Press Release by Juwai IQI : Malaysia Increases Foreign Homebuyer Lead Over Asean Competitors, Investment To Climb in 2025
Malaysia has maintained its advantage against regional competitors in the competition for international property investment, according to insights released today by global property firm Juwai IQI.
Kashif Ansari, the company’s Co-Founder and Group CEO said, “The 9,815 holders of an MM2H, PVIP, or Sarawak or Sabah visa have poured a fortune of their own income into the economy of Malaysia by importing and spending locally an estimated RM5.1 billion (US$1.1 billion).
“That means foreign residents have spent as much in Malaysia as it would cost to build approximately 51,000 affordable housing units at a cost of RM100,000 each. I don’t want to suggest that’s a perfect comparison, because the RM5.1 billion represents spending rather than government income. Still, the comparison does show the scale and potential benefits of all that foreign capital being transferred from overseas to Malaysian businesses and consumers.
“When it comes to residential housing, foreign purchases are generally linked to part-time or full time residency. So every buyer, also spends a significant share of their income in local businesses. Economic and employment growth result.
All Announced Visa Approvals by Year
| Federal MM2H Approvals | PVIP Approvals | Sarawak MM2H Approvals | |
| 2018 | 5,610 | ||
| 2019 | |||
| 2020 | 60 | ||
| 2021 | 24 | ||
| 2022 | 408 | ||
| 2023 | 1905 | 28 | 540 |
| 2024 | 700 | 540 |
“That’s why we celebrated when the data suggested that Malaysia has increased its foreign homebuyer lead over its ASEAN competitors. Malaysia outperformed in two key areas: a stable property market and attractive visa requirements for businesspeople, digital nomads, and wealthy retirees.
“As a result, Juwai IQI believes foreign property investment in the country will likely climb in 2025.
“We calculated the spending total using officially announced approval numbers for the various visa programs. Note that for 2024, we used a conservative estimated number of 700 approvals for the federal MM2H program. We assumed each approved applicant became a resident in the year of approval and has remained so. We estimated annual per person spending at RM134,000 (US$30,000) based on research out of the United States about digital nomads average spend in their host communities.
Visa Requirements
“Countries all over the world compete to attract retirees, digital nomads, and business people to become new residents because of the economic benefits they bring with them. All Malaysians should know that investment visa programs such as MM2H are common around the world. Many countries offer them. In Europe, for example, governments earn approximately RM15 billion (€3 billion / $3.375 billion) in direct annual revenue from investment visa programs.
“The top groups participating in Malaysia’s visa programs are those from mainland China, the United Kingdom, other parts of greater China including Hong Kong, the United States, Singapore, South Korea, Japan, Australia, and Indonesia. That’s the recently announced list of top countries for the Sarawak MM2H program, and it closely matches earlier lists of federal MM2H participants.
| Country | Visa Program | Financial Thresholds | Max. Duration | Pathway to Citizenship |
| Malaysia | Malaysia My Second Home (MM2H) / Premium Visa Program (PViP) | RM40,000 monthly income; fixed deposit from RM500,000 | Permanent Residency | No |
| Thailand | Thailand Elite Visa | Up to RM650,000 membership fee for 20-years of visas | 20 years | No |
| Indonesia | My Second Home Visa | RM581,000 in Indonesian bank accounts | 5 or 10 years (renewable) | No |
| Cambodia | Cambodia My Second Home (CM2H) | RM447,000 in real estate investment | 10 years (renewable) | After 5 years |
“Here in the ASEAN, Malaysia’s federal visa offering is competitive with programs that are often considered as alternatives to it. Its financial requirements are moderate, participants can own their own home, and Malaysia offers a more attractive living environment than some less expensive alternatives. Sarawak and Sabah also offer MM2H visas with some requirements that are even more inviting than the federal option.
Returns on Investment
“Malaysia’s My Second Home visa gives foreign investors the opportunity to live in the country, but will their local real estate purchases turn out to be a good investment?
“The answer to the investment question is ‘Yes,’ because stable property prices position Malaysia as a comparatively safe market for investors seeking steady returns without volatility.
“The prime property that foreign residents most commonly buy in Kuala Lumpur compares well to international competitors like Singapore, Bangkok, Jakarta, and Phnom Penh.
“Singapore prime property prices climbed more quickly thank in Malaysia, by 4.4% over the past 12 months. However, the city state’s stiff 60% Additional Buyer’s Stamp Duty discourages foreign buyers who don’t have permanent residency. We also believe that Singapore may further discourage purchases by enacting new market cooling measures in 2025.
“Despite the high Additional Buyer’s Stamp Duty on foreign buyers and second-home buyers, Singapore for now still leads in luxury property demand. In November, buyers snapped up more than 2,400 new private homes according to preliminary data, which would it the fastest-paced month in more than 10 years.
“Compared to Singapore, Kuala Lumpur has stable prime home prices. That stability is an advantage compared to Bangkok, which is a more evenly matched competitor than Singapore for KL in many ways. In the Thai capital, because of oversupply, prime prices fell by -3.9% in the 12 months to June 2024.
“In another competing ASEAN global city, Jakarta, prime prices were nearly flat and climbed just one-tenth of a percent in the past 12 months. Our analysis is that Indonesia shows affordable housing growth but is a riskier market for international investors.
“Cambodia also offers an affordable investment visa, but the country is less appealing from a lifestyle and regulatory standpoint than Malaysia.
| City | Country | Prime Property Price 12-Month % Change | Outlook |
| Kuala Lumpur | Malaysia | 0.00% | Stable with slight upward potential. |
| Singapore | Singapore | 4.40% | Steady demand, high competition for prime properties. |
| Jakarta | Indonesia | 0.10% | Modest growth expected, bolstered by urban development. |
| Bangkok | Thailand | -3.90% | Sluggish market due to oversupply and slow recovery. |
Source: Knight Frank Prime Global Cities Index
2025 Forecast
“For 2025, our Malaysia foreign home buying forecast is for an increase, although at a sustainable rate of no more than 5%. Next year, foreign holders of Malaysian investment visas will spend at least another RM166 million in the country, contributing further to the economy. Top buyer groups are likely to remain unchanged, with those from mainland China and greater China leading the list.”
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