MM2H Property Rules in Penang: The State Concession Explained

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.

Penang is one of the few states that provides a preferential property acquisition framework for eligible MM2H participants. Unlike Kuala Lumpur and Selangor, where the ordinary State thresholds generally determine the effective minimum purchase price, Penang allows qualifying MM2H participants to acquire certain residential properties at a reduced State threshold.

Federal Requirement vs Penang Concession

It is, however, important to distinguish the Penang MM2H concession from the Federal MM2H property purchase requirement. The former governs whether the State Authority will permit the acquisition of the property, while the latter prescribes the minimum property value required under the MM2H Programme. As these requirements operate independently, an MM2H participant must satisfy both, with the higher applicable threshold constituting the effective minimum purchase price.

Penang Foreign Ownership Thresholds

A further distinguishing feature of Penang’s foreign ownership policy is that the applicable thresholds vary depending on the location of the property – namely, Penang Island or Mainland (Seberang Perai), as well as the type of property, such as strata or landed residential properties.

For non-MM2H foreign purchasers, the minimum thresholds are generally:

Property Type	Penang Island	Mainland (Seberang Perai)
Strata	RM1,000,000	RM500,000
Landed	RM3,000,000	RM1,000,000

The Penang MM2H Concession

Where the Penang MM2H concession applies, the State threshold may be reduced to RM500,000 for a qualifying residential property. Nevertheless, the purchaser must still satisfy the minimum property value prescribed under the relevant Federal MM2H category.

Accordingly, the effective minimum purchase price will generally be the higher of the applicable Federal MM2H requirement and the relevant Penang State threshold, which is as follows:

Area	Property Type	Without MM2H	Silver	Gold	Platinum
Penang Island	Strata	RM1,000,000	RM600,000	RM1,000,000	RM2,000,000
Penang Island	Landed / Landed Strata	RM3,000,000
Mainland (Seberang Perai)	Strata	RM500,000
Mainland (Seberang Perai)	Landed / Landed Strata	RM1,000,000

Worked Examples

Example 1 – Penang Island

A Silver MM2H participant wishes to purchase a strata property on Penang Island.

• Ordinary foreign purchaser threshold: RM1,000,000
• Penang MM2H concession: RM500,000
• Federal Silver MM2H requirement: RM600,000

Although the ordinary foreign ownership threshold is RM1,000,000, the Penang MM2H concession reduces the applicable State threshold to RM500,000. As the Federal Silver MM2H requirement of RM600,000 is higher, the effective minimum purchase price is RM600,000.

Example 2 – Seberang Perai (Mainland)

A Silver MM2H participant wishes to purchase a strata property in Seberang Perai.

• Ordinary foreign purchaser threshold: RM500,000
• Penang MM2H concession: RM500,000
• Federal Silver MM2H requirement: RM600,000

As both the ordinary State threshold and the Penang MM2H concession are RM500,000, the Federal Silver MM2H requirement becomes the determining factor. Accordingly, the effective minimum purchase price is RM600,000.

If the Property Does Not Qualify

Conversely, if the proposed property does not qualify for the Penang MM2H concession, the purchaser must comply with Penang’s ordinary foreign ownership threshold for that property. For instance, a Silver MM2H participant purchasing a non-qualifying strata property on Penang Island may still be required to meet the ordinary State threshold of RM1,000,000.

Related Guides

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