MM2H Property Rules in Johor and Forest City (SEZ/SFZ MM2H)

This article is part of our guide to MM2H property rules in Malaysia. Every MM2H participant must satisfy both the Federal MM2H property requirement (Silver RM600,000, Gold RM1,000,000 and Platinum RM2,000,000) and the State’s foreign property acquisition policy, whichever is higher.

State Rules – Johor

Due to Johor’s strategic proximity to Singapore, Johor has been one of the most attractive states for foreign investors to purchase property. In particular, the establishment of the Johor–Singapore Special Economic Zone and Forest City as Malaysia’s first Special Financial Zone have further enhanced Johor’s appeal as a destination for international investors and long-term residents.

Unlike other states, Johor offers two different MM2H frameworks, each with its own eligibility criteria and minimum purchase requirements that foreign purchasers need to understand.

1. Standard (Federal) MM2H in Johor

Participants under the standard Federal MM2H Programme remain subject to both:

• the applicable Federal MM2H property purchase requirement (Silver, Gold or Platinum); and
• Johor’s foreign property acquisition policy.

The minimum purchase price for a non-MM2H foreigner to purchase a Johor property is as follows:

Property Type	Minimum Purchase Price (RM)
High-rise / Strata Residential (Condominium, Apartment, Serviced Apartment)	1,000,000
Landed Residential (only in designated areas where foreign ownership is permitted)	2,000,000
Commercial Property	1,000,000
Industrial Property	1,000,000

Given that the above State threshold is equal to or higher than the Silver and Gold requirements under the Federal MM2H Programme, the effective minimum purchase price for an MM2H holder to purchase a Johor property is as follows:

MM2H Category	MM2H Federal	Johor State Minimum	Effective Minimum Purchase Price
Silver	RM600,000	RM1,000,000	RM1,000,000
Gold	RM1,000,000	RM1,000,000	RM1,000,000
Platinum	RM2,000,000	RM1,000,000	RM2,000,000

As such, the standard MM2H Programme generally provides little practical advantage for Silver and Gold MM2H holders purchasing residential property in Johor, as the State’s RM1,000,000 threshold already exceeds (or equals) the Federal requirement.

2. Special Economic Zone / Special Financial Zone (SEZ/SFZ) MM2H in Forest City

Johor is unique because it also offers the SEZ/SFZ MM2H, a separate category introduced to encourage investment into Forest City. Essentially, Forest City is a mixed development located near the Malaysia-Singapore Second Link. It was initially planned to attract foreign investors, but progress slowed because of the Covid-19 pandemic.

Unlike the standard MM2H Programme, the Government has introduced a separate SEZ/SFZ MM2H category that applies exclusively to Forest City, thereby reviving Forest City. Today, Forest City is the only location eligible for the SEZ/SFZ MM2H category.

It should be emphasised that the SEZ/SFZ MM2H constitutes a distinct MM2H category governed by a separate set of eligibility requirements and conditions. It should not be confused with the standard MM2H Programme or with state-specific foreign property acquisition policies.

Some of the SEZ/SFZ MM2H’s key features include:

• available only for residential properties located in Forest City;
• the property must be purchased directly from the developer (sub-sale properties do not qualify);
• the minimum property purchase price is only RM500,000;
• the property must generally be retained for 10 years;
• lower fixed deposit requirements than the standard MM2H Programme; and
• a renewable 10-year pass.

From a practical perspective, the lower property purchase threshold is intended to enhance the attractiveness of Forest City to foreign purchasers and stimulate investment within the development, in line with the Government’s broader objective of promoting the Johor–Singapore Special Economic Zone and the Special Financial Zone.

Related Guides

Compare Johor with other states: see MM2H property rules in Kuala Lumpur and Selangor, MM2H property rules in Penang, or return to the main guide to MM2H property rules in Malaysia.