KUALA LUMPUR: The latest data reveals that Malaysia’s revamped Malaysia My Second Home (MM2H) visa programme has injected a staggering RM455.8 million into the economy within just six months, following policy changes implemented in June 2024. With 782 new visa approvals, the programme is on track to generate nearly RM1 billion in annual investments, according to IQI Co-Founder and Group CEO Kashif Ansari.
MM2H: A Major Economic Driver
“Over the past six months alone, MM2H visa holders have contributed RM455.8 million, benefiting Malaysia in two key ways,” Ansari explained. “Firstly, their funds circulate through local financial institutions via fixed deposits, supporting loans and economic development. Secondly, MM2H participants invest significantly in real estate, particularly in luxury homes, stimulating the property market and related industries.”
With 319 principal applicants and 463 dependents approved under the programme in this period, each main applicant brings an average of 1.5 family members into Malaysia, further amplifying economic activity.
A Global Appeal Beyond China
While Chinese nationals continue to be the largest group of MM2H applicants, they now represent less than one-third of total approvals. Australia ranks as the second-largest source of applicants, with South Korea, Japan, Bangladesh, and the United Kingdom also contributing significant numbers.
“MM2H is more international than many realize,” Ansari noted. “We see strong demand from countries across Asia and beyond, showcasing Malaysia’s global appeal as a top destination for expatriates.”
Why Foreigners Choose Malaysia
Malaysia’s attractiveness lies in its affordable yet high-quality lifestyle, rich cultural diversity, excellent education system, and fast-growing economy. Additionally, Malaysia provides a relatively lower language barrier for Chinese applicants, with Mandarin-speaking services widely available—a major advantage for families bringing elderly relatives who may not speak English.
“Many Malaysians may not fully appreciate just how desirable their country is,” Ansari remarked. “Foreigners are willing to invest significantly to live here because Malaysia offers an exceptional quality of life at a fraction of the cost compared to Western countries.”
What’s Next for MM2H?
The government’s 2024 reforms introduced a three-tiered visa system, offering longer residency periods for greater financial commitments. Additionally, MM2H holders must now purchase a home and retain ownership for at least 10 years. To attract younger, working-age participants, age requirements were lowered, and minimum income thresholds removed.
Looking ahead, further enhancements could boost MM2H’s impact, including easier work and business opportunities for visa holders and tax incentives to encourage foreign entrepreneurs to establish businesses in Malaysia.
“With MM2H driving close to RM1 billion annually in investments, it’s already proving to be a major success,” Ansari concluded. “With the right improvements, its potential to fuel Malaysia’s economic growth could be even greater in the years ahead.”
