Malaysia My Second Home (MM2H)

Forgot to mention that the rental market is also slow at the moment as the number of senior management expats requiring accommodation has fallen drastically due to the slump in the O&G industry, as well as about 20 companies having left Malaysia in the past couple of years. The most popular housing seems now to be flat sharing to spread the cost and properties renting at RM3k and below. There is a glut in the number of rental properties available so charges are being  pressed down in many cases.

Here is a comparison for Sarawak - but would double check the details:

https://www.sarawak.gov.my/web/home/art … w/221/279/

For Sabah suggest you check with an Agent based there. The list of Agents is on the MM2H gov site.

I can see some changes in the Peninsular Malaysia terms now i.e. the fixed deposit is mandatory as well as the monthly pension or income for the over 50's

Some from another thread

Gravitas wrote:

Anything can happen in one year. Bringing your car stopped January 2018 from the Ministry concerned, also tax relief on locally assembled car purchase - It waits to be seen if Sarawak is somehow exempt?

Some interesting tax free car stuff for Sarawak from last July - file:///C:/Users/diane/Downloads/MM2HEM_26.07.17MetNon-Met.pdf

This info is currently online - http://www.mtacys.sarawak.gov.my/upload … itions.pdf

The information above is dated August 2017. There is also a new application procedure announced

http://www.mtacys.sarawak.gov.my/module … sub_id=179

So far the either/or option about having a Fixed Deposit has become mandatory in Peninsular Malaysia for both the over and under 50s categories, so the question is whether Sarawak is also going to change. It's about maximising tax revenue in lean times.

This is a roundup of the changes which may affect the Sarawak application in future. If you have info about the 2019 import/purchase rules please could you post the souce to help others.  Tq.

The "Federal" - "State" thing is sometimes hard to fathom

Update:
The Goverment has decided to abolish the tax incentive on the purchase of a new locally assembled vehicle or the import of a pre-owned private vehicle into Malaysia under MM2H Programme. Therefore, this tax incentive will be terminated effective from 1 January 2018. However, Ministry of Finance will give special consideration to MM2H participant with first MM2H's Visa approved beginning 1 January 2017 until 31 December 2017 to submit complete application via Sistem Maklumat Pengurusan Cukai / Sistem Maklumat Pengurusan Cukai Kerajaan Malaysia not later than 31 December 2018.

http://www.mm2h.gov.my/index.php/en/ben … port-a-car

Hi everyone, I'm about to pull the trigger on whether to get the MM2H or go a different route.

I'm using one of the recommended agents from this forum, but I would just like to double check some of my questions since I get conflicting answers depending on who I ask.

1. Can I work for a foreign company 100% legal while living in MY under the MM2H, not doing any business with MY entities? As in if immigration would ask me what I do, I could tell them I work for a company in Hong Kong?
2. The monthly management fee that I receive will not be taxed either in Malaysia? Because I thought salary tax is 28%
3. If I liquidate one of my companies while being a tax resident in Malaysia, it will not be taxed either?
4. Can I still report 0% personal taxes? I know technically I won't have to since foreign income is not taxed, but I'd simply feel more secure if I have some proof of that .

Can't work for a Malaysian company or earn from local market without declaring it for Malaysian tax.

Can continue business or employment  outside Malaysia as normal

Malaysia doesn't tax income derived in another tax jurisdiction

The management fee has to be paid by offshore not local company.

Check Double Taxation treaty too as can be beneficial to offshore income but depends on content e.g. uk income becomes tax free if remitted to Malaysia

Still have to be in Malaysia for 182 days to be tax resident with long-term visa such as MM2H

Thanks for your quick reply Gravitas!

Gravitas wrote:

Malaysia doesn't tax income derived in another tax jurisdiction

This is something that only applies to foreigners/people on an MM2H? I assume otherwise every Malaysian working online would just set up an offshore company?

Gravitas wrote:

Still have to be in Malaysia for 182 days to be tax resident with long-term visa such as MM2H

Yes this is the plan , I just want to be sure that it is worth it . Not that in the end they charge me 28% or I can't report my taxes.

E-commerce - The local rules do state that tax is payable where the server is based. http://lampiran2.hasil.gov.my/pdf/pdfam … OMMERCE.pd

This is worth reading for your concerns as well as it reiterates tax in general

Gravitas wrote:

E-commerce - The local rules do state that tax is payable where the server is based. http://lampiran2.hasil.gov.my/pdf/pdfam … MMERCE.pdf

We might be going off-topic, but this can easily be bypassed by a Malaysian citizen by just hosting their e-commerce website in let's say Singapore. But anyways I think I got all the information and I'll continue with my MM2H application. Thanks Gravitas!

Then they will be taxable in Singapore. The link confirms a lot of the basic tax premises if you want to take a quick read. Even a Labuan Offshore company can trade in Malaysia now but 24% tax - so oouch

Can anyone please advise me - I submitted my application for MMH - well, I didn't really, as they refused to accept it .. told me that, even though my pension averaged out to be over 10,000MYR per month, ie totals over 40,000MYR per year, there is a problem because it is paid fortnightly (ie ever second week) so that some months I have two payments, and some three.  Has anyone also faced such an issue, and how does one resolve it.  I do not have an option to get the pension paid monthly.  Thanks for any advice.

"ie totals over 40,000MYR per year" - you need minimum RM120,000 per year.

You can appeal their decision if that was a typo

Yes, over 120,000MYR per year (I quoted my own currency, which they converted to over 120,000MYR.)
Thanks for the link.. will give it a try.
My other option is just to include some bank interest, which was also shown on my bank statements, that they had in front of them,but i was too stunned to mention.
Do you think it would be worth paying one of these agents who submit these, ie would the immigration people take them more seriously?

Some Agents basically get the visa or don't get paid by you. Some do nothing. Speak with Alter Domus (MM2H). They are honest and open. They will tell you if they can help or whether they think a final decision has been made by immigration. It's not fun dealing with immigration matters, so worth every RM

Hi I would just like to give an update on Gravitas' post about the Sarawak version of Malaysia My Second Home. I just completed the process, on my own, without an agent and from arrival/submission of documents it took almost precisely TWO MONTHS. That also included some shut down time in government offices for Christmas and New Years holidays.

It's IMPERATIVE that anyone intending to apply to Sarawak or Sabah do so at the Immigration offices in those States. Sabah, and Sarawak in particular, retain control of their immigration policies and the latter have established programs that are in some ways distinctive to their State. You cannot convert your Peninsular MM2H to those states, you have to reapply in full.

It's difficult to find out information about the Sabah Program, though my understanding is that it largely is the same in terms of requirements and benefits as the Peninsular programs. One does have to submit all the documents to the Immigration Department for Sabah. They have a number of agents that are authorized as well. One benefit...The minimum floor for purchasing a condominium or home is lower than in most of the peninsula.

I can tell you in detail about the Sarawak version...in reality. Some things are different that what they advertise, however.

Unlike the Peninsular version it's definitely a RETIREMENT visa program. With one or two exceptions (if you have school age children in school) it's for a primary applicant 55 years of age or above. As well, with rare exceptions (e.g. a government consultancy) you cannot work in Sarawak.

Sarawak doesn't require that you demonstrate proof of liquid assets abroad at any level...you simply need to fulfill one of two INCOME or deposit options.

The Malaysian PENINSULAR version of the program supposedly has done away with the pension/offshore income option and has gone to a single FIXED-Deposit version.
Sarawak retains BOTH options, and if you are SINGLE the amount of government pension is RM 7,000 (For married couples RM 10,000).  If you take this option you must have 3 Months of payment slips to demonstrate you are already receiving that income.

Option 2 is the Fixed Deposit Option. Sarawak requires applicants in this path to establish a Fixed Deposit (refundable upon termination of the program) of RM 100,000 for a SINGLE and RM150,000 for a couple.  Similar rules about the withdrawal as on the peninsula - one can withdraw up to RM40K (single) or RM90K (couple) after the second yer for housing purchase, Malaysian-built car(?), or Medical/Educational purposes. Afterwards one must retain RM60,000 (@US$15,000) in the account.


******(*

There are two difficulties in the Sarawak program. One is that one will only be given a maximum of a FIVE-YEAR renewable visa...not 10-Years as advertised. This is supposedly because the Immigration office wants a re-applicant to undergo another health check to examine for any communicable diseases. I was assured that other ailments would not disqualify the re-applicant. For everyone else it's a formality. "We have never rejected a reapplicant" according to the Asst. Director of Sarawak Immigration. Talking with a few expats on the program they have said it's just a matter of filling out the forms, giving them another health checkup (which must include blood and urine tests and a Chest X-Ray @ RM150 signed by a DOCTOR). Oh and paying the RM90/year visa fee.

The second problem is that one MUST have a Sarawakian sponsor willing to sign a PROMISSARY document (Stamp Fee of RM10 at the Tax Office) to provide for cover the Security Bond IF the applicant is for some reason thrown off the program (for secretly working, dealing drugs, establishing a covert political party, etc.)  The bond PROMISE varies...from RM2000 for Americans and Canadians...down to RM200 for Singaporeans.  I quizzed the Asst. Director of Immigration who stated that they had no issue if a landlord acted as the sponsor and took a deposit for the bond, or if there was a contract between the sponsor and applicant. Apparently there are now four approved agents (who likely fold the bond into their fees)...but you can do this all on your own. IF you can find a Sarawakian sponsor.

********

Another oddity is that while you have to be PRESENT in Sarawak to complete the process, you cannot come in on a TOURIST PASS. This appaenttly applies only to some countries (I believe Commonwealth are exempt). You must actually have a Visa issued from the consulate/embassy in your home country (Cost there US$6). Oh dear, does that mean I have to fly back to the USA for a six dollar visa and fly back again? No, there was a "fix"...I could buy a $6 Single-Entry Visa at the immigration office (Hooray!!!). The problem is that there is something called the "Journey-Performed Fee" in addition. That was a whopping RM500. (Boo...US$130). My advice is to get the regular visa before you come. BTW This applies on the peninsula as well.

********

As I mentioned it's a 5 Year Multi-Entry Visa awarded. My total cost was RM 150 for Check-Up, RM 50 for various notarizations/legal affidavits, RM10 for the stamp tax, RM480 for the Social Visit/ME Visa, and RM500 for the darned Journey-Performed FEE.

Total cost @RM1200 (US$300) plus some Uber fares for me and my sponsor. Half of that was the avoidable JP Fee. Done in 2 months. You could knock RM500 ($130) off that if you avoided the JP fees.

For those interested in buying property in Sarawak...the Floor is RM300,000 (@US$75K) and you are eligible for loans and mortgage. On the Peninsula it can vary between, RM1-2 Million in Selangor (KL) to RM 500K in Penang. Sabah is also RM1 million. Only Perak (Ipoh) is comparable (RM350,000) for the bargain hunter.

Currently one can only supposedly purchase  an apartment/condo/house in Kuching (included the beach areas at Damai), Sibu or Miri. I hope they expand to the Borneo Highlands and Sematan/Lundu. The other rule is that you cannot purchase "native land" - this is property that can only be bought and sold amongst the specific bumiputra (Native) communities. There's a lot of discussion about this issue, right now over long term leasing (99 Year leaseholds) and whether title can be exchanged between sub-groups (e.g. Iban to Bidayuh). For the most part these areas are fairly undeveloped and remote, though beautiful, except for the Borneo Highlands which has a resort/golf course.

There are high taxes on profits if property is sold within first 5 years of purchase i.e. 30%  The property market in Malaysia can be rather tricky because values can be unrealistic and the secondary market is very slow. This is because locals want to buy only new constructions and resale properties are not so popular. Although the minimum prices look attractive, sometimes the actual properties do not meet with housing norms expected by foreigners.

is it allowed to expat to buy commercial property?

Yes they can buy commercial property as long in accordance with the minimjm purchase price for foreigners or those on MM2H (the limits differ in some States). The exception is the property cannot be on Malay Reserved land or have been designated as only for Bumiputera ownership (Bumi lots). Purchasing agricultural land is also not permitted

Gravitas wrote:

Yes they can buy commercial property as long in accordance with the minimjm purchase price for foreigners or those on MM2H (the limits differ in some States). The exception is the property cannot be on Malay Reserved land or have been designated as only for Bumiputera ownership (Bumi lots). Purchasing agricultural land is also not permitted

Thank you very much for your kind answer .
what do think  is it good idea  for investment?

I was looking on the MM2H website and it states that if making purchases AFTER getting the MM2H visa they should be residential properties.

http://mm2h.gov.my/index.php/en/contact-us/faq

However, as written earlier, you can purchase commercial property as a foreigner under the normal rules.

From same link given above:

I am interested to invest in Malaysia. Who can I contact to get more information?
You can contact the Malaysia Industrial Development Authority at:

MIDA Headquarters
Malaysian Industrial Development Authority (MIDA) Block 4, Plaza Sentral,
Jalan Stesen Sentral 5, Kuala Lumpur Sentral,
50470 Kuala Lumpur, Malaysia.
Tel: 603-2267 3633
Fax: 603-2274 7970
Website : www.mida.gov.my
Email: [email protected]

It would probably be good to check out their website as well.

Gravitas wrote:

I was looking on the MM2H website and it states that if making purchases AFTER getting the MM2H visa they should be residential properties.

http://mm2h.gov.my/index.php/en/contact-us/faq

However, as written earlier, you can purchase commercial property as a foreigner under the normal rules.

From same link given above:

I am interested to invest in Malaysia. Who can I contact to get more information?
You can contact the Malaysia Industrial Development Authority at:

MIDA Headquarters
Malaysian Industrial Development Authority (MIDA) Block 4, Plaza Sentral,
Jalan Stesen Sentral 5, Kuala Lumpur Sentral,
50470 Kuala Lumpur, Malaysia.
Tel: 603-2267 3633
Fax: 603-2274 7970
Website : www.mida.gov.my
Email: [email protected]

It would probably be good to check out their website as well.

Thank you very much for your valuable comment

I want to do business and stay ,, is the business is enough to get long term visa in malaysia

tarek2018-2019 wrote:

I want to do business and stay ,, is the business is enough to get long term visa in malaysia

The Malaysia My Second Home Program is not designed for setting up a business/working in Malaysia. On the MM2H it's allowable to do work outside of Malaysia, and a small amount of "part time" work (up to 20 hrs/week, it is stated) with government approval. You can also invest while on the MM2H and "supervise the partnership". That would probably include training employees.

There are ways of establishing a business, but it's a different visa category entirely. It requires certain levels of capital and other provisions.

You might go to this topic area..."Malaysia Company Set-Up"

https://www.expat.com/forum/viewtopic.php?id=369149

I applied for my MM2H is October last year. In December I got a letter saying that my application has been accepted. It is mid-March now and I have got the final approval for my MM2H. Would anyone know when it will get finally approved?

I'm a bit confused. You say that you have received "final approval" but need to know when you'll have "final approval"???

Are you working through an agent...and they have told you that they have "approved" your application and submitted it? Is that what you mean "final approval"? If that's what you mean...

Now it's in the hands of the MM2H office.... and that could take some time as they check all your particulars (bank accounts, blah, blah, blah). As noted that can take 4 months, 6 months....

Here's a way to check your status. Presumably your Agent should let you know as you will need to establish your fixed deposit once you get your immigration"conditional letter of  approval", do your medical check up, submit insurance document (if required) and have a limited amount of time to go to immigration and pay for your visa (6 months after issuance of letter).

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

Thank you. I did apply through an agent.

I did not get final approval. I just got a letter that my application has been received by the MM2H department.

I will deposit the funds only after I get the conditional approval I guess.

Thanks for the help.

Most medical centres will do the medical. It's just a physical assessment. It costs120-300

IggyIgnatius wrote:

Thank you. I did apply through an agent.

I did not get final approval. I just got a letter that my application has been received by the MM2H department. I will deposit the funds only after I get the conditional approval I guess..

Yes...it can take awhile after this. Some say 4-6 months, though for some it seems a year. Don't bother with the Medical, Insurance, or FD until you get the conditional letter. Most banks won't look at you anyway. And they'll want a recent health check. Then there is another wait. Finally you'll get your notice to get your visa.

I thought you could check online with your reference number

caesar1956 wrote:

I thought you could check online with your reference number

Yes, provided above.

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

If by "final approval" you mean getting the MM2H visa endorsed in your passport the items on the approval letter need to be carried out e.g. medical, FD, health insurance. Then all the paperwork and cash to pay for everything needs to be taken down to Putrajaya for the last action which is the issuing of the 10 yr social visit pass. You have 6 months to carry this out or the approval lapses and apparently no further application will be considered.

FWIW I applied middle of October and my agent received approval letter at the end of February.

The MM2H status check website is behind though - it still hasn't been updated, and still states “Pending committee approval”

I think others have had the same experience with the site being somewhat slow to update.

If a foreigner have mm2h Visa and she/he is a company director at Malaysia so is she/he can withdraw the salary from their company ?

A salary would imply the MM2H holder was working in the company (which is not OK under the MM2H visa). But the Articles of Association can draw up the terms for payment to the investors in the business i.e. those not employed. Paying dividends on profits is a usual way to do this involving the Company Secretary each time plus the approval of the Board.

It would seem illogical to want to put so much cash into two separate visa-generating ventures, especially as soon it will be RM500,000 Fixed Deposit for MM2H

Great Advice! Thank you very much.

My friend will find this really helpful!

Thank you once again!

Hi , finally I got the approval letter (I submitted my file on December 2017).
I want to know which bank is better to open fixed deposite  acc and has a good intrest rate?
Thank you

I can't say whether it's good or not, because I didn't shop around but I'm getting 3.1% in Maybank (since last October).
Be sure to have the full amount split into two so you can easily withdraw the part you are allowed to for health, education or car after one year.

Thank you for the reply
You mean, I must open 2 fixed deposite acc ?