Malaysia has long been a popular destination for Singaporeans, thanks to its close proximity, delicious food, and the favorable exchange rate. However, recent trends show a growing number of Singaporeans considering Malaysia not just for short visits but as a retirement destination. According to a survey by Blackbox Research and Qualtrics, up to one in three Singaporeans is now contemplating retirement in Malaysia.
The Appeal of the MM2H Programme
The Malaysia My Second Home (MM2H) programme is a key factor driving this trend. This government initiative allows foreigners to live in Malaysia on a long-term basis. As of January 31, 2023, there were 56,066 active MM2H pass holders, with Singaporeans ranking seventh on the list. The programme offers various benefits that attract retirees, including lower living costs and affordable property prices.
Cultural and Economic Advantages
Many Singaporeans, like Ramasamy Narayan Prasad and Latifah Moore, are drawn to Malaysia due to its cultural similarities and lower cost of living. Ramasamy, who moved to Malaysia in 1994 and decided to retire there, appreciates the green spaces and peaceful environment. Although the MM2H programme was suspended in 2019 and revived in 2021 with stricter requirements, Ramasamy found the more relaxed Sarawak MM2H scheme suitable.
Latifah, 55, and her husband were also attracted by the affordable property prices in Malaysia. She noted that a decent house in Singapore costs at least S$3 million (RM10.3 million), which is beyond their budget. In contrast, their current bungalow in Malaysia is more affordable and offers a comfortable living space.
Growing Interest and Property Purchases
Daniel Yap, who runs an MM2H agency, Exodus MM2H, reports a significant increase in inquiries from Singaporeans. This surge is attributed to the lower cost of living, attractive property prices, and favorable exchange rate. Iwin Tay, a realtor, observed that more Singaporean retirees are purchasing homes in Kuala Lumpur, Johor, Penang, and Melaka.
Tay highlights that Singaporeans, especially those in their 60s, prefer landed properties, which are much more affordable in Malaysia compared to Singapore. Younger retirees in their 50s are leaning towards purchasing condominiums in Malaysia, appreciating the amenities such as gyms, swimming pools, jogging paths, convenience stores, and laundromats, which may not be available in all Singaporean condos unless they are luxurious and expensive.
Challenges and Recommendations
Despite the attractiveness of the MM2H programme, there are challenges. The stringent financial requirements, such as a monthly income of RM40,000, can be a barrier for many potential retirees. Latifah suggests that the government could make the programme more appealing by relaxing some of these requirements and offering special privileges to MM2H pass holders, such as discounted entry to Malaysian attractions.
Conclusion
The increasing number of Singaporeans considering Malaysia as a retirement destination is a positive trend for Malaysia’s property market and economy. The Malaysia My Second Home (MM2H) programme, coupled with cultural similarities and economic advantages, makes Malaysia an attractive option for Singaporean retirees. As more Singaporeans explore the benefits of retiring in Malaysia, the country’s property market is set to thrive, bringing in investment and fostering stronger bilateral ties.
For Singaporeans looking for an affordable and culturally familiar retirement destination, Malaysia offers a compelling option. With ongoing improvements and potential relaxations in the MM2H programme, Malaysia could become an even more attractive choice for retirees from across the region.
