Malaysia is becoming a popular choice in the world of real estate, especially for people from other countries, thanks to its great value for money.
With the gap in interest rates between the US and other countries, this is an opportune time for foreigners to invest in Malaysian real estate, especially through the MM2H program.
Read on to find out why!
All You Need To Know About MM2H
1. What is the MM2H Program For Foreign Investors?
Good news for foreign investors!
The MM2H program offers extended visas to individuals from countries recognized by Malaysia, irrespective of race, religion, gender, or age.
2. Are you eligible for MM2H?
In December 2023, the Ministry of Tourism, Arts, and Culture in Malaysia introduced a new version of the MM2H package.
This updated package made it easier to apply and grouped applicants into three categories: “Platinum,” “Gold,” and “Silver”.
Let’s have a look!
Basic Application Requirements
| Category | Basic Application Information |
| Minimum Applicant Age | 30 years and above |
| Application Process | Apply through a certified agent of the Ministry of Tourism, Arts, and Culture of Malaysia |
| Eligible Family Members | – Spouse
– Biological children, stepchildren, and adopted children (under 21 years old) – Children with certified disabilities (regardless of age) – Biological or adopted children, stepsons, and stepdaughters (aged 21-34) who are not employed or married in Malaysia – Parents/father-in-law |
Eligibility criteria according to tier
| Platinum Eligibility Criteria | Gold Eligibility Criteria | Silver Eligibility Criteria | |
| Financial Requirement | Deposit a time deposit of at least RM5,000,000 in a designated bank | Deposit a time deposit of at least RM2,000,000 in a designated bank | Deposit a time deposit of at least RM500,000 in a designated bank |
| After one year, half of the fixed deposit amount can be withdrawn for property purchases (applicable to properties worth RM1,500,000 or more), medical expenses, and domestic travel. | After one year, half of the fixed deposit amount can be withdrawn for property purchases (applicable to properties worth RM750,000 or more), medical expenses, and domestic travel. | After one year, half of the fixed deposit amount can be withdrawn for property purchases (applicable to properties worth RM750,000 or more), medical expenses, and domestic travel. | |
| Residency Requirement | Stay in Malaysia for at least 60 days annually (accumulative) | Stay in Malaysia for at least 60 days annually (accumulative) | Stay in Malaysia for at least 60 days annually (accumulative) |
| Participants aged between 30-49 years old must meet the minimum days of residence requirement as stated by themselves or their spouse/dependents | Participants aged between 30-49 years old must meet the minimum days of residence requirement as stated by themselves or their spouse/dependents | Participants aged between 30-49 years old must meet the minimum days of residence requirement as stated by themselves or their spouse/dependents | |
| Visa Grant | Upon successful review, you will receive an MM2H pass and can apply for permanent resident (PR) status in accordance with Malaysian immigration regulations. | After passing the review, you will receive a 15-year MM2H pass and a renewable Multiple Entry Visa for yourself and your family members. | After passing the review, you will receive a 5-year MM2H pass and a renewable Multiple Entry Visa for yourself and your family members. |
3. Things to know about MM2H
Can foreigners apply for a home loan in Malaysia?
It’s easy for Malaysians, but can foreigners do it too?
Yes, they can!
According to Bank Negara Malaysia (BNM), foreigners are allowed to use Malaysian Ringgit to get loans for buying houses.
So, foreigners can apply for home loans in Malaysia to buy a house, usually getting 60% to 80% of the money they need.
But, it’s a bit more complicated for foreigners than for Malaysians.
They might need to have lived in Malaysia for more than 5 years and show that they have enough money saved up and invested. The exact rules can vary depending on the bank.
Advantages and restrictions of MM2H
| Advantages | Restrictions |
| No restrictions on house purchase | Purchase of Bumiputera units/Malay reserves is not allowed |
| Any type of property (including land) can be purchased | Purchase of properties built on Malay reserved land is not allowed |
| Freehold real estate can be purchased | Not allowed to purchase affordable housing |
| Affordable house prices | Limited to price thresholds for purchasing a house |
4. Why Invest in Malaysian Real Estate?
While the attractive currency value is a significant draw, Malaysia’s real estate market offers more than just cost benefits:
1. Strategic location
Nestled in the heart of Southeast Asia, Malaysia is a gateway to the ASEAN market, making it a strategic location for business and leisure.
2. Robust infrastructure
Malaysia boasts world-class infrastructure, from highways to public transport, making commuting and connectivity seamless.
3. Cultural diversity
The rich culture in Malaysia offers a unique living experience, blending traditions, cuisines, and festivals from Malay, Chinese, Indian, and indigenous communities.
Updates on the Malaysian Currency
According to a report by Bloomberg, the Malaysian ringgit dropped as much as 0.5% to 4.7703 per dollar as of October 19, 2023, the lowest it has been for 25 years.
What caused this drop in the Malaysian currency?
1. Widening rate differential with the US
The Malaysian ringgit has been weighed down by a widening rate differential with the US.
2. Decline in exports
The Southeast Asian country also posted seven straight months of decline in exports through September, partly due to a slowdown in China, its largest trading partner.
3. Bank Negara Malaysia’s decision to pause interest-rate hikes
Bank Negara Malaysia’s decision to pause interest-rate hikes at 3% since July is also adding headwinds for the currency.
Why Malaysia’s Currency Value Matters
The strength of a country’s currency plays a pivotal role in attracting foreign investments.
A lower currency value, while it may seem like a disadvantage from a nationalistic viewpoint, can be a boon for foreign investors.
Here’s why:
1. More value for your money
Simply put, a foreigner with US dollars, British pounds, or Australian dollars will find that their money goes much further in Malaysia than in their home country.
This means larger properties, better locations, and more amenities for the same amount of money.
2. Increased purchasing power
With the current exchange rate, foreigners can enjoy a significant purchasing power advantage.
This allows them to explore premium property segments in Malaysia, which might be out of reach in their home countries.
3. Potential for higher returns
Given the lower entry point due to the favorable currency exchange, the potential ROI when the property is sold or rented out can be considerably higher.
5. Properties in Malaysia
1. MET 1 Residences @ KL Metropolis
Location: Jalan Sultan Haji Ahmad Shah, Kompleks Kerajaan, Kuala Lumpur.
Learn more here.
2. Damansara Seresta
Location: Jalan PJU 9, Persiaran Meranti, Bandar Sri Damansara, Kuala Lumpur.
Learn more here.
3. AmanAra Residences
Location: Kampung Sungai Kayu Ara, Petaling Jaya, Selangor.
Learn more here.
Want to continue browsing? Find great properties for your investment in Malaysia here!
A Golden Opportunity for Foreign Property Investors
For foreigners eyeing the Malaysian property market, now’s the time!
The combination of a favorable exchange rate and the inherent strengths of the Malaysian real estate sector presents a golden opportunity.
However, like any investment, it’s crucial to conduct thorough research. Engage with local real estate experts, understand the property laws for foreigners, and explore various locations to find the perfect fit.
This is your chance to expand your global investment portfolio! Find out more about how to invest in Malaysian property from our trusted team of real estate professionals. Drop your details below!
