Malaysia My Second Home (MM2H) Program: 2025 Updates and Analysis
This article summarizes the key changes to the Malaysia My Second Home (MM2H) program as of May 2025, along with some potential improvements for the future. It addresses concerns from current and prospective applicants regarding deposit requirements, property purchase restrictions, and investment limitations.
Key Update 1: Ringgit Deposits and Interview Process
Ringgit Deposit Encouragement, Not Requirement
The Malaysian government is encouraging, but not requiring, applicants to deposit funds in Malaysian Ringgit (MYR). Applicants can still deposit in foreign currencies like USD. The aim is to improve the appeal and stability of the MYR.
Introduction of Random Police Interviews
A new random interview process conducted by the Royal Malaysia Police (PDRM) has been introduced. This adds an element of uncertainty to the application. The frequency and specific triggers for these interviews haven't been specified by the authorities. This measure is implemented for security screening purposes.
Key Update 2: Property Purchase Rules and Special Economic Zones (SEZ)
50% Deposit Withdrawal for Property Purchases
Applicants can withdraw up to 50% of their fixed deposit for property purchases, subject to new time constraints. Silver, Gold, and Platinum category applicants must purchase property within two years of their MM2H visa issuance date to be eligible to withdraw the fixed deposit. This new condition is better because the window is more flexible.
Restrictions in SEZ/SFZ Economic Zones
MM2H applicants in the SEZ/SFZ (Special Economic Zone/Special Financial Zone) category are now restricted to purchasing new properties within Forest City, Johor. The purchase must be a first-hand property directly from the developer. Moreover, these applicants only have a 6-month window from their visa issuance date to purchase a property to qualify for fixed deposit withdrawal. The government wants to support Forest City.
Key Update 3: Investment Restrictions Remain
Limited Investment Opportunities
Despite hopes for expanded investment options, MM2H applicants' fixed deposits remain largely restricted. The funds are mainly for property purchases, children's education, and medical tourism. Investment in Malaysian stock markets, funds, or other financial products remains prohibited. This is seen as a missed opportunity to inject capital into the local economy.
Bonus: Potential Improvements to the MM2H Program
MM2H-Specific Identification Card
Issuing a dedicated MM2H identification card or residency card could simplify many processes. This would eliminate the need to present passports for everyday transactions, such as opening bank accounts or obtaining mobile phone services. This could also foster a greater sense of belonging for MM2H participants.
Alternative to Mandatory Property Purchase for Silver Tier
Instead of mandatory property purchase, consider rental agreements for Silver tier applicants. They could present a long-term lease agreement (e.g., a 2+2 year contract) to demonstrate long-term residency.
Extended Timeframe for Dependent Applications
Increasing the application timeframe for dependent children from 90 days to 180 days would provide more flexibility. This would make it easier for families with children studying abroad to complete the application process.