MM2H Property Rules in Malaysia: Minimum Purchase Price by State

Many foreign purchasers mistakenly assume that obtaining a Malaysia My Second Home (“MM2H”) visa automatically allows them to purchase any residential property in Malaysia, without any minimum threshold. However, this is untrue.

In this article, let’s explore whether a foreigner can purchase a property at a lower price with an MM2H visa.

In short, the MM2H visa does not automatically lower the minimum price for foreign purchasers. The effective minimum is the higher of the Federal MM2H requirement and the State’s foreign ownership threshold, although Penang and Forest City (Johor) offer a more favourable framework.

Every MM2H participant must comply with two separate sets of rules:

• First, the Federal MM2H requirements; and
• Second, the State’s foreign property acquisition policy, whichever is higher.

To illustrate, a Silver MM2H participant who is required to purchase a property worth at least RM600,000 may still need to purchase an RM1,000,000 property in Kuala Lumpur, as that is the State’s minimum threshold.

What is Malaysia My Second Home (MM2H)?

MM2H is a long-term residency programme administered by the Government of Malaysia that allows eligible foreign nationals to reside in Malaysia, subject to compliance with the applicable eligibility requirements, including financial criteria and, where applicable, property purchase requirements. In other words, it is a visa that allows foreigners to make Malaysia their second home, whether for long-term residence or retirement.

MM2H Federal Requirements

Category	Minimum Property Value (RM)
Silver	600,000
Gold	1,000,000
Platinum	2,000,000

Take note that these minimum MM2H Federal requirements do not override state laws governing foreign ownership of property.

State Rules Still Apply

This is where most people become confused.

Malaysia does not have one nationwide foreign property threshold. In Peninsular Malaysia, although land law is principally governed by the National Land Code (Revised 2020) (Act 828) (“NLC”), land remains a matter within the legislative and executive jurisdiction of the respective States under the Federal Constitution.

While the NLC establishes a largely uniform framework for land tenure, registration and dealings, each State Authority retains significant powers over the administration and disposal of land within its territory.

As a result, individual states may prescribe their own rules in relation to matters such as foreign ownership of property, minimum purchase thresholds and the granting of State Authority consent.

Minimum Purchase Price by State

The table below summarises the position. Each state has its own guide with the full thresholds.

State	Silver	Gold	Platinum	MM2H benefit?
Kuala Lumpur	RM1,000,000	RM1,000,000	RM2,000,000	No
Selangor	RM1,000,000–RM2,000,000	RM1,000,000–RM2,000,000	RM2,000,000	Limited
Penang	RM600,000*	RM1,000,000	RM2,000,000	Yes
Johor	RM1,000,000	RM1,000,000	RM2,000,000	Standard: Limited / Forest City: Yes

*In Penang, the State threshold may be reduced to RM500,000 under the MM2H concession, but the Federal Silver requirement of RM600,000 still applies.

MM2H Property Rules by State

Kuala Lumpur and Selangor

In Kuala Lumpur, foreign purchasers generally must buy a property of at least RM1,000,000. In Selangor, the minimum depends on the zone and property category. In both, the MM2H visa gives little or no price advantage. Read more: MM2H property rules in Kuala Lumpur and Selangor.

Penang

Penang is one of the few states that provides a preferential property acquisition framework for eligible MM2H participants, which may reduce the State threshold to RM500,000 for a qualifying residential property. The Federal MM2H requirement still applies. Read more: MM2H property rules in Penang.

Johor and Forest City

Under the standard MM2H Programme, Johor’s RM1,000,000 threshold generally leaves Silver and Gold holders with little practical advantage. The separate SEZ/SFZ MM2H category for Forest City has a minimum property purchase price of RM500,000. Read more: MM2H property rules in Johor and Forest City.

Conclusion

“The MM2H Programme is an immigration programme, not a property law exemption.”

While it prescribes the Federal minimum property purchase value, it does not override the foreign property acquisition policies of the respective States. As a result, the effective minimum purchase price is determined by both the Federal MM2H requirements and the applicable State’s foreign ownership policy, with the higher threshold generally prevailing.

Depending on the State, the MM2H Programme may provide no practical advantage, a limited benefit, or in certain cases such as Penang and the Forest City SEZ/SFZ MM2H, a more favourable property acquisition framework. Foreign purchasers should therefore understand the interaction between these two regimes before committing to any property acquisition in Malaysia.