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Concrete Analysis | Malaysian property provides options for investors seeking escape from Hong Kong unrest

  • The MM2H (Malaysia My Second Home) programme has the advantages of not requiring you to live in Malaysia, and having a very low cost of investment
  • Malaysia has emerged as a popular choice among Hongkongers seeking a safety haven amid long-running political crisis

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The Kuala Lumpur skyline. Photo: SHUTTERSTOCK

The current social unrest in Hong Kong has led to a rising number of applications for emigration. Malaysia has been one of the most popular destinations thanks to the MM2H (Malaysia My Second Home) programme which allows Hongkongers to obtain a 10-year residence permit without having to move to Malaysia.

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Most emigration consulting agencies have received a lot more inquiries about MM2H as protests have raged in Hong Kong in the past few months, while exhibitions featuring Malaysian property have been mobbed by Hong Kong people.

The beauty of this emigration initiative is that you are not required to move and live in Malaysia, and the cost of investment is incredibly low. If something serious happens, or if it becomes too dismal to stay in Hong Kong, you can move straight away.

Driven by a commission-based incentive offered by property developers, most emigration consultants encourage clients to buy an apartment in a condominium in order to obtain the MM2H permit. However, this is not the only way.

To get a 10-year residence permit through MM2H, applicants under 50 years old simply need to deposit HK$600,000 (US$76,600) in a Malaysian bank in order to satisfy the capital requirement. Applicants over 50 barely need to deposit HK$300,000. Therefore, it is actually not compulsory to purchase an apartment to realise your emigration plan.

Furthermore, if you are a property owner in Hong Kong, there is another way to obtain the MM2H permit at zero cost, simply through refinancing. Here is an example:

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Let’s imagine your flat in Hong Kong is valued at HK$7 million and the existing mortgage is equal to HK$3.6 million. By refinancing your mortgage to another bank, you can cash out HK$600,000 and then transfer this to your Malaysian bank account as time deposit.

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