Malaysia’s “My Second Home” (MM2H) programme recorded 7,650 new applications between 1 Oct 2024 and 31 Aug 2026, generating an estimated RM 8.85 billion (≈ US $2.17 billion) in economic activity.
Application volume and source markets
- Total applications: 7,650 (statement by Deputy Tourism, Arts and Culture Minister Chiew Choon Man, 26 Sept 2026)
- Top source markets:
- China – 3,847 applications (50.3 %)
- Taiwan – 1,054 (13.8 %)
- Hong Kong – 324 (4.2 %)
- Singapore – 287 (3.8 %)
- United States – 284 (3.7 %)
- The five markets above account for 5,796 applications; the remaining 1,854 came from other, unnamed countries.
Economic contribution
- Property purchases: RM 5 billion (≈ US $1.22 billion)
- Fixed‑deposit investments in Malaysian banks: RM 3.82 billion (≈ US $936 million)
These figures cover the same 23‑month window and include both new deposits and the value of property bought, though the statement did not specify how many individual transactions underpin the RM 5 billion in real‑estate sales.
Programme categories and requirements
All applicants fall under the federal MM2H scheme, which has four tiers:
| Tier | Minimum property value* | Typical deposit requirement |
|---|---|---|
| Silver | RM 600,000 | – |
| Gold | RM 1 million | – |
| Platinum | RM 2 million | – |
| SEZ/SFZ (e.g., Forest City, Johor) | – | – |
*Each participant must purchase and retain the property for ten years; selling earlier can lead to revocation of the pass.
Participants may withdraw up to 50 % of the fixed‑deposit principal after approval for purposes such as home purchase, education, medical care, or tourism. The statement did not clarify whether the RM 3.82 billion reflects deposits placed or the balance after such withdrawals.
Housing‑market impact and political risk
- The RM 5 billion property influx is concentrated in higher‑price segments (generally ≥ RM 1 million), which are above the affordability range for most local buyers (RM 200,000–RM 300,000).
- Experts note that existing safeguards—state‑level price thresholds, mandatory written approvals, and the ten‑year holding period—limit speculative buying and keep MM2H investors out of the affordable‑housing segment.
- While some politicians could theoretically target the programme during a housing squeeze, analysts observe that Malaysia’s overall housing market remains stable with ample supply.
Industry perspectives
- Market focus: Advisors agree that MM2H primarily attracts Asian applicants seeking long‑term residence rather than a “Plan B” citizenship route. The 90‑day annual stay limit reinforces this positioning.
- Potential outreach: One adviser suggested targeted promotion to the Middle East and North Africa, leveraging Malaysia’s halal and Islamic‑finance ecosystem.
- Comparative flexibility: Regional competitors (e.g., Thailand’s Long‑Term Resident visa, Philippines retirement visa) allow investors to meet financial thresholds through a single option (deposit, bond, or property), whereas MM2H requires both a property purchase and a fixed deposit.
Suggested programme refinements
- Pathway to permanent residency: Re‑introduce a clear route to permanent residency after a defined residence period (e.g., seven years, as in Hong Kong’s scheme). Malaysia previously offered this for the Platinum tier in its 2023 revamp but removed it in June 2024.
- Flexibility in financial requirements: Allow applicants to satisfy the financial threshold via either a property purchase or a fixed deposit, aligning with the more flexible models of neighboring countries.
- Link to domestic spending: Reduce the proportion of capital locked in fixed deposits, encouraging greater circulation of funds within the broader economy.
Compliance and approvals
- The statement covered applications only; approval numbers for the same period were not disclosed. For reference, 3,172 applications were approved in calendar 2025 (covering 9,038 participants, including dependents).
- Recent regulatory action includes a directive to the Immigration Department to increase checks on MM2H participants conducting business without the required Platinum‑tier permission.
Overall, the MM2H programme continues to attract significant foreign investment, especially from China, while its design—mandatory high‑value property purchase, long holding period, and limited stay allowance—keeps it focused on long‑term residents rather than short‑term investors or “backup” citizenship seekers.
Source article: www.imidaily.com
