FAQ RE/MAX Malaysia

Accuracy of the answers below is to the best of our knowledge. For comments and feedbacks, please email us at 
info@remax.my    

Property Transactions - Sale & Purchase

What is the standard procedure of buying a property?

1.Upon agreeing to buy a property, an earnest deposit (sometimes referred to as a booking fee) amounting to 2% - 3% of the agreed selling price is collected in the name of the stakeholder (usually the real estate agency firm). 

2. Earnest deposit is collected and the Letter of Offer is completed and signed by purchaser. Owner (or vendor) 
must also sign the Letter of Offer to indicate acceptance of the terms of the contract.

3. Balance of 10% (i.e. 7% or 8%) of the purchase price is payable within 14 working days
 and upon signing of the Sale and Purchase Agreement (SPA) or on an agreed period of time. Consult your solicitor if you want to amend any clauses before signing the SPA. 

4. Balance of 90% of the purchase price is to be paid within 3 months with an extension period of 1 month from date of execution of SPA or date of receipt of consent from the Developer / Statutory Body and / or relevant authorities or from the date of issuance of Certificate of Fitness, whichever is later. Interest may be chargeable on the unpaid sum calculated on daily basis. 

5. If State Authority consent is needed, a six month period is given to get consent. Then, the 3+1 months 
shall commence from the date the consent is obtained. 

4. Loan arrangements
 is to be made earlier to ensure full settlement within the completion period. 

5. The solicitor will ensure the property is free from any charges or encumbrances when the property is delivered to the Purchaser with or without vacant possession.

6. Vendor and Purchaser are to bear all costs and fees of their own Solicitors.


What are the costs of buying a property?

The Purchaser of a property may incur the following costs:-

1. Negotiated price of the property

2. Legal fees on the document of transfer which is determined by the value of the house in the Sale and Purchase Agreement as follows:- 

1st RM150k - 1.0% (min RM300)
Next RM850k - 0.7% 
Next RM2 million - 0.6%
Next RM2 million - 0.5%
Next RM2.5 million - 0.4%
Where the consideration or adjudicated value is excess of RM7.5million - Negotiable on the excess (but shall not exceed 0.4% of such excess)

3. Legal fees on loan document

Rates above are applicable on loan amount

4. Stamp duty on the document of transfer calculated as follows:-
1st RM100k - 1%
Next RM400k - 2%
> RM500k - 3%

5. Stamp duty on loan document calculated as Loan Amount x 0.50% 

6. Valuation fees (please visit www.lppeh.gov.my - click on fees)

7. Estate agency fees, if already agreed at the outset of the transaction.

8. What are the costs of selling a property?

 Estate agency fees – 3% plus 6% Goods & Services Tax

 Legal fees

 Valuation fees – optional pre-sale cost to ascertain market value

 All other costs must be agreed upon in writing prior to commencement of work.

 

Property Investments

Freehold vs Leasehold properties?

1.DEFINITION

Freehold can be defined as the entitlement to hold a property with a perpetual right. There is no limit of time to hold the property. A freehold property lies with the title holder until they transfer it of their own accord.

As for leasehold, it can be defined as the right to hold or use the property for a fixed period of time at a given price, without transfer of ownership, on the basis of a lease contract. A leasehold is a fixed asset. Every lease or sub-lease must exceed 3 years. The maximum period of a lease is 99 years for the whole of any alienated land and 30 years for a part only thereof. 

2. TRANSACTION

In a sale or purchase of a freehold property, the transaction is easier, more convenient and straight-forward. 
The sale of a leasehold property will require the consent from the state government authorities and this may take 6 months or more.

3. VALUE

The value of a leasehold property will usually depreciate when the lease period is coming to an end. This is because of the reduced marketability of such property where its lease is near expiration given the complications related to renewal and difficulty of obtaining a bank mortgage. 

3. LEASE RENEWAL

Upon expiry of the lease, the ownership reverts back to the State government. However, the lease can be extended or renewed subject to the approval of the state government authorities and payment of a premium. 
Although this is not applicable to freehold properties, the ownership of freehold properties may be subject to Land Acquisition Act 1960 where the state government has the power to compulsorily acquire the property. The title holder will be compensated based on its market value. 

4. PRICE

Price of a leasehold property is usually (about 20%) lower than a freehold one with all other things being equal or held constant. 
Price of a property is greatly dependable on location. A leasehold property at an exclusive or strategic area can have a value higher than a freehold property at a deserted area. The location of the property is always an important factor to consider. 

5. OTHERS

Given limited availability of freehold properties, leasehold properties are becoming more acceptable especially when buyers can enjoy more space at a lower price.
We can now see an increasing trend of children moving out and living independently away from their parents. Hence, whether the house would still be available for the next generation is no longer a major concern. 
If a property has unexpired lease period of at least 70 years and is located in an ideal neighbourhood, the deal can be sealed with minimal worry. 


 
What are the matters to consider before buying a property?

1.  Have you physically inspect the property to confirm its location and to ascertain the state and condition of the property and the defects thereon?

2. Is there any discrepancy between the land area marketed and the actual land area or the area stated in the qualified title? 

3. Is the property purchased on an 'as is where is' basis or rectification is required by the vendor before completion of the transaction?

4. Is the property purchased with vacant possession?

5. Is the property subject to any conversion and change of conditions or restriction in the title?

6. Are there any arrears or non-payment of utilities charges or management fees?

7. Have you appointed a solicitor to act on your behalf in the transaction?

8. What are the legal fees, stamp duty and registration fees payable for both purchase and loan transactions? 

9. Where a bank loan is required, is the loan approved? What amount is approved? Can the loan be approved in time for him to complete the transaction without having to pay late payment interest to the vendor for an extension of the completion date? How much higher is the purchase price than the bank value of the property? 

10. Has a search on the title for the property been carried out? 

11. Land is a state matter and as such, foreigners must take note of the respective State       Governments rules for non-malaysians acquiring property here. You real estate agent can advise you.

Agency Practice

What are the types of agency appointment?

A real estate agent can be appointed on the following basis:-

1) EXCLUSIVE AGENCY - ONLY the real estate agent can sell

This refers to the instruction from the client to ONE real estate agent to act on his behalf. The client may make introduction but will leave the closing of the transaction to the real estate agent. The client must pay the appointed real estate agent the agreed fee whether or not the real estate agent was the effective or direct cause of the transaction.

When exclusivity is given to a real estate agent, the agent assumes all responsibilities to effectively market the property. The exclusive agent deals directly with all prospects and other real estate agents. Hence, the exclusive agent can control the price and act professionally in the best interest of the client. The client only has to deal with one real estate agent. 

2) SOLE AGENCY – BOTH the vendor and real estate agent can sell

Similar to exclusive agent, ONE real estate agent is appointed to act on vendor's behalf. The client may wish to reserve the right to close the deal himself and is not obliged to pay the agent his fee if he closes the deal himself. When the client plays an active role in the deal or makes an introduction, an arrangement may be made for a discount in fees to the real estate agent. 

4) JOINT AGENCY - LIMITED number of real estate agents can sell

There are more than one real estate agent appointed to work on the listing and only the agent who closes the deal gets paid. The number of real estate agents appointed is limited and each is aware of the appointment of each other. 

5) AD HOC AGENCY – UNLIMITED number of real estate agents can sell

The client can appoint as many real estate agents as he wants on an ad hoc basis. Fees are only paid to the agent who successfully concluded the transaction. 

One may choose this type of agency so that not all eggs are put in one basket. It is not always true that the more real estate agents being appointed, the greater the exposure the property has. Like the proverb 'too many cooks spoil the broth', adhoc agency can lead to unprofessional practice by agents who will tend to compete with each other to close the deal. This may not necessarily be in the best interest of the client. For example, properties with many agents' banners or stickers may appear 'unwanted' or 'problematic'. Prices may be pressed down simply to close the deal. Also, real estate agents may not be fully committed in working on the listing.

What's the scale of fees for estate agency?

According to the Valuers, Appraisers and Estate Agents (Amendment) Rules 2009 (come into operation on 1 October 2009) - Seventh Schedule, estate agency fees are as follows:-

(1) Sale or Purchase

(a) Land and Buildings - Maximum fee of 3%
(b) Fees for other services such as joint venture, sale of company, property swaps, etc - Maximum fee of 3%
(c) Chattels including plant and machinery - 10% of the proceeds

Minimum fee:

As above, subject to a minimum fee of RM1000 per property

The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition. 

For sale and marketing of projects by registered estate agents, the fees are to be agreed between the estate agent and the client. 

The above scale of fees shall not apply to the sale of foreign properties or sale of Malaysian properties in foreign countries. 

(2) Lettings

Duration of Tenancy/Lease - Maximum Fee (equivalent to)

Up to 3 years - 1.25 months gross rental
Exceeding 3 years up to 4 years - 1.50 months gross rental
Exceeding 4 years up to 5 years - 1.75 months gross rental
Exceeding 5 years (without option for renewal) - 1.75 months gross rental
Exceeding 5 years (with option for renewal) - 1.75 months gross rental plus 0.25 months rental for additional year

Minimum fee:
As above, but subject to a minimum fee of 1 month rental.

For tenancies less than one year, the fee may be calculated on pro rata basis. 

The above scale shall not apply to serviced offices or apartments or any other premises of a similar nature

(3) Rent reviews

50% of the fees chargeable under lettings

(4) Additional claims

In addition to the fees stated above, claims may be made for - 
(a) the cost of printing, plans, copies of documents, lithography, traveling (only where the distance of the estate agent's office and the property is more than 40km) and other expenses actually incurred;
(b) the cost of media advertisements, signboards, brochures and other promotional materials. 

Fees are subject to 
Goods & Services Tax (GST) of 6% of the fees. 

All Real Estate firms are REQUIRED by law to collect 6% service tax on professional fees payable by the clients and it is compulsory for those using the services to pay the service tax which will be forwarded to the Customs Department by the Real Estate firm.  

Property Finance

What do I need to know about withdrawing my EPF to purchase a house?

INTRODUCTION
This withdrawal allows you to withdraw your savings in Account II to part finance the purchase of a house as follows :-
* Individual purchase ; or
* Joint purchase with spouse, family members or other individuals.

This withdrawal also allows you to purchase a house from the developer, an individual or public auction.

WITHDRAWAL ELIGIBILITY
You are eligible to apply if :-
* You are a :
o Malaysian citizen ;
o Non-Malaysian citizen with Malaysian Permanent Resident (PR) status ;
o Malaysian citizen who has withdrawn your savings under Leaving The Country Withdrawal before 1 August 1995 and subsequently made an election to re-contribute to EPF ; or
o Non-Malaysian citizen (Expatriate) who became a member of the EPF before 1 August 1998.
* You have not reached 55 years of age on the date the application is received by EPF.
* You still have savings in Account II.

CONDITIONS FOR WITHDRAWAL
1. You have purchased a house (house types : bungalow / terrace / semi-detached / flat / condominium / apartment / studio apartment / service apartment / town house) or a shophouse with a dwelling unit ; and
2. You financed the purchase of the house by obtaining a housing loan from any financial institution approved by EPF
OR
You purchased the house by cash ; and
3. You have executed the Sales and Purchase Agreement not more than three years on the date the application is received by EPF ; and
4. You have never withdrawn your EPF savings for housing
OR
You purchased a second house – You have withdrawn your EPF savings for housing before this but you have sold the house and subsequently purchased another house (you must produce the proof of sale of the first house).
5. You wish to purchase a house by way of hire purchase from any authority authorised by EPF.
6. You purchased a piece of land and build a house on it simultaneously (the date of Land Purchase Agreement with the House Construction Agreement must be within 6 months).

However, you are not eligible to make withdrawal for the purpose of :-

* Purchasing a piece of land or a housing lot only.
* Renovate, repair or make extensions to an existing house.

AMOUNT ELIGIBLE FOR WITHDRAWAL
1. You can withdraw your savings based on the following, whichever is lower :
1. Individual Purchase
The difference between the price of the house and the housing loan
with an additional 10% of the price of the house
OR
The balance available in Account II.
2. Joint Withdrawal With Spouse, Family Members or Other Individuals
The difference between the price of the house and the housing loan
with an additional 10% of the price of the house,
OR
The balance available in Account II of all applicants
subject to the maximum eligible amount as stated above.
2. If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house OR the balance available in Account II, whichever is lower.
3. If you purchased a house by cash, you are eligible to withdraw as much as the price of the house with an additional 10% of the price of the house OR the balance available in Account II, whichever is lower.
4. You can choose to determine the amount you wish to withdraw from your savings in Account II, subject to the maximum amount eligible for withdrawal. You will be required to complete “Surat Akujanji Pilihan Amaun Pengeluaran” for this purpose.

EXAMPLE 1 (Individual Purchase)
Encik Sallehuddin purchased a house costing RM75,000.00 and obtained a housing loan of RM60,000.00. His total EPF savings in Account II is RM40,000.00. Therefore the amount of savings that he can withdraw is :

Price of The House RM 75,000.00
Housing Loan RM 60,000.00
Difference Between Price of The House and Housing Loan RM 15,000.00
Additional 10% of The Price of The House 
RM 7,500.00
Maximum Amount Eligible For Withdrawal
RM 22,500.00
Balance Available in Account II RM 40,000.00

The Amount That Can Be Withdrawn RM 22,500.00

Since the maximum amount he is eligible to withdraw is lower than his total savings in Account II, Encik Sallehuddin can withdraw RM22,500.00 only.

EXAMPLE 2 (Individual Purchase By Cash)
Encik Amirul purchased a house costing RM125,000.00. He did not take any housing loan to finance the purchase. He has paid RM35,000.00 to the developer. His total savings in Account II is RM60,000.00.

Price of The House RM 125,000.00
Housing Loan NIL
Difference Between The Price of The House and Housing Loan RM 125,000.00
Additional 10% of The Price of The House RM 12,500.00
Maximum Amount Eligible For Withdrawal 
RM 137,500.00
Balance Available in Account II RM 60,000.00
The Amount That Can Be Withdrawn RM 60,000.00

Since Encik Amirul has RM60,000.00 only in his Account II, he can withdraw all of his savings in Account II.

EXAMPLE 3 (Joint Purchase)
Encik Amir and Puan Syuhada purchased a house costing RM100,000.00 and they obtained a housing loan of RM100,000.00. Encik Amir has RM20,000.00 in his Account II and Puan Syuhada has RM3,600.00 only in her Account II.

Price of The House RM 100,000.00
Housing Loan RM 100,000.00
Difference Between The Price of The House And Housing Loan NIL
Additional 10% of The Price of The House RM 10,000.00
Maximum Amount Eligible For Withdrawal By The Couple RM 10,000.00
Balance Available in Account II for Encik Amir 
RM 20,000.00
Balance Available in Account II for Puan Syuhada RM 3,600.00
The Amount Chosen To Be Withdrawn By Encik Amir RM 7,000.00
The Amount That Can Be Withdrawn By Puan Syuhada RM 3,000.00
Total Amount That Can Be Withdrawn By The Couple RM 10,000.00

Since both members obtained 100% housing loan, the maximum amount that can be withdrawn by this couple is 10% of the price of the house only, i.e. RM10,000.00 to cover for side cost. Applications will be processed according to the amount they choose to withdraw respectively, by completing “Surat Akujanji Pilihan Amaun Pengeluaran”.

EXAMPLE 4 (Purchase Of A Housing Lot And Building A House On It Simultaneously)
Encik Nasaruddin purchased a piece of land costing RM80,000.00 on 1st January 2005 and obtained a loan of RM70,000.00 to finance the purchase. On 1st May 2005, he has signed an agreement to build a house on the said land with a total construction cost of RM200,000.00. He has obtained a housing loan of RM100,000.00 to build the house. The calculation for withdrawal by Encik Nasaruddin is as follows :

Price of The Land RM 80,000.00
Cost of Construction of The House RM 200,000.00
Total Price of The Land and Cost of Construction of The House RM 280,000.00
Total Housing Loan To Purchase The Land and To Build The House RM 170,000.00
Difference Between The Price of The Land and Cost of Construction of The House with The Total Housing Loan RM 110,000.00
Additional 10% of The Total Price of The Land and Cost of Construction of The House 
RM 28,000.00
Maximum Amount Eligible For Withdrawal 
RM 138,000.00
Balance Available in Account II RM 150,000.00
The Amount That Can Be Withdrawn RM 138,000.00

If you have any enquiry or require further information, please contact the EPF office

* Any nearest EPF office
* EPF Call Management Centre, Tel : 03-8732 6000
* E-mail : enquiry@epf.gov.my

Please quote your EPF membership number and the type of withdrawal that you have applied for when you contact the EPF. You are encouraged to contact the EPF directly for assistance and advice.

Work, Play & Live in Malaysia (Malaysia My 2nd Home – MM2H)

Why Malaysia?

1. With the government actively promoting Malaysia My 2nd Home Programme, we can be rest assured that our foreign-friendly government will continue to strive for the success of the programme. 

2. It's a multi-cultural country, enriched with various languages and cultures. Language barriers are practically non-existent. 
It comprises mainly a fusion of three of Asia’s oldest civilisations – Malay, Chinese and Indian and a potpourri of indigenous traditions of the Kadazans, Ibans and other ethnic communities of Sabah and Sarawak on the island of Borneo. Mixed with the influence of the British, Portuguese, Dutch and Thais, the diverse cultures are blended together with the natural friendliness of Malaysians .

3. Many entertainments and shopping havens are awaiting you including shopping malls, night markets, family-theme parks, jungle trails,sports, water sports and golf courses.

4. Combining the traditional food of each race in Malaysia can make the country Asia's food paradise. 

5. The tropical weather here blesses the country with tropical fruits and natural beauty and resources that one can simply enjoy in an abundance

6. High quality standard of living at reasonable cost. 

7. Modern infrastructure and modern transportation network system enabling you to travel around the country comfortably and efficiently. 

8. Malaysia is equipped with excellent good education system (international schools, private colleges and universities), state-of-the-art professional medical facilities and well regulated financial institutions 

9. There is a comprehensive presence of international embassies and high commissions readily to lend a hand. 

10. Malaysia always welcomes multi-national companies with friendly taxes, modern commercial space, skilled labour and excellent infrastructure. 

11. To ensure your stay here is pleasant and comfortable, Malaysia spoils one with various choices of quality residences - terrace and semidetached houses, bungalows, apartments and condominiums. Professional real estate agents are available to assist you with your property search. 

12. Domestic help is also easily available. 
 

What are the incentives of being a MM2H participant?

1.HOUSE PURCHASE

Please be informed that property purchase is not a pre-requisite for participating in MM2H programme.

Any foreigner may purchase any number of residential property in Malaysia, subject to the minimum rates established for foreigners by the different states. They start from RM500,000 per unit for most states, from 1st January 2010. Land is a state matter and it is important to check state laws before making any commitment, as the minimum purchase price is not standardised between states.

We advise buying homes which are already issued with certificates of fitness but if you intend to purchase from developers, ensure that it is a reputable company.

Also ensure that your lawyer does a thorough check with the local land office that you have ownership rights to any property that you are purchasing. Profit made on the sale of property is 5% (Real Property Gains Tax).

2) CAR PURCHASE / IMPORT 

Each participant is allowed to bring in his/her own personal car OR to purchase a locally-assembled car without the need to pay import duty, excise duty and sales tax.

Application to IMPORT a motorcar from the participant’s country of citizenship/last domicile must be forwarded to the Ministry of Finance within a period of six months from the endorsement date of Malaysia My Second Home (MM2H) social visit pass. The condition for such importation is that the MM2H participant should be the owner of the motorcar prior to obtaining the MM2H visa, as evidenced in the motorcar registration document.

An Application to PURCHASE a new motorcar made or assembled in Malaysia must be must be forwarded to the Ministry of Finance within a period of one year from the endorsement date of Malaysia My Second Home (MM2H) social visit pass.

Note
a. Completed application forms with relevant documents which are submitted to Ministry of Finance will be processed within 10 working days.

b. Do not make an outright purchase of the motorcar before obtaining approval for tax/duty exemption from the Ministry of Finance. However, a booking for a motorcar may be made prior to obtaining approval from the Treasury.

c. Importation or purchase of motorcar must be for personal use only and not for commercial use.

d. 'Personal Car' is referred to a car which was purchased by participant before joining the MM2H programme.

e. - Participants are only allowed to sell their imported/locally purchased car after 2 years' stay on the programme.

3) DOMESTIC HELPER 

Each applicant is allowed to apply for one maid subject to the prevailing guidelines of the Immigration Department of Malaysia.

4)EDUCATION

Applicants are allowed to bring their children who under 21 years old and not married as their dependants under this programme.

Children who intend to continue their schooling in Malaysia are required to apply for a Student Pass and should be insured throughout their stay under this programme.

5) TAX 

Participants are bound by the policies, systems and regulations of taxes of this country and they do not have exemption qualifications as granted to Diplomatic Missions in Malaysia.

However, tax exemption is given to pension remitted into Malaysia. Participants are required to obtain the endorsement from the Authorities in their country of origin as to the total amount of yearly pension received. A copy of this letter has to be submitted in their application.

6) SETTING UP A BUSINESS UNDER THE MALAYSIA MY SECOND HOME PROGRAMME

a) Registering Your Business

You are required to register your business with the Companies Commission of Malaysia (CCM) under the Companies Act 1965. You are only eligible to register limited company in Malaysia.

Guidelines on registering company in Malaysia, kindly contact Companies Commission Of Malaysia at:

CCM Headquarters
Level 2 & 10-19, Putra Place,
100 Jalan Putra,
50622 Kuala Lumpur.
Tel : 03-4047 6000 / Fax : 03-4047 6317
Hotline : 03-4047 6111 / 6222
Website : www.ssm.gov.my

Other investment opportunities, kindly contact Malaysia Industrial Development Authority at:

MIDA Headquarters
Malaysian Industrial Development Authority (MIDA)
Block 4, Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Tel: 603-2267 3633
Fax: 603-2274 7970
Website : www.mida.gov.my
Email: investmalaysia@mida.gov.my

7) WORKING PART-TIME UNDER MALAYSIA MY SECOND HOME PROGRAMME 

Department - Employment Pass Division

Head Department - Mr. Nordin bin Hamzah

Address- 
Ibu Pejabat Jabatan Imigresen Malaysia
Tingkat 3 (PODIUM)
No 15, Persiaran Perdana, Presint 2
62550 Putrajaya
Tel :03-88801402
Fax :03-88801394 

What are the terms and conditions of MM2H?

A : ELIGIBILITY
The programme is open to all foreign citizens from countries recognised by Malaysia. The exclusion of foreign spouses of Malaysian citizens was removed in February 2009 and they are now allowed to apply for the MM2H visa.

Effective 2009 applicants are not required to use the services of an approved government agent. If you do choose to use an agent they must be authorised by the Ministry of Tourism. These companies have the initials “MM2H” in the company name.

Our company Borneo Vision (MM2H) Sdn Bhd is an approved agent for the programme. If you use an agent the initial application can be made without even coming to Malaysia. You will only have to be in Malaysia when the letter of “conditional approval” is issued and you complete the remaining conditions and collect the visa. If you use an agent there is no need for a police report as the agent will sponsor you.

UPON APPLICATION – FINANCIAL CRITERIA
Applicants are required to show they have sufficient financial resources to live in Malaysia without seeking employment or other assistance from the government.

Applicants under 50 are required to show liquid assets above RM500,000 and a monthly income of over RM10,000 (equivalent).
Applicants over 50 have show assets over RM350,000 and monthly income of RM10,000. Applicants receiving a government pension over RM10,000 a month will be exempted from making the Fixed Deposit (see next section.
Acceptable assets for people over 50 include cash in the bank, bonds, securities and property.

UPON APPROVAL – FIXED DEPOSIT
Approved applicants over 50 receiving a pension from a government in excess of RM10,000 can request exemption from making any Fixed Deposit
i) Applicants aged below 50 years old:

* Must place a Fixed Deposit in a bank account in Malaysia of RM300,000
* Can withdraw up to RM150,000 for the purchase of house, medical insurance or children’s education expenses after the deposit has been placed for one year
* Must maintain a minimum balance of RM150,000 from second year onwards and throughout stay in Malaysia under this programme.

ii) Applicants aged 50 years and above:

* Must place a Fixed Deposit in a bank account in Malaysia of RM150,000
* Can withdraw up to RM50,000 of the fixed deposit after one year to purchase of house, medical insurance or children’s education expenses.
* Must maintain a minimum balance of RM100,000 throughout their stay in Malaysia under this programme.

iii) Applicants who have purchased a house (or houses) with a total value of RM1 million and above.

* Must show evidence of ownership and payments amounting to a minimum of RM150,000 if over 50 and RM300,000 if under 50 (i.e. the amount they would have otherwise had to place on fixed deposit)
* Must have been purchased within 5 years of application for MM2H visa
* Will have to place a Fixed Deposit in a bank account in Malaysia of RM150,000 if under 50 and RM100,000 if over 50.

It should be noted that the fixed deposit does not have to be placed until after the applicant has received a letter of “conditional approval”. This letter sets out the steps that have to be completed before the visa is issued. This usually consists of placing the Fixed Deposit, having a medical examination in Malaysia and obtaining medical insurance for Malaysia. Once these steps are completed the visa can be collected from the Immigration Department in Putrajaya.
Employment/Business Investment
In February 2009 the government announced that MM2H visa holders 50 years old and above could work for up to 20 hours a week. This is applicable to visa holders who have specialised skills in certain approved sectors. We are advised the decision on whether to approve part time work is based on the approving committee view on whether a Malaysian could do the job.

It was also announced that MM2Hers will also be permitted to set up, and invest in businesses in Malaysia. They will be subject to the same regulations as other foreign investors but will be permitted to actively participate in the running for the business.

Sponsor/Assistance
All applicants require a sponsor and the agent is required to do this. This service is included in their standard fee.

Insurance Coverage / Medical Report
Applicants and their dependants must possess a medical insurance coverage from any insurance company that is valid in Malaysia. This may be waived for older applicants who are denied coverage because of their age. All applicants and their dependants are required to have a medical examination from any private hospital or registered clinic in Malaysia. Both these conditions are met after the letter of “conditional approval” is issued.

Dependents
Applicants are allowed to bring along their dependants (children below 21 years of age, step children, disabled children, and parents) under their MM2H visa. Older dependent children will have to get a separate visa.
Dependants attending school in Malaysia are also required to apply for a Student Pass which allows them to continue their education in schools or Institutions of Higher Learning recognised by the government.

House Purchase
Each participant is allowed to purchase an unlimited number of residences at a minimum of 250,000 per unit. All purchases must be approved by the state authorities and certain types of properties cannot be purchased e,g those on ‘Malay Reserve’ land

Parents and Taxes
Successful applicants are bound by the policies, systems and regulations of taxes of this country however their overseas income will not be taxed in Malaysia.

Security Vetting
Approvals are given subject to security vetting clearance conducted by the Royal Malaysian Police.

Restrictions
Successful applicants are not permitted to participate in activities that can be considered as sensitive to the local people like political or missionary activities.

How do I Apply for MM2H permit?

A : Applicants have the option of using an approved MM2H agent or submitting their application directly. Doing it yourself is best for those who easily meet the requirements and do not mid finding their way around the various government departments. A common complaint is the frequent rule changes, often unannounced which can make it harder for those making their own applications. Using an agent will make the process a lot easier and avoid the need to place a cash security bond (the agent will sponsor you) but of course involves paying the agent their fee.

All agents have to be approved by the Ministry of Tourism. These can be identified by the initials (MM2H) in their company name. 

Applications can be submitted while the applicant is in Malaysia or from overseas. Once the committee reviews the documents and approves the application they will issue a letter of ‘Conditional Approval’. At this time the applicant has six months to complete the remaining conditions (obtain medical insurance, complete the medical examination and open the fixed deposit) and collect the visa.

Original submission: The following documents are required to complete the application process, some at the time of original submission and others after receiving the letter of conditional approval.
* Covering letter (see note below).
* Three copies of IM.12 Social Visit Pass. (You can download the form from this site).
* One copy of the Application Form MM2H (You can download the form from this site).
* 4 passport sized photographs of applicant and spouse (if accompanied by spouse).
* Certified true copies (see note 3) of all pages of passport/travel document of applicant and spouse (if relevant).
* Certified true copy of every page of previous passport if your current passport is less than one year old (Note: only the page with personal particulars needs to be certified).
* Certified true copy of Marriage Certificate (if accompanied by spouse).
* Certified true copy of children’s birth certificate (if relevant).
* A current resume outlining employment history of primary applicant.
* Evidence of financial assets.
* Evidence of regular monthly income.
* Medical report of applicant - Form RB II. (You can download the form from this site). This can be a self declaration initially but after the conditional approval letter is issued, it must be signed off by a doctor in Malaysia.
* Letter of Good Conduct by a government agency where you currently live (if you have lived there several years) or your home country (usually the Police Department)
* Authorization letter from applicant to Malaysia My Second Home Centre authorising them to verify the financial documents with the relevant financial institutions. (You can download the form from this site). 
* Evidence of purchasing property in Malaysia over RM1 million (if requesting approval to make lower fixed deposit).

Visa collection : After receiving the letter of conditional approval the following documents must be submitted when collecting the visa:
* Evidence of placing the Fixed Deposit – if applying under this criteria
* Copy of Malaysian medical insurance
* Copy of medical report
* Letter of Good Conduct from Government Agency

Notes:
1) The covering letter of application should state the names of all people who are applying with you, how you will support yourself in Malaysia and which financial criteria you wish to use.
2) Once the application is approved you will be issued a conditional approval letter which can be presented to any bank in Malaysia to open an account.
3) Where certified true copies of documents are requested they must be countersigned by an Embassy, High Commission, Justice of the Peace, Commissioner of Oaths, Solicitor, Lawyer or Notary Public.
4) All documents not in English have to be translated by a qualified translator.

All applications for people who want to live in west (peninsular) Malaysia are submitted to the Second Home Centre in the Ministry of Tourism which has information about the programme. Applications to live in Sabah or Sarawak have to be submitted to the respective State immigration offices. We can assist with application for peninsular Malaysia and Sabah. If you wish to live in Sarawak you will have to contact the authorities in that State as they do not permit agents to assist with submissions of applications.

Malaysia My Second Home Centre
Ministry of Tourism Malaysia
Putra World Trade Centre
Level 23, Menara Dato’ Onn
45 Jalan Tun Ismail
50695 Kuala Lumpur
E-mail: mm2h@motour.gov.my
Tel: 03 2696 3361 Fax:03 2698 8533

Department of Immigration, Sabah
Tingkat 6,Bangunan Wisma Dang Bandang
Jalan Tuanku Abdul Rahman
88550 , Kota Kinabalu
Sabah,Malaysia
Tel : +6088– 80700
Fax : +6088– 240005

Department of Immigration, Sarawak
Tingkat 1 & 2 , Bangunan Sultan Iskandar
Jalan Simpang Tiga
93550 , Kuching
Sarawak , Malaysia
Tel : +6082– 245661 / 240301 / 230317 / 230280 / 230314
Fax : +6088– 240390/ 428606* Tourism Malaysia PWTC (see address below)

Approval
Currently approval takes around 10 to 12 weeks after the application documents reach the One Stop Centre.

Fee Rate
A payment of RM 90.00 per year is charged for the issuance of a Social Visit Pass under the ' Malaysia-My Second Home' Programme. The visa fee is chargeable according to the existing rate applicable to each country. The fee for a ten year visa is therefore RM900 although if the applicant’s passport has less than ten years to run the visa will only be valid until the passport expiry date and the fee lower. Other visa charges may apply for certain nationalities but should not amount to more than RM600 per person.

Application For Extension after
The following documents must be submitted when applying for the visa to be renewed:
* Letter explaining why you wish to renew the visa
* Photocopy of passport (certified true copy of every page)
* Form IMM.55 (one copy per person)
* Evidence your fixed deposit is still in place
* Payment of RM90 per year for the visa

Application For Extension with new passport
The visa is only issued for the validity of your passport therefore you did not get the full period of the visa in your passport you need to return to the immigration office when you have a new passport to get the remainder of the visa stamped in your passport. The following documents are required.

Following documents must be submitted when applying for the visa to be renewed:
* Current passport and previous passport
* Copy of both passports – every page but it deos not have to be a certified true copy
* Form IM.12 (one copy per person)
* Payment of RM90 per year for the remaining years of the visa.

Categories Not Eligible To Apply Under This Programme
* Holders of Expatriate Pass (Work Permit) and their dependants, unless they give up their work permit.
* Holders of a Student Pass.