Malaysia Eyes Global Talent Amid Chip War: Could a New MM2H Drive Semiconductor and Real Estate Growth?
As geopolitical tensions between the US and China escalate—especially in the high-stakes semiconductor sector—Malaysia is being uniquely positioned as a strategic neutral ground. And now, industry leaders are urging the government to seize this moment, not only to solidify its role in the global supply chain but also to revamp its immigration strategy to attract world-class talent.
At the heart of this push is the idea of introducing a Malaysia My Second Home (MM2H)-like initiative specifically tailored for foreign professionals in the tech and semiconductor industries.
A Turning Point for Malaysia’s E&E Sector
Speaking at the recent ASEAN Investors Conference, Andrew Chan, director of the Malaysia Semiconductor Industry Association, emphasized that Malaysia’s response to the US-China trade war must go beyond passive participation.
“The US has the money and technology advantage. What Malaysia needs to do is bring in the talent. A modified MM2H programme can help with that,” Chan asserted.
With tariffs and trade barriers likely to disrupt supply chains and push companies to diversify their operations, Malaysia can become a new base for design, packaging, and testing—especially for American and regional firms seeking a politically neutral environment.
Chan even suggested that Malaysia should model itself as the “Switzerland” of the E&E world—neutral, arbitration-friendly, and standards-setting. This would not only benefit the semiconductor sector but could also elevate Malaysia’s status as a global innovation hub.
What This Means for Real Estate: Demand for High-Value Talent Housing
Malaysia’s real estate sector—especially in technology-centric cities like Penang, Kuala Lumpur, and Johor Bahru—could see a new wave of demand for long-term housing. Foreign professionals brought in through such initiatives would require accommodation that supports their work, family, and lifestyle needs.
Think:
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Urban condos near tech parks or R&D clusters
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Luxury landed homes with proximity to international schools
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Flexible, fully furnished units tailored for short-to-medium-term relocation professionals
This mirrors trends already observed under MM2H, but with a more targeted, employment-driven incentive rather than purely lifestyle or retirement motives.
ViTrox: Play to Our Strengths in Advanced Packaging and AI
Chu Jenn Weng, co-founder of Penang-based ViTrox Corporation Bhd, reinforced this idea by pointing out that Malaysia’s real strength lies in assembly, testing, and advanced packaging.
“We need to double down on what we’re good at—and look into AI and robotics too,” Chu advised.
He also highlighted the imbalance in Malaysia’s semiconductor ecosystem—while the country exports chips, it still imports many core components. Strengthening intra-ASEAN supply chains could help balance this.
In this context, Malaysia needs not only tech specialists but also supply chain professionals, robotics engineers, and AI researchers—further expanding the scope of potential MM2H-like applicants.
The Case for a “Tech MM2H” Policy
Reviving or creating a special visa/residency programme for foreign tech professionals could serve multiple objectives:
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Address talent shortages in AI, robotics, and semiconductors
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Increase high-value real estate demand, especially in cities like Penang and Cyberjaya
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Strengthen Malaysia’s positioning as a neutral innovation and arbitration hub
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Create downstream opportunities for local SMEs, education institutions, and property players
Such a policy could also complement the Digital Nomad and DE Rantau visa programmes already in place, giving Malaysia a broader suite of talent-focused entry points into the country.
Linking Real Estate, Tech, and Investment Incentives
The spillover effects of semiconductor investment into real estate aren’t hypothetical. In Penang, for instance, global chipmakers and suppliers have driven up demand for both industrial land and executive housing. Rental yields in certain industrial-linked districts have consistently outperformed residential zones with no tech presence.
If Malaysia continues to attract semiconductor FDI (foreign direct investment), we can expect:
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Rising property values near tech clusters (e.g., Batu Kawan, Cyberjaya, Kulim)
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Increased demand for international schools, private healthcare, and premium retail
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Higher occupancy in serviced residences and MM2H-targeted units
Conclusion: Malaysia’s Moment to Attract Brains and Build Cities
The US-China chip war, while disruptive, presents Malaysia with a rare opportunity to reposition itself not only as a key player in global electronics manufacturing but also as a home base for the next generation of innovators.
By modernizing its immigration policies and offering housing and community infrastructure that appeals to foreign experts, Malaysia can unlock a dual win: boosting its tech sector while revitalizing its property market.
