Malaysia My 2nd Home Retirement Visa Program
With more and more people studying and working overseas, the prevalence of transnational relationships and marriages, demystification of places via the internet and affordability of travel, the idea of living in another country becomes increasingly appealing, popular and highly plausible.
I have travelled widely for work and lived overseas for 7 years of my life, with the good fortune to experience different way of life, communities and climate. The world is my oyster and hence, pondering where to retire is a frequent preoccupation, and a nice indulgence at that!
Born and bred in Singapore, it has provided incredible career opportunities with the proliferation of multinationals, a low tax advantage and high standard of living. However, due to its progress and prosperity, Singapore is also one of the most expensive places to live in the world. Its relentless pace and lack of variety in landscape and lifestyle makes it difficult to slow down, relax and enjoy la joie de vivre.
Retirement should be a time when one can be leisurely, smell the flowers and able to enjoy some luxury and the finer things in life without having to rob a bank for it. It is with this in mind that I started exploring alternatives. An obvious consideration is neighbouring Malaysia, which offers one of the earliest and most established retirement visa launched since 2002, known as “Malaysia My 2nd Home” (MM2H) programme.
MM2H in a Nutshell
MM2H is a 10-year renewable Social Visit Pass granting multiple entries to applicants and their dependents. However, due to Covid-19 and shutting down of borders, the programme has been temporarily suspended since middle of 2020. The Ministry of Tourism Arts and Culture (Motac), which has been tasked to oversee the programme, has announced in March 2021 that it will resume once revisions are approved by the Cabinet.
An overview of the programme before suspension is provided below:
| Requirement | < 50 years old | 50 years & Older | Remarks |
|---|---|---|---|
| Off-Shore Income | RM10,000/mth | RM10,000/mth | Non-taxable |
| Proof of Liquid Assets | RM500,000 | RM350,000 | Cash, stocks & shares or equivalent |
| Required Deposits | RM300,000* (RM150,000) | RM150,000* (RM50,000) | Held as Fixed Deposit in Bank |
| Health Screen | Approved applicants/dependents to undergo medical screening at local hospital | ||
| Medical Insurance | Coverage required in Malaysia through visa validity | ||
| Security Bond | Direct application RM200 - RM2,000; Waived if applied via licensed Agents | ||
| Work Eligibility | Applicants > 50years can work max 20hours per week in critical sectors | ||
| Entry and Stay Period | Multiple entry during visa period with no minimum stay period | ||
| Dependents | Spouse, unmarried children <21years (allowed to study, parents or parents-in-law. | ||
| Tax Liability | Overseas income and investments are not taxed | ||
| Car Ownership | Duty-free import of car in first year of programme | ||
| Property Ownership | Allowed for certain categories min RM500,000 value, depending on the state | ||
Notes*: Amount in parenthesis can to be withdrawn for property, car, medical and children’s educational after 1st year.
The best way to stay updated as to when the visa will resume and for any changes to the conditions is via this official link:
http://www.mm2h.gov.my/index.php/component/sppagebuilder/?view=page&id=17
Beyond the obvious proximity, a shared heritage and cultural similarity in terms of language/dialects and cuisine, Malaysia consistently ranks amongst one of the best places to retire in the world. One can opt for coastal living with views of beautiful sun-drenched beaches (eg Penang, Langkawi), wildlife and landscapes (Kuching, Kota Kinabaru), cultural heritage (Malacca), cosmopolitan living (Kuala Lumpur), quiet laid back life (Ipoh) or a convenient gateway (Johor Bahru) offering quick access to Singapore.
View from our hotel window in Langkawi – tropical paradise
Malaysia also offers a good South East Asian cultural mix that is reflected in its architecture and culinary spectrum, has good international flight connectivity – especially Kuala Lumpur and Penang – and high standards of healthcare, all at good affordability.
Climate
Tropical weather year-round with the wet monsoon season lasting from November to March. Temperatures range from low 20 to low 30 degrees Celsius with the highland being much cooler. Humidity is in the 90’s and smog from the traffic can be a problem as well as haze from peat fires used to clear lands for farming.
Accommodation
Accommodation in Malaysia is highly affordable primarily due to its large land mass and low currency. A decent 3 bedroom apartment between 1,500 to 2,000 square feet in a gated development with full facilities (pool, tennis court, gym and security) can be as low las RM$3,600/mth (~S$1,200 or USD900) depending on the city.
Foreigners are allowed to buy landed property except for Malay-reserved land, and value of property cannot be less than RM1million. The average per square meter price for an apartment in Kuala Lumpur city centre is approximately RM11,500. By far, the biggest enclave of expatriates reside in Penang.
Land Mobility
Compared to neighbouring countries (Singapore excepted), cars are surprisingly quite expensive in Malaysia considering its geographic spread and limited public transport network outside of the larger cities. A brand new Honda Civic 1.5 costs upwards of RM105,000 but 1 of the perks under the MM2H programme is the ability to import a duty-free vehicle (up to RM150,000) within the first year of residency. Gasoline is highly subsidised as Malaysia is a net exporter of petroleum, retailing at RM$1.95/litre at petrol stations.
Luckily with the emergence of ride-hailing Apps in recent years, such as Grab and Gojek, the option of affordable hassle-free transport is made available. A 10-min 3.5km ride from KLCC to Chinatown at Petaling Street costs under RM$12 (S$4/US$3). Coach ride from Kuala Lumpur to Malacca costs RM15 (S$5/US$3.60), a trip of 145km
Air Connectivity
Flight connectivity is an important aspect in overseas retirement living as it eases travel options and makes it possible to fly out when necessary easier. Malaysia has 7 international airports with flights to major cities in the world. The national carrier Malaysia Airline System (MAS) is part of OneWorld code share partnership, extending is international destinations to more than 50.
Healthcare and Medical
Malaysia has been gaining popularity as a medical tourism destination due to its affordable, competent healthcare treatment and state-of-the-art medical facilities offering quality clinical services with latest medical surgical techniques. The average cost for knee replacement (knee arthroplasty) in its capital range from RM$20,500 (S$6,500/US$5,000) to RM$33,000 (S$10,500/US$8,000). This is lower than it’s equally famed medical tourism neighbour Thailand, for which the same procedure starts from US$7,500 in Bangkok. Dental service for normal cleaning and polishing cost RM$150-RM$200 in Kuala Lumpur. Majority of doctors are trained overseas in countries such as UK, US and Australia.
Social integration
It is easy, especially in cities like Kuala Lumpur and Penang, to make friends and get integrated due to the many nationalities living and working there. Locals are friendly and have a laid-back attitude. English is widely spoken, being a former British colony, and the other languages and dialects are similar to that in Singapore, namely: Mandarin, Cantonese, Teochew, Hokkien, Tamil and of course, Malay, its official language. It offers modern convenience while proudly upholding its traditional culture and rich heritage.
Grocery and Dining
Being an agriculture country, food produce is very affordable in Malaysia. A loaf of white bread (500g) costs less than RM$4, 1 kilo white rice RM$5, 1 kilo of chicken fillet approximately RM15. Prices are always cheaper at the local markets compared to supermarkets and depends on the neighbourhood and areas.
What a feast – an explosion of tastes
Eating out is inexpensive and is considered a national pastime, with a wide array of cuisine. Local favourite dishes like fried noodles, nasi lemak rarely cost more than RM$10. Nasi Kandar which is rice with 4-5 selected side dishes rarely exceeds RM$20. A meal for 2 at a mid-range restaurant seldom exceeds RM50 (S$16/US$12), and street fare even lesser RM10.
Being a majority Muslim community, alcohol is heavily taxed hence rather expensive and the selection is limited. Carlsberg beer retails between RM$18-25 per bottle in a bar and wine between RM$30-RM$40 or more at higher end establishments.
Beauty
Personal grooming services are inexpensive which explains why many Singaporeans make day trips to nearby Johor Bahru for hair cuts (RM80-180), manicure (RM50-RM75) and hour-long facial treatment and massages (RM150-RM350).
Taxation
Funds and income remitted from overseas are tax-exempt, including offshore pensions. Work not exceeding 20hours per week for visa holders older than 50 is possible, subject to work permit approval, and such income is also tax-free. No tax is levied on dividends, interest earned, capital gains, wealth or estate duty. A Sales and Service Tax (SST) at 10% applies for most goods, and at a reduced 5% for specific categories.
Pros
MM2H is no doubt one of the most attractive retirement visas and carries with it many advantages, foremost the 10-year duration with no minimum stay requirement. It is also tax friendly as all monies brought in or earned from overseas are tax-exempt, including all interest income and pension payout. It allows for property ownership (subject to minimum quantum) and duty-free car import. Renewal after the initial 10-year period is mostly granted as long as financial and other (eg. criminal record) conditions are met.
Cons
Safety, especially in capital city Kuala Lumpur and Johor Bahru, can be a concern. Crime is sometimes committed audaciously in broad daylight like snatch thief and burglary. The weakening Ringgit is another minus as funds set aside in local currency and locked in for the duration of the visa in fixed deposit depreciates over time. Traffic jams are an annoyance especially in Kuala Lumpur, taking away the shine of the city.
Setting up a home other than in one’s birth country is exciting and adventurous. It means opening up to new experiences, to wonderment, discovery but also frustrations and disappointment. Living in another country is challenging, even for the most optimistic, and it is even more so in retirement as there will be no other distraction like work; it takes guts to reach out to make new friendship and be open to vulnerability.
However if viewed as addition to your life experience with the added advantage of better affordability and enhancement of lifestyle, it is worth exploring. It is important to conduct your own due diligence despite the avalanche of information that can be gathered from internet, travel sites, blogs, books or through friends and acquaintances. Above all, make it a point to make several visits, and with family members who will be involved in the move, and stay for extended period of 1-3months if possible. This will give a first hand feel for yourself…. and about yourself.
“If you never go, you will never know” ~ Anonymous
Happy discovering,
Savvy Maverick
