) residency visa program is catching the eye of many foreigners eager to buy property in the country. Datuk Seri Tiong King Sing, the Minister of Tourism, Arts, and Culture, recently mentioned that developers are receiving lots of questions from people outside Malaysia about how to buy homes under the new rules. “We’re seeing many inquiries from overseas about housing options that fit the program’s new prices,” he said in an interview.
What’s New with MM2H?
In June, the Ministry of Tourism announced big changes to the MM2H program. They introduced three categories: Platinum, Gold, and Silver. The idea behind these changes is to attract more buyers and give the property market a boost. The updated program has made it easier to meet some of the rules compared to earlier versions introduced in 2021, especially regarding fixed deposits and income requirements.
Some people think the program might not be as attractive as those in nearby countries. But Tiong believes that interest in buying property in Malaysia is still strong. “Research shows there is a good amount of interest among foreigners,” he said. The Platinum category requires a fixed deposit of $1 million, while the Gold category needs $500,000, and the Silver category is $150,000.
Spending Flexibility
One exciting change in the new MM2H program is the flexibility it offers. After a year, visa holders can take out up to 50% of their deposits to pay for things like property, health care, education, or travel within Malaysia. “This feature helps make MM2H more appealing,” Tiong pointed out.
He posed an interesting question: “If the MM2H program is unpopular, why are other countries coming up with similar programs?”
Buying and Selling Property
The program does have some rules about how long you need to keep your property. Usually, you have to hold onto a property for at least ten years, but there’s room for exceptions. Tiong explained, “If you buy a house for RM500,000 today and later want to move because you find a better place, you can sell your current home and buy a new one, as long as you have the right paperwork.”
He added, “We shouldn’t be too worried about foreigners coming to live in Malaysia. As long as they follow our laws and help boost the economy, we welcome them.”
Details About Each Category
Here’s a quick look at the three categories:
- Platinum
- Gold
- Silver
The validity of the visas varies: Platinum is good for 20 years, Gold is 15 years, and Silver is 5 years. This long-term option is attractive for many who want stability.
Special Rules for Sabah and Sarawak
Besides the federal MM2H program, Sabah and Sarawak have their own versions. In Sabah, you must buy a high-rise property that costs at least RM600,000. In Sarawak, you can buy residential properties for RM600,000 in Kuching or RM500,000 in other areas.
Some think that foreigners are leaning toward Sarawak’s program because its requirements seem less strict. Tiong clarified this view, saying it’s not a loophole but an opportunity for the federal government to promote the benefits of the national MM2H program. “Those approved for Sarawak’s MM2H can also travel in Peninsular Malaysia, which is a good extra benefit,” he noted.
Working Together for Better Policies
Tiong suggested that the MM2H programs in Sabah and Sarawak should work well with the federal rules. “Those states can choose which parts of the federal program they like to use as long as they stick to the rules,” he said. He’s also thinking of recommending that Sarawak include a property purchase requirement or consider adopting one of the new categories from the federal government, like the Silver category.
Conclusion
With growing interest in the MM2H program, the government is determined to keep improving it to meet the needs of those looking to invest in Malaysia. This not only helps the property market but also makes Malaysia a more appealing spot for people who want to settle down.
Whether you’re thinking about a modern apartment in KL or a quiet home in Sabah, the revamped MM2H program opens up many exciting possibilities for living and investing in Malaysia.
