Country Profile:

Malaysia, a multicultural nation nestled in Southeast Asia, is split into two sections, East and West, by the South China Sea. West Malaysia serves as the hub of economic and political activities, whereas the eastern states of Sabah and Sarawak each provide their distinct my second home schemes.

Capital: Kuala Lumpur

Population: 33,200,000 (2023, 43rd)

Ethic Group: 69.7% Bumiputera, 22.9% Chinese, 6.6% Indian

Area: 330,803 km²(67th)

Offical Language: Malay

Currency: Malaysian ringgit

GDP per Captial: $37,082 (55th)

How To Become A Resident in Malaysia:

My Second Home Program is a widely recognized initiative for those intending to settle in Malaysia for an extended period. However, besides this, Malaysia also presents an array of other residency options including investment immigration, employment pass, and digital nomad visas.

Investor Visa:

In a manner similar to several other countries, Malaysia offers a path to permanent residency through investment. This path requires a foreign individual to maintain a deposit of no less than 2 million US dollars in any Malaysian bank account for more than 5 years, provided they have a reliable Malaysian citizen as a guarantor. The visa obtained in this way also covers the individual’s spouse and children under the age of 18. After the 5-year period, this visa can be transitioned into permanent residency, and the funds deposited can be retrieved.

My Second Home Program:

My Second Home Program is an initiative by the Malaysian government designed to motivate foreign nationals to invest within the country, offering applicants the opportunity for unrestricted, long-time residence in Malaysia. As of 2023, the program comprises four distinct categories post-reform:

1. Number one, traditional My Second Home Program, there are three tiers:

Silver, which requires a fixed deposit of RM500,000 and comes with a renewable 5 year visa.

Gold, which requires a fixed deposit of RM2,000,000 and comes with a 15 years visa (which would be issued with a three, five year visa)

Platinum, which requires a RM5,000,000 fixed deposit and includes eligibility for Permanent Residency.

All of the tiers require the holder to spend at least 60 days a year in Malaysia. Eligible dependents who are permitted to join the programme have been specified as – spouse, children under 21, parents and parents-in-law, disabled children of any age, and unmarried children aged 21 to 34.

In all cases, half the FD can be withdrawn after one year for house purchase or medical expenses. The existing programme requires proof of income of RM40,000 per month.

Applicants have the option of using an approved MM2H agent or submitting their application directly.  Applications can be submitted while the applicant is in Malaysia or from overseas.

Once the submissions are reviewed and approved, they will issue a letter of ‘Conditional Approval’. At this time the applicant has six months to complete the remaining conditions (obtain medical insurance, complete the medical examination and open the fixed deposit) and collect the visa.

The official time frame for approval (or decline) is 120 days after submission. The programme used to be administered by Tourism Malaysia together with the immigration department but now it is run by immigration.

2. Number Two: Malaysia Premium Visa Programme (PVIP).

The PVIP was launched on 1 September 2022 by the Ministry of Home Affairs of Malaysia.

The main differences between PVIP and MM2H are threefold:

MM2H requires applicants to be aged 30 and above, while PVIP has a minimum age requirement of 18.

PVIP visa holders are allowed to freely pursue education, work, business ventures, property acquisition, and investments in industries permitted by law in Malaysia. In contrast, MM2H visa holders are not allowed to work or study locally.

Lastly, PVIP does not have a residency requirement. Foreigners can hold the visa without residing in Malaysia.

It involves a long-term residence visa lasting 20 years （5+5+5+5）, extendable for another 20 years. Applicants must be at least 18 years old, earning no less than RM 480,000 annually, and deposit a minimum of RM1 million into a local bank account. During the first year, no withdrawals are allowed, while in the second year, half of the amount can be used for local expenses. There are no local residence requirements.

All applicants and their dependents are required to submit a medical report from any private hospital or registered clinic in Malaysia and proof of valid local medical insurance coverage. Principal applicants are required to pay a one-off RM 200,000 participation fee, and a one-off RM 100,000 participation fee will be levied for each dependent.

Each successful applicant is permitted to undertake the following in Malaysia: education; employment; business; acquisition of real estate for residential, commercial, or industrial purposes; and investments in permitted industries.

3. The third category is specific to Sarawak state’s My Second Home Program.

The program offers a 10-year renewable social visit pass with a visa for multiple entries. Applicants must meet certain age criteria: those aged 50 and above have no restrictions, while spouses (if any) have no age limit. Alternatively, applicants aged 40-50 may qualify with an investment in real estate specifically for residential purposes, totaling at least RM 600,000. Those aged 30-50 may also qualify if they are undergoing long-term medical treatment in Sarawak or have children studying there.

Additionally, applicants are required to deposit a minimum of 150,000 ringgit locally (or 300,000 ringgit for couples). All participants must reside in the state for a minimum of 30 days each year. The processing fee for this program is $1,060.

Approved applicants are prohibited from seeking employment or engaging in any business activities during their stay in Malaysia under this program. Visa holders are also required to maintain a fixed deposit with any bank in Malaysia.

The application process can be done in two ways: direct submission or assisted submission with the help of a licensed agent registered in Sarawak only. For direct submission, applicants need to find a sponsor who is originally from and currently residing in Sarawak.

4. The fourth category pertains to Sabah state’s My Second Home Program, offering a 10-year renewable visa. The financial requirements are as follows:

• Main applicants, whether below or above 50 years old, must provide proof of offshore income of RM10,000 per month.

• Main applicants below 50 years old must demonstrate liquid assets worth a minimum of RM500,000, while those above 50 years old must show RM350,000.

• Additionally, the main applicant is required to open a fixed deposit of RM150,000 in Sabah for those aged over 50 years, or RM300,000 for those aged under 50 years. 

In the second year, Sabah MM2H holders may withdraw up to RM50,000 for those aged over 50 years, or RM150,000 for those aged under 50 years, for approved expenses related to house purchases, cars, education for children, and medical purposes from the Fixed Deposit.

The official application period is 3-4 months. Generally speaking, applicants require the assistance of a local agency to complete all the application processes.

Utilizing any of these four methods, main applicants’ spouses, parents, parents-in-law, and children under 21 can be included as dependents. Currently, these visas can be perpetually renewed in practical, although they do not lead to permanent residency status or a Malaysian passport.

Visa holders over the age of 50 are permitted to work up to 20 hours per week in specific sectors. Once an applicant becomes a tax resident in Malaysia, their overseas income is tax-free. They can also purchase property and engage in business investment activities in accordance with local laws.

De Rantau Nomad Pass:

As of October 1, 2022, Malaysia has officially implemented the De Rantau Nomad Pass, a digital nomad visa program. This program offers foreign digital nomads, with a monthly income of more than $2000, a local residence visa that varies from 3 months to 1 year. The visa can be renewed for at least a year but does not lead to permanent residency.

Applicants are required to submit the following documents: their passport, passport-sized photographs, a resume or CV, proof of employment in remote work, evidence of financial stability, the completed application form, valid Malaysian health insurance, and proof of relationship with any accompanying applicants.

You are eligible to be accompanied by dependents, including a spouse and children under the age of 18, on this visa. Their names should be included on your application.

The entire application process for the digital nomad visa is conducted online. Applicants must set up an online account, upload all necessary documents and forms, and pay an application fee of 1000 ringgit (an additional 500 ringgit is charged per extra applicant). The link to the application website is provided at the end of this document.

Employment Pass:

For occupations in high demand within the country such as lawyers and surgeons, Malaysia offers specialized immigration routes for foreign professionals. To qualify, applicants must possess relevant professional certifications or awards, and should also secure endorsements from respective industry organizations within Malaysia.

For professionals with outstanding skills in fields not covered by the skilled immigration route, if they are working in Malaysia, they can be recommended by their company to apply for Malaysian residency.

Such applications need to go through a point-based system with a total of 120 points, and applicants need to score at least 65 points.

The scoring system is based on seven criteria, including age, qualifications, proficiency in Malay, work experience in Malaysia, etc.

Taxation:

Individuals who are tax residents in Malaysia, including digital nomads, are required to pay taxes on the income they earn within the country. However, any income that they generate outside of Malaysia is not taxed.

Naturalization:

The Malaysian government issues an Entry Permit (Malaysia PR) to certain categories (investors, professionals, experts, spouses of Malaysian citizens, ) of foreign nationals.

Malaysia also offers foreign nationals an alternate way(based on a point system) to permanent residency if they do not qualify for any of the above-mentioned categories.

After living in Malaysia for a continuous period of over 10 years within the last 12 years, and once they have demonstrated adequate proficiency in the Malay language, foreign individuals are eligible to apply for a Malaysian passport.

Passport Power:

Malaysia does not recognize dual citizenship. The Malaysian passport is ranked 10th globally, allowing its holders visa-free access to 180 countries and regions around the world.

Useful Links:

Malaysia My Second Home Program：www.imi.gov.my/index.php/en/main-services/malaysia-my-second-home-mmh2-en/m2h.com/

Sarawak MM2H: https://smm2h.sarawaktourism.com/

Malaysia De Rantau Nomad Pass：https://mdec.my/derantau