The Malaysia My Second Home (MM2H) program, one of the most attractive long-term residency programs in Southeast Asia, has always attracted the attention of global investors. Since its restart and significant upgrade, the program has rapidly become the preferred option for middle-class families seeking overseas residency planning, asset allocation, and children’s education, thanks to its more flexible application requirements, clearer permanent residency guidance, and richer resource support. Data shows that the restarted MM2H program attracted over 5,900 applications in just one year, with Chinese applicants accounting for over 70%, and capital inflows increasing by 84% year-on-year. This data directly demonstrates market confidence in Malaysia.
Core Policy Adjustments: Lower Thresholds, Enhanced Benefits
The biggest highlight of the restarted MM2H program is its flexible “deposit + property purchase” combination model. The policy is divided into four categories to cater to different needs: Financial Special Zone Group, Silver Group, Gold Group, and Platinum Group. Taking the Silver Group, favored by Chinese families, as an example, applicants only need to deposit US$150,000 (approximately RMB 1.08 million) in a fixed deposit and purchase property worth RM600,000 (approximately RMB 930,000) in any city in Malaysia to obtain a 5-year long-term residency visa for their entire family. After the deposit is approved, 50% can be withdrawn for education, medical care, or property purchase. The Financial Special Zone Group further lowers the threshold: depositing US$65,000 (approximately RMB 450,000) and purchasing property worth RM500,000 in designated areas (such as Forest City) grants a 10-year visa. This tiered design caters to young families with limited budgets while also providing a permanent residency-oriented Platinum Group option for high-net-worth individuals. Depositing RM2 million (approximately RMB 3.3 million) and purchasing property worth RM2 million grants a 15-year visa and allows business operations in Malaysia.
Triple Advantages of Education, Taxation, and Asset Allocation
The core appeal of the MM2H program goes far beyond the visa itself. For families with children’s educational needs, Malaysia’s international school system is considered the “king of cost-effectiveness”—tuition fees are only one-third of those of similar schools in China, and they adopt British IGCSE and International Baccalaureate (IB) curricula, allowing graduates to directly apply to prestigious universities in Europe and America. More importantly, after holding an MM2H visa and meeting residency requirements (such as studying in Malaysia for two years), children can return to China to take the Joint Entrance Examination for Overseas Chinese Students, gaining admission to 985/211 universities with scores 100-200 points lower than the Gaokao (National College Entrance Examination). In terms of tax planning, Malaysia does not tax globally and has tax treaties with many countries, resulting in a maximum corporate income tax rate of only 24%, tax-free dividends, and withholding tax for foreign shareholders as low as 5%-7%, making it highly attractive to business owners and high-net-worth individuals. Regarding asset allocation, Malaysian real estate offers freehold ownership, no inheritance tax, and rental yields generally reaching 5%-6%, far exceeding those of first-tier cities in China, making it a top choice for preserving and increasing overseas assets.
Policy Window of Opportunity: Last Opportunity Before Stamp Duty Adjustment
Despite the continued surge in popularity since the MM2H program’s relaunch, investors need to pay close attention to policy developments to seize this window of opportunity. Malaysia has announced that, effective from a certain date, the stamp duty for foreign buyers and companies purchasing residential properties in Malaysia will increase from 4% to 8%. For example, purchasing a RM1 million property will directly increase stamp duty costs by RM40,000 (approximately RMB60,000). This means that if the purchase is completed before the policy adjustment, investors can save half the tax. Combined with the mandatory purchase requirement of the MM2H program, now is undoubtedly a golden opportunity to invest in Malaysian real estate.
Market Feedback: Proven Strength from Data and Case Studies
Market data and real-world examples jointly validate the value of the MM2H program. After the launch of a project in a special economic zone, properties starting at RM490,000 attracted a large number of investors, with over 60% being MM2H applicants; high-end apartments in Kuala Lumpur’s TRX financial district have become highly sought-after by investors due to strong rental demand, with annual rent increases reaching 5%. One Chinese family, applying through the MM2H Silver Group, received their visas in just 37 days. After purchasing property in Kuala Lumpur, they enrolled their children in a local international school, enjoying both 4% annual deposit interest and property appreciation gains—achieving a triple benefit of “status + education + assets.”
The relaunch and upgrade of the Malaysia My Second Home (MM2H) program not only provides global investors with a low-threshold, high-return overseas residency solution but also builds a safe and stable global living platform through the synergistic advantages of education, taxation, and asset allocation. Whether planning educational paths for children, expanding into Southeast Asian markets for businesses, or seeking a safe haven for family assets, Malaysia, with its open policies, mature support systems, and stable returns, has become an ideal choice for middle-class families—offering both flexibility and security. Seizing the current policy dividends and making early investments in Malaysia may be a crucial step towards starting your globalized lifestyle.
