What are the limitations that overseas investors need to be aware of when investing in Malaysia?



  • What are the limitations that overseas investors need to be aware of when investing in Malaysia?


  • EXPERT

    Foreign ownership of property is liberal in Malaysia as long as minimum requirements are met, foreigners can even own 100% of the property here! By law, foreigners can only purchase any type of property upwards of RM1 million.

    Secondly, on average, 30% - 40% of the properties in Malaysia can only be owned by Bumiputera (aboriginals of Malaysia, differ by states), so foreign investors have to be careful not putting their deposit for a property that has the Bumiputera title with it.

    The Margin of Finance (MOF), which is the percentage of loan to house value ratio, can go up to 70% for foreigners in Malaysia. For example, if a house is RM1,000,000, foreigners can only borrow up to RM700,000. Also, on the financing, many banks in Malaysia do not lend to foreigners, so this might be a limitation in terms of how foreigners can purchase a property here.

    However, if you are married to a Malaysian citizen, you can borrow up to 90% of the property’s value when your spouse (which is a Malaysian citizen), is the co-borrower.

    However, there is a scheme called Malaysian My Second Home (MM2H) for foreigners who wish to stay in Malaysia for a prolonged period of up to 10 years that can help with some of the limitations above. Please refer to www.mm2h.gov.my.

    Find more: https://youtu.be/ouUphBCbvWE


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