The Expat’s Guide To MM2H In Penang (2026)
Penang in 20205 has positioned itself as an extremely compelling Malaysia My Second Home (MM2H) destination, as it is currently the only state in West Malaysia that:
- is already a popular expat destination, and
- offers preferential minimum home purchase prices to MM2H participants
No other state offers these two benefits simultaneously.
In contrast, Kuala Lumpur may be more expat-friendly but offers no ‘MM2H home purchase discount’, while states like Kedah have better MM2H discounts but most expats wouldn’t survive a week there!
So, if you’re an expat considering MM2H, our guide explains why Penang is so popular and should be high up on your list.
Here’s how we’ve broken it down:
- distinguishing Penang Mainland from Penang Island
- minimum home purchase prices with and without MM2H
- comparing Penang to Kuala Lumpur and Selangor
Let’s begin.
Note: This guide focuses on home purchase values in Penang for foreigners, so if you’re unfamiliar with MM2H as a whole, start with our overall guide so this can really make sense!
Penang Mainland vs Penang Island
Penang is split into mainland and island regions, and while the discounted MM2H home purchase applies to both, Penang as an MM2H spot overwhelmingly refers to Penang Island.
Penang Island is where you find:
- expat communities
- high English proficiency
- international schools, and
- generally more developed areas
Meanwhile, Mainland Penang is mostly known as an industrial area, and you’re welcome to stay there if you don’t mind living next to semiconductor plants! 😀
So for the rest of this guide, when we talk about Penang, we are referring to Penang Island.
Minimum property purchase prices for foreigners
Penang sets minimum foreign home purchase values for four types of residences:
- stratified properties (multifamily residences)
- landed properties, and
- overhang stratified / landed properties (unsold units from developers)
Each has a preferential minimum purchase value if you’re an MM2H applicant.
| Property Type | Normal Minimum Home Purchase Price | With MM2H |
| Stratified | RM1,000,000 | RM500,000 |
| Landed | RM3,000,000 | RM500,000 |
| Overhang stratified | RM800,000 | RM500,000 |
| Overhang landed | RM1,800,000 | RM500,000 |
As you can tell, that is a crazy good discount–but it comes with three caveats:
- this only applies to the first two residences you buy
- you still need to meet your MM2H property purchase requirements with one home
- it doesn’t mean a developer has to sell you a property for that cheap 😀
However, it gives sellers in Penang much more wiggle room versus other top MM2H states.
Penang Island vs Kuala Lumpur and Selangor
When we compare state minimum home purchase prices for foreigners with and without MM2H, it becomes blatantly obvious which really wants to attract MM2H expats.
| State | Normal Minimum Home Purchase Price | With MM2H |
| Penang Island | RM 1 – 3 million | RM 500,000 |
| Kuala Lumpur | RM 1 million | RM 1 million |
| Selangor | RM 2 million (Zones 1 & 2) RM 1 million (Zone 3) | RM 2 million (Zones 1 & 2) RM 1 million (Zone 3) |
It’s almost like Kuala Lumpur and Selangor couldn’t care less if you’re applying under MM2H!
As they are more popular than Penang, they don’t have to make concessions, so they don’t.
But while Penang may be less popular as an expat destination, it’s mostly due to lack of awareness as in terms of development, Penang matches anything the other two can offer.
That makes it arguably the best value offering for MM2H anywhere in Malaysia right now.
That’s it from us–we wish you all the best with your MM2H journey and don’t hesitate to get in touch if you have questions!
Let MISHU help with your Penang MM2H application
Our MM2H packages start from RM40,000 and are inclusive of mandatory medical health screening, insurance coverage, security bond, and the initial five-year visa. A typical application takes eight months from end-to-end, and we support you the whole way.