Sabah MM2H: A New Second Home Option in Malaysia
The Malaysian Federal Government's Second Home New Deal arrived in April 2024, but even before that, Sabah's Autonomous State Cabinet officially approved its own second home program. This article explores the new Sabah MM2H (Malaysia My Second Home) program, its similarities and differences with the Sarawak MM2H program and the federal MM2H program, and why Sabah might be an attractive option for those considering living in Malaysia.
Understanding Sabah
Sabah, also known as North Borneo, shares a history with Sarawak as a former British colony. Both are now autonomous states within Malaysia, similar in concept to Hong Kong and Macau in China, enjoying a high degree of autonomy. Holding a second home visa for Sabah or Sarawak allows free movement in and out of West Malaysia, unlike West Malaysians who are limited to 90-day stays in East Malaysia. This independence makes Sabah and Sarawak distinct from West Malaysia.
Sabah's Strategic Location and Natural Advantages
Sabah boasts a geographically advantageous location in the geometric center of Southeast Asia. Kota Kinabalu, the capital, offers direct flights to major Asian cities:
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Hong Kong, Shenzhen, Guangzhou: 3 hours
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Singapore, Manila: 2 hours
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Beijing, Seoul, Tokyo: 5 hours
Sabah is also known as "the land below the wind," being located south of the typhoon belt in the Northern Hemisphere, offering a more stable climate compared to its neighbor, the Philippines.
Sabah's Tourism and Natural Beauty
Sabah is a golden brand in Southeast Asia's tourism industry, featuring:
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Kota Kinabalu
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Holy Mountain
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Tanjung Aru Beach
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Semporna Diving Paradise
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Tawau Hills National Park
These destinations contribute to Sabah's reputation as a haven of natural beauty.
Education in Sabah
Malaysia is a highly friendly country to the Chinese. While Malay and English are the official languages, Chinese is widely spoken. The Chinese community's dedication has made Chinese schools highly sought after in Malaysia, influencing property values. Sabah offers:
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Bilingual communication in Chinese and English
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High-quality, low-cost Chinese schools
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6 international schools, mainly in Kota Kinabalu and Tawau
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83 Guanghua primary schools
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Malaysian high school diplomas recognized in the UK, US, China, Russia, etc.
These features make Sabah an attractive option for families seeking quality education.
Cost of Living and Lifestyle
Driven by tourism, prices in Sabah are generally higher than in Sarawak, comparable to Hainan's status in China. While main dishes might be harder to find for RM10 in Kota Kinabalu, overall costs for meals, petrol, transportation, leisure, and entertainment are similar to those in third- and fourth-tier cities in China. Sabah offers a slow-paced, relaxed lifestyle suitable for retirees seeking a comfortable and peaceful environment.
Sabah vs. Sarawak vs. Federal MM2H: A Comparison
Here's a comparison of the key differences between the three MM2H programs:
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Deposit: Federal requires RM1 million (potential silver package at RM500,000 for 5 years), Sarawak requires RM150,000 (individual) or RM300,000 (couple), and Sabah requires RM200,000.
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Real Estate Investment: Federal has no requirement, Sarawak requires RM500,000-RM600,000 purchase for applicants under 50 (or requirements of local schools), and Sabah requires a minimum RM600,000 property investment (sellable after 5 years).
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Residency Requirements: Federal requires 60 days (expected after new policy), Sarawak requires 30 days, and Sabah requires 30 days.
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Minimum Age: Federal is currently 35 (may lower to 30), while Sabah and Sarawak are 30.
Sabah stands out for its cost-effectiveness, allowing travel throughout West Malaysia.
Potential Drawbacks of Sabah MM2H
There are still drawbacks of Sabah MM2H:
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Minimum House Purchase: The RM600,000 house purchase requirement puts pressure on applicants.
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Policy Restrictions: Restrictions of policies, such as children studying in Chinese Primary School, should be watched.
Conclusion: Is Sabah MM2H Worth It?
The worth of Sabah MM2H depends on individual circumstances. Those prioritizing a natural environment, liquidity, local residency, real estate investment, and minimal time commitment may find Sabah ideal. It is also good for a combined cost-effective lifestyle with the education of the children. West Malaysia’s program is more suitable for higher urban infrastructure development.
Future Considerations
The specific requirements for Sabah MM2H are still emerging, with the official policy expected to be fully announced by the end of May. It is important to monitor the policy implementation and whether it will open the opportunities to study in local Chinese primary schools. As Malaysia’s Second Home New Deal becomes more appealing, there are many choices to consider, including Labuan work visa and digital nomad visa.
Ultimately, choosing the right program depends on individual needs and preferences.