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Introduction to Buying Properties in Malaysia

Published: February 4, 2022

Malaysia works on a federal system so the rules in the states of Peninsular Malaysia differ from those of Sabah and Sarawak (which have their own ownership legislation)

Malaysia My Second Home (MM2H) is a special avenue for property purchase.

  • Provides a renewable five-year maximum, multiple-entry visa
  • Provides certain benefits such as discounts on certain properties available on the market

States are allowed to charge levies for foreign residential property purchases.

  • Currently only Penang, Malacca and Johor impose levies
    • The percentage of levy is 2% for Malacca

For Singaporeans, they will need to meet a minimum occupation period before buying a second home five years)

Foreign Property Ownership Limits

StateMinimum PriceMM2H Price
MalaccaRM 1 million (landed title)
RM 500,000 (high-rise/strata title)
RM 1 million (landed title)
RM 500,000 (high-rise/strata title)
Kuala LumpurRM 1 millionRM 1 million
Genting Highlands (under Pahang)RM 1 millionRM 1 million
Kuantan (under Pahang)

Properties Singaporeans can/cannot buy in Malaysia

Properties Singaporeans can buy in MalaysiaFreehold commercial, industrial properties, vacant land, condos, bungalows, terrace houses, semi-detached, orchard/farm houses
Properties Singaporeans cannot buy in MalaysiaBumi (Bumiputera) lots, Agricultural land, Malay reserved land, Property with a valuation below RM 1 million

Three main types of properties that foreigners (any non-permanent resident) are not able to purchase

  • Properties built on Malay reserved land
  • Properties defined as low-cost or medium-cost affordable units as defined by the state
  • Properties allocated to Bumiputera groups as part of a development project