Foreign interests are defined as follows:
- Individual who is not a Malaysian citizen; and/or
- individual who is Permanent Resident; and/or
- Foreign company or institution; and/or
- Local company or local institution (incorporated in Malaysia) whereby the parties as stated in item (1) and/or (2) and/or (3) above hold more than 50% of the voting rights in that local company or local institution.
THIS GUIDELINE SHALL APPLY TO THE FOLLOWING TRANSACTIONS:
- All property acquisitions by foreign interest that do not require the approval of the Economic Planning Unit, Prime Minister’s Department but fall under the purview of the relevant Ministries and/or Government Departments as follows:
- Acquisition of commercial unit valued at RM1,000,000 and above;
- Acquisition of agricultural land valued at RM1,000,000 and above or at least five (5) acres in area for the following purposes:
- to undertake agricultural activities on a commercial scale using modern or high technology; or
- to undertake agro-tourism projects; or
- to undertake agricultural or agro-based industrial activities for the production of goods for export.
- Acquisition of industrial land valued at RM1,000,000 and above;
- Transfer of property to a foreigner based on family ties is only allowed among immediate family members.
- Acquisition of residential unit by foreign interest valued at RM1,000,000 and above. This acquisition, however, do not require the approval of the Economic Planning Unit, Prime Minister's Department but falls under the purview of the State Authorities.
CONDITIONS FOR ACQUISITION
- Conditions for the acquisition of property are subject to equity and paid-up capital conditions as follows:
- Equity Condition
- to have at least 30 percent Bumiputera interest shareholding;
- Paid-Up Capital Conditions
- Local company owned by local interest to have at least RM100,000 paid-up capital; and
- Local company owned by foreign interest to a have at least RM250,000 paid-up capital.
- Acquisition of property provided for in paragraph 1.0 (a), (b) and (c) are also subject to the condition that the said property must be registered under a locally incorporated company.
COMPLIANCE PERIOD OF THE CONDITIONS
For direct acquisition of property, the equity and paid-up capital conditions imposed by the Economic Planning Unit, Prime Minister's Department must be complied with before the transfer of the property's ownership.
For indirect acquisition of property, the equity and paid-up capital conditions imposed by the Economic Planning Unit, Prime Minister's Department must be complied with within one (1) year after the issuance of written approval.
The conditions imposed on the acquisition of property in paragraph 1.0 must be complied with and notified to the Economic Planning Unit, Prime Minister's Department before the property is transferred.
Compliance of the equity and paid-up capital conditions must be notified to the Economic Planning Unit, Prime Minister's Department.
Foreign interest is NOT ALLOWED to acquire:
- Properties valued less than RM1,000,000 per unit;
- Residential units under the category of low and low-medium cost as determined by the State Authority;
- Properties built on Malay reserved land; and
- Properties allocated to Bumiputera interest in any property development project as determined by the State Authority.
The transactions listed below are exempted from requiring the approval of the Economic Planning Unit, Prime Minister's Department.
- Any acquisition of residential under the “Malaysia My Second Home” Programme;
- Multimedia Super Corridor( MSC) status companies are allowed to acquire any property in the MSC area provided that the property is only used for their operational activities including as residence for their employees;
- Acquisition of properties in the approved area in any regional development corridor by companies that have been granted the status by the local authority as determined by Government;
- Acquisition of properties by a company that has obtained the endorsement from the secretariat of the Malaysian International Islamic Financial Centre (MIFC);
- Acquisition of residential units to be occupied as hostel for company’s employees.
However, local companies owned by foreign interest are only allowed to acquire residential units valued at RM100,000 and above and this matter is under the jurisdiction of the relevant state authorities;
- Transfer of property to a foreign interest pursuant to a will and court order;
- Acquisition of industrial land by manufacturing company,
- Acquisition of properties by Ministries and Government Departments (Federal and State), Ministry of Finance Incorporated, Menteri Besar Incorporated or Chief Minister Incorporated, State Secretary Incorporated and listed Government Linked Companies;
- Acquisition of properties under the privatization projects, whether at the Federal or State level, provided that involves the companies that are the original signatories in the contracts for the privatized projects; and
- Acquisition of properties by companies that have been granted the status of International Procurement Centres, Operational Headquarters, Representative Offices, Regional Offices, Labuan entities and Bio-Nexus or other special status by the Ministry of Finance, Ministry of International Trade and Industry and other ministries.
- Acquisition of residential unit for accommodation purpose by:
- Foreigner with expatriate status who is serving the Government; or
- Foreigner with expatriate status who is serving non-government organization and receiving a minimum monthly salary of RM8,000, or
- Permanent Resident who holds a red Identity Card.
They are allowed to purchase only one residential unit valued at minimum RM250,000 (except in Kuala Lumpur, Johor Bahru and Penang) and the matter are under State Authorities jurisdiction.
Source: Economic Planning Unit, Malaysia
MINIMUM THRESHOLD OF PROPERTY ACQUISITION BY FOREIGNERS BY STATE
Property acquisitions by foreigners are subject to the minimum price established for foreigners by the different states in Malaysia. They start from minimum RM1,000,000 per unit for most states, from 2014. Land is a state matter and it is important to check state laws before making any commitment, as the minimum purchase price is not standardized between states.
Below is the List of Minimum Price for property purchase in Penang, Johor and Federal Territory of Kuala Lumpur, Labuan and Putrajaya
MALAYSIA MY SECOND HOME (MM2H) PROGRAM
This program is to allow people from all over the world, who fulfil certain criteria, to stay in Malaysia as long as possible on a social visit pass with multiple entry visa. The Social Visit Pass is initially for a period of 10 years and renewable.
WHO ARE ELIGIBLE TO APPLY?
It is open to citizens of all countries recognised by Malaysia regardless of race, religion, gender or age. Applicants are allowed to bring their spouses and unmarried children below the age of 21 as dependants. The applicant are required to show proof of liquid assets worth a minimum of RM500,000 and offshore income of RM10,000 per month. But if applicant is above 50 years old, he has only to comply with the financial proof of RM350,000 in liquid assets and off shore income of RM10,000 per month. For those who have retired, they are required to show proof of receiving pension from government RM 10,000 per month.
Approved applicants who have purchased properties worth at least RM 1 million qualify to place a lower fixed deposit amount upon approval.
Having a reputable sponsor can be a help. However, this condition is not required if the financial background and status of the applicant satisfies the Processing Officer.
To have a medical report from any recognized hospital. A medical health insurance valid in Malaysia.
The successful applicant cannot seek gainful employment in Malaysia unless he possesses special expertise and obtains the permission of the Malaysian government
This program is initiated, organized and launched by the Malaysian Government. It is, therefore, a program, that the Government will continuously work to ensure its success.
Cost of living :
Cost of living is one of the lowest in Asia and will remain so for a very long time. This is achieved through the Government's efficient monitoring of the economy in ensuring that inflation is kept low at all times and thereby also the prices of goods and services.
The weather is pleasant, warm and balmy with moderate rain throughout the year, There are also highland residential areas and resorts with permanent spring-like weather throughout the country.
The whole country is very well connected with up-to-date, modern road, rail, air, and sea transportation systems. Public transport by buses, taxis, trains and planes are comfortable, efficient and relatively low in cost.
Political stability :
The ruling Government is the longest serving freely elected Government in the world. It is a Government representing all the races, religions, cultures etc. found in Malaysia. In fact, Malaysia is one of the most politically stable countries in the world.
Rule of law :
The rule of law is one of the fundamentals in Malaysia's constitution. Everyone is subjected to the law and also equal before the law. Malaysia practices basically the British system of justice with an independent reliable and dependable judiciary.
Statistics can proof that Malaysia is one of the safest countries in the world, its crime rate is relatively low.
Culture and language :
The Malay language (Bahasa Melayu) is the national language of the country; English is the second language but other languages can be freely used and practiced. Similarly the Malay culture is dominant in the country because the Malays are the dominant race in Malaysia and in the region. But other cultures can be practiced very freely and there is a free intermingling of different cultures.
Food and Fruit :
All the food of the world can be found here at very reasonable cost. With so many races and cultures living together in harmony, it is understandable that each race has picked up the best of each other's food and made Malaysia into Asia's Food Paradise. Similarly the tropical fruits of Malaysia are unique, exotic and available in abundance practically throughout the year. It should be a real joy to savour these fruits.
The country has everything for the family,-theme parks, jungle trails/sports, water sports and one of the highest number of golf courses - ratio or population.
From high-end couture to ethnic handicrafts and the internationally acclaimed pewter ware, Malaysia has it all. Enjoy the comforts and convenience of shopping in air-conditioned malls and hypermarkets. Shoppers can also browse for interesting curios on display at the weekly flea markets. Join in the excitement of haggling at the night markets, an interesting feature of local life. The best time to enjoy fantastic discounts and special offers is during the annual Mega Sales.
The country has one of the best developed and quality educational systems - both public and private. There are international schools of repute in all major towns with English as the medium of instruction. There are also private colleges and universities offering twinning programs with other well-known universities and major colleges from throughout the world. Therefore, it is the place for quality education from nursery right up to the highest level of university education. It is already becoming an educational center of excellence for the region. Relatively speaking, it is also the place to get quality international class education at a very reasonable cost.
Medical facilities :
The country has a very efficient health system where medical services are provided at nominal cost. Private doctors, clinics and also hospitals of international standards are easily obtainable at very reasonable cost. Malaysia is also becoming a centre for medical facilities in the region.
There are quality residences - terrace houses, semi-detached, bungalows, apartments and condominiums all over the country. There are also some of the finest residences available in tourism zones - on beaches, near jungles and near theme parks, recreational places and city centres. Any foreigner may purchase any number of residential properties in Malaysia, subject to the minimum rates established for foreigners by the different states. For this purpose, they are also entitled for 60%-80% loan from local banks.
HOW TO APPLY?
Application can be made direct to :-
- MALAYSIA MY SECOND HOME CENTRE (MM2H)
Ministry of Tourism and Culture Malaysia,
Level 1, No. 2, Tower 1, Jalan P5/6,
Presint 5, 62200 W.P. Putrajaya,
- Any Malaysian representative Offices overseas and also Tourism Malaysia Offices
Applications can also be made through agents, lawyers and others.
The detailed application steps and documents required are available on the www.mm2h.gov.my website
The processing and approval process will take 90 working days from the date of submission of the application (provided the documentation is completed).