Malaysia My Second Home (MM2H) Programme — Guide 2026

Programme Overview

The Malaysia My Second Home (MM2H) programme is one of Southeast Asia's longest-running and best-known long-term residency programmes for foreigners. Launched in 2002, it attracted significant interest from retirees and long-stay visitors seeking a combination of Southeast Asian lifestyle quality, affordable healthcare, English language prevalence, and a territorial tax system.

However, the programme was suspended in 2020 and relaunched in late 2021 with requirements that had increased dramatically. It was then revised again in a 2024–2025 restructuring that moved the fixed-deposit thresholds onto a US-dollar basis, removed the RM 1.5 million liquid-asset test of the 2021 relaunch, and introduced a lower-cost Special Economic Zone (Forest City) tier. The current MM2H is materially different from its pre-2020 predecessor and is positioned for genuinely high-net-worth individuals rather than budget-conscious retirees.

This guide covers the current MM2H programme as it operates in 2026. Because the terms have changed more than once in recent years, applicants should confirm the latest figures with the Ministry of Tourism, Arts and Culture and an authorised MM2H agent before relying on them.

Programme Structure: The Tiers

The restructured MM2H has three main tiers (Silver, Gold, Platinum), plus a lower-cost Special Economic Zone tier centred on Forest City, Johor:

Silver Tier

• Duration: 5 years (renewable)
• Fixed deposit: from USD 150,000 placed in a Malaysian bank upon approval
• Property purchase: minimum RM 600,000
• Minimum stay: 90 days per year in Malaysia (some flexibility for applicants aged 50+)

Gold Tier

• Duration: 15 years (renewable)
• Fixed deposit: from USD 500,000 placed in a Malaysian bank upon approval
• Property purchase: minimum RM 1,000,000
• Minimum stay: 90 days per year in Malaysia

Platinum Tier

• Duration: 20 years (renewable); priority processing and dedicated services
• Fixed deposit: from USD 1,000,000 placed in a Malaysian bank upon approval
• Property purchase: minimum RM 2,000,000
• Minimum stay: 90 days per year in Malaysia

Special Economic Zone (Forest City) Tier

• A lower-cost route tied to the Johor–Singapore Special Economic Zone (Forest City), with a reduced fixed deposit (around USD 65,000 for applicants aged 21–49, less for those aged 50+) and a lower property threshold. This tier is geared toward those wanting a Malaysia base close to Singapore.

The Fixed Deposit Requirement

The fixed deposit — from USD 150,000 (Silver), USD 500,000 (Gold) or USD 1,000,000 (Platinum) — must be placed in a licensed Malaysian bank (Bank Negara-regulated) upon approval. The deposit is held for the duration of the MM2H permit.

Key conditions:

• After completing a qualifying property purchase, holders may withdraw up to 50% of the fixed deposit
• The remaining 50% must be maintained for the life of the permit
• Interest rates on fixed deposits in Malaysian banks are typically 2–4% per year, providing a modest return on the capital
• On termination of the MM2H permit, the remaining fixed deposit is returned to the holder

The fixed deposit is not forfeit and is returned on exit from the programme — it is a capital lock-up rather than a direct cost, though the opportunity cost of tying up the capital at Malaysian deposit rates should be factored into the true cost of the programme.

How the Programme Has Changed

MM2H has been through two major revisions in recent years — the 2021 relaunch and the 2024–2025 restructuring:

Requirement	Pre-2021 MM2H	2021 relaunch	Current (2026)
Offshore income	RM 10,000/month (retirees: RM 7,000)	RM 40,000/month	No fixed income test in the current tiers (verify)
Liquid assets	RM 350,000	RM 1,500,000	Removed
Fixed deposit	RM 150,000–300,000	RM 500,000–2,000,000	USD 150,000–1,000,000 (plus a lower SEZ tier)
Property purchase	Encouraged, not required	Encouraged	RM 600,000–2,000,000 by tier
Min. stay	None	90 days/year	90 days/year

The programme has shifted from a widely accessible retirement visa to a tiered, capital-based scheme aimed at higher-net-worth individuals, while the new SEZ tier reopens a more accessible entry point near Singapore.

Tax Position in Malaysia

Territorial Tax System

Malaysia operates a territorial tax system for individuals. Foreign-source income is not taxed in Malaysia — income from employment outside Malaysia, dividends from overseas investments, foreign rental income, and foreign business profits are all exempt from Malaysian personal income tax.

Malaysian-source income is taxed at progressive rates from 0% to 30% (as of 2026). However, most MM2H holders who are not working in Malaysia and are living on offshore income will have minimal or no Malaysian income tax liability.

Important note: Malaysia made changes to the foreign-source income exemption in 2022–2023, initially proposing to tax all foreign-source income of Malaysian residents from 2022. Following significant objections, the government maintained the exemption for individuals (though corporate structures have more complex rules). The position should be confirmed with a Malaysian tax adviser at the time of application, as this has been a contested area of policy.

No Capital Gains Tax (Generally)

Malaysia has no general capital gains tax on individuals. A Real Property Gains Tax (RPGT) applies to property disposals at rates from 3% to 30% depending on the holding period and the seller's status — this applies to all residents and non-residents selling Malaysian property.

No Inheritance Tax

Malaysia does not impose inheritance tax or estate duty on individuals.

Property Ownership Under MM2H

MM2H holders may purchase property in Malaysia. Key rules:

• Minimum property value: varies by MM2H tier and state — broadly RM 600,000 (Silver), RM 1,000,000 (Gold) and RM 2,000,000 (Platinum), with a lower threshold under the Forest City SEZ tier; some states set their own higher minimums for foreign buyers
• Residential property: MM2H holders may purchase residential property subject to the minimum value threshold
• Land ownership: Foreigners in Malaysia generally cannot own land freehold; residential properties on leasehold land (99 years) are the most common form of foreign-eligible ownership
• Some states have higher thresholds — verify the specific rules for the state in which you intend to purchase

Popular MM2H residential areas include Kuala Lumpur's KLCC and Bangsar South (for international community and professional services), Mont Kiara (for families — proximity to international schools), Penang (island lifestyle, strong heritage city), and Johor Bahru (near Singapore, for commuters).

Malaysia's International Schools and Healthcare

One of Malaysia's key advantages as a family relocation destination:

International Schools (Kuala Lumpur):

• Nexus International School
• Alice Smith School (established British curriculum)
• Garden International School
• Mont Kiara International School
• Cempaka International School

Healthcare:

• Gleneagles Kuala Lumpur — JCI-accredited private hospital; regional referral centre
• Prince Court Medical Centre
• Pantai Hospital
• Columbia Asia group hospitals

Private healthcare in Malaysia is significantly cheaper than equivalent standards in Singapore, the UK, or Australia, while meeting comparable quality standards at the leading private hospitals.

Labuan: The Alternative Tax Jurisdiction

Labuan Federal Territory (an offshore island off the coast of Sabah) operates under different tax legislation to mainland Malaysia:

• Labuan Business Activity Tax Act (LBATA): 3% of net audited profits for Labuan trading companies (or a flat RM 20,000 per year in some cases)
• Labuan is an IOFC (International Offshore Financial Centre) — widely used for offshore holding structures, intra-group financing, and shipping
• Labuan holding companies are used by regional businesses to hold Malaysian and Asian assets efficiently
• Labuan is a separate MM2H zone (Silver tier)

For investors interested in using Malaysia both as a residency base and as a regional business hub, the Labuan structure is worth exploring with specialist tax and legal advisers.

DE Rantau: The Digital Nomad Alternative

For remote workers and digital nomads who do not meet the MM2H financial thresholds, Malaysia launched the DE Rantau Programme in 2022:

• Eligible: Remote workers earning a minimum of $24,000/year from foreign employers or clients
• Duration: 12 months, renewable for further 12-month periods
• Benefits: Access to co-working spaces, community networking, dedicated government support
• Cost: Processing fees of approximately RM 1,000 ($225) per applicant

DE Rantau is not a residency programme at the scale of MM2H — it is a facilitated work visa for digital nomads. But it provides an accessible gateway for individuals who want to spend a year or more in Malaysia while working remotely.

Compliance Caveats

Malaysia's MM2H programme terms changed substantially in 2021 and could change again. The foreign-source income tax exemption has been a contested policy area — verify the current position with a Malaysian tax adviser before relying on it.

The 90-day minimum stay requirement is a binding condition of the post-2021 MM2H; failure to meet it may affect renewal. Applicants should plan their annual calendar to ensure compliance.

Fixed deposit rates in Malaysian banks may change; the financial return on the locked deposit should not be a primary consideration.

All information in this guide reflects publicly available programme terms as of 2026 and is subject to change. This guide does not constitute legal, tax, financial, or immigration advice. Seek independent Malaysian legal and tax advice before proceeding.

How Global Investments Can Help

Global Investments advises on Southeast Asia residency and property investment across Malaysia, Thailand, and Cambodia. For the Malaysia MM2H programme, we can:

• Provide current programme requirements, tier comparison, and realistic cost analysis
• Introduce qualified Malaysian immigration lawyers and tax advisers
• Advise on the DE Rantau alternative for clients who do not meet MM2H thresholds
• Assist with property search and acquisition in Kuala Lumpur, Penang, and Johor Bahru
• Compare Malaysia against Thailand Elite Visa and other regional long-stay options
• Coordinate with international wealth advisers on Labuan structures where applicable

To discuss Malaysia My Second Home and Southeast Asian residency planning, contact our Asia advisory team.