This article discusses the implications of a recent announcement (May 28, 2025) from the Malaysia My Second Home (MM2H) program's processing center (OAC) to legal intermediaries. The announcement contains both positive and negative news for applicants and program participants.
Negative Aspects of the Announcement
Potential Royal Malaysian Police Interviews
The announcement suggests that applicants approved under the white silver, gold, and platinum categories may now be subject to interviews by the Royal Malaysian Police. Previously, this requirement was primarily associated with the Forest City economic zone. The collection ratio or frequency of these interviews remains unclear.
Government's "Encouragement" (DIGALACAN)
The announcement uses the word "DIGALACAN," meaning "encouraged." The speaker believes the government's use of this term is ineffective because it carries no legal weight. Simply encouraging something without specific policy or enforcement makes little practical difference. Individuals will make their own financial decisions based on their circumstances, such as USD or RMB investments.
Positive Aspects of the Announcement
Retroactive Deposit Withdrawal Applications
A significant positive change is that applicants who purchased a house before the announcement can now apply to withdraw their deposits, even if the purchase contract was signed up to two years prior. Previously, only those with signed contracts were eligible.
Extended Application Window for Forest City Purchases
Those purchasing property in Forest City and applying through the Forest City Economic Specialist program can now push forward their application by six months. Considering the typical three to four-month processing time, this provides greater flexibility. It is suggested that purchasing a Forest City property and then applying could be advantageous due to this extended window.
Suggestions for Government Improvement
Investment Opportunities for Wealth Tiers
The speaker believes the government should allow those in the white silver, gold, and platinum tiers to invest in specific sectors of the Malaysian economy. Examples include:
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The Malaysian Stock Market: Investing in the stock market would benefit the market without displacing local jobs.
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Financial Products: Investment in financial products could boost the Malaysian economy.
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Cryptocurrencies: Allowing investment in cryptocurrencies could attract capital without impacting local employment.
These options are presented as potential "win-win" scenarios that benefit both the investors and the Malaysian economy.
Real Estate Investment for Rental Income
The speaker suggests allowing these groups to invest in real estate for rental income, arguing that this wouldn't affect the income of local people and would contribute to the economy.
Suggestions Regarding Identity Cards and Deposit Requirements
Identity Cards for MM2H Participants
The speaker reiterates the importance of providing MM2H participants with identity cards. This would allow them to move around Kuala Lumpur without carrying their passports. While passports would still be necessary for longer trips, an ID card would simplify local travel. With a large MM2H population, issuing ID cards would be a valuable step. This was also previously suggested in 2021 by the Malaysian Provincial Regulatory Service.
Adjustments to Permanent Deposit Requirements
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Increase Deposit for Elderly: Consider increasing the permanent deposit for applicants aged 60 or older from RM150,000 to RM250,000.
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Allow Renting Instead of Buying: Allow retirees to rent property with a long-term lease agreement (e.g., one year) to fulfill the deposit requirement instead of forcing them to purchase property. This offers greater flexibility.
Suggestions on Visa Stays
Extension of Stay for Children
The speaker suggests extending the 90-day stay requirement for children enrolled in overseas education to 180 days (six months). This aligns better with school schedules and avoids the need for frequent trips to Malaysia for visa renewals. Parents, as the main applicants, can still maintain the 90-day requirement. The current rule can force parents to take their children out of school for a week. They suggest that instead of forcing families to apply too early or pull children out of schools, the application timeline should be adjusted.
This adjustment would ease the burden on parents and ensure children can continue their studies without disruption. The 90-day rule for adults (main applicants and partners) could remain unchanged.