Sarawak’s MM2H Programme Records 90% Surge, Boosting Property and Tourism

Sarawak has strengthened its position as a destination for international investors and long-term residents, with the Sarawak–Malaysia My Second Home (S-MM2H) Programme recording a 90% increase in applications since the state government took over full management from the federal authorities.

This surge reflects Sarawak’s ability to tailor policies that align with both local priorities and global investor expectations, while also contributing significantly to the state’s growing tourism and property markets.

Full State Control of S-MM2H

The Minister of Tourism, Creative Industry and Performing Arts, Datuk Seri Abdul Karim Rahman Hamzah, confirmed that the state now fully manages all aspects of the programme—from permit issuance to the licensing of travel agents—under powers delegated by the federal government.

Attracting Foreign Residents & Investors

The S-MM2H Programme is designed to encourage foreigners to reside long-term in Sarawak, stimulating the local economy through spending in key sectors such as:

Tourism and hospitality
Real estate and housing
Education and healthcare
Lifestyle and local businesses

By easing participation requirements and broadening eligibility, Sarawak is positioning itself as a destination of choice for foreign retirees, investors, and global professionals who see Malaysia as a stable, affordable, and welcoming base in Southeast Asia.

Boost to Tourism & Hospitality

Sarawak’s tourism sector is also benefiting directly from this strategy. The state recorded nearly 2.5 million visitor arrivals in the first half of the year—already halfway to its five million visitor target for 2025.

Tourism revenue has exceeded RM1 billion per month since January, bringing the year-to-date total to RM6.15 billion as of June. This growth has fueled demand for new hotels, serviced residences, and related infrastructure, with applications already submitted for additional developments to meet rising demand.

As Abdul Karim noted, the economic spillover from tourism is visible across Sarawak’s ecosystem—boosting income for hotels, restaurants, transport providers, and even traditional handicraft makers.

New Rules for S-MM2H from 2025

Starting January 1, 2025, the S-MM2H Programme will introduce enhanced guidelines designed to attract a wider pool of applicants:

Eligibility: Open to all foreign nationals aged 30 and above from countries with diplomatic relations with Malaysia.
Financial Requirements: Applicants must deposit RM500,000 in a fixed deposit account with a Sarawak-based local bank (covering spouse and dependents).
Property Ownership: Participants may purchase residential property valued at a minimum of RM600,000 in Kuching division or RM500,000 in other Sarawak divisions.

These criteria ensure that the programme attracts genuine long-term participants who can contribute financially while enjoying the benefits of Sarawak’s lifestyle and environment.

Property Market Impact

The housing eligibility threshold under S-MM2H is particularly significant for the property market. By setting minimum values of RM600,000 (Kuching) and RM500,000 (other divisions), the programme effectively channels foreign demand toward the mid- to high-end residential segment.

For developers, this creates opportunities to build premium homes that cater not only to Malaysians but also to expatriates seeking long-term residences. Locations like Kuching, Miri, and Sibu are expected to see increased foreign buyer interest.

At the same time, Sarawak’s property prices remain lower compared to KL property, making it an attractive alternative for foreigners who want more space and a slower-paced lifestyle, without compromising on healthcare, education, and connectivity.

Complementing KL Property & National Growth

While KL property continues to be the anchor of Malaysia’s real estate market—appealing to urban investors and those seeking international connectivity—programmes like S-MM2H expand the country’s value proposition.

Foreigners can now choose between the vibrancy of Kuala Lumpur and the laid-back, eco-friendly charm of Sarawak, depending on lifestyle preferences. This diversification strengthens Malaysia’s overall property landscape and ensures sustained foreign inflows across multiple states.

In addition, Sarawak’s alignment of S-MM2H with its tourism, hospitality, and healthcare strategies reinforces the state’s ability to create a self-sustaining ecosystem where property and tourism growth complement each other.

Final Thoughts

The success of the Sarawak–Malaysia My Second Home (S-MM2H) Programme, with a 90% surge in applications, underscores Sarawak’s growing global appeal as a destination for long-term living, investment, and retirement.

By tying foreign residency directly to property ownership, financial security, and tourism growth, Sarawak has built a model that not only supports the local economy but also complements the wider Malaysian property market.

For investors and buyers, this development offers an important reminder: while KL property remains the flagship for capital appreciation and international demand, regions like Sarawak present diversified opportunities for lifestyle-driven investment.

To explore Malaysia’s property landscape—from premium Kuala Lumpur residences to emerging lifestyle destinations like Sarawak—visit klproperty.cc, your trusted partner in navigating Malaysia’s evolving real estate opportunities.