The Expat’s Guide To MM2H Benefits And Tradeoffs In 2025
While updates to the Malaysia My Second Home (MM2H) requirements have not been universally well-received, the Malaysian Minister of Tourism, Arts and Culture recently shared that 782 passes were approved under the new policy–so it can’t be all bad!
Like any other long-term visa, an MM2H Pass is not ideal for everyone, but presents the perfect choice for others to reside in Malaysia.
Below, we take a no-nonsense approach and lay out key pros and cons of the new MM2H program–let’s begin.
7 key MM2H benefits
We’ve focused on what we believe are true benefits of holding an MM2H Pass, instead of the general benefits of Malaysia over other countries.
1. No minimum income requirement
Unlike its previous iteration, the current MM2H Pass has no fixed monthly income requirement. Instead, new applicants are required to deposit a certain amount of cash in a Malaysian banking institution.
This ranges from USD1,000,000 for the Platinum category to just USD32,000 for older applicants under the SEZ tier.
This aligns MM2H much better with its goal of making Malaysia a destination for those in retirement and semi-retirement, who may have savings but no steady income stream.
2. Flexible fixed deposit rules
Three things MM2H holders will be happy to know about their fixed deposit:
- If they choose to exit the MM2H program, their fixed deposit is fully refundable
- They are allowed partial withdrawals for approved expenses, such as purchasing property, holidays, or medical costs.
- They can withdraw any interest on top of the principal any time, so long as the balance meets the minimum limit for their MM2H category.
As icing on the cake, FD withdrawals for approved purposes will not need to be replenished!
3. Tax exemptions on offshore income
MM2H pass holders will not owe tax on overseas income sources, including but not limited to:
- pensions
- royalties
- salaries, and
- dividends and revenue from offshore businesses
This includes any cash transferred into a Malaysian bank from overseas to satisfy the fixed deposit requirements mentioned previously.
Note: This doesn’t apply to MM2H holders who do business in Malaysia (more here) and get income from overseas clients. For full details see our explanation to MM2H tax exemptions.
4. You can bring your family
MM2H pass holders can bring the following family members as dependents:
- Spouses
- Biological / step / adopted children below 21
- Children between 21–34 if single and unemployed
- Medically certified disabled children
- Parents / in-laws
There are no fees for bringing dependents, just make sure you have certified documents to prove kinship.
5. Easy access to education
Dependent children of MM2H holders automatically receive a Student Pass that allows them to enroll in private education in Malaysia up to the tertiary level.
6. More relaxed rules for older applicants
Depending on pass category, applicants aged 50 and above enjoy:
- lower financial requirements
- zero minimum stay requirements
Once again, this makes the new iteration of MM2H more closely aligned with its target audience.
7. Grandfathered from future changes
Historically, changes to MM2H policy are not applied to pass holders from previous versions.
While this can be both good and bad, if you are satisfied with the current plan, we believe it’s better to be protected from negative future changes instead of benefiting from improvements–as the current MM2H program ia valid for up to 20 years, it means those who are happy with it can enjoy it for at least that long.
Besides, you can always re-apply under the new rules!
5 key MM2H tradeoffs
Again, these are tradeoffs specific to MM2H Passes that we believe readers should be aware of and consider, of which there are five.
1. Property purchase requirements
Under the revised MM2H program, participants must purchase a property in Malaysia that meets the price threshold of the MM2H category they want to apply for.
While this means more financial commitment, we believe the real drawback here is the long-term commitment involved in purchasing property, meaning it’s not a decision to be made lightly.
2. 10-year property lock-in
The property purchased to satisfy MM2H requirements cannot be sold for a minimum of 10 years unless you are going to buy a more expensive property.
This means whatever you buy, you’re looking at a minimum of a decade of ownership..
3. Minimum annual stay period
New MM2H rules require participants aged 49 and below to spend a minimum of 90 total days per year in Malaysia which can be inconvenient if you spend the year in multiple countries.
One thing to note is that this 90 days is cumulative across principal and dependents, so dependents within the right age bracket can contribute to the tally.
For example, a family of four with a husband, wife, and two young children can spend a month in Malaysia and between them have a total of 120 days, more than fulfilling the requirements.
4. Work and business restrictions
Only Platinum MM2H Pass holders are legally allowed to work and do business in Malaysia, but the Platinum Pass is also significantly more expensive than the other tiers.
When it comes to business, we can boil it all down to dollars and cents, so if it makes fincnaial sense in your case, then great–but there’s no doubt that it’s priced out of the budget for many younger expatriates.
5. Reliance on MM2H agents
Unlike previous iterations of MM2H, all new applications and renewals must be done through a ministry-approved MM2H agency.
This was done to streamline operations, but as always happens with third parties, not all are equal, and as they are all based in Malaysia, overseas applicants will probably struggle to filter out experienced and competent agents.
As individuals are not allowed to handle their own applications, whether they want to or not, they’ll need to find themselves an MM2H agent they can trust.
Your next steps
If you’re still interested in learning more about the MM2H program after evaluating its benefits and tradeoffs, here are some additional resources:
- An side-by-side comparison of all MM2H categories
- Dedicated guides to Platinum, Gold, Silver, and SEZ categories
- An MM2H application checklist so you know what documents are needed
For anything else, you’re welcome get in touch with us–and regardless, we wish you a happy application and hope you like Malaysia 🙂
Let MISHU help with your MM2H application
Not all MM2H agents are created equal – some leave you more confused! Let us connect you to one who will make the process as straightforward and hassle-free as possible.