Malaysia MM2H Update: Easier Deposit Withdrawal & Record Property Sales!

# Malaysia My Second Home (MM2H) Program Update: Relaxed Requirements and Application Trends

This article provides an update on the Malaysia My Second Home (MM2H) program, covering recent changes to deposit release requirements, application processing times, and the popularity of different program tiers.

## Relaxed Deposit Release Requirements

### Using Education Expenses

A recent update to the MM2H program has relaxed the requirements for releasing a portion of the fixed deposit. Previously, only property purchases made *after* the MM2H visa approval could be used to release 50% of the deposit. Now, tuition fees can also be used for deposit release.

*   **The previous requirement:** Only SPA agreements (property purchase contracts) dated after the MM2H approval qualified for deposit release.

*   **The new option:** Tuition fees exceeding RM100,000 can now be used to unlock a portion of the fixed deposit.

*   **Example:** For a deposit of approximately RM700,000 (based on a USD 150,000 deposit), the previous requirement would mean needing to spend at least RM350,000 on property. Now, proving tuition fee payments of RM100,000 or more can suffice.

This change is beneficial, especially for those who purchased property before obtaining their MM2H visa or have children studying in Malaysia.

## Application Processing Times

### Increase in Processing Time

Application processing times have increased recently. Early applicants in 2023 experienced relatively quick approvals (approximately one month). However, more recent applications are taking longer.

*   **Early applications:** Approvals within one to one and a half months (August-October 2023).

*   **Current processing time:** Approximately three months.

*   **Recent approvals:** Applications submitted before Christmas (December) were approved in early March.

The longer processing times are attributed to a higher volume of applications. While the official timeline is stated as 30 working days, this is now unrealistic.

## Popularity of the New MM2H Program

### High Demand Despite Initial Criticism

Despite initial criticism of the higher financial requirements of the new MM2H program, there has been significant interest and a large number of applications. Many initially felt the high financial threshold was unrealistic, especially for a non-immigration visa. However, the numbers prove otherwise.

### Approved Applications Breakdown

As of late February, the official data shows that a total of 782 applications have been approved.

*   **Main applicants:** 319

*   **Dependents:** 463

The applications have been categorized into different tiers, reflecting the varying financial requirements.

### Tier Breakdown

Here's the breakdown of approved applications by tier:

1.  **Silver:** 260 - The most popular tier.
2.  **Financial Special Economic Zone:** 43 - Showing significant interest in this area.
3.  **Gold:** 9
4.  **Platinum:** 7 - Attracting high-net-worth individuals.

The Silver tier is likely the most popular due to its perceived value for those seeking to live in Malaysia for a few years. The Financial Special Economic Zone also offers attractive benefits.

### Financial Special Economic Zone Details

The Financial Special Economic Zone tier offers lower deposit requirements, particularly for applicants over 50 years old.

*   **Applicants 50+:** Deposit of RM32,000.

*   **Applicants under 50:** Deposit of RM65,000.

*   **Tenure:** 10 years.

*   **Residence requirement:** Not restricted to the special economic zone.

*   **Property purchase:** Requires purchasing property in designated zones.

*   **Property Price:** Approximately RM500,000

This tier is particularly appealing for those with limited budgets and individuals over 50.

### Platinum Tier Considerations

The Platinum tier has the highest financial requirements but offers certain benefits.

*   **Deposit:** USD 1,000,000.

*   **Participation Fee:** RM200,000 (non-refundable).

*   **Benefits:** Allows for business activities and bringing in a foreign domestic helper.

Despite the high costs, some applicants find the Platinum tier attractive for its business-related advantages.

## Economic Impact and Future Outlook

### Economic Benefits for Malaysia

The MM2H program is contributing significantly to the Malaysian economy. The Malaysian government estimates that the program has brought in over RM230 million in deposits and a similar amount in property investments.

### Growing Popularity and Property Market

Malaysia's popularity as a destination for relocation is growing. This is contributing to a strong property market.

*   **2024 Property Sales:** Increased by over 23% compared to the prior year, the largest increase in 5 years.

*   **Kuala Lumpur Property Sales:** Over 80% of new developments sold within a year.

*   **Rental Yields:** Kuala Lumpur offers attractive rental yields of 4% to 7%, higher than many other Asian cities.

These factors suggest a positive outlook for the Malaysian property market, particularly with the influx of MM2H participants.