History of MM2H Changes
Do note that the dates in this document are approximate dates. The MM2H approval letter will contain the requirements that is applicable to you and you just need to follow it to renew your visa. This document serves as a guide to let you know that MM2H is a dynamic program and the requirement will change over time. This is to ensure that only real applicants are allowed to stay in Malaysia.
Malaysia is a country that has good living standards as compared to other South East Asian nations and thus, it is a magnet for foreign workers to come into Malaysia and work, be it legally or illegally. There will always be people or syndicates who tries to smuggle people into Malaysia to work illegally. Those who try to come in to work illegally will be screened out and if there is a loophole, it will be plugged immediately.
Before Jan 2006
MM2H application is made through the local state Immigration office (for Alter Domus, that will be Penang Immigration Office in Butterworth). The visa is for 5 years (not 10 years). The following are the requirements :
Applicants above 50 (individual)
Fixed deposit of RM100,000 OR month income of RM7,000
Applicants above 50 (with dependants)
Fixed deposit of RM150,000 OR month income of RM10,000
Applicants below 50 (individual)
Fixed deposit of RM100,000 AND month income of RM7,000
Applicants below 50 (with dependants)
Fixed deposit of RM150,000 AND month income of RM10,000
There is no need to show any form of financial strength. Visa holders are not allowed to withdraw the money out from the banks for property purchase and they are not allowed to work too. As the MM2H program is not centralized, it was not promoted and each state has its own interpretation of the guidelines and rules. The approval is done by a single person (not by a committee) and thus was open to abuse. Sponsors are not required, thus, anyone can be a sponsor and it was chaotic. Banks were not regulated and the fixed deposit was withdrawn immediately after the visa was issued.
It can be seen that the requirements are very easy to meet and the visa, although it is standard 5 years, is very long as compared to countries where it is mostly one year visa. Those above the age of 50, there is NO need to put any money for the fixed deposit if they can proof that they have income of RM7000 (single) or RM10,000 (with spouse/children). The income can be any form of income (rental, employment, etc). There is no need to show any financial strength either (RM500,000 liquid assets) .
March 2006
Application is still made through state offices and more systems are beginning to be put in place. The Ministry of Tourism has officially taken over the program and they were tasked to promote this program. The Immigration Department will only be supporting this program. The requirements of the program is tightened significantly but it is streamlined to just below and above 50 years old. The visa is now valid for 10 years (instead of 5 years) .
Below 50 years of age
1. Fixed deposit of RM300,000
2. You can withdraw RM240,000 after one (1) year
3. Must maintain a minimum balance of RM60,000 from second year onwards and throughout stay in Malaysia under this program
Above 50 years of age
1. Fixed deposit of RM150,000 OR monthly off-shore income of RM10,000
2. You can withdraw RM90,000 after one (1) year
3. Must maintain a minimum balance of RM60,000 from second year onwards and throughout stay in Malaysia under this programme
There is no need to show any form of financial strength. Visa holders are now allowed to withdraw the fixed deposit from the banks for property purchase but they are not allowed to work too. Banks were being asked not to allow any withdrawals but it is not strictly enforced. (tightened)
It is now much harder to apply for the visa but for those above the age of 50, they can still use income or pension to apply for this program. They still do not need to put in any money for the fixed deposit. The visa is now for 10 years. Previous 5-year approvals are still 5 years even though new ones are for 10 years. There is no need to show any financial strength either (RM500,000 liquid assets) .
May 2006
All sponsors must be licensed and Alter Domus is the first company to be given the license. This shows our commitment to this program.
September 2006
All applications must now be submitted to the Ministry of Tourism in Kuala Lumpur. All state Immigration office will only do renewals (for those who have applied for the program before September 2006). It is now a committee approval where a group of people will approve the application.
Jan 2007
Financial strength is now required for application. It is set to be RM350,000 (above 50) and RM500,000 (below 50) for each application and it must be demonstrated irregardless of single or application with spouse. Stocks and properties are acceptable. (tightened)
This is the differentiation factor for MM2H program with other programs. This requirement limits to those who are financially capable and those who really wants to make Malaysia their retirement or second home. The main reason for the financial strength is to show that they are capable of staying here in Malaysia.
March 2007
Income method was restricted to only government pension. Employment, rental, private pension are all not allowed. Each application takes 4-6 months for approval. Application coming in from sponsors are better and more complete and those from individuals are not. Thus, a lot of human resources were devoted to the calling up the applicants and getting documents. That slowed down the approval rate tremendously.
There was a lot of abuse as potential abusers came out with their own private pensions and fake employment income. As no sponsors were required, there was a lot of cheating and there are people claiming to be sponsors and absconding with the funds.
May 2007
Stocks and properties are not allowed anymore as a substitution for stocks. The limit is now uniform at RM500,000 for any ages. (tightened)
Properties are too difficult to value, especially for those located in Third World countries. Stocks are too volatile to be considered as safe retirement investment.
June 2007
Sponsors are now required to submit the application. Foreigners with Malaysian spouse are not allowed to apply for this visa. The time take for approval dropped to one. However, the number of sponsors exploded.
A large majority of them are doing it as their side business and they are not really interested in getting the visa done correctly. The mentality is "Not my problem if you don't get the visa, the most, I will refund your money". However, the catch is that doing an appeal is much tougher if your application is submitted wrongly. The chances of success is rather low. There are sponsors who tout they will get it done but I sincerely doubt that.
10% of the sponsors account for more than 90% of the application. Alter Domus was the largest non-Japanese sponsor in Penang and the cost of application is the lowest among the experienced sponsors. The government can now hold sponsors responsible for their clients.
2008
Applicants who have bought properties worth more than RM1,000,000 before they apply for the visa are allowed to deposit only RM60,000 instead of putting in RM150,000 or RM300,000 and withdrawing the following year. They just need to show the sales and purchase agreement.
2009
The fixed deposit that must be maintained at the bank after withdrawing for property purchase was increased from RM60,000 to RM100,000 (above 50) and RM150,000 (below 50). (tightened)
For those who have purchased a property worth RM1m or more, they can only put in the reduced amount if they prove that they have fully paid up for the property. (tightened)
For those above the age of 50 years old, they are allowed to work part time (subject to approval from the government). This is applicable to all MM2H visa holders (including those who have applied before this announcement) (benefit for all, including those who applied much earlier)
All 5-year visa is now made to 10-year visa. (benefit for all, including those who applied much earlier)
Sponsors are not required (based on our experience on doing the application, the chances of approval of doing it on your own is less than 10% as the amount of work and documents that needs to be done correctly in order to get the approval is huge and tedious. The Ministry is very fussy on the documents).
They are allowed to do or own a business
Foreigners with Malaysian spouse are allowed to apply for the visa (benefit for all, including those who applied much earlier)
The age of children as dependent is increased from 18 to 21. (benefit for all, including those who applied much earlier)
Letter of good conduct is required for all applicants except British, Chinese and Japanese
Letter of good conduct is required for all applicants including British, Chinese and Japanese (tightened around mid of the year)
2011
All applicants must have at least an income of RM10,000 per month regardless of age. For those above the age of 50, you can combine from multiple sources like pension, interest, investment returns, rental income, etc. These income sources must be verifiable. Letter of good conduct is required during application instead of during endorsement.
It can be seen that if you have decided that Malaysia is the place you want to stay or retire, it pays to apply the soonest possible. Whatever benefits, you get to enjoy. Whatever tougher conditions that is imposed, you don't have to follow. You just need to follow whatever that is stated in the approval letter.
2013
Letters of no criminal records, if it is in foreign language can only be translated by ITBM in Malaysia. If it is translated overseas, it must be certified by the Malaysian embassy or high commission.
2014
Implementation of "financial authorization forms" and "employment verification" forms. MM2H starts to check on the authenticity of the bank statements by writing to the banks and verifying the account balance. Certification can only be done by notary public.
2015
Tightening the requirements for documentation, especially for banking and salary slips. Rental property - need to show title deeds.
2018
Removal of tax-free car benefit and part time work permit benefit.
Reduction of fixed deposit during application is removed as well.
Government pension method is now formally removed. The MM2H has not been approving the government pension method since 2017.
Letter of no criminal record from China needs to be additionally certified.