Malaysia My Second Home (MM2H)

So in effect according to Sncnno a person could have bought a property 10 years before getting the mm2h visa and request a withdrawal based on that purchase?

Hi.

Are you allowed to rent part or all of your property out once you have bought it? If so, can anyone tell me how it is taxed please?

janemkd wrote:

Hi.

Are you allowed to rent part or all of your property out once you have bought it? If so, can anyone tell me how it is taxed please?

Yes you can, and income tax rate payable on profit will depend whether you are resident (182 days in Malaysia) or non-resident during a tax year (Jan-Dec)

http://migratemalaysia.com/malaysia-tax … oreigners/

Thanks

Thanks that's a great help

There is one proviso and that is some States* do not allow Airbnb activities unless the property is classified as a Serviced Residence (not a residential condominium).

* or the individual Management Committee of a building can also decide short term rentals are not permitted

Gravitas wrote:

janemkd wrote:

Hi.

Are you allowed to rent part or all of your property out once you have bought it? If so, can anyone tell me how it is taxed please?

Yes you can, and income tax rate payable on profit will depend whether you are resident (182 days in Malaysia) or non-resident during a tax year (Jan-Dec)

http://migratemalaysia.com/malaysia-tax … oreigners/

https://www.star2.com/travel/2019/04/07 … -malaysia/

Could toy tell me if there is a restriction on buying a house ob it's own land and would you be able to airbnb that?

janemkd wrote:

Could toy tell me if there is a restriction on buying a house ob it's own land and would you be able to airbnb that?

I imagine no problem if it is a Freehold property. Some landed properties are still leasehold (eg gated and guarded communities) if they have communal pool and sports facilities therefore there are management fees for maintenance and upkeep.

Check the minimum purchase price for foreign purchasers of landed property. They are often much higher (at least double) than when purchasing a property with a Strata Title eg a condominium.

The location of landed property may make them not particularly suitable for tourism Airbnb as they tend to be away from public transport and main conurbations. You could check out Taman Utama or Ara Damansara though if interested in the KL area

Large Airbnb properties are often used by local Malaysians for one-night or weekend parties so you would need to be comfortable with that.

The link provided by VWC is worth reading as property is a State matter and rules are set at that level. Rules change frequently in Malaysia.

https://blog.rentandreturns.com/is-airb … -malaysia/

Generally speaking there are huge gluts of vacant properties in parts of Malaysia that were bought for investment purposes and finding tenants can be rather difficult. Definitely do some keen research to understand the property market

Thanks a ton

I’m m not sure one could get away with that, but the description of the regulation is vague. It simply says you can apply for some reimbursement from ones fixed account after a year on the MM2H. Not sure if a former working expat who bought a home years before could apply for MM2H and then reduce their fixed account accordingly. It doesn’t clearly say you must buy the property UNDER the MM2H visa. Certainly the government could argue THAT is what is meant...but if the goal of the program is to encourage investment then does it matter when one purchases. It would seem that by limiting it to purchases after application one discourages a) the purchase of property prior to application by working expats...they would defer the purchase until after they retire , and b) it seems that it is one more perk eliminated from the program (import tax-free vehicle, use of Rm 1m property to reduce fixed account, drivers license transfer, increasing financial requirements,  elimination of Pension option, etc.) Plus the delays in processing. They don’t seem to be offering replacement perks to make the program more attractive.

There is a new Announcement about Certificates of Good Conduct.

TUESDAY, 09 APRIL 2019

NEW REQUIREMENTS FOR LETTER OF GOOD CONDUCT

Effective 26 February 2019, only applicant with Letter of Good Conduct (LOGC) from the ORIGIN or Residence country and with no crime conviction can be considered to join the Malaysia My Second Home (MM2H) Programme. Therefore, all applicants are required to submit COMPLETE document including the LOGC upon submission.

The MM2H Centre, Ministry of Tourism, Arts and Culture (MOTAC) will no longer issued a supporting letter for the applicant to obtain the LOGC from the Hong Kong and Singapore authorities. Thus, the applicant has to obtain the LOGC without the supporting letter from the Ministry.

(i)    For applicant from Hong Kong and Singapore who has submitted the application without the LOGC before 26 February 2019, the applicant will be given ample time to obtain the LOGC from the Hong Kong and Singapore authorities.

(ii)  For applicant from Hong Kong and Singapore who has been issued a supporting letter from MOTAC before 26 February 2019, the MM2H Centre will attached the LOGC in the applicant’s personal file once it is received by the MM2H Centre. However, if the LOGC is personally send by the Hong Kong and Singapore authorities to the applicant, the applicant is obliged to submit the LOGC to the MM2H Centre for the application to be processed.

Applicant is no longer allowed to submit LOGC issued by the Ministry of Foreign Affairs Malaysia. Only LOGC from the ORIGIN or Residence country is acceptable.

Only main applicant (principal) is required to submit the LOGC.

Do some countries require a request from the visa-issuing or law enforcement authorities of the host country? Do you have the LOGC sent to MOTAC or can you receive it and deliver it yourself as part of your application?

Also how long must one be in residenc outside you origin country to use the current country as LOGC.? And if one is renewing MM2H which office in Malaysia does one get the Letter from? Local police or a Federal agency?

VWC - Did you see this?

Monday, 8 Apr 2019
12:59 PM MYT

Coup d'etat possible if govt is not careful on Malay issues, says Khalid Samad

KUALA LUMPUR: It is important for the government to tread carefully on Malay issues, because a potential coup d’etat could take place, given that the Malays are the majority in the country, says Federal Territories Minister Khalid Abdul Samad.

“Nothing is impossible. Especially since 70% of the population are Malays and they are sufficiently influenced to believe that the position of the Malays is in danger.

“As you know, the police and military are also fundamentally Malay-based institutions. That is why it is very important for us to handle this issue with care,” he said.

Khalid was speaking to reporters in the Parliament lobby on Monday (April 8), in response to Foreign Minister Datuk Saifuddin Abdullah, who was quoted as saying that the Cabinet’s decision to withdraw from the Rome Statute was a “political” move done in fear of a coup d’etat.

Khalid drew the example of the 2013 Egyptian coup d’etat, when Mohamed Morsi was removed by the military as the President of Egypt.

“Even in Egypt, where the issue of racial diversity does not exist, but the sense of insecurity and uncertainty with the emergence of a new government, following a democratic election, was capitalised by the ‘deep state’.

“So, in our position, we must be careful,” he said.

Khalid said the government’s decision to withdraw from the Rome Statute was because the Conference of Rulers was dragged into the matter.

He said that many issues such as questioning Malay rights and the position of the rulers can be potentially capitalised on by quarters with vested interests to create public disorder and mass mobilisation.

“Because, as you all understand, the issue we are facing are accusations that the government is anti-Malay, anti-Islam and anti-royalty.

“After the academicians have come up with statements portraying that the statute will jeopardise the position of the royalty, so we have to take this issue (Rome Statute) into consideration," he said.

On Sunday (April 7), a group of student activists claimed that a summary paper, prepared by a group of academics to convince the Conference of Rulers to reject the Rome Statute, was one sided.

Saifuddin was also quoted on Sunday as saying that history had shown that the attempt of a coup d’etat is usually plotted by the “deep state” and it is a common reaction towards democratic advancement following an election.

“(There was the) possibility of the issue being manipulated to the extent that people go to the streets, moved by the ‘deep state’ and certain apparatus,” he was quoted as saying by several news reports.

The deep state refers to a secret government or network, typically consisting of the military, secret police, intelligence agencies or even civil servants, which acts independently of the country’s political leadership.

Saifuddin, however, refused to clarify the definition of a ‘deep state’ within the Malaysian context.

Last Friday (April 5), Prime Minister Tun Dr Mahathir Mohamad said the government was forced to withdraw from the Rome Statute following “confusion created by those with political interests”.

https://www.thestar.com.my/news/nation/ … khSDJXZ.99

Gravitas,

You know, I did see this (the withdrawal) being reported but honestly didn't really understand the implications of such a move until now.  The prospects of a coup d'etat would certainly put a crimp in my plans for a peaceful semi-annual stay there.      What is your take on the move and implications?  Is the Malay vs everybody else strife real or overblown?  As I read more of the news coverage there to get a sense of the direction of the country (and certainly not to say the US is really different) I see the proverbial classic two steps forward then one step back.  Not to change the subject, but for example this whole trial fiasco is unbelievable.  And, now this.....

Hi need to update your MM2H advertising, no more widrow deposit part even buy property. No more conversion of your foreigner driving licence etc etc ...,

Jean Louis Dieuleveut wrote:

Hi need to update your MM2H advertising, no more widrow deposit part even buy property. No more conversion of your foreigner driving licence etc etc ...,

Think you may have misunderstood

As previously announced, there is no reduction in the value of the fixed deposit should a person have already purchased a property for over RM 1 million when they apply for mm2h.

However, withdrawing from a  fixed deposit is still possible and now extended to cover secondhand cars and pharmaceutical expenses.

Everyone is affected by the suspension of being able to exchange a foreign driving  license for a Malaysian one, not just Mm2h people.

VWC wrote:

The prospects of a coup d'etat would certainly put a crimp in my plans for a peaceful semi-annual stay there.

Why would this affect the foreigners in MY? What would this change dramatically for you?
If this ever happens, most likely Malaysian ringgit drops in value and this will benefit those who have their money in e.g. dollars.

expat000 wrote:

VWC wrote:

The prospects of a coup d'etat would certainly put a crimp in my plans for a peaceful semi-annual stay there.

Why would this affect the foreigners in MY? What would this change dramatically for you?
If this ever happens, most likely Malaysian ringgit drops in value and this will benefit those who have their money in e.g. dollars.

Well, generally speaking, I am not envisioning wanting to deal with warring factions or political upheaval while I am sipping on a pina colada in the nude.  It could be just me though...

Hi Hanson,

Is this still valid or same requirement for PRC Chinese in 2019 too?

Thanks.

I’ve been through a couple of coups and the military usually makes sure that the foreign investment is not damaged...and that includes expat communities that might be threatened. Nothing more likely to generate an intervention than the targeted harming of foreign nationals.

It’s the civil wars and populist uprisings involving expropriation of foreign businesses that get tricky.

General rules: Keep away for demonstrations, areas of turmoil, and places where large numbers of people aggregate. Watch where you drive, and don’t talk politics in the country or on public postings while things are going on. Use surrogates, consider anonymize great your accounts online and emails.

And don’t sip pina coladas in the nude...at least not in public. Heck even I might toss something at you🤭

cinnamonape wrote:

And don’t sip pina coladas in the nude...at least not in public. Heck even I might toss something at you🤭

Ring ring....
Good morning, this is the office of Alter Domus.  How can we help you?
Hi there, this is VWC and I want you to just stop my MM2H application.
What?  Mr. VWC, do you realize how many people have tried and would love to be in your position?
Well, yes, but there is a problem.
Surely, Mr. VWC it can be resolved.  Remember, you paid a fair amount to us already and you are ever so close.  Why do you wish that we stop your application?  Is it your health?  Is it financial?
No, it is because cinnamonape said I couldn't sip my pina coladas in the nude when I am there in Malaysia.  I really, really like to sip my pina coladas in the nude.
(total silence on the other line.....)
Hello?  Alter Domus?  Hello??????

Gravitas wrote:

VWC - Did you see this?

Coup d'etat possible if govt is not careful on Malay issues, says Khalid Samad

Not that I was really concerned that one day there a military battalion would be knocking on my door, while I am having my usual 5pm pina colada in the nude....

https://www.thesundaily.my/local/milita … s-HI794339

But maybe it was the games they competed in?

https://www.malaymail.com/news/malaysia … mes/735071  :-)

Great,  I hear MM2H guidelines are being updated as we speak to not allow pina colada sipping in the nude....

(Uh, VWC, why are you back in San Francisco???)

More about Airbnb in Malaysia....

https://www.marketing-interactive.com/a … m-rentals/

The issues with Airbnb are

1. The house rules of a particular building can ban short-term rentals and security can be instructed to not admit bookings.

2. Penang as gone a step further and stated that only serviced residences can offer short-term rentals and condominiums may not. There has been a court case for apartments at Times Square and it is contempt of court to offer unlawful lettings....... but again the house rules may be flexible enough to allow it in some low profile buildings.

Hi Gravitas, Do they need the original of the 'Certificate of Good Conduct', or a color photocopy of the original certified by a notary public would do? My another query is: If I apply directly, which way is better to lodge an application: by courier from Dhaka or by hand at their office in Putrajaya? I understand many applicants have not received a Ref. No. even long after they sent their applications by post or courier. Many thanks.

You can send in the original CGC if you don't need it again because no paperwork is returned lIf you are in Malaysia can also send by post or POS local courier for a few Ringgit. It seems to be taking a couple of months to get a reference number

Can anyone recommend a mm2h agent in Johor that has provided good service please?

Obaydullah wrote:

Hi Gravitas, Do they need the original of the 'Certificate of Good Conduct'...?

If I apply directly, which way is better to lodge an application: by courier from Dhaka or by hand at their office in Putrajaya?

I understand many applicants have not received a Ref. No. even long after they sent their applications by post or courier.

Yes, only the original copy.
"Commisioner of Oath is not allowed to validate (Certified True Copy) for any documents for MM2H application."

I recommend to send it by a courier to the address listed in the application.

We received a REF. number over an email in about one  week after they received all the documents from us. You can always email or call them and ask for the status.

Many thanks, Expat000, for the information. Can you please tell me when have you submitted your application and what's its current status?

Obaydullah wrote:

Can you please tell me when have you submitted your application and what's its current status?

May 25,2018- MM2H application has been successfully submitted online
Then we sent all the documents by a courier
June 6, 2018- Reference number was assigned
Current Status : Pending Committee Approval

Hi expat000, Thank you for your kind reply providing me with the current status of your application. However, did you lodge your application while in KL or right from home country? If you are already living in KL, how do you find life over there? Thank you indeed.

Obaydullah wrote:

did you lodge your application while in KL or right from home country? If you are already living in KL, how do you find life over there?

Hi Obaydullah,
We applied from abroad. Then moved to KL on our tourist visa in 4 moths after application was excepted with the expectation that we will be granted MM2H status soon. However, the program got suspended as soon as we relocated.

We did several border runs in order to extend our visa.

However, even though we lived in one of the nicest areas in the north of KL, we begun being unhappy about the pollution level in KL.  If you like to read about it, you can search the forum for "Do expats still want to stay in Kuala Lumpur and Penang?"
https://www.expat.com/forum/viewtopic.php?id=818998

My husband has developed cough, which was gone after we relocated to Ipoh, Perak. I developed skin reaction which was happening only after the days of bad pollution.

We relocated to the Meru Valley Golf Resort in  Ipoh, Perak,  for a cleaner air.

But before we even discovered Ipoh, we already applied for MM2H in Sabah and we've got our approval letter in almost 2 months. We didn't even expect that it will be that fast!

Kota Kinabalu has much better weather than in KL or Ipoh and much better air quality. Beautiful sunsets in the ocean, beaches and good shopping (though groceries in KL and Ipoh are still better). If you are a retiree, Kota Kinabalu is a good place to be.

expat000 wrote:

bahter wrote:

If you have clean air as a priority may l suggest Ipoh.

It is a very interesting place indeed! Since Kota Kinabalu has also very clean air, I will compare Ipoh with Kota Kinabalu here.

MODERN CITY-
There are a lot of new condominiums with the pools, very good shopping, very good grocery stores; nicely restored old part of the city. It has nice view on the mountains. Ipoh is  not too big and not too small; it has enough of development for comfortable living.
Kota Kinabalu has also a lot of nice completed condominiums and in-process developments, but not as much as in Ipoh. However the infrastructure in KK is not well developed yet to support new fast growing housing there. Also I found that grocery stores are much nicer in Ipoh than in KK.

RENT PRICES ARE VERY LOW-
The most shocking is how cheep is to rent there compare to KL, or KK, or Penang! It looks like they overbuilt there and it is why the prices are so low.
According to NUMBEO, rents are 124% higher in Kuala Lumpur than in Ipoh. Prices for restaurants and groceries are also lower in Ipoh.
Rent prices for the apartments which are waterfront or in the nicest areas in  KK are comparable with the similar quality in KL, by my research.

AIR QUALITY-
According to meteoblue site, it is indeed much better than in Penang or KL. However, Kota Kinabalu is still winning in air quality.    Probably the air quality in Ipoh is still affected by the plastic burning illegal operators which are spread along the coast, but since Ipoh is much further away, it helps.

HOW TO GET THERE-
There are flights from Ipoh to Singapore (~USD100) and Johor. I didn't find any other destinations.
Therefore if you need to fly internationally from Ipoh, you would need to fly through Singapore.
To compare with Kota Kinabalu, which has the second busiest airport in Malaysia, Kota Kinabalu is more convenient if you plan to travel a lot.
2 hours to Cameron Highlands, Pahang
Train or car: 3.5 h to KL, 2 hours to Penang

NOT BUSY WITH TOURISTS-
Kota Kinabalu is very busy with tourists and people in general. There are about 4 million tourist/year visiting KK.  Ipoh receives tourists too, but maybe not as many. So I guess Ipoh is more comfortable for living.

expat000 wrote:

On the topic of the horrendous air quality in KL-
We moved finally from KL to Ipoh, Perak.
Blue sky every day, no smell of toxins in the air. We live north of Ipoh, in the country club surrounded by the hills. It is a really peaceful life here.

There are several options for a place to live we liked and one of them is a new development, Upper East. It is near a park and it has a very big and beautiful pool. But we found that the best option for us is Golf Vista at Meru Valley.
We didn't find that we are lacking anything we could find in KL.

Our big thanks to someone on this forum who brought an idea about Ipoh.

Hi expat000, The information that you have provided is quite interesting. I have a desire to move in to there on MM2H, may be in Sarawak or Peninsula Malaysia, and intend to lodge an application in June 2019. My son is working as an academic in Selangor where I find a pollution-free environment which I like very much.

Obaydullah wrote:

Selangor where I find a pollution-free environment which I like very much.

Selangor is right next to the port Klang, where plastic recycling facilities are.
Reuters did an investigation on this issue. Please put in your browser if you would like to read the article:
Swamped with plastic waste: Malaysia struggles as global scrap piles up

Thanks for the information. The university is probably not around that area. The area is called Broga Semenyih. I haven't yet visited Klang which I would do some time in the future. By the way, what is your idea about Kuching and other places in Sarawak?

Obaydullah wrote:

By the way, what is your idea about Kuching and other places in Sarawak?

I've heard from other people that they like Kuching. Life there is very relaxed and very affordable compare to KL or KK.

We didn't pick it as a place for retirement because we liked that Kota Kinabalu has hills, mountains, beaches, ocean, nice condominiums with pools and good shopping.

However, Kuching has very good air quality, better than in Kota Kinabalu or Ipoh.