Residence Permit by Investment – Malaysia

States in Malaysia

Our neighboring country shares close cultural ties with us and consists of 13 States and 3 Federal Territories.

Federal Territories of Malaysia

No	Federal Territories	Head of State	Capital City	Description
1	Kuala Lumpur	Sultan Malaysia	Kuala Lumpur	National Capital
2	Putrajaya	Sultan Malaysia	Putrajaya	Federal administrative capital
3	Labuan	Sultan Malaysia	Victoria	offshore financial hub

What is MM2H (Malaysia My Second Home)

MM2H is a Residence Permit program  that allows foreign nationals to live in Malaysia for 10 years (renewable) without the requirement to work there.

Its purpose is to attract retirees, investors, and high-income professionals to reside in Malaysia and contribute to the local economy.

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Main Benefits

A. Long Term Residence Permit

• The visa is valid for 10 years, may be renewed indefinitely rovided the financial requirements are met.
• There is no requirement to reside full-time in Malaysia (free entry and exit are allowed).
• Applicants may include their spouse, children, and domestic helper..

B. Investment & Property Access

• MM2H holders may purchase residential property in Malaysia (subject to minimum price thresholds by zone, e.g., RM 2 million in Kuala Lumpur).
• They may lease out owned properties to generate passive income.
• There is relatively strong legal protection for foreign ownership of property.

C. Financial & Tax Benefits

• Income sourced from outside Malaysia is not subject to tax (Offshore Income Exemption).
• There is no national inheritance tax.
• Several Malaysian banks offer multi-currency accounts and fixed deposits with competitive interest rates.

D. For Families (Children & Parents)

• Children may attend international schools in Malaysia without the need for a separate student visa.
• Parents may be sponsored (subject to the MM2H category).
• Access to international-standard private healthcare at a more affordable cost compared to Singapore.

E. Mobility & Quality of Life

• Malaysia offers a relatively low cost of living, good infrastructure, and a large expatriate community.
• Its close geographic proximity to Indonesia — only a 2–3 hour flight from Jakarta, Surabaya, Medan, or Bali.
• The Malay language is easily understood by Indonesians, and many Malaysians are also fluent in English.

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Specifically for Indonesians: What Are the Benefits?

A. For Early Retirement
Many Indonesian retirees (aged 45+) choose MM2H because:

• They can live in comfortable and safe locations (Penang, Kuala Lumpur, Johor).
• They have access to high-quality healthcare (e.g., Gleneagles, Pantai Hospital).
• They remain close to family in Indonesia.

B. For Investors

• MM2H can be used as a regional base for property or business investments.
• Malaysia has a legal system based on English Common Law and strong economic stability.
• It allows investors to hold accounts with Malaysian banks and conduct cross-border transactions more easily.

C. For Families & Education

• Education costs are lower than in Singapore or the UK, yet quality is nearly equivalent.
• Children may attend international schools in Malaysia (e.g., Garden International, Alice Smith, Epsom College).

General Requirements for Malaysia My Second Home (MM2H)

• Processing fee for the Main Applicant: RM 5,000.00
• Processing fee for each dependent: RM 2,500.00

MM2H (Malaysia My Second Home) Category

Description	SEZ (Special Economic Zone) Category	Silver	Gold	Platinum
Minimum Age	21 years old	25 years old	25 years old	25 years old
Fixed Deposit	• USD 65,000 in a Malaysian bank for ages 21–49. • USD 32,000 in a Malaysian bank for ages > 50 years old.	USD 150,000 in any bank in Malaysia.	USD 500,000 in any bank in Malaysia.	USD 1 million in any bank in Malaysia.
	50% of the FD can be withdrawn after MM2H approval for the purpose of purchasing a home, education, health services, and domestic tourism in Malaysia.
Registration Fee	RM 1,000	RM 1,000	RM 3,000	RM 200,000
Agency Fees	RM 40,000	RM 40,000	RM 55,000	RM 70,000
HOUSING :
a. Mandatory Residential Property Purchase	Price follows the state government rules for foreign purchases.	Min RM 600,000	Min RM 1 million	Min RM 2 million
b. Property Cannot Be Sold	Min 10 years, but upgrading to a higher-value property is permitted during this period.
Validity	10 Years	5 years	15 Years	20 Years
Extension Fee	RM 300	RM 1,500	RM 3,000	RM 5,000
Education	Children can attend school in Malaysia.
Business/ Investment/ Employment	Not Allowed	Not Allowed	Not Allowed	Allowed
	Subject to separate application approval.
Domestic Helper	Not Allowed			Allowed

MM2H VS. Residential Property Purchase Price per State

State	Minimum Property Price	Minimum Property Price with MM2H
Kuala Lumpur	RM 1 million	RM 1 million
Selangor	RM 2 million (Zone 1 & 2)	RM 2 million (Zone 1 & 2)
	RM 1 million (Zone 3)	RM 1 million (Zone 3)
Penang Island	RM 1 million – RM 3 million	RM 500,000 (for the first two properties)
Johor	RM 2 million (landed property in international zones)	RM 1 million
	1 million (strata title & landed in non-international zones, excluding Medini)

• Zone 1 & 2 (Selangor): Petaling, Gombak, Hulu Langat, Sepang, and Klang Districts.
• Zone 3 (Selangor): Hulu Selangor, Sabak Bernam, Kuala Selangor, and Kuala Langat Districts.

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Drawbacks / Things to Note

• It does not grant Permanent Residency (PR) or citizenship. 
• Working is not permitted without a separate Work Permit.
• Applicants must demonstrate minimum assets & income, the investment must be maintained if the MM2H status is to remain valid, including when applying for a renewal of the Residence Pass. 

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🎯 Conclusion

Purpose	Is MM2H Beneficial for Foreigners?
Living comfortably abroad (retirement)	✅ Highly beneficial
Property investment abroad	✅ Beneficial (clear zone, stable value)
Active employment or starting a business	⚠️ Not immediately possible, requires additional permit
Seeking PR or a foreign passport	❌ Not suitable