FIC Guidelines for acquisition of residential properties under MM2H has been developed to be transparent and clear cut
Malaysia – Your Home Away from Home
Malaysia My Second Home, is a government initiated programme that is continuously being fined-tuned to ensure its implementation and success
In order to entice foreigners to invest and purchase properties in the country, Malaysia has implemented, Malaysia My Second Home (MM2H), which offers numerous incentives and exemptions to foreigners to encourage them to buy local properties.
MM2H effectively allows people from all over the world who have fulfilled certain core criteria, to stay in Malaysia for as long as possible on a social visit pass with a multiple entry visa.
The Social Visit Pass which is initially valid for a period of ten years, is renewable and is open to all citizens of countries recognised by Malaysian authorities regardless of race, religion, gender or age.
Furthermore, applicants are allowed to be accompanied by their spouse and dependent children (below 18 years old who are not married). Being a government initiative, the programme is constantly being reviewed and fined-tuned to remain successful.
Incentives of MM2H programme:
House Purchase
Participants are allowed to purchase residential properties above RM250,000, depending on the location of the property. Generally the minimum prices for property purchases in most states in Malaysia are RM250,000 each, for certain areas in Sarawak, the minimum price is above RM350,000 each.
Car Purchase
MM2h participants can opt to import a personal used car from the country of origin subject to approved permit (AP), which is exempted from payment of import duty, excise duty and sales tax (within six months from the date of endorsement of MM2H pass), or purchase a locally assembled car in Malaysia exempted from excise duty and sales tax (within a one year period from the endorsement date of the MM2H pass).
Domestic Helper
A participant is permitted to bring in one domestic helper but this is not compulsory.
Terms & Conditions
For those below 50 years of age:
It is compulsory for participants who are below 50 years of age to open a fixed deposit account with a minimum of RM300,000. After the first year, the participant can withdraw up to RM240,000 for the purchase of a house, education for children in Malaysia and medical purposes. The participant must maintain a minimum balance of RM60,000 from the second year onwards and throughout the stay in Malaysia under the programme.
For those aged 50 years and above:
Participants have two choices they can either:
Open a minimum fixed deposit account of RM150,000 or
Show proof of monthly off-shore income of RM10,000
After a period of one year, participants who fulfill the minimum RM150,000 fixed deposit criteria, can withdraw up to RM90,000 for the purchase of a house, education for children in Malaysia and medical purposes. Participants must maintain a minimum balance of RM60,000 from the second year onwards and throughout their stay in Malaysia under the programme.
Effective 1st June, 2007, all MM2H applications are to be submitted through licensed MM2H agents only, no individual applications or third party applications will be entertained.
Foreign Investment Committee (FIC) Guideline
FIC Guidelines for acquisition of residential properties under MM2H has been developed to be transparent and clear cut.
- Purchase of residential unit is exempted from FIC’s approval under the MM2H Programme.
- All categories of residential units are allowed except for low-cost and medium low-cost units as determined by the state authorities, including properties on Malay Reserve land units reserved for Bumiputras and agricultural land developed on the basis of the homestead concept.
- The state authorities have the discretion to consider acquisitions based on location and number of units in any single project development and type of property acquired.
- Any proposed acquisition under MM2H must be directly applied to the Ministry of Tourism.
- The Ministry will then forward the particulars of the acquisition to the FIC.
- Acquisition of other properties apart from residential, are subject to FIC’s approval.
- Any proposed purchase should be above RM250,000 in most states and in the case of Sarawak the purchase should be above RM350,000.
Transfer of Properties by Foreign Interests
- Transfer of properties by foreign interests is only allowed to immediate family members. (Family members under the FIC Guidelines are through marriage (husband and wife), blood ties (grandfather, grandmother, siblings, step-children and legally adopted children.)
- Transfer of properties through a Will or Court Order is exempted from the FIC’s approval.
Acquisition and Disposal of properties
Under the MM2H programme, acquisition and disposal of properties is not complicated as long as participants follow the guidelines.
Acquisition
- Identify the property the participant intends to acquire
- Buy properties that have already been issued with Certificates of Fitness (CF)
- Seek information on the property from the relevant authorities (Land office, local authorities)
- Assign a lawyer and get the S&P Agreement signed
- Secure a letter from the Ministry of Tourism certifying the purchaser is a MM2H participant.
Disposal
- Identify interested local buyers, if buyer is a foreigner, seek prior approval from the FIC
- Sign the S & P Agreement
- Notify the relevant authorities (FIC, Ministry of Tourism, Inland Revenue Board) of the impending disposal
- Pay the Property Gains Tax to the Inland Revenue Board, if applicable.
New Application:
All applicants who wish to apply to stay under MM2H must submit the following documents:
- Letter of Application (Cover Letter)
- Personal background and indication to join MM2H
- Number of persons who will be accompanying the applicant
- Breakdown on financial capabilities to support stay in Malaysia
- The chosen financial criteria (Fixed deposit or monthly off-shore income)
- Two copies of Form IM. 12 (Social Visit Pass Form)
- Two passport sized photographs
- Personal Bond (if applicants appointed sponsors)
- A certifies copy of Passport/travel document (all pages)
- A certified copy of marriage certificate (if accompanied by spouse)
- A certified copy of birth certificates (if accompanied by children)
- Resume with 10 years working experience
- Certified copy of three months bank statement/ other related financial documentation)
- At least three months certified copy of pay slip/pension slip/income statement
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