What is Malaysia My Second Home program?
What is it?
This is a programme undertaken by the government of Malaysia aimed to encourage foreigners to stay in the country where they are given a long-stay visa. The visa, which is valid for up to 10 years, require applicants to meet some criteria. The international residency scheme is aimed at people who meet the financial and medical criteria where they can enter and leave the country without much visa restrictions. At the same time, they are also eligible for certain incentives as stipulated under the scheme also known as MM2H.
Who to Approach?
The scheme is parked under the purview of the Tourism ministry, headed by Datuk Seri Azalina Othman. The ministry has set up a “MM2H One-Stop Center” and applications are approved via the Immigration Department which is under the Ministry of Home Affairs. Visa approvals are being done by the one-stop center.
The programme allows citizens from most countries to apply except Israel, Serbia and Montenegro. There has been over 8000 successful applicants so far and they are allowed to bring their spouses and any unmarried children below 18 years of age regardless of race, religion and gender.
For approvals, applicants are divided into 2 types. Below and above 50 years of age. For those below 50 years of age would have to hold a fixed deposit account in Malaysia at any local branch of any international bank. The minimum amount required is RM300,000.00. RM240,000.00 can then be taken out after 1 year for property purchase, children’s education or medication which must first be endorsed. They must, however keep a minimum amount of RM60,000.00 in the bank for as long as their stay in the country.
For applicants above 50 years of age, they would have two choices. First is to open a fixed deposit account with a local branch of any international bank with a minimum amount of RM150,000.00. if not they will have to show an off-shore monthly income of an RM10,000.00 minimum. RM90,000.00 can then be take out after 1 year for the same purpose as the first option while a minimum of RM60,000.00 must be maintained in the bank for the duration of the program.
Apart from the financial criteria, applicants would also have to submit a medical report of all members of the family. The medical report must be made and done in any private health institute in Malaysia. a valid medical insurance policy too is mandatory that covers the entire duration of their stay.
Applicants are not allowed to be employed while working in the country but if they wish to do so, an employement visa is required. They are also prohibited to be engaged in any activities that might be sensitive or threatening to the security of the country.
What do they get?
Successful applicants will enjoy incentives basically in purchasing property or vehicles. They are eligible to apply for one Identity Card which allow them access across states. They are allowed to purchase residential houses costing no less than RM250,000.00 in all the states except in Sarawak where they can purchase residential houses no less than RM350,000.00. purchases must first be approved by the Foreign Investment Committee of Malaysia.
They are also excempted from sales tax and import and excise duties if they purchase a locally-assembled car. otherwise they can also bring in one of their personal cars from their home country excempted from the taxes stated. They are also allowed to apply for one domestic helper.
Where to apply?
Applicants can apply for the scheme using a few methods. One of the most common methods are through sponsors. Sponsors are typically private Malaysian companies who will help applicants with the procedures. Authorized sponsors are licensed by the Tourism Ministry and as such, those who hold authorization licenses issued previously by the Immigration Department are no longer authorized to do so.
Applications must go through the registered agents and individual or third party applications are no longer allowed.
Things to know when buying Malaysian Property
For overseas investors who would like to purchase Malaysian properties there are some guidelines to follow. The most fundamental one is to first obtain the permission and consent from the state where the property is located.
To buy property, a 2% deposit is required to book the property. After that, a Sale and Purchase Agreement (SPA) is drafted by the Solicitor. When the document is done, a remaining 8% of the total price is required to make it up to 10% of the purchase price. The investor will then have to complete paying off the rest of the amount in the next 3 months. An extension can then be granted with both parties agreeing to the date and interest rate involved.
There are also other types of costs involved like legal fees, agent fees, loan agreement fees, valuation fees and the Government Stamp Duty.
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