KUALA LUMPUR: The latest official data reveals that the June 2024 revisions to the Malaysia My Second Home (MM2H) visa programme have already generated RM455.8mil in new investments and 782 new visa approvals, said IQI co-founder and group chief executive officer Kashif Ansari.

“At the current pace, that would amount to nearly RM1 billion per year The RM455.8 million invested by these visa holders over the past six months has been deployed in two key ways," he said.

First, funds circulate through the economy via fixed deposits in local financial institutions, which in turn help finance loans and development. Secondly, MM2H encourages real estate investment, typically in luxury homes for visa recipients and their families. This stimulates new home construction and drives millions of ringgit in related purchases, such as furniture and home fittings.

Each main applicant brings an average of 1.5 dependent family members. Over the past six months, 319 principal applicants and 463 dependents have received MM2H visas.

“One under-appreciated fact about MM2H is how much appeal it has for people from around the world. Chinese are the most numerous national group, of course, but in 2024 they only accounted for less than one-third of visas,” Ansari noted.

The government has previously revealed that the second-largest group of applicants comes from Australia. Other top nationalities applying for MM2H include South Korea, Japan, Bangladesh, and the United Kingdom.

Why people are choosing Malaysia

Ansari said he believed many Malaysians underestimate how desirable their country is. Foreigners are willing to invest money to live here because of Malaysia’s high quality of life, vibrant culture, excellent services, affordability, strong education system and fast-growing economy.

“For Chinese citizens, the language barrier is not as high as in European countries. They can find shops, doctors and other service providers who speak Mandarin. That is especially important when their elderly parents come to visit because they are less likely to speak English," he said.

Last year, the government’s major reforms to MM2H introduced a three-tiered system, allowing visa holders to secure longer residency by making larger financial commitments. The new regulations also required that MM2H participants purchase and retain a home for at least 10 years.

“To attract younger, working-age participants, the government also lowered the age requirement and removed the minimum income threshold," said Ansari.

Future refinements to MM2H could simplify the process for visa holders to work or establish businesses in Malaysia. Additionally, introducing tax incentives could encourage foreign residents to launch businesses and further contribute to Malaysia’s economic growth.

With MM2H now generating nearly RM1bil annually in investment, it is clear that the programme has been a remarkable success. Moving forward, it has the potential to become even more impactful, he said.

Stay ahead of the crowd and enjoy fresh insights on real estate, property development and lifestyle trends when you subscribe to our newsletter and follow us on social media.