Latest Updates on Iskandar Malaysia (Special Economic Zone)
This article summarizes the latest announcements and changes regarding Iskandar Malaysia, also known as the Special Economic Zone. These updates address concerns and provide clarity for potential applicants and existing participants of the MM2H (Malaysia My Second Home) program.
MM2H Program & Iskandar Malaysia
There has been much discussion recently regarding Iskandar Malaysia and potential changes within the zone. The government has reiterated that for MM2H applications related to Iskandar Malaysia, specific conditions apply regarding property purchases.
Key Updates and Requirements
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Purchase Location: Applicants must purchase property specifically within the designated Iskandar Malaysia area to qualify. Property purchases outside this zone will not be accepted for MM2H program eligibility.
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Endorsement and Purchase Agreement: When applying for the Iskandar Malaysia MM2H program, applicants must submit a Sale and Purchase Agreement (SPA) as part of the endorsement process.
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New Developments Only: The purchased property must be a new development purchased directly from a developer within Iskandar Malaysia's designated "Core City." Resales or secondary market properties are not eligible.
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Existing Properties (Outside Core City): If applicants previously purchased property outside the Core City area, they cannot use this property to apply for the Iskandar Malaysia MM2H program. However, there are alternative solutions.
Solutions for Existing Property Owners Outside Core City
The government has provided several solutions for those who already own property outside the Core City and wish to participate in MM2H, this include those already have a MM2H approved but haven't done the endorsement yet.
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Switching Properties (Before Approval): If the MM2H application is pending (not yet approved), applicants can request their agent to inform the government of their intention to switch the application to a property within the Core City. This is allowed as long as the new property is above RM 600,000.
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Switching to a Different MM2H Plan (After Initial Approval): For applicants approved under the Iskandar Malaysia plan but who have not yet made an endorsement, you could consider switch to a Silver, Gold or Platinum plan.
- The government allows switching to these other plans without needing to resubmit all documents. Simply inform your agent to arrange this change.
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Terminating Iskandar Malaysia MM2H and Upgrading: If already approved for the Iskandar Malaysia MM2H but having bought properties outside the Core City, you can consider terminating your Iskandar Malaysia MM2H plan and upgrading to a Silver, Gold, or Platinum plan. This process does not require resubmitting documents. While there is an approval process, it avoids a complete re-application.
Maintaining Rights with Core City Purchase
For individuals who have already been approved and endorsed under the Iskandar Malaysia MM2H program, and now understand the requirement to purchase within the Core City, the following applies:
- One-Year Window: These individuals will retain their rights under the program if they purchase a property within the Core City within one year. Failure to do so will result in the government revoking the SB (Special Branch) approval.
Summary of Key Requirements
To reiterate, the key points are:
- Must purchase property within the designated Core City.
- Must purchase a new development (first-hand property).
- The property can be sold after 10 years.
- A Sale and Purchase Agreement (SPA) must be submitted at the time of endorsement following approval.