The country is benefiting from the effects of an ambitious new scheme, called Malaysia My Second Home, which launched in 2002 with generous government backing and the aim to drive up numbers of long-term foreign visitors and private property prospectors.
The scheme has steadily been pulling in applicants territories including Australia, Japan, Hong Kong, the UK, France, Canada and South America, all lured by a package of incentives designed to speed the process of setting up home, or a second home, in the former British colony.
The qualifying criteria for the scheme, which is backed by the Malaysian Ministry of Tourism and the Immigration Department of Malaysia, are continually being revised. However, the main improvements made to welcome foreign nationals include the extension of visitor visas from five to 10 years, with the promise of relatively automatic renewal; increased flexibility over financial security (applicants must place a fixed deposit, fully refundable upon departure, of either M$100,000 (£15,000) if single or M$150,000 if a couple, with a Malaysian financial institute or they must prove they have a monthly income of at least M$7,000); and, in response to demand, the relaxation of the requirement for a full medical report (instead an applicant can just secure medical insurance once their application has been approved). The whole application process also now takes just one month to complete.
From there, househunters can explore the bustling capital Kuala Lumpur, areas near world-famous nature parks such as Taman Negara and the tropical forests and waterfalls of Pahang on the east coast, the fabulous beach communities of Penang and the numerous award-winning island resorts of Langkawi.
In all, they will find inexpensive property, available mostly on a long leasehold basis, with prices ranging from M$150,000 (less expensive homes are reserved for ethnic Malays) to about M$500,000. Foreigners can buy up to two residences and they are even eligible for a 60 per cent loan from selected financial institutions, subject to qualifications.
The Malay housing stock ranges from new luxury condos and mini-developments on the edge of golf courses to bungalows, semi-detached houses, terraced houses and traditional wooden beach-front kampung-style chalets found along the coastal areas of Langkawi, Penang and Malacca. Some of the most attractive residences are in tourism zones – on beaches, in jungles and near the country’s national parks.
Langkawi, the legendary archipelago consisting of clusters of sun-drenched islands in the north west corner of Malaysia, is the most popular resort location in the country. Properties there range from M$100,000 for a single-storey sea bungalow up to M$500,000 for a luxury chalet. Other top destinations include Kuala Lumpur, Penang, Malacca and Kota Kinabalu and Kuching, the two state capitals in Malaysian Borneo. Two-thirds of Malaysia is surrounded by water, so sea-view or seafront properties are plentiful.
For expat buyers who eventually want to move on, there are no restrictions on property sales and they can keep every penny, or Malaysian ringgitt, they make on the transaction with no sneaky taxation imposed before they exit the country. Hasan says, given current market conditions, gains can easily be realised within five years.
There is only one thing that foreigners can’t do under the Malaysia My Second Home scheme: get a local job. But then maybe that’s not such a bad thing.
This is cache, read story here
