Malaysia My Second Home (MM2H)

Here is the reply from MM2H about the acceptable “liqiud assets ”.I hope it'll help your friend.

“Hi,


Greetings from MM2H.


The classification of liquid asset(s)

PRIMARY (Compulsory)
Savings
Fixed deposit

SECONDARY (Supporting)
Share
Bond
Investment
Insurance plus investment (must have 'surrender value')

Thank you.


Malaysia My Second Home Centre (MM2H)”

Thanks

While I get it, I do think the liquid asset requirement prevents otherwise very good candidates from applying.  Take for example, homeowners here in the San Francisco/Bay Area.  The average home in San Francisco proper is now worth well over $1.5M.  So, that means people are paying cash down payments of $300K or even more to buy those houses. You mean to tell me those individuals are not good candidates?  Shoot, we see homes trade here in matter of days to a few weeks, all cash paid often.  Sure, the application should take a bit longer for such hard asset'd folks but the government shouldn't worry about it and put the burden on the applicant.  Say require that the homeowners who want to use their properties go get notorized appraisals and then only factor say half or less of the value as cash value.  At the end of the day, the applicants still have to fulfill the banking requirements and show minimum support/pension income in order to qualify.  To think that a Singapore homeowner who is house rich but cash poor wouldn't qualify is ridiculous.

Thank you Cyndita. Still doesn't help one who is share rich but cash poor. Wish they were more specific about how much share holding can be used towards qualifying

Yes, at least for Americans that have large 401K accounts it would cost a fortune in taxes to convert a large amount from their 401K to cash savings in a single year. The system has been set up to withdraw as needed while in retirement, thus you don't have to pay taxes on one huge withdrawal.

Fixed deposit funds ARE ACCEPTABLE as liquid asset proof for MM2H.

My friend based in Oman, was interested in aquiring the MM2H facility two years ago, however he didn't have the necessary funds. after joining a home run business which cost him only $500, he has managed to reach the financial requirements

He has the following questions

1) would his passive earning from his home run business be taxed(as he still earning more than $4,000/month) ?

2) after sending the required documents by courier to MM2H, would he receive an acknowledgement?

3) would he be able to check online (using his passport number), the status of his application?

Thanks in advance

Answers,
1. Foreign sourced income is not taxed in Malaysia
2.Yes, you receive an application number confirming submission from the agent.
3. There is a system however many have said it does not correlate correctly with their application. There are a few recently that have received approval but the government checking site says their application is still under review. (This is typical of Malaysian government style of work, often lazy and in need of improvement!)

Thanks shobanraveen, appreciate
But this direct submission
Not through agent

it is the same.

So how do we get the submission number?

Go here...seems they'll take your name.

http://www.mm2h.gov.my/index.php/en/app … ion-status

You get it after the a Application is filed and accepted

Try this link
http://mm2honline.motac.gov.my/?q=check … ion-status

Thanks guys... Much appreciated.. cheers

According to a newspaper report published a few days ago, the Tourism, Arts and Culture Ministry secretary-general, Datuk Isham Ishak, said that the ministry plans to introduce an automated system to facilitate and speed up applications for the MM2H programme. He described it as one of the most advanced of its kind in the world.

Can you guess what type of "automated system" it may look like?

Hi,

I am a US Citizen with a job that allows me to be remote.  I was considering applying for MM2H, but I attended an American Chamber of Commerce event today.  They mentioned as I'll be carrying out my job duties from Malaysia I'll have to file Malaysia Tax return, which isn't the problem. Main problem is going to be, according to them that would cancel my second home.

So,  I am utterly confused.  Has anyone faced this issue?

Thanks,
Khaled

yes, you are employed in Malaysia, so you will not be able to apply for the MM2H visa.

Nothing is logical with MM2H. They require fixed deposit as liquid assets but most developed countries do not pay any interest to fixed deposits so it's not possible. If you bring the money to Malaysia to use their fixed deposit, they don't accept local funds. If you are retired with capital income, they don't accept corporate or government bonds as income. These guys don't understand anything about economy but they pretend to boost Malaysian economy by filtering applicants. The guy who has invested in AAA bond funds which is much safer then ANY bank deposit is excluded from this program. I suggest Malaysian government to go back to school. If you have 5 million USD savings and no regular income ($2400 monthly) then you cannot apply to MM2H. What is the logic? Thank you for boosting Malaysian economy.

Just reported today, for those folks interested in getting a driver's license under the MM2H program.

https://www.malaymail.com/news/malaysia … -m/1787302

logicaljames wrote:

Nothing is logical with MM2H. They require fixed deposit as liquid assets but most developed countries do not pay any interest to fixed deposits so it's not possible. If you bring the money to Malaysia to use their fixed deposit, they don't accept local funds. If you are retired with capital income, they don't accept corporate or government bonds as income. These guys don't understand anything about economy but they pretend to boost Malaysian economy by filtering applicants. The guy who has invested in AAA bond funds which is much safer then ANY bank deposit is excluded from this program. I suggest Malaysian government to go back to school. If you have 5 million USD savings and no regular income ($2400 monthly) then you cannot apply to MM2H. What is the logic? Thank you for boosting Malaysian economy.

Just for the sake of discussion and since there is not a lot of traffic here....

While I agree that the rules are somewhat rigid, they do serve a purpose:  they get the "cream of the crop" folks, since these folks literally have the assets in liquid form, presumably unconcerned about the interest lost on those liquid funds.  From their perspective, no need or excuses that you have to wait to sell your stocks or homes.  Cash is king, literally.  I think you need to remember that Malaysia has always been upfront about the candidates they want coming in for MM2H.  Quality, not quantity.  They want people with money with clean police records and more importantly they don't want people who would be for a lack of a better word, a leech on their society (they have enough of those already, quite frankly).  Honestly, I don't have a problem with it.  And this is coming from a guy who owns several homes here in the San Francisco area (cash poor) but luckily wifey has been saving for that rainy day.....

You will need to apply for a Singapore working visa from your country. It is a separate process and has nothing to do with MM2H

tip. Get married if you want to stay here.

Adnan1891 wrote:

Hi,

I am a US Citizen with a job that allows me to be remote. ...They mentioned as I'll be carrying out my job duties from Malaysia I'll have to file Malaysia Tax return, which isn't the problem. Main problem is going to be, according to them that would cancel my second home.

So,  I am utterly confused.  Has anyone faced this issue?

Well this depends on what you mean by "remote". Are you working on-line, and being paid from abroad into a US account?

Or do you have Malaysian clientele, are visiting them, taking orders, or doing work or receiving salary "in country".

If your "work" is principally for clients outside Malaysia and are not working for a Malaysian business, then you are not likely to be subject to Malaysian tax.  You would be subject to the tax of the US. The USA has citizenship-based taxation, not residence based taxation.

You also would have to report to the IRS this income under FBAR and FATCA requirements.

Thus you could remain on MM2H if you don't operate a business or "work" (meaning salaried work) within Malaysia. Realize as well that the MM2H program requires that your income and assets be from outside the country (Malaysia) to meet the requirements.

  It could be an issue if you receive payment directly into a Malaysian account, however. You could be considered to be doing business in Malaysia...if you want to avoid this establish your bank account, and mailing address and business email /server account elsewhere.  Otherwise you might be subject to double taxation.

Even though Malaysia lacks a tax-treaty with the USA there is a deduction for this that you can apply for. Malaysia offers a whole range of generous deduction perks and for those that can meet the 183 day/year residency (with no more than 14 days outside during the base period)  the tax rates are quite low. But Uncle Sammy will snap up the rest I suspect. You'll need real tax advice.

barry.Whitetiger:
tip. Get married if you want to stay here.

What if already married?

Wait, convert to Islam (if not already Muslim), then marry #2 - Malaysian- wife 

Hi Everyone

Hope you guys are all well. The new comers who are still exploring the MM2H option and considering applying I would suggest apply it now without any further delays. Rules are changing soon and no doubt will become more strict once the authorities will introduce the new policy, terms and condition.

If you require any advice and help with finding the right sponsor and the process, I may be able to help. Inbox me.

Have a good day.

ok

Adnan1891 wrote:

Hi,

I am a US Citizen with a job that allows me to be remote.  I was considering applying for MM2H, but I attended an American Chamber of Commerce event today.  They mentioned as I'll be carrying out my job duties from Malaysia I'll have to file Malaysia Tax return, which isn't the problem. Main problem is going to be, according to them that would cancel my second home.

So,  I am utterly confused.  Has anyone faced this issue?

Thanks,
Khaled

I doubt that you are employed in Malaysia, as your customer is abroad. Even though, I think chances are very low, that anyone "discovers" what you are doing on your laptop. May be just keep a bank account outside of Malaysia for incoming payments.

VWC wrote:

While I get it, I do think the liquid asset requirement prevents otherwise very good candidates from applying.  ....To think that a Singapore homeowner who is house rich but cash poor wouldn't qualify is ridiculous.

Agree. As long as an applicant has a regular and sufficient income they are unlikely to go on the public dole. And I'd actually feel more secure with someone that had physical non-liquid assets over a suitcase full of cash.

Having cash in a bank account often means that the person is rolling through that money...it needs to be liquid. The person is not thinking longterm. Criminals are likely to have a large cash account or able to create one.

Then there's the fact the cash can be moved around to other accounts. Imagine a company (or individual) that shifts the cash in a single account from one applicant to another. RM500,000 shifted to Applicant A for three months or so...then to Applicant B for three months...then to C.  That's not as easily done with real estate or an appraisal of a business.

Groovy16 wrote:

Hi Everyone

Hope you guys are all well. The new comers who are still exploring the MM2H option and considering applying I would suggest apply it now without any further delays. Rules are changing soon and no doubt will become more strict once the authorities will introduce the new policy, terms and condition.

If you require any advice and help with finding the right sponsor and the process, I may be able to help. Inbox me.

Have a good day.

Actually the government appears to be swinging back the other way after some reflection on the economic benefits of MM2H.

https://www.malaymail.com/news/malaysia … es/1791038

For MM2H on the Peninsula and Sabah there is no need to find a sponsor at all. Only Sarawak currently requires a sponsor, and they do not allow agents or middlemen.

abdulkhalil wrote:

Why you do not want to live in Malaysia again and what country did you choose to migrate instead?

abdulkhalil wrote:

Yes I moved away from Malaysia and now live in Yogyakarta Indonesia. Living in Indonesia is less expensive than in Malaysia, the people are relaxed and the food is very agreeable. It is also a Muslim majority country so I feel very much at home.

I am also planning to migrate to Malaysia. However I am very interested to know why you have chosen this particular city in Indonesia?
Indonesia is less developed than Malaysia in terms of infrastructure, education and medical healthcare. How do you cope with that?
And More importantly, how do you manage the visa?

Because he like's the to visit Borobudur and eat at the HOLY COW steak house!
That and they have loud speakers that wake everyone for call to prayers at all hours of the day.

Sadly abdulkalil has been inactive for almost two years and his profile says he has been "banned". Not sure why as his posts had been informative and polite overall. Perhaps there was one specific one (taken down?) that received complaints. In any case you might look on the Indonesia Forum and also look at KITAS. This is Indonesia's long-stay visa... believe this may require a sponsor. The details will be on the Indonesian Forum.

hi ... I am new here but read messages for 1 month ... it seems that you are quite active here ... do you know how many weeks/month(s) (before you get the visa) MM2H checks your employer of your income proof etc?

thanks a lot

Just make your way to the Putra Jaya office, get a form, and fill it up.
go there early as they only provide a certain numbers per day
First time I went there at 8:00 am and all numbers taken
Next day i went at 6:30 am and everything done by 2:00 pm
Just make sure you have all the documents, both originals and 2 copies each.
It is just a renewal process - simple, fast, pretty efficient as well.

hi ... have you got your visa? ... if yes, how many weeks/month(s) did MM2H checks with your present employer before you got the visa?

thanks a lot

Normally it takes up to 8 weeks, thanks

Groovy16 wrote:

Normally it takes up to 8 weeks, thanks

Groovy16...really??? You got your visa in 8 weeks from time of submission of application to time of getting the visa? That's a record. Most people on here that have submitted their applications in the last year  have taken a year before getting the visa.