FAQ

Quality of Life
Malaysia is among the most friendly and hospitable places in the world to work and live in. Malaysians are warm, friendly people who easily accept foreigners into their circle of friends. In addition, the country’s tropical climate with its uniform temperatures allows light, comfortable clothing throughout the year.

Expatriates and their families will enjoy a safe and comfortable living environment with 21st century amenities, good healthcare and medical facilities, excellent educational institutions, and world-class recreational and sports facilities at costs much lower than in their own countries.

One of the country’s most distinctive features is its rich diversity of cultures, a heritage derived from its racial mix of some of the world’s oldest civilisations – Malay, Chinese and Indian. This potpourri of race and culture has enabled Malaysians to speak at least two, and even three, languages – Malay (the national language), English, and their own mother tongue. Living in such a cosmopolitan environment, Malaysians are warm, friendly people who easily accept foreigners into their circle of friends.

Comfortable Housing
There is a wide selection of comfortable housing in Malaysia. According to a survey on expatriate living costs by the Malaysian International Chamber of Commerce & Industry, monthly rentals for accommodation can range from as low as RM2,700 – 8,500 (US$762-2,398) for a furnished 3-bedroom condominium in the suburbs of Kuala Lumpur to RM10,000 – 28,000 (US$2,821-7,900) for a luxury bungalow in the posh neighborhood of Kenny Hills nearer to the city.

Quality Education
There are over 30 international schools registered with the Ministry of Education. These schools are located in the federal territories of Kuala Lumpur and Labuan, and in the states of Johor, Kelantan, Melaka, Negeri Sembilan, Pahang, Penang, Perak, Sabah and Sarawak. They include American- and British-style international schools as well as French, German, Japanese and Taiwanese schools that have facilities for pre-school to college education.

Shopping
With the wide range of foodstuffs and consumer products available in the supermarkets and departmental stores, expatriate wives will find Malaysia a home-away-from-home. Establishments in Malaysia cater for every taste and budget and range from shopping malls to hypermarkets to specialty stores. A novelty for expatriates is the pasar malam or night market where hawker stalls sell almost anything from fresh fruits and vegetables to clothing and shoes. Malaysia is also a treasure chest of artifacts and antiques, and expatriates usually not only take back with them fond memories of their stay but also many a collector’s item as well .

An Unsurpassed Lifestyle
Life in Malaysia is an adventure. The year-long warm and sunny climate offers an unsurpassed lifestyle, especially for people who love the outdoors. Families can spend many an exciting weekend at Malaysia’s national parks with their magnificent rivers and mountains. Or fly to one of the many island retreats for snorkelling and scuba diving. Or drive for a game of golf in a cool hill resort. For people who prefer to be indoors, they can shop-until-they-drop in ultra-modern shopping complexes that offer the latest in designer fashions, leather goods and electronic items at very
competitive prices.

A not-to-be-missed attraction in the federal capital of Kuala Lumpur is the Petronas Twin Towers, the world’s tallest building, where one can enjoy world-class performances in the acoustically-perfect Petronas Philharmonic Hall.
Where dining is concerned, Malaysia is one of the countries in the world where a family can afford to eat out almost everyday of the week. Depending on one’s budget, the choice of eating places can range from posh hotels and chic sidewalk cafes to fast-food joints and hawker stalls. No one ever gets bored from the limitless variety of cuisines available.

A Vibrant Business Environment
Malaysia’s market-oriented economy, supportive government policies and a large local business community that is ready to do business with international corporations have made Malaysia a highly competitive manufacturing and export base.
In addition, Malaysia’s rapid move towards the k-economy allows companies to do business in an environment that is geared towards information technology.
One of Malaysia’s major pull factors is its large pool of young, educated and trainable workforce. Many of Malaysia’s university graduates are trained overseas in fields such as engineering, and accountancy, allowing them to adapt easily to an international corporate environment.
English is widely used in Malaysia, especially in business thus facilitating the investor’s communication with local personnel and suppliers. The country’s legal and accounting practices derived from the British system are familiar to most international companies.

Malaysia is in its’ most radical transformation as it battles to achieve the Vision 2020. The transformation is visible on the political front, the public sector and among Malaysian business entities.

The Evolution of Healthcare
At present, Malaysia’s healthcare system is divided into two sectors—the public sector and the private sector. Doctors are generally required to complete three years of service in public hospitals throughout the nation, ensuring there is adequate cover for the general population. Foreign doctors are also encouraged to share their expertise in Malaysia.

Over the years, Malaysia has been continuously vigilant about her healthcare system. The presence of so many medical schools is enough to attest to the fact that Malaysia is serious about providing quality healthcare, not only to its citizens, but also to expatriates, tourists, migrants, and visitors.

Malaysia is also a popular destination for medical tourism. Prominent services include those relating to cardiology, dentistry, gastroenterology, screenings, general surgery, orthopaedics, ophthalmology, and plastic surgery.

Can I withdraw my fixed deposit any time during my stay in Malaysia?

Some banks allow periodical withdrawals of interest earned on your Fixed Deposit. This is subject to the bank’s policy and negotiation at the time of opening your account with the bank concerned. Please refer to banking portal www.bankinginfo.com.my for current rates and terms

Can I place the fixed deposit in a Malaysian bank located in my country?

No. The fixed deposit account must be opened in any Malaysian bank or financial institution located in Malaysia.

Can the purchase of a house in Malaysia which is valued at more than RM500,000.00 be considered as having fulfilled the financial criteria for this programme?

No. Participants are required to fulfill the fixed deposit requirement or monthly off-shore income for those aged 50 years and above.

Am I allowed to withdraw my fixed deposit for a few months and then topped it back later?

No. Participants are required to place their fixed deposits on annual auto renewal basis.

When can I withdraw my fixed deposit?

After a period of one year, the participant may withdraw his/her fixed deposit for approved expenses relating to house purchase, education for children in Malaysia and medical purposes OR when he/she decides to terminate his/her stay in Malaysia by first informing the Ministry of Tourism of his/her intention at Malaysia My Second Home Centre. Participants can apply to withdraw part of their fixed deposit for emergency cases such as medical purposes, etc. with prior approval of the Ministry of Tourism.

Do the participants have any special entitlements?

All participants are allowed to purchase residential properties at the minimum purchase price for foreigners established by the respective state governments. The current minimum price (January 2010) is RM500,000.00 for most states.

Can I purchase a house for residential purpose and a shop lot to be rented out?

No, you are only allowed to purchase residential properties.

Do I have to pay the yearly assessment and quit rent for my houses like the locals?

Yes.

In the event of unforeseen death is the participant able to hand over his Malaysian assets to any of his beneficiaries smoothly. Does the Government have any restriction on this matter?

No.  Participants may transfer their property to their next-of-kin provided they have made a will to this effect.   In the event of lack of documentation, the next-of-kin may claim the inheritance upon proof of identity and kinship.

Must foreigners buy new Malaysia property only, such as from developers, or can they purchase any property, such as from individual owners (second hand or third hand property)?

Participants can purchase any type of housing properties provided that they have been issued with CF (Certificate of Fitness).

Do I need to obtain prior approval from Foreign Investment Committee (FIC) for the purchase and sale of my house?

Participants under this programme are not required to obtain prior approval for the purchase and sale of houses from FIC. However, they must write to the Ministry of Tourism giving details of the house (location as well as price) so that a letter can be issued to them certifying that they are eligible to purchase the said property under this programme. In addition, they are required to send a copy of the approval letter obtained from the respective State Authority which has authorized the purchase or sale of the property concerned to FIC for information.

Can I keep pets in my condominium?

The By-laws of the Strata Title Act state that a parcel proprietor is not allowed to keep any animal in his parcel or on the common property which may cause annoyance to any other proprietor.

Is a participant who buys a second-hand local car eligible for tax exemptions?

Second-hand cars are transacted on a willing buyer, willing seller basis and the government does not levy any sales tax and excise duty on such transactions. As such tax exemptions do not arise.

If I had a car accident and as a result, I need to change the car, do I have to pay back the tax exemptions?

Given the following situations:

  1. If the car is repaired and sold it will be subject to the applicable tax/duty according to the prevailing rates.
  2. If car is written off, taxes will be waived.
  3. If the participant wishes to buy another car, their application will be processed on the merit of each case. Under normal circumstances a participant of this program is allowed tax exemption for a car on a one time basis.

When can I sell the car, which has been given all the tax exemptions?

Cars that have been exempted from taxes and duties under this program can be sold or its ownership transferred provided the prevailing taxes and duties on the car have been paid prior to the transaction. However, for imported cars the condition stipulated in the AP should be complied before any sale or transfer can be permitted.

What kind of taxes are the participants of this programme normally subjected to?

Income tax is imposed on income earned from investments in local companies and local share market. Please refer to www.hasil.gov.my for more details on the tax structure

Is the interest for their fixed deposit taxable? Some say it is taxable, other it is not taxable. If the deposit amount exceeds RM100, 000.00 OR if the deposit period is one year. What is the exact regulation?

Interest earned by an individual from fixed deposit account is exempted in the following situations:-

  1. Period exceeding twelve months or more – any amount of interest.
  2. Period not exceeding twelve months – interest on fixed deposit account of up to a maximum of RM100,000.00.

Is income remitted from abroad taxable?

Before year of assessment 2004 income remitted from abroad to Malaysia (apart from pension) is subject to tax. However, from year of assessment 2004 all income remitted from abroad is not subject to tax.

Does the participant have to submit any personal tax declaration to the Income Tax Department of Malaysia, like Malaysians have to?

Yes.

If the participants have to submit income tax return to the Income Tax department, are they entitled to any exemptions under the programme?

They will only be taxed on the income earned in Malaysia after taking into account the personal tax allowances. The income will be taxed according to a progressive tax rate structure.

I am a German in which my country has a `double taxation agreement’ with Malaysia. I have an early pension and if I stay in Malaysia for at least 184 days, my pension scheme will not be taxed by the German Government and will also not be taxed by the Malaysia government. Is this true?

Under this Programme, pension remitted to Malaysia is exempted from tax.

Do kindergarten level child need a Student Visa to attend kindergarten here?

Children below the school going age (that is 7 years old) are not required to apply for a Student Visa. They need only apply for a Social Visit Visa.

If my children are already married and want to study in Malaysia with their husband, do they need to pay the fixed deposit?

Not necessary. They can apply for a Student Visa once they have obtained places of study in Malaysia.