Federal MM2H mostly asks you to buy a home. Sarawak’s programme mostly asks you to leave money on deposit. The table below puts every upfront sum side by side, in the currency each is set in.
The figures come from the guides linked on this page, each sourced to the body that sets the rule. We do not convert between US dollars and ringgit, because the rate on the day you move the money is the one that counts. Wise quotes the mid-market exchange rate with its fee shown separately, so you can put both deposits in your own currency on the same afternoon.
The upfront sums, side by side
| Federal MM2H, Silver tier | Sarawak’s programme | |
|---|---|---|
| Minimum age | 25 | 30 |
| Deposit | US$150,000 fixed deposit | RM500,000 fixed deposit |
| What must stay in the deposit | Up to half may be withdrawn after approval, for a home, education, medical care or tourism in Malaysia | At least RM250,000; up to half may be withdrawn after a year, for a house, car, medical care or education in Sarawak |
| Home | Compulsory, RM600,000 or more, unsellable for ten years | Optional; RM600,000 in Kuching or RM500,000 elsewhere if you buy |
| One-off programme fee | RM1,000 | RM5,000, non-refundable |
| Income test | None | A pension or income of RM10,000 a month (RM15,000 with a dependant), or savings of RM100,000 (RM200,000) |
| Sponsor | None; a licensed agent files | A Sarawak sponsor or licensed Sarawak agent, who signs a bond |
The federal terms are in what MM2H asks of a retiree. Sarawak’s are in the Kuching programme’s rules.
The cost of the federal home
The compulsory home carries two sets of charges on top of its price. For the Silver minimum of RM600,000:
| Charge | Amount |
|---|---|
| Federal stamp duty at 8% for a foreign buyer | RM48,000 |
| Penang: RM10,000 application fee and 3% levy | RM28,000 |
| Melaka instead: RM5,000 processing fee and 3% approval fee, minimum RM30,000 | RM35,000 |
In Penang or Melaka the cheapest federal home therefore costs about RM76,000 to RM83,000 above its price, before legal fees. In Selangor’s Klang Valley districts and in Johor you cannot buy it for RM600,000 at all, because the state floors are RM2 million and RM1 million. The detail is in the 8% stamp duty rule, Penang’s floors and levies, Melaka’s rules and minimum fee and the Selangor and Johor floors.
Sarawak requires none of this. If you rent, the upfront sums are the deposit, the RM5,000 fee and the sponsor’s bond.
What comes back, and when
Federal deposit. Half of the US$150,000 can be withdrawn after approval, and buying the home is one of the permitted uses. A Silver participant can keep US$75,000 on deposit and put the other half towards the house. The house itself does not come back: you cannot sell it for ten years except to buy a dearer one. Nor do the RM76,000 or more in charges paid to buy it.
Sarawak deposit. At least RM250,000 stays in the fixed deposit for as long as you are in the programme. You can draw the rest after a year, but only for a house, a car, medical care or education in Sarawak. When you leave, the deposit is released after you terminate the pass.
Which suits whom
Federal Silver suits someone who wants to own a home in Malaysia anyway, will commit to one city for a decade, and would rather hold US dollars on deposit.
Sarawak’s programme suits someone who wants residence without property, can leave RM250,000 untouched, has a pension or income at Sarawak’s level, and will spend at least 30 days a year in Sarawak.
Before you move a six-figure sum, ask the receiving Malaysian bank how it wants the fixed deposit funded. Compare what the conversion costs against your own bank’s rate for the same amount. Whether you want to buy a home decides most of the cost, so settle that first. The retirement planning sequence for the region sets out the order.
See what a deposit in US dollars or ringgit costs you before you commit (affiliate link)