Retire in Malaysia – Malaysia My Second Home (MM2H)

February 5th, 2009 stephen.wong

You slog half of your life in the corporate rats race. After accumulating your savings for the past 30 years, you want to find a place to retire – comfortably. Singapore is fine but the cost of living is too high. Indonesia looks good too but you may not really speak their language. America? Too far.. and you might not get used to the weather.

Enters Johor Bahru, where a bowl of wanton noodles still cost only RM$3.50 (S$1.50), and a bungalow cost only an equivalent of a 4-room flat in Singapore. In addition, it is still sufficiently near to Singapore for you to enjoy the world class facilities like medical care, entertainment (think F1 and Integrated Resorts). Near enough for you to even catch Mediacorp Channel 5 over the air. Interested? Malaysia, My Second Home scheme is here to make it possible.

Malaysia My Second Home (MM2H) Programme is promoted by the Government of Malaysia to allow foreigners who fulfill certain criteria, to stay in Malaysia for as long as possible on a multiple-entry social visit pass. The Social Visit Pass is initially for a period of ten (10) years, and is renewable. It is open to citizens of all countries recognised by Malaysia regardless of race, religion, gender or age. Applicants are allowed to bring their spouses and unmarried children below the age of 18 as dependants.

The following benefits apply to successful applicants to the program:

House Purchase/Import
Each participant is allowed to purchase residential houses at price above RM250,000, depending on the location of the property.

Generally the minimum price for the purchase of houses in Malaysia are as follows:
1 Above RM300,000 per unit for certain areas in the state of Sarawak (Kuching, Miri)

2 Above RM250,000 per unit for other states

Car Purchase
Each participant is allowed to bring in his/her own personal car OR to purchase a locally-assembled car without the need to pay import duty, excise duty and sales tax.

Domestic Helper
Each applicant is allowed to apply for one maid subject to the prevailing guidelines of the Immigration Department of Malaysia.

Education
Applicants are allowed to bring their children who under 18 years old and not married as their dependants under this programme.

The catch? Well, 2 big catches below:

Catch #1
i Aged Below 50 years old

Open a fixed deposit account of RM300,000.00.
After a period of one year, the participant can withdraw up to RM240,000.00 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes. Must maintain a minimum balance of RM60,000.00 from second year onwards and throughout stay in Malaysia under this programme.

ii Aged 50 years and above

Can either choose to:
- Open a fixed deposit account of RM150,000.00 ; OR
- Show proof of monthly off-shore income of RM10,000.00 in government pension.

After a period of one year, participant who fulfills the fixed deposit criteria can withdraw up to RM90,000.00 for approved expenses relating to house purchase, education for children in Malaysia and medical purposes.
Participant must maintain a minimum balance of RM60,000.00 from the second year onwards and throughout his/her stay in Malaysia under this programme.

Catch #2
Locally-Assembled Car
An Application to PURCHASE a new motorcar made or assembled in Malaysia must be forwarded to the Ministry of Finance within a period of one year from the endorsement date of Malaysia My Second Home (MM2H) social visit pass.

The gist of it is to ensure that you are financially sound to reside in Malaysia, and you can still contribute to their economy.

Still interested? Check out the official website on MM2H here. Selamat Datang ke Malaysia!

Subscribe to our newsletter for the latest updates to Johor Bahru. Enter your email address below.

Entry Filed under: Others