Malaysia’s revamped Malaysia My Second Home (MM2H) visa scheme is generating significant interest, particularly among China’s wealthy youth. According to a recent report by the South China Morning Post (SCMP), the simplified visa requirements and potential investment opportunities have attracted a wave of inquiries, marking a notable shift in the MM2H programme’s appeal.
Increased Inquiries from China’s Wealthy Youth
Eugene Lim, a consultant with K-Konsult Taxation, which advises on the MM2H programme, has seen a surge in interest, particularly through popular social media platforms such as TikTok and Douyin. Lim revealed that over 1,000 inquiries have been received via these channels, a significant uptick reflecting the growing appeal of Malaysia as a destination for relocation and investment among younger Chinese nationals.
“A lot of younger people are planning to move, and we are already handling quite a few requests for information,” Lim told SCMP. “But applications are not yet open since licensing is not yet sorted out.”
MM2H’s Simplified Requirements and Investment Tiers
The MM2H scheme, revamped in June 2024, now offers a five-year visa for a minimum investment of around US$300,000. The updated visa scheme is particularly appealing due to its streamlined requirements, eliminating the need to prove a minimum overseas income or liquid assets of at least RM1.5 million (US$317,000).
According to the SCMP report, the MM2H programme now offers three tiers of investment categories:
- Platinum: The highest investment level.
- Gold: A mid-level tier for significant investors.
- Silver: The most popular tier, requiring a US$150,000 fixed deposit and the purchase of a residential property worth at least RM600,000 (US$126,600).
The Silver tier has proven especially attractive, offering an accessible entry point for investors seeking to establish residency in Malaysia.
“Once the licensing is settled and applications open up, we can expect demand to go up by one or two times,” Lim said during the World Chinese Entrepreneurs Convention (WCEC) in Kuala Lumpur, indicating further growth once formalities are completed.
Chinese Nationals Dominating MM2H Participation
Chinese nationals already account for a significant portion of MM2H participants. Out of over 56,000 active participants, 24,765 are Chinese nationals, making them one of the largest groups in the programme. This trend is expected to grow further as Malaysia’s revised MM2H visa scheme offers an attractive blend of lifestyle, investment opportunities, and relatively easy access for potential participants.
Growing Interest in Malaysia’s Property and Industrial Sectors
The revamped MM2H is not the only draw for Chinese investors. There has also been a noticeable increase in interest in Malaysia’s industrial land. Sidney Cheo of Seri Pajam Development noted a sharp rise in inquiries, particularly from Chinese nationals:
“About 50 per cent of our inquiries this month were from China. Demand exceeds supply,” Cheo told SCMP, indicating the high demand for industrial property investments in Malaysia.
Malaysia’s Strategy to Attract Chinese Investments
Prime Minister Datuk Seri Anwar Ibrahim has been actively engaging with China to strengthen bilateral ties and attract investment from the economic superpower. His efforts, including high-profile visits to China and hosting Chinese Premier Li Qiang, have signaled Malaysia’s commitment to harnessing China’s economic strength.
During the WCEC launch, Anwar emphasized the benefits of stronger economic ties between Malaysia and China, stating:
“A stronger bond and relations with China will benefit Malaysia and the region.”
Anwar’s administration has introduced attractive incentives within the Special Financial Zone (SFZ) and elevated Forest City to duty-free status, aiming to position Malaysia as a prime destination for both foreign direct investments (FDI) and real estate investments.
Concerns Over Chinese Investments
While the influx of Chinese investments is welcomed in many sectors, some local businesses remain cautious about the impact on Malaysia’s domestic industries. For example, Ang Kian You, a factory owner in Johor, expressed concern over the influx of Chinese imports, which has impacted local businesses.
“We used to have 44 local factories manufacturing face masks; now, we’re left with just four due to the influx of Chinese imports,” Ang noted.
Despite these challenges, Ang maintains a pragmatic view on Malaysia’s economic future:
“As the east rises, the west’s sun will set,” Ang remarked, emphasizing that Malaysia must strategically navigate the shift in global economic power toward the east.
MM2H and the Path Forward
The interest from China’s wealthy youth in Malaysia’s MM2H scheme is a sign of the country’s growing appeal as an investment hub and destination for high-net-worth individuals. The updated visa programme, with its simplified tiers and attractive investment opportunities, is likely to drive further interest once the final licensing issues are resolved.
Malaysia’s strategy to strengthen economic ties with China, coupled with efforts to attract industrial investments and foreign property buyers, will be instrumental in shaping the country’s economic landscape in the coming years. However, the government will need to balance these interests with the protection of local businesses to ensure that the benefits of foreign investments are broadly shared across the economy.
As Malaysia positions itself as a gateway to ASEAN and a growing player in the global market, the MM2H scheme and increased Chinese investment will likely play a crucial role in its continued economic growth.
The revamped MM2H visa programme is a testament to Malaysia’s evolving strategy to attract foreign investment, offering flexible residency options that cater to China’s growing class of wealthy individuals. The potential for real estate growth, industrial expansion, and strengthened ties with China signals a promising future for Malaysia’s economic development.
