Sarawak Increases Malaysia My Second Home Investment Threshold to RM500,000

Sarawak, Malaysia, is set to implement significant changes to its Malaysia My Second Home (S-MM2H) program starting January 1, 2025.

What has Changed in Sarawak MM2H Requirements?

The most notable change is the more than threefold increase in the fixed deposit requirement, which will rise to RM500,000 for all applicants, including spouses and dependents.

Tourism, Creative Industry, and Performing Arts Minister Datuk Seri Abdul Karim Rahman Hamzah announced the changes, which also include a mandatory minimum annual stay of 30 days in Sarawak to qualify for visa renewal.

The permits will be valid for five years, with the option to renew for an additional five years. Applicants must also pay a one-time RM5,000 processing fee to the state Tourism, Creative Industry and Performing Arts Ministry.

The state approved 386 participants between August and October 2024, generating RM77.55 million in fixed deposits for local banks.

Program participation grew by 22.90% from 441 approvals in 2022 to 542 in 2023, with Chinese nationals leading overall participation, followed by the United Kingdom, Taiwan, Hong Kong, and the United States.

The changes also affect agent licensing, as Sarawak gained authority to manage its own S-MM2H agents in July. Agents must now operate as Sarawak-owned companies with RM100,000 in paid-up capital, and shareholders cannot hold shares in another company that is also a licensed S-MM2H agent to prevent monopolies.

Sarawak's revamped program comes in the wake of significant changes in Malaysia's residence-by-investment offerings. In 2021, the federal government implemented stricter conditions for its MM2H initiative, which caused application numbers to plummet by 90%. In contrast, Sarawak adopted more accommodating criteria, leading to a remarkable 2,800% increase in approved applications by 2023.

Since then, the federal program has seen several updates, including the introduction of a three-tier structure with investment thresholds spanning RM500,000 to RM5 million.