You Fong of KL Properties interviews Irene, a registered MM2H agent, to address frequently asked questions about the Special Economic Zone (SEZ) visa in Malaysia. This visa has gained popularity due to its seemingly lower requirements compared to other MM2H options. However, recent updates from MoTeC (the relevant ministry) have introduced significant changes.
Question 1: Eligible Zones for the SEZ Visa
Clarifying the Zones
There are actually two distinct types of "special economic zones". Yufeng refers to the Johor Bahru and Singapore Special Economic Zone (JZ), which contains six districts. However, for the Malaysia My Second Home (MM2H) Special Economic Zone visa, at present, only Forest City qualifies.
Key Takeaway
Currently, to apply for an MM2H visa under the Special Economic Zone category, you must purchase property in Forest City. Otherwise, you will need to apply under the Silver category.
Question 2: Developers and Property Costs in Forest City
Buying from Country Garden
The SEZ visa requires purchasing property from Country Garden, the developer of Forest City.
Property Pricing
The smallest unit available is around RM500,000, offering approximately 500 square feet with one bedroom and one bathroom. This translates to approximately RM1,000 per square foot. While seemingly affordable, it is more expensive than properties in Mont Kiara, KL.
Comparing with Silver Program
For example, applicants with a budget around RM700,000, can only afford SEZ, not Silver Program. So SEZ is a better option.
Understanding the Investment
It is important to understand that the money invested is still yours. It is placed in a fixed deposit account, and the property belongs to you. You can withdraw your fixed deposit if you decide to leave Malaysia.
Question 3: Updated Timeline for Property Purchase
New Timeline Details
The timeline for purchasing property in Forest City has been shortened to 6 + 3 months.
Breaking Down the Timeline
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You have 6 months before obtaining the MM2H conditional approval letter.
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After receiving the conditional approval letter, you have 3 months to sign the sales and purchase agreement with Country Garden.
Implications
If you purchased a property from Country Garden a year ago, you can still use it for the SEZ visa. However, you will not be able to withdraw 50% of the fixed deposit. Failing to purchase within the three-month window after getting the conditional approval letter will result in denial of your MM2H visa. This timeline tightening applies only to the Special Economic Zone program.
Question 4: Currency of Fixed Deposit Placement
Encouragement for Ringgit Malaysia
MoTeC is encouraging applicants to place their fixed deposit in Ringgit Malaysia (RM), although US dollars are still acceptable.
Timing is Key
The timing of currency exchange is crucial. Converting USD to MYR when the Ringgit is strong might be advantageous. Previously, both USD and MYR were equally accepted, but now the preference is for MYR.
Question 5: Other Important Updates
General MM2H Terms and Conditions Updates
There are several updates to the general MM2H terms and conditions.
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Random Police Interviews: The Royal Malaysia Police may conduct random interviews if there are concerns regarding the letter of good conduct or police clearance letter.
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Detailed Resume Required: Applicants must provide a detailed resume outlining their employment history, educational background, and last (or current) income. Retired individuals must provide a statutory declaration stating their retirement and previous employment income.
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Property Purchase Monitoring: There is now a monitoring system to ensure applicants purchase property within one year of approval, as required.
Key takeaways
The Malaysian government has updated regulations on SEZ Visa, to make the visa application more transparent and harder to circumvent.