Arrival in Sarawak
Hello everyone! I've reached my destination. Some people in the comment section actually guessed it right, and I'm really impressed as I'm not sure how they managed to do that. I'm currently in Sarawak, East Malaysia. Sarawak is the largest state in Malaysia, covering an area of 120,000 square kilometers, which is equivalent to the size of North Korea or Fujian Province in China. However, it has a very small population. With such a vast area, there are only about 2.8 million people, while Fujian has over 40 million.
The Capital City - Kuching
This is Kuching, the capital of Sarawak. Since I arrived, it has been raining every day. Today, I don't want to talk about Sarawak's tourism. Instead, I'd like to share some of my insights from the past few days. I've been here for two days. I'm not just a traveler in East Malaysia; my purpose is to learn about the Malaysia My Second Home (MM2H) program. I've been upfront about this since my first visit to Malaysia.
Overview of the MM2H Program
The MM2H program in Malaysia is divided into two regions: West Malaysia and East Malaysia. I've already discussed the situation in West Malaysia in my previous visit. After that, I went to Sabah and also looked into their MM2H program. However, similar to West Malaysia, the official policy in Sabah hasn't been finalized yet, and the program is currently on hold. Previously, Sabah did have the MM2H program, and it seemed to be quite affordable in terms of fees.
Overall, East Malaysia is less economically developed than West Malaysia. Most Chinese people are more interested in the developed areas in West Malaysia, such as Kuala Lumpur, especially for those who want to send their children to study in the numerous international schools there. As a result, fewer people choose East Malaysia. Those who come to East Malaysia are either interested in tourism or plan to use the MM2H program for retirement, as the region has a small population and lower living costs due to its relatively less developed economy.
Experience in Sabah
During my first visit to Sabah, I found that the cost of living there wasn't as low as I expected. It's a popular tourist city, and many Chinese people know about it, especially through places like Semporna. To get to Semporna, one usually has to go through Kota Kinabalu in Sabah. I also noticed that there were a lot of Koreans in Sabah, perhaps because there are direct flights from Korea. I even flew back from Sabah this time as there are direct flights from Wuhan to Sabah.
Since the MM2H program in Sabah was on hold at that time, I just had a look around and then left. I was waiting for the program to resume, but I lost patience. However, after I returned, I learned that there was another option in East Malaysia - Sarawak, which has an ongoing MM2H program.
Differences between West and East Malaysia's MM2H
I did some research and found that the cost of the MM2H program in Sarawak is lower than that in West Malaysia. That's why I made a second trip to Malaysia so soon. When I was in West Malaysia, I consulted some local agents. They told me that they could handle both West and East Malaysia's MM2H applications, but they also mentioned some requirements in Sarawak that might not be very favorable for me.
In Sarawak, the MM2H program is divided into two age groups: above 50 and below 50. For those under 50, there are two additional conditions. One is to have a child studying in an international school in Sarawak, and the other is to purchase a property. When I first heard this from the agent in Kuala Lumpur, I thought he might be trying to prevent me from going to East Malaysia. I found it hard to believe that I would have to buy a property in a place I'm not familiar with.
Confirmation of the Requirements
After arriving in Sarawak, I've been here for two days. I've contacted several local agents who specialize in the MM2H program, including two today. Unfortunately, the requirement to buy a property is real. The property price should be at least 600,000 Malaysian Ringgit. This is a big problem for me as I'm not familiar with this place. It's not like buying a cabbage; it's a huge investment.
Comparison with West Malaysia
There are some differences between the MM2H programs in West and East Malaysia. In West Malaysia, it is said that half of the deposit can be withdrawn to buy a property in the second year. In Sarawak, although the deposit can also be withdrawn to buy a property in the second year, one must first purchase the property.
The deposit requirement in West Malaysia is 1 million Malaysian Ringgit, but the new policy has a 500,000 Malaysian Ringgit option. However, many details of this new policy are still unclear, and applications cannot be submitted yet.
Other Considerations
Another issue I noticed in Sarawak is the high humidity. The humidity level here is 94%. When I steamed an egg and a corn in my room, there was a layer of water vapor on the floor tiles. I had to turn on the air conditioner to dehumidify. This means that when choosing a property, I would also need to consider the location and the quality of the building.
Evaluation of the Program
Considering all these factors, I'm starting to think about giving up on the MM2H program in Sarawak. I can't just buy a property without fully understanding the area, and the requirement to buy a property makes the program less attractive to me. Although the deposit requirement in Sarawak is lower, I would still need to spend 600,000 Malaysian Ringgit on a property. In West Malaysia, at least I can earn interest on the deposit.
When it comes to overseas property investment as a foreigner, there are many things to consider. For example, if I decide to leave Sarawak in the future, it might be difficult to sell the property. Local people in Sarawak prefer to buy landed properties rather than apartments. Additionally, I would also need to consider the rental market, such as the rental price and the demand for rental properties.
Conclusion
I'm a bit disappointed with my experience in Sarawak so far. I still have four days left here as my return flight is already booked, but I'm not sure where to go or what to do. I'll have to think about my next steps.
For those who are interested in the MM2H program, Sarawak might be a good option for those over 50. However, for those under 50 like me, the requirement to buy a property makes it a less viable choice.
Currently, among the three regions in Malaysia that offer the MM2H program, only Sarawak's program is operational and accepting applications. The programs in Sabah and West Malaysia are expected to resume after the Chinese New Year, probably in March or April. If you're really interested in the MM2H program, you can keep an eye on the latest developments. That's all for today. I'm in Kuching, Sarawak.