“Malaysia’s MM2H programme is shifting beyond retirement as education and second-home demand drive applications, generating nearly RM900 million in inflows.”
Kuala Lumpur, 19th January 2026, 02.10pm – The Malaysia My Second Home (MM2H) programme is increasingly being used by globally mobile families seeking education access and a secondary base, rather than solely by retirees, according to industry observers. The scheme generated close to RM900 million in inflows in the year to June 2025.
Demand has become more concentrated by nationality. Chinese nationals account for about 53% of principal applicants, and when applicants from Taiwan and Hong Kong are included, ethnic Chinese make up nearly three-quarters of total demand — a sharper skew compared with the period before the programme was suspended in 2020.
Industry players said the shift has become more visible as families secure international school placements and housing early in the year. Education is now one of the primary motivations for MM2H applications, alongside retirement and cross-border living, particularly in Johor.
Unlike permanent residency, MM2H does not provide a pathway to citizenship. However, this has not deterred families seeking long-term stay options that allow children to attend international schools in Malaysia while parents continue working and paying taxes overseas. In some cases, only one parent resides in Malaysia with the child, typically near international school hubs.
Application profile and inflows
Data from the MM2H Consultants Association showed that as of Nov 15, 2025, the revamped programme had attracted 13,567 participants, comprising 4,732 main applicants and 8,835 dependants. The Silver tier remains the most popular, accounting for nearly 83% of principal applicants, while Gold and Platinum tiers collectively make up less than 8%.
Official government figures indicate a smaller number of active pass holders. As of Aug 31, 2025, 5,972 foreigners held MM2H passes, reflecting approval timelines and the lag between approval and pass endorsement.
The Ministry of Tourism, Arts and Culture (Motac) reported that MM2H generated nearly RM840 million between June 2024 and June 2025, largely from fixed deposits and property-related requirements.
Preferred locations and property impact
MM2H participants tend to cluster in established residential enclaves, including KLCC, Bukit Bintang, Ampang, Desa ParkCity and Mont Kiara, with Penang, Johor and Melaka also attracting demand. Education, healthcare access, lifestyle factors and affordability continue to be key considerations.
Agents noted that while MM2H residents contribute to the local economy through property and services, foreign demand has also pushed up price expectations in certain neighbourhoods.
MM2H 3.0 and Forest City track
MM2H was suspended in August 2020 amid concerns that it had become overly property-driven. It later resumed under a revised, tiered framework — Silver, Gold and Platinum — with higher financial thresholds, property purchase requirements and minimum-stay conditions. Offshore income requirements were removed, while screening procedures were tightened.
A separate Special Economic Zone and Special Financial Zone (SEZ/SFZ) category linked to Johor’s Forest City offers lower fixed-deposit thresholds and longer visa tenure but requires applicants to purchase property directly from participating developers and hold it for at least 10 years.
As of late 2025, the Forest City track accounted for about 9.5% of total MM2H participants. Industry advisers said the scheme provides the development with a more stable base of long-stay residents.
Education and wealth planning
Education has emerged as a growing driver of MM2H interest, with families clustering around international schools in Johor and other key areas. Current rules allow approved withdrawals of up to 50% of fixed deposits for purposes such as education, easing financial planning for families.
Wealthier applicants may also leverage Malaysia’s Single Family Office framework, launched in 2024, which offers tax incentives for qualifying family offices based in Forest City.
Changing applicant mix
Industry observers said the applicant profile has diversified compared with pre-pandemic years, with growing interest from Singapore, the US and Europe, although Chinese nationals still dominate overall numbers. For some Singaporeans, MM2H offers flexibility rather than full relocation — serving as a weekend home, semi-retirement option or family base tied to cross-border living.
As regional competitors step up efforts to attract mobile families, analysts said Malaysia faces a strategic decision on whether to position MM2H as a broad long-stay platform or accept a more focused, property-linked niche.
