The Malaysia My Second Home Program

The Malaysia My Second Home program (MM2H) is a long term multiple entry visa permitting 10 year residency in Malaysia. The program has been running strong since 2002 and as of June 2016, 30,194 applications have been approved. Indeed, the popularity of the MM2H program is because of the the substantial benefits that the program includes. As a result, the MM2H Visa is arguably the best long term visa program available, worldwide!

The mastermind behind the program had sought to create the best long term visa program in the world! Therefore, important elements such as price, visa duration, visa renewal, visa benefits and the approval process were meticulously thought out!

  1. List of Top MM2H Program Benefits
  2. Malaysia My Second Home Statistics
  3. Selection of Your MM2H Agent
  4. Fast Approval for Qualified MM2H Applicants
  5. Malaysia My Second Home Application Process

Explore the Malaysia My Second Home Benefits

It is most prudent to shop around extensively before committing to a long term visa or second citizenship program. Indeed, your personal limits and requirements need to be satisfied. Important considerations are such as cost and approval process (including renewal) are first and foremost on the list of Malaysia My Second Home benefits. As a result, the MM2H program is the least expensive and most hassle free option compared to other visa programs.

For example, Thailand is a very popular country with expats. However, in Thailand the longest visa duration is one year and you need to leave the country annually to renew it. Additionally, your visa renewal is not guaranteed! Likewise for the visa programs in Hong Kong and Singapore. Furthermore, in Hong Kong and Singapore these residency by investment programs are conditional on successful business operations and minimal revenue generation. As a result of their ambiguous nature these programs are not long term solutions for expatriation. Indeed, the approval requirements of other programs are much more demanding compared to MM2H.

Below I have compiled a list of some additional Malaysia My Second Home benefits. I think you will agree that MM2H very competitive!

List of Malaysia My Second Home Visa Benefits

MM2H Real Estate Investment Opportunities

Upon approval you will be eligible to purchase real estate in Malaysia subject to a minimal purchase price. However, the price minimum fluctuates pretty widely depending on which Malaysian state you wish to invest in.

For example, as of January 7, 2016 the minimum purchase price is 2,000,000 Ringgit for Selangor zones 1 & 2. However, in Sarawak State the minimum purchase price requirement is as low as 300,000 ringgit. On average, you should would expect the purchase price minimum to be about 1,000,000 ringgit. As a result, bargain shoppers can find good opportunities in Malaysia.

Real Estate Profits Tax 1-5 years 30% of profit
Real Estate Profits Tax >6 years 5% of profit

Tax Free Vehicle Purchase

As of January 1, 2016 an approved MM2H applicant is eligible to purchase a new vehicle. However, it must be a vehicle that is assembled in Malaysia and exempted from excise duty tax. Additionally, successful applicants are eligible to import a pre-owned vehicle that is exempted from import and excise duty tax.

Easy MM2H Visa Renewal

The renewal process for the MM2H visa is streamlined and it is only necessary once every 10 years. Additionally, initial requirements such as asset source verification and minimum net worth are not verified again during the renewal process. Additionally, the MM2H administration office currently indicates an average 2 week processing period for renewal requests. Required documentation for visa renewal includes:

  1. Letter of Intent by the Principle
  2. Cover letter by licensed MM2H agent (if Applicable)
  3. Applicants passport both original and copy
  4. Original Form IMM.55 + 1 copy
  5. The original form IMM.38 + 1 copy (if applicable)
  6. Original and Copy of Fixed Deposit Statement
  7. If retired, proof of 3 months minimum 10,000 ringgit pension or retirement income
  8. Original and copy of confirmation letter from bank
  9. Original and copy of conditional approval letter
  10. The Original and copy of health insurance policy
  11. Original medical report on RB II form

Platform for Expatriation

MM2H approval is a great platform for expatriation. Malaysia My Second Home benefits include access to local bank accounts and investment accounts. Additionally, holders of second citizenship will be able to receive the MM2H visa using second passport. As a result, you are well prepared to complete renunciation if that is your objective.

Tax Free Residency & Offshore Banking

The government of Malaysia allocates no income tax to successful applicants with foreign income. As a result, your income is not taxed as long as it is not sourced in Malaysia. Additionally, the federal territory of Labuan is a internationally renown offshore banking center. Therefore, Labuan incorporation may be a good low tax alternative with current tax rates at about 3%.

Withdrawal of Fixed Deposit

After you have received full approval for the Malaysia My Second Home program it may be possible to reduce the fixed deposit amount. Review the following requirements to see if you will be eligible:

  1. Purchase Real Estate in Malaysia under the applicants name
  2. Medical Expenses
  3. Vehicle purchase under the applicants name
  4. Children’s education

Therefore, if any of these expenses are incurred in Malaysia then the following fixed deposit reduction may apply:

Applicant <50 years – Fixed Deposit Amount MYR 300,000 – Reduction Permitted MYR 150,000
Applicant >50 years – Fixed Deposit Amount MYR 150,000 – Reduction Permitted MYR 50,000

Malaysia My Second Home Statistics

Malaysia is a multicultural country and the Malaysia My Second Home program is accessible to any nationality in the world. Additionally, approvals are made regardless of race, religion, gender or age. Nonetheless, it is interesting to analyze the applicant’s country of origin. Indeed, the Malaysia My Second Home statistics reveal some similarities between the multicultural heritage in Malaysia and the MM2H applicants.

For example, large segments of the population in Malaysia are Muslim, Chinese and Indian. Therefore, many applicants have countries of origin with similar cultural characteristics.

MM2H Approval Chart

Malaysia My Second Home Statistics

The Volatility of the Malaysian Ringgit

The applicant approvals seemed to have taken a slight dip though June 2015. Possibly vacillating applicants were a bit fickle due to exchange rate volatility?

USD-to-MYR-Chart

However, things seem to have picked up again in 2016 and there was an 18.3% increase in total applicants. This is a prudent move because a depreciating ringgit makes the MM2H financial requirement much easier to meet. Therefore, the volatility of the ringgit is not a deterrent for the prudent applicant. Indeed, a well timed purchase of ringgit could be a long term investment paying significant yields.

Malaysia My Second Home Application Form

The Malaysian government will permit applicants to submit their own Malaysia My Second Home applications. Therefore, it is not compulsory to submit your MM2H application using an agent. However, there is a significant amount of supplementary documentation that must be properly submitted. As a result, not submitting the correct documents in the correct manner will result in significant delays.

Indeed, applicants should be aware that the MM2H approval board only meets once a month. Therefore, every time you incorrectly submit some required paperwork you should expect a minimum of one month additional delay.

Furthermore, even a perfectly submitted application package currently requires a minimum 3 month approval turn time! Nonetheless, for the intrepid and meticulous applicant, self submission is still an option.

MM2H Application Form Submission Documentation:

  1. Cover letter for MM2H Application
  2. Completed resume for main applicant including the main applicants academic background, work history and acquired expertise
  3. MM2H Application individually completed in full for the main applicant and each co-applicant. The MM2H application can be downloaded from the MM2H government website.
  4. 3 copies of the IMM.12 (social visit pass) completed by the main applicant and each co-applicant individually. Include one original copy and 2 photostat copies
  5. 4 colored passport size photographs
  6. Copy of all pages of passport/travel documents with certification on appropriate pages for personal particulars. Additionally, if the passport has been renewed within the previous 12 months then copies of all pages of the previous passport are required.
  7. Letter of Good Conduct (LGC) from your countries relevant agency. Relevant agency can be the police or FBI from your home country or the LGC can be prepared by your country’s embassy based in Malaysia provided that it is attested and it references the appropriate police authority from your home country.
  8. Self declaration of health conditions of all applicants using the appropriate form available on the MM2H official website.
  9. Proof of health insurance
  10. Certified copy of marriage certificate if a spouse is included on the application.
  11. If accompanied by children, a certified copy of birth certificates is needed and all accompanying legal documents e.g if the child is adopted or is a step child or a child from previous marriage then acceptable authorization is required from both biological/legal parents. Additionally, the main applicant must make a statutory declaration that they are financially accountable for all their dependents in Malaysia. Plus, for children (under 21 years of age) with disabilities a letter of confirmation will be required from a medical specialist.
  12. Certified copy of 3 months bank statements or financial statements to indicate financial wherewithal to qualify for the Malaysia My Second Home program.
  13. Most recent 3 months certified copies of pension slip/pay slip/income statement if self employed
  14. Authorization letter from the applicants to the MM2H ministry authorizing them to independently verify the submitted application documents.

*The list of required application documents is generalized and is subject to change without prior notice.

Choose Your Malaysia My Second Home Agent

It is highly recommended that applicants acquire a high quality Malaysia My Second Home agent to submit the application on their behalf. There are a lot of MM2H agents in Malaysia and it is important to choose carefully. As a result, your agent should not just be looking to shuffle some papers and collect a paycheck. Additionally, it is imperative that the Malaysia My Second Home Agent that you procure is intimately familiar with your situation. Therefore, if complications arise they can diligently rectify the situation.

Malaysia My Second Home Agent Facts:

  1. MM2H agents are relatively inexpensive compared to other long term visa programs. Therefore, it makes economical sense to use one.
  2. Government institutions worldwide are notoriously fickle and they do not respond well to incomplete, incorrect or insufficient applications and supplements. Therefore, omissions and errors can result in significant approval delays or outright rejection!
  3. Qualified agents facilitate significant savings in efficiency and cost to meet the requirements of MM2H e.g. medical exam, health insurance, fixed deposit and pension requirements.
  4. After MM2H approval, your Malaysia My Second Home agent will be a very valuable friend to rely on when you need to address local matters. Therefore, domestic issues like acquiring a Malaysia drivers license, property purchase, legalities, relocation and local heath care will be less difficult. Additionally, it may be very helpful to have a local source for professional referrals and to help speed up bureaucratic delays and inefficiencies.

However, choosing a good agent to represent your interests will require some intuition. Try this, contact 5 different agents and compare the responses. Indeed, many agent responses will sound boiler plate because they wish to make minimal effort. Unfortunately, this is a sure sign of indifference.

Alternatively, a more prudent response would inquire about your personal qualifications. As a result, you will find an agent who will tailor the application to your situation. Therefore, the approval ratio will increase significantly.

The MM2H Program Financial Requirements

For the initial application process the government ministry will require the applicant to show adequate financial strength. However, financial requirements fluctuate depending on age. The inflection point for the requirements is 50 years of age. As a result, being a minimum of 50 years old significantly lessens the financial elements of approval.

Applicant                                                        Below 50 Years of Age                                                  Above 50 Years of Age
Financial Strength                                  Over MYR 500K Equivalent                                             Over MYR 350K Equivalent
Monthly Income                                               Minimum MYR 10,000                                                   Minimum MYR 10,000
Fixed Deposit                                                                MYR 300,000                                                                 MYR150,000

Potential MM2H Approval Problems

Compared to other residency by investment applications, the Malaysia My Second Home approval process should be a piece of cake! However, problems with approval can occasionally occur. Indeed, many of the issues are simply because of overlooked personal circumstances. As a result, anticipating what the ministry is looking for is the best way to avoid problems and delays.

Bank Verification Letters

I read some of the blog commentary online about how one applicant was having difficulty getting their US Bank to write an account verification letter. I completely understand this problem! However, I had switched my US accounts to a credit union 10 years before I even thought of applying for MM2H approval. Therefore, I emailed their customer service department and I had the original account verification letter within 3 business days. Unfortunately, even the MM2H approval process is not fool proof.

Islamic Values

Islamic values may be a deterrent for some potential MM2H applicants. This is because of ignorance mostly, or possibly fear of restricted freedom of expression. However, if you are like me you will see this as an asset and not a Malaysia My Second Home problem. Fortunately, hot western social topics are still really controversial in East Asia. As a result, residency in a country with traditional values is seen as positive, not negative.

Currency Volatility

The Malaysian Ringgit has depreciated to levels last seen during the Asian financial crisis in 1997. These levels are extreme! First of all, there is obviously no financial crisis happening in Malaysia at this time. In fact, the Malaysian economy is steaming ahead with 4% GDP growth in 2018 and more of the same expected in 2019.

ASEAN countries are a global economic growth hot spot for the future and this is a good place for future investment. Chasing the US dollar bubble will eventually backfire. Therefore, this Malaysia My Second Home problem is also an asset, not a complication. Why not buy in at the 30% discount?

The MM2H Forum Conundrum

Using an MM2H forum as an information source is kind of like relying on Yahoo message boards for investment advice in 1999. Therefore, prudent applicants must have more self respect than to rely on second hand forum gossip for information. Indeed, pertinent information is readily available online from more reliable sources.

For example, all of the MM2H program requirements are available on the government approved website. From there, it is possible to cross check the requirements found at other sources. Subsequently, you can select your agent with confidence and get everything in order. As a result, your application will progress much more efficiently since you have done your own research.

Sources:

  • http://www.mm2h.gov.my/index.php/en/home/
  • http://www.xe.com/currencycharts/
  • https://www.penangmyhome.com/