Malaysia
Malaysia, standing out as a top destination in Southeast Asia, with its rich cultural heritage, breathtaking natural landscapes, and vibrant cities, is home to approximately 33 million people, led by the capable Yang di-Pertuan Agong as the head of state. Malaysia’s economy, driven by its agriculture, electronics production, petroleum production, and palm oil industry, supported by a diligent workforce combined with a diverse array of attractions, makes Malaysia a thriving nation in the region. Notable attractions such as the Petronas Twin Towers and Batu Caves, among others, provide visages that delight tourists all year round. As a sovereign country, Malaysia has established Malay as its official language while utilizing the Malaysian ringgit for economic transactions. On an international level, it has collaborated with prominent organizations—specifically the United Nations, ASEAN, and Commonwealth of Nations—to tackle regional and global issues.
Citizenship by investment is not an option currently available in Malaysia. Only Malaysian-borns, their descendants, or naturalized persons can acquire Malaysian citizenship.
To qualify for naturalization, a foreign applicant must fulfill specific prerequisites, involving a residency term in Malaysia of ten years for most expatriates. Besides, candidates must display fluency in Malay, possess no criminal convictions, and demonstrate good character.
Malaysia offers multiple investment avenues for international investors keen on contributing to the nation’s progress, such as purchasing medical insurance meeting financial requirements via Malaysia My Second Home (MM2H) program. It is essential to seek guidance from proficient legal or financial consultants to understand the possibilities and challenges of investing in Malaysia.
MM2H program is open to new applicants aged 35 years and above, along with their families and parents above 60 years. The initial visa is for five years, renewable with certain met conditions. During the application stage, applicants must demonstrate a monthly income that varies.
Seeking such expertise can help one appreciate the diverse avenues for investment and identify potential risks and rewards.
Malaysia does not recognize dual citizenship. Therefore, investors must renounce their previous nationality to become a citizen of Malaysia.
Recidency By Investment:
Malaysia offers two investment immigration programs: the Premium Visa Program (PVIP) and Malaysia My Second Home (MM2H) Program. Here is an overview of each program:
- Premium Visa Program (PVIP):
- Duration: PVIP, granted for 20 renewable years.
- Eligibility: Applicants must make a minimum investment of RM 1 million ($216,000) through a fixed deposit in a local bank. They should also have a guaranteed offshore monthly income of at least RM 40,000 ($9,000).
- Dependent inclusion: The visa is extendable to include spouses, dependents, parents, parents-in-law, and domestic staff.
- Stay requirement: No minimum physical stay is required to maintain the visa.
- Processing fees: RM 200,000 ($45,000) for the main and an additional RM 100,000 ($22,600) for each dependent applicant, and an annual pass fee of RM 2,000 ($450) is also required.
- Additional requirements: Proof of medical insurance coverage in Malaysia and a letter of good conduct from the applicant’s home country is required.
- Permissible activities: Visa holders can pursue employment or education, establish businesses, and purchase real estate assets for residential, commercial, or industrial purposes.
- Withdrawal option: One year after receiving the visa, investors can withdraw up to 50% of their deposit to purchase real estate or pay for education and health expenses.
- Application process: Applicants must initiate the application through an authorized agency and are granted conditional approval typically within 60 working days.
2. Malaysia My Second Home (MM2H):
- Duration: MM2H granted for five renewable years.
- Eligibility: Applicants must have a minimum deposit value of RM 1 million and a guaranteed offshore monthly income of at least RM 40,000 ($9,000). They should also demonstrate proof of liquid assets amounting to RM 1.5 million ($340,000) and be at least 35 years old. Processing fees are RM 5,000 ($1,100) for the principal and RM 2,500 ($565) for each dependent applicant.
- Stay requirement: Visa holders must stay for at least 90 days per year.
- Permissible activities: MM2H visa holders can be shareholders but are not allowed to conduct business or seek employment or education in Malaysia.
- Regional programs in Sarawak and Sabah: These states offer their variations of MM2H, providing the same residency and accessibility to the entirety of Malaysia. The eligibility requirements and deposit amounts for Sarawak and Sabah MM2H programs differ.
- Application process: Malaysian Immigration Department handles the application process, which issues a conditional approval letter to successful applicants.
It’s important to note that neither PVIP nor MM2H leads to citizenship in Malaysia. Additionally, Malaysian citizens enjoy visa-free access to 169 countries. Malaysia has a strong economy, developed infrastructure, an educated workforce, and is politically stable. The country is a founding member of the Association of Southeast Asian Nations (ASEAN).
Performance Guarantee:
At present, Malaysia does not have Citizenship by Investment program. Thus, there are no standardized assurances for the efficacy of any investments made toward securing citizenship in Malaysia.
Nevertheless, foreign investors have diverse investment prospects through initiatives like the Malaysia My Second Home (MM2H) program. The application procedure for this program may only approve if performance benchmarks, such as financial stability and medical insurance coverage, are adequately demonstrated.
In addition to this absence of standard performance guarantees, investors can find solace in Malaysia’s robust legal and regulatory structures that foster transparency and accountability. Among the many desirable qualities that make Malaysia a prime location for foreign investments are its strong adherence to legal regulations and limited instances of fraudulent activities.
It is vital for investors intending to explore such opportunities within this vibrant economy to conduct consultations with proficient legal professionals or finance experts. Prospective investors stand to gain invaluable knowledge on the intricacies of investing under each program offered within Malaysia’s financial space while acquiring insight into possible risks associated with each investment plan as guided by legally binding contracts.