Upbeat On New And Improved MMH2

Investment houses are upbeat on the new Malaysia My Second Home (MM2H) programme as the age and income requirements are now more reasonable, while the tiered system provides greater flexibility to foreign participants. Iskandar Malaysia should benefit the most as the region is currently seeing an influx of investments and catalysts from infrastructure developments. Kuala Lumpur City Centre (KLCC) and Mont Kiara in the Klang Valley and Penang may also benefit, being preferred locations among foreigners.

RHB says the revised requirements will open the door to a wider group of individuals, under the new MM2H programme, the age requirement has been lowered to 30 and above (vs 35 and above previously) and the programme has also
been extended to dependents aged between 21 and 34 who are not working or married in Malaysia. Parents or parents-in-law are also eligible as dependants. Previously, dependents only included spouses, children under 21 and any children with disabilities.

Three-tiered system with varying entry visas provides greater flexibility. Applicants under the Platinum, Gold and Silver categories are required to have a fixed deposit of MYR5m, MYR2m and MYR500k, with the Platinum tier eligible to apply for permanent residence or PR status after obtaining their pass. Meanwhile, the Gold and Silver MM2H passes are valid for 15 years and five years. All applicants are allowed to withdraw a maximum 50% of the amount after a year to purchase properties valued at MYR1.5m (for Platinum passholders) and >MYR750k (for Gold and Silver passholders), as well as for healthcare and tourism spending.

Iskandar Malaysia should see a boost. The revision of the MM2H programme is timely, especially as Iskandar Malaysia is currently seeing a boost in demand, driven by an influx of investments as well as the upcoming completion of the Johor Bahru-Singapore Rapid Transit System (RTS), slated for end-2026. The friendlier policy will help to encourage the potential
relocation of skilled workers, which has been the Government’s objective to spur growth in Johor. This, in turn, should lift demand for properties especially for those located near to the RTS terminal, and the Tuas link (key players: UEMS, Sunway and Eastern & Oriental (E&O)).

The houses have also identified KLCC and Mont Kiara as well as Penang to benefit as they are preferred locations among foreigners. RHB highlights that UEMS is also a major developer in Mont Kiara and currently has two ongoing projects there (Residensi Allevia and The Minh).

Key beneficiaries. The house believes UEMS, Sunway and E&O are key beneficiaries under the new MM2H programme. RHB re-iterates its OVERWEIGHT call on the sector, as government policies, investment flow, infrastructure developments and the US Federal Reserve’s signal of a potential rate cut next year are favourable to stimulate demand for property.

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